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<br />U;urr:oaNt CovsrraNrs. Borrower and Lender covenant and agree as follows:
<br />i-Payment'of Prirrcipalaod interest. Borrower shall promptly pay when due th^_ principal of andinterest vn'the
<br />indebtedness evidenced by the Note, prepayment. and late charges as provided in the \ote, and the principal of and interest
<br />~. ~ on any" Futare Advances secured by this Mortgage. '
<br />2. Funds for Taxes and: Insurance. Slrbject to app(icablelaw ar to a written waiver by Lender, Borrower shall pay
<br />to Lenderpn thedaymonihlyinstallmentsof principal and interest are payable tmderthe Note, until theNote ispaidin full,
<br />-' a stun (hereid "Funds") equal to one-twetfth of the yearly taxes and assessments which' may attain priorin'' over this
<br />Mortgage;and groundrents onahe Property;if any, plus ore-avelfih ofyearly premium installments for hazard insurance;
<br />plus one-twelf[hpf yearly premium. installments for mortgage insurance, if any, all as reasonably estimated Initially and from
<br />time totimeby Lender onahe basis ofassessments and bills and reasonable estimates thereof:
<br />The Funds shall be held in an institution the deaosits or accounts of which are insured. ar guaranteed, b}' a Federal or
<br />state agency (ineludingLender if Lender is such an institution). l..ender shall apply the Funds to pay said rases: assessments,:
<br />insurance premiums and ground rents. Lender may not charge for sn heldiag and applying the Funds, analyzing said. account, :
<br />or verifyingand compiling said assessments and bills, unlessLenderpays Borrower interest on the Ftinds and' anplicablelaw
<br />permits Lender to 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 shallbe paid to Borrower, and unless such agreemem is. madeor appiicatile taw
<br />_ requitessuch interest to be paid, Lender shall not be required ?o'pay Borrower any interest or earnings on. the Funds. Lender
<br />shallgive~to Borrower, wi[houtcharge. anannual accountinaof'theFunds showing credits and debits-.±o the Fitnds and the'
<br />' purpose for which each debit [o the Funds was made. The Funds are pledged as additional security for. the sums secured.
<br />by thisMortgage.
<br />If the amount of the Funds held by Lender, tpgether with the future. monthly insraliments of Funds payable prior to
<br />the. due dates oftaxes, assessments, insurance premiums and ground rent;; shall exceed the amount required to pay said. taxes.
<br />assessments, insurancepremiums and ground rents as they fall. due, such e~ccss shall be, at Borrowers opdon,eithpr.
<br />.promptly. repaid to Borrower or credited to Borrower on monthlyinstahments of Funds. If the amount of the Funds`'
<br />held by Lender shall. not be sufficient to pay taxes. assessmens. insurance premiums and ground. rents as they tali due,
<br />Borrowesahall payto Lender an}' amountnecessan• to make up the Jeticiency within 30 davsarom [he date-noiiceis marled '
<br />by Lenderio Borrower requesting payment thereof.
<br />Upon .payment ip full of all samssecuredby this Mortgage,'Lendershail promptly refund tv Borrower any Funds :
<br />held by [;ender, If under paragraph 18 hereof thePropertv is sold i:r she Proacrty is otherwise acquired by Lender. Lender
<br />shall app]y, no later than immediately prior to +.hesale of the Pmper[v on its acquisition by Lender: any Funds held by
<br />Lenderat the time of application as a credit against the sums secured by this Atattgage.
<br />3. Applicaiionof Payments. Lniess applicable law piovides otherwise. all paymc.nis received by Lender tthdcr. the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to lender by Borrower
<br />underparagrapfr thereof, then to interest parable on the 'vvte.: Then to the principal of the More, and .then `.o interest and
<br />principaLon any FutturAdvances.
<br />4. Charges; Liens. Borrower shatlpayal! taxes.. assessments cad other hares. fines and ;mpositions attributable to
<br />the Propertywhieh'may attaina priority over this Mortgage: and ieasenetd payments or. ~rnund rents. rt any, in_[he manner -
<br />pmvided'ttnder paragraph 2 hereof or.. if not. paid inauch manner, by Borrower makin, papment..when due: directly. to the
<br />payee thereof. Borrower shall promptlyfurnish to Lenderatl notices of amounts due tmderihis paragraph,: and in theevent
<br />Borrower shall make gayment directly; BoerowecshatL promptly furnish to Li:ndcr receipts evidencing, such payments.
<br />Borrower shallpromp[ly discharge env lien which has priority over thisStortgage: provided: that Btxrowei shall norbc
<br />required to discharge any such lien so tang as Borrgwcr shat} agree ir.ecritmg to the payment of the ohli,auyn ~ecure~ by
<br />such lien in a manner acceptable to Lender, c?r shall in good faith contest such lien by, or defend enlorccmcnt ut such tier, in.
<br />legal proceedings which: operate to prevenrthe enforcement of the lien err torfeiturrof the. Property vrany part thereof.
<br />5. Hazard T.[surance. Borrower shall keep tfieimpmvements n,>•.a~ exisnng ur hcrcatter reeled vn. the-property insured
<br />against toss byfire, hazards included within iheterm "oxtended en rage". snduch other hazards as Lender ntay~ require
<br />and in such amountsand forsuehperiods as Lender may require; provided. that Under shall not reyuireihat the amount of
<br />such coverage exceed thatamounrof coverage required to pay the ,ums secured i?y this Mart age.
