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<br />: Uxtaoau.:Cov>ixaxTS: Borrower and Lender cavenant and :agree as follows:
<br />1. Pa}ment of 'Principal aodInteresi:. Bgrrowersfiall promptly pay when due the principal of and. interest ontbe
<br />- indetitedness:evidencedbu the Note, prepayment and late charges as. provided in the Note, and the principal of and interest
<br />on any Future.Advancessecured:by this Mortgage.
<br />2. Funds#or Taxes and htsurance. Subject to applicable. law or to a written waiver by Lender, Borrower shalt pay:
<br />to Lender on the daymonthly instalimentsof principal and: interest are payableunder the Note, until the Note'is paid infull,.
<br />a'stun (herein"`Funds''). equal to one-twelfth of the yearly taxes and assessments which may attain- priority over this'
<br />Mortgage, and ground renu on he Property, if any; plus one-twelfth of yearly premium installments for hazard insurance;-
<br />plusotte,twelfth:of yearly premiuminstallments for mortgage insurance, if any,'all as reasonably estimated initialh~ and_from:
<br />timeto time: by L.enderon the$asisof assessments and bills and reasonable estima[esthereof: .
<br />The Funds-shall beheld in an institution the deposits ur accoaats ai which are insured ar guaranteed by-a Federal or
<br />'stateagency(indud"mgLender if Lender. is Buchan institution). Lender shallaoplyttie Funds topaysard taxes,assessments;
<br />:insurance premiums and groundrents. LendeCmay. not charge Torso holding. and applying the Funds, analyzingsaid account.
<br />or verifying. and compilingaaid assessmentsandbills: unless Lender~paysBorrawecinterest on. the Fundsand applicable law.
<br />permits Lenderto make such. a charge. Borrower and Lender may agree in writing at the time of execution of this'
<br />Mortgage that, interest on the Funds shall be: paid. to Borrower, and unless such agreement is-made or applicable-law
<br />requires such interest to be paid,. Lender shall eat be required to pay Borrower any interest of earnings. on the Funds. Lender.
<br />'sFiallgive4o:Borrower;withoutcharge, an annualaccountingroftheFundsshowingcreditsand'debitstotheFUndsandtfie
<br />purposefar which each debit to the Funds was made. iheFunds. are p!edged,asaddi[ronai security for the sumssecured
<br />by ffiis bortgage.
<br />If the amount of the Funds held by Lender, together. with the future monthly installments of .Funds payable prior to
<br />the due dates ofitaxes;.assessments, insurancepramiums and ground rents, sbatl exceed the amount required to pay said aa_xes,.
<br />assessments; insurance premiums"and ground rents as 2hev fall due: such excess shall ' be, at Borrower's ciption, either-
<br />promptly! repaid to Borrbv+eror credited to Borrower on'monahly installtnents of Funds If the amount of 4fie Funds
<br />held`by d:endershall not-be sufFicient to pay rases; assessments, insurance premiums and ground rents as they fall due,
<br />$orrower shallpay toLender anyautouni necessary to make up the de6ciencywixhin 30 daysfrom the datenotice is mailed-
<br />by Lender to Borrower requestin¢ payment thereof:
<br />Upanpayment In full of alVLsums'secured bythis Mortgage. Lender. shall promptly refund io Borrower any Funds
<br />held by Iznder. If under paragraph-lfi hereof the Property is soldor thePropertvis otherwise acquired by Lender, Lender
<br />shag apply, no lacer than immediatel}• prior to the sate. of the Property.:~ir its acquisition by Lender, any Funds held"by
<br />Lenderat the tune of application as a credit against the sums-secured by this tM1tortgage.
<br />3. Application of Payments. Unless applicable law provides gthenvise. `ail payments received by Lender under the
<br />Note and pazagraphs and 2 hereof shall be applied by :Lender first in paymem of amounts, payable m Cender bg Borrower
<br />underpazagraph2 hereof,.thenao interestpayable an the Note; then toahc principalbfihe Note.and then totnterestand.
<br />principai:on any Future Advancrs:
<br />- 4. CTtarEes; Liens.-BorroweYShalL pay alt iaxes,assessments and othercharges::fines and'impositionsattrtbutabletn,
<br />therProperty which mayattain'a priority over ehis Mortgage, and leasehold pay7rients or ground rents. if a[.; is the'rnanner
<br />provided under paragraph 2 hereof or: if not paid in such tnanner: by Borrower making paymem; when due; directlc to the
<br />payee thetof: Borrower shall promptlyfurnish to Lender ail notices of amounts due .under this paragraph: and' in the event
<br />Borrowershall make. payment directly, Borrower shall prompt3y furnist: ao Lender receipts evidencing Stich payments.
<br />Borrower shall promptly discharge ,any lieh which has priority overthis'Mortgage; provided; that Borrower shall-eat be
<br />required o dischazge any such lienso long as Borrower shall agree in writing to"the payment of'the gbligaticin secdred h~
<br />such lien in a tnanner acceptable io Lender, or shall in good:faith°eontest such lien hy; or de[end enforcement M Barb' lien in,
<br />legal proceedings which'operate:to prevent the. enforcement of the lien ar forfenure of the: Property or any partihereof.
