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<br />17x[roxst Cov€tv,vtvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promp lv pay v~hen due the principal of and interest on the
<br />indebtedness evidenced by ttieNote, prepayment and late charges s provided in the Note, and the principal of and interest.
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Taxes and Insurance, Subject to applicable law or tea •.vritten waiver by I-ender, Borrower shalt par
<br />to Lender on theday monthly' installments of principa! and interest arc payable under the dote, until the Note r, paidir foil,
<br />a sum (herein "Funds") equa]to one-twelfth of the yearly taxes anti assessments .rhich may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of czarly nzzmium installments fcr hazard insurance.
<br />plus are-twelfth of g~early premium installments for moneage insurance, if any, all as reasonably estimated initially and from
<br />. time to time by Lender on the basis of assessments and bills and reasanabla estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guarantied 6y. a Federal or
<br />state agency (including lender if Lender Ps such an institution). Lender shall apply the Funds to pay saidta.ees, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Foods, analyzing said account;
<br />or verifyingand compiling said assessments andbills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />permits Lender to make such a charge. Borrower and 1_ender may agree in writing at the time of ezecininr. oi'this
<br />: Mortgage [hat interest nn [he Funds shalt he paid to Borrower, anti ^nless such agrecmznt is made oc aipplicable taw
<br />requires suchinteresf to Fre paid, Lender shall not be reau;red ic? pa}' Borrower any interest or zarning~ on the Fdnds: Lender
<br />shat! give Io Borrower, without charge, an annual accounting ~rf :he Funds shnwin~credits nod: debits to the Funds and the
<br />purpeseforwhich each debit to the Funds was made. The Funds are piedgzd as additional security for the sumsaectired :
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender,. together will: the future monthly insta(imems of Ftmds payabty prior in
<br />[he duedatesof taxes, assessments, insurance premiums and groundrents, shall axceed the amount required to pay said taxes,
<br />assessments, insurance premiums and groLmd rents as they fall doz.. such excess chail be, at Borrower's .?j?tion, eithu -
<br />promptly repaidto Borrower or. credited to Borrower on monthiv mstallments ofFunds. if the amount ofthe Funds
<br />held:hy Lender shall not be sufftcientto pay taxes, assessments. insurance premiums and ground tens as they:fall due.
<br />Borrower shallpay to Lender an}' amount necessary to make up the deticiencv within 30 daysfrom the date noticcis mailed
<br />byLenderto$orrower requesting payment therebt.
<br />Uponpaymentinfull of alt sums secured by this Mortgage. lender shad prompth• rehmci [n Borrciwea any Funds
<br />held by Ixndet. If under pazagraph iR hereof the Property is sold or the Property is otherwisz acquired by Lender, I:.ender
<br />shall apply, no later :han immediately prior to the. sale of the Propertc or its :ugaisition by Lender, any Funds kteld by
<br />Lender at the time-of application as a credit against. the sums secured by this Mortgage.
<br />3.ApplicationofPaymems. Unless applicable law provides otherwise, all payments received by Lcnderander the
<br />Nate and paragraphs I and 2 hereof shall be applied. by Lender 5rst in navment of amounts pa}'able to i.znder by Borrower
<br />under pazagraph 2 hereof, *.hen [o interest payable on the Vote, then to thc.principaCof the Notc. and then tn. interest and
<br />principal on any Future Advances.
<br />4. Charges:Lieos.Borrowershall pay all taxes, as-cessmznis anoother charges, floes and imnasin,~nsattribu*,able to
<br />the Propterty which may attain a priority over this Mortgage. and leasehtld payments nr ground rents: if Ymy, m the manner
<br />provided under pazagrapl[ 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
<br />payee-thereof.. Borrower shall promptlyfurnish'to Lender ail nohccs of amounts due under this paragraph, axid itr the event
<br />- Borrower shall. make payment directlp,Borrawer shall promptly furnish taLender receipts evidencing suchpayments.
<br />Borrower shall promptly discharge any lien which has priority over !his Mortgage; provided. that Borrower shalt not 'ce
<br />required. to discharge any such9ien'so Fong as Borrower shat! agree in writing iothe payment of the obligation secured Icy
<br />such lien in a manner acceptableto Lendek or shat! in good faithcontest such lien hy; or defend enforccrnent o£siicfi lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or fortenure of'the Property ~r any path thereof.
<br />5. Hazard Insurance. Botrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire. hazazds included withinthe term"extended coverage". and: such other hazards as Lender mzv rccmze
<br />and in such amountsand for such perio[isas Lender may require; pri,?vided.. that ,Lender shall not req,itire That the :imnuitt of
<br />suck coverage exceed that amount of coverage required to pay the sumssecuzed bgthis_R7ortgage.
