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<br />UxmottM Covetvnxls. Borrower and Lender covenant and agree as follows: 8G ^~ f f ~~ ?~
<br />1. Payoteot of Principal sod Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepaymtnt and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured b}' this Mortgage.
<br />2. Fonda for Tuts aad Imotttttie. Subject to applicable law or to a written waiver by Lender; Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full,
<br />a stmt (herein "Funds") equal to one-twelfth of [he yearly taxes and assessments which may attain princely over this
<br />Mortgage, and ground rents on the Property, if any, plus nne-twelfth of }'early premium installments for hazard insurance,
<br />plux one-twelfth of yearly premivnt installmenzs for mortgage insurance, it' any, all as reasonably estimated initially and from
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />'I]te Funds shall be held in an institution ilia deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such aainstitution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so bolding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permizs Lender to make such a charge. Borrower and Lender nray 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 not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without chazge, an annual accounting of the Funds showing credits and dehizs -to the Funds and the
<br />purpose far which each debit to the Funds was made. 'Rte Funds are pledged as additional security for the Burns secured
<br />by this Mortgage.
<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 of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />nssessntenu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly ,-apnea to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />$orrower shall pay to Lender any amount necessary m make up the deficiency within 30 days from the date notice is mailed
<br />by Linder to Borrower requesting payment thereat.
<br />Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Property is otherwise aaluired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Progeny or its acquisition h}• Lender. nay Funds held 6y
<br />Lender at the time of application as a credit against the sums secured by this bortgage.
<br />3. Application of Payments. Unless appficable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs !and 2 hereof shall be appbed by Lender first ir. payment of amounts payable to Lender 6y Borrower
<br />^nder paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lkas. Borrower shall pay all lazes, a>sessments and other charges, fines and impasitions attributable to
<br />the Property which may attain x peiority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if not paid in such manner. b} Borrower making payment, when due, directly to the
<br />payet thereof. Borrower shall promptly furnish ur Lender aU notices of amounts due under this paragraph, and in the event
<br />Borrowror shall make payment direcgy. Harrower >hall promptly ninrish to Lender reciip[s evidencing such payments.
<br />Borrowtr shall promptly dixharge any Len which has pnority over this Martgage; provided. that Horrnwer shall not be
<br />required to discharge any such lien so Wng as Burrower shall agree m wrung to the payment of the obligation secured by
<br />such lien in a manntr acceptable to Lender, or shall in gaxi faith cumest such hen by, or defend enforcement of such lien in,
<br />ltga! proceedings which operate to prevent the enforcement of the Isen ur iurternae of the Property ar any part thereof.
<br />5. Ilazard Insurance. Burrower shall keep the improvemem> now avsung or hereafter crested on the Property insured
<br />against loss by fire, hazards included within the term "eztende:d coverage'. and such other hazards as Lender may require
<br />and in such amounts and far such periods as Ltndir may rrywrr, p:nnded, that Lender shall not require that the amount of
<br />such rnverage exceed that amount of coverage required to pay [he win, >erurcd by thss Mongage.
<br />'ibe insurance carrier providing the insurance shall tx chaser by 8ornrwer subject to approval by Lender; provided,
<br />that such approval shalt not be unreasonably withheld. All premium> on insurance palicies shall he paid in the manner
<br />provided under paragraph 2 F,ereof or, rf rat paid in such manner, by Harrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall tee in fame acceptabk• to Lender •md shall include a standard mortgage
<br />clause in favor of and in form acceptable to Linder. Lender vhali have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal nuvices and all receipts of paid premium>. In the event of less,
<br />Borrower shall give prompt notice to the insurance earner and Lernlir tinder ma} make pnwi of lass if not made promptly
<br />by $orrower.
<br />Unless Lender and Borrawcr otherwise agree m wrung, insurance pnxrids shall be applied m restoration or repair of
<br />the Property damaged, provided such re>tarau<»t ar repair is icumrmicaliy rrasible .+nd the security of this Mortgage is
<br />not thereby impaired. If such restoration ar repair is nut ceona»nically tiastble or s! the security of this Mortgage would
<br />be impaired, the inxurance proceeds shall be applied to the aw»s a+:cured toy this Mortgage, with the execs, if any, paid
<br />to Borrower, if the Property is abaudoneJ b} Borrower, ar n Borrowtr tail> to respond to I_endcr within 30 days from the
<br />data notice is rtwiled by Lender to Borrower that the iusuranci carrier afters to >culi a claim for imurance benifiU, lender
<br />is autharized to called and apply the iusuranci