<br />3. Hazud Iasuraoce. Borrower hall keep the impravements now existing or iiercaftcreretitcd on the Property insured.
<br />against loss byfire, hazards included within the term "extended coverage"~ and such othel hazards as Lcnder_ may require
<br />and in such amounts and for such periods as Lender may rgquire; provrued;'that Lender shat! norrequire tbat the amount of
<br />such: coverage, exceed that amount of coverage required is pay the sums .orated by this Mongage.
<br />The insurance carrier providing the insurance shall be chosen. by Borrower subject to approval by Lender, provided.
<br />thatsueh,:approval shall'notbe. unreasonably withheld.. -Allpremiumscminsurancepolicies shall be paid n`the manner
<br />provided under paragraph Z hereof or: tf not paid in such manner; by Borrower making payment; when due, directh• to the°
<br />insurance cazrier.
<br />All insurancepolicies and renewals thereof shall be: informacceptable to Lender and shat[ incltidc e: standard mortgage
<br />dause in favor of and in form acceptable to Lender. 9_cnder shall fiave the right to hold the pdiicics and ronewals thereof.
<br />and$orrowershall promptly fprnishta Lender all renewal notices.and alt receipts of paid premiums. In the event of loss...
<br />Borrower shall give: prompt noticetothe insuranc;ecarrier and Lender. Lender mayanakeproof of loss it nottnade promptly.
<br />by,Borrower.
<br />-Unless .Lender and~Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />[heProperty damaged,;provided such restorationor iepair is-economicittty feasible and he security of this.~lodgage Ss
<br />.not'thereby impaired..Ifsuchsesmrauon ar:,repair is not economicallyfcasible erif the-secunidot this 11or[gage wauld:-
<br />be impaired, the insurance ¢roceeds.shall tie-applied io the sums secured by-this Mortgage: with the excess, if srm~; paid
<br />to Borrower. if the Property is abandoned by Borrower, or it Borrower fails to respand :o i.ender within 30 days fn~m?the
<br />' dateno[ice ismailedby Lenderto Borrower that the insurance carrier offers-to settle a claim for"inwrancebenefits, Lender
<br />is`authorizedaocollect attdapplytheinsurance„nroceeds a[:Lender's option eitherto resiora[ion orrepair ottbe Property
<br />or o the sums secured by this Mortgage.
<br />Unless-Lender and Borrower otherwise agree rn_writing:any such applicationof proceeds to principal..shali nee extend.
<br />orpostpanethe due date. of the tnonthly,iastailrnents referred,to in paragraphs ?and 2 hereof or change t}ie amnun[ af'
<br />such installments: If under pazagraph fi hereof the Property rs acquired by Lender, ail. tiger; title and interesbof $orrower
<br />is and to anyyinsurancepolicitss andin. and to the proceeds thereof resulting frorn damageto the.Properry prior io the. sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this `lorteage inmtedia[eiy prier to such. sale or'
<br />acquisition.
<br />6. Preser.^atiou and 3faintenance pf Properly; Lzaseholds; Condominiums; Planned Unit Developments: Borrower
<br />shall keep the Property in good repair and shall. not. commit .waste ar permit impairment or deterioration of the Property.r
<br />andshall comply wit6theprovisiotas otrany lease tt this Mongage SS on_a leasehold. if this Alorigage is on.i unit iaa
<br />condominmm or a planned unit development; Borrower shall. perform all of Borrowers obligations under the declaration
<br />or covenanis:creatrng brgoverning the. condominiumor planned anti development, the by-laws: and Icgiiiettans of .the
<br />condominiumor planned unitdevelopment; and constimensdoeumenrs. If a condarninium or plannedimit cievelopntent
<br />nderis esecuted by Borrower and aecordedtogeihet with. this Mortgage;. .the. covenants and agreements of:;uchridei
<br />shall ie incorporated rgio and shall amend and supplement [he covenants and agreements of tfiis lvtoagage as tf the rider
<br />weres pan hereof.
<br />7. Protection of Lender's Security. 1f Borrower-fails to pi:rform the:-covenants and agreements cootained,;n this
<br />Mortgage, or'if:aay action or proceeting is commenced which 'matenally affects-Lenders interest in the Property,
<br />including, but not limited to. eminent domain, insolvency, mde enforcement, ar arrangements or; proceedings: involving; a
<br />bankrupt or decedent, thenLender at Leader°s apuon; upon noticeip Borrower; mss make such appearances, ciishur:cueh
<br />sums:.and takesuch action as isaecessatytoprotect.Lerder's interest, including,. but not limited to, disbursertentof
<br />reasonable a[totney'sfees and entry.,upan thePropenyzo makerepatrs. lf`1Lcnder requred mongagc insurance as ::
<br />conditian of making the loan secured by this Mortgage, Borrowcrshall pay the -premiums requiredto mainufin such.
<br />insurance ut effect until such time as the requirement for such insurance terri}rnates n accordance' wid~t Borrowers .gird
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