<br />The insurancecarrierprovidingthefnsurance shall be chosen fiyHorrowets'ubject to approvxl'by Lender; provided;
<br />that such approval shall not be unreasonably withheld .Ali premiumsoninsurance policies shall be paid in the manner
<br />providedunder paragraph thereof or, if norpaid insuch manner, by Borrower makivgpaymenLwhch due, directtyto the
<br />insurance carrier.
<br />Allinsurance policies and renew:dsthercof shall hr in form acceptable to Lender and shallincludc a standard mortgage
<br />clause in favorof andin form acceptab}eto Lender, l.enderhall have the right to hold the policies ~rnd. renewals thereof.
<br />and Borrower shallpromptlyfurnish to Lender allrenewal notices and alLreceipts of paid .premiums. In the evemof loss,
<br />Hormwer shat! give prompt notierto the insurance carrier and' i_ender: i_ender may rnake proof of lags f notmadc prc?rnptly
<br />by Borrower
<br />Unless Lender andBorrower otherwise agree in writing,insurance proceedsshaif be applied to restoration or repair of
<br />the Propertydamaged, provided. such restoration or repair is economically feasible and the security of this Mortgage +s
<br />not therebyitnpaired. Ifsuch restorationor repair is noteconomicaily teasibleor if the security of this Mortgage wou}d
<br />be impaired,.the insurance proceeds shall beapplied to [he sums secured by. this Mortgage, with the excess, if any, pard.
<br />[o. Borrower.. If the Property is abandoned by Borrower, or if Borrower fails to respondao bender within 30 days friirn the
<br />datenotice is mailed by Lender. to: Borrowez that the Irtsurance carrier otters tosettle a claim for insurance. benefits, Lender
<br />is authorized to collec[and apply theinsurance proceeds a[Lender'soption either totes[oration or repair. of the Prr+periy
<br />onto the sums securedby this.Mortgage:
<br />UnlessiertderandBorrowerotherwise agreein writing, any sudtapplicationof proceeds zo principal shalt not emend
<br />or postponethedue-date of the monthly iasta}]men[s referred [n in paragraphs rand 2 hereofor change the smount of
<br />such installments. If uoder paragraph 18 hereof [he Propeny 15 acquired by i.euder, all right, title and interest of Borrower
<br />inand'toaay insurancepoliciesandin and to the proceeds iheieof resaltingfrom damagetothe Propertyprior to the sale
<br />or. acquisition shalt pass to Lender to the extern of the sums secured by ihisMortgage immediately prior to such sale or
<br />acquisition-
<br />6. Preservation and Maintenanceof Property; Leaseholds; Condominiums; Planned Uri[ Developments. Borrower
<br />shalt keepthe Property is good repair and shall not commit waste or,permi[ impairment or .deterioration of the Property,.
<br />and shall comply with the provisions of. any'lease iE this Mortgage is on a leasehold. If this Mortgage is oa a unit in a
<br />condominium ora-planned unit deveiopmeni,Borrower shaft perform nit ofHorrower's obligations under. the declaration
<br />or covenantscreating orgoverning the condominium or panned unit develc?,pment, the by-laws and regulations of. the
<br />condominiwn or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by'Berrower and recorded. together with this Mortgage, the covenants and agreements of such rider
<br />'shall be incorporated :into azxd shat. amendand supplement the covenants and agreements of this Mortgageas. if the rider
<br />L were a part hereof..
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in :his
<br />blorlgage, or if any .action or proceeding. rs commenced which materially aifefits Lerders interest as thz Prope;rry,
<br />iocludmg, butrrotlimited to, emu[eot domain, insolvency, code enforcement, orarrangements or prxeedings involving
<br />ftankrupt or decedent, then 1-ender at Lender's option, upon notice to Borrower, cony make such appearances. disburse such
<br />suns and lake suck action as is. ^ecessary to protect Lenders interest, ixlnding, out tu>± limi ed ,+?, dirt+unement of
<br />reasonable attorney's. feag and entry t+pon rhz Property to make repai5_ It Lender req.d ref mortgage insurance a.
<br />- cuudition of making the Loan se..cured by this Mortgage, Bcxarwu shad3 pa} he premiums :'::q!rireci rn t aintain such
<br />. inauraitce in et~ect until such time as the requiremarrt f0[ such rnsuranee rerm+nates an nccesrdance ~.vith Beerawer`s and
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