<br />The insurance cazrier,providingtheittsurance shat bechosen ,by Bormwc.* subjer_t to apprnvai ba t.endcr: provided,
<br />that such approvalshall noCbeunreasonably withheld. All premiums on insurasrcepolicies shalt 've paid rrr the manner
<br />providedunderparagraph thereof or.iE ttotpaidin suchmarner, by Borrower making payment. when due iirecdy to the
<br />_ insurance carrier:
<br />All insurance policies and renewals thereo€ shall be in form accepurblcto Lender and shall in~laoc s stuitdard mor _:uze
<br />clause infavor of and inform acceptable to Lzndez', Lender shall havethe riglicto held the pvlicres zndr..~.cw.:r.- theic,~.
<br />and Borrowershal! promptly furnish to Lender all rcnewa3notices and all teccipts :il' paid premiums. I,; the event nl 70•,
<br />Borrower shall give promprnotiee to the insurance carrier and.Lerrder. Lender mac. make pr<u?f c>f Ices it, n(t! 'trade pnxnptly
<br />by Borrower.
<br />Un[ess Lenderand Borrower otherwiseagiee in w~rning, insurance proccuis shall: be applied ;n rcnoraut-t: arrapatr of
<br />the Property damaged; prvvidedsuch restoration or repatr is economieai{y ieesib}e :a;?d the.e::utnvoflhis :tifartgagc
<br />not thereby impaired. If such restoration orrepatr is not ccvngm ally tcasible or. ifthe secui~it} of thisMdrtguge wbtild
<br />be rmpaged,-the insuragceproceeds shall beapplied :othe sums secured. by this Mortgage, wwith the excess, if ant-. hold
<br />'.. toBorroweC liihePrppertc. isabandonedby Borrower, or it Bcrrcwer faih to respond ^a herder within 3t7 day's i«,m the.
<br />date notice is mailed by Lender to Borrowei that the insurance carrier oTers io settle a claim fo; s:nurancc benefits, .Lender
<br />is authorizeAae collect and apply theinsurance proceeds at 1:cndu'soptivn either to restoration or repair .~f the i'mpcny
<br />or to the sums secured by this Mortgage.
<br />UnlessLender ahdBorrowerotherwisz agree in writing- any such application of proceeds tonncipal shall not extend
<br />ocpostponetheduedate of the monthly installmems referred to tin paragraphs r chef ? herer,f or ehangaihe amrtut[ of
<br />such installments. Ifnnder paragraph 1S hereof theProperty isucyuiredby Lender, alt fight; t;ile and interest of Borrower
<br />in and3o and' insurance policies and inand to theproceeds thereof resulting f7om. damage. tv 31ne Propert}• prior to the sale
<br />or acquisitienshall pass to Lender to thee.tent of rite sums'securedby this Mortgage immedi'steh prloru+ such sale or
<br />acquisition.
<br />6. Preservation andMaintenance of Property: Leaseholds: Gandominiums: Planned Unit Developments. Borrower
<br />shall. keep the :Property in good repair and sha1F opt cpmmit waste or permit impairment: or detericraticn. of the Property
<br />andshall comply-with the provisionsof any lease if this Mortgage is-ono leasehold. If this Stn t_age soil a anti is a
<br />condominium araplaonedunitdevelopment, Borrower shatlperfprni alLoc Borrower's ctiiigationsunder thedeclaratio^
<br />or-covenants ereating_ar gpvernfng the evndominium or planned nnir development; the by-laws andregulations Hof the
<br />.condominium or planned unit development, aadcanstiment documents. IT a condominium or armed °,mtt development
<br />7ider is-executed by Sprrowerandrecorded together with this Mortgage, the covenants and agceerncnts of ;ucb. rider
<br />shall be incorporated,into and shall amend and supplement xhe cocenanu wind agreements of this Mcrtgagc as itahe 7ider
<br />were a part hereof.
<br />?. ProtecSpnof Lender'sSecnrfty,'If Borrower fails topcrform the covenants and agreements rontaiaed in this.
<br />Mongage; gar if coy. action or proceeding is commenced-which materiallyaffects Lezider ~nte;esr in the- i'ropeny,
<br />including, but nptJimitedto, eminent domain, insoh-ency, code enforcement, orarrangemcnuor proceedings involahtg.a
<br />bankrupt or decedent, then bender at Lender's option, upon notice to Bvrrowcr, ma}° n'mke +:ucb zppeararacas, disbu[se such
<br />sums.and take such. action as. is necessary to .protect Lenders interest, including, but nca linvted to, dsbursameat of
<br />reasonable: attorney's fees and zntry upo^ the Property. to. mak r'~p, ins. Tf Lender rayidred me+rtgags: r aratrcr; as a
<br />conduionof making he loan secured by this Mortgage. Borrower shalt pay the ptom~ums ^cquire<1 to maintain such
<br />insurancein effect unNtsuch time as the requirementEor suchinsttrance terminates to ~tecordancr. ~?ith r3o.owcr's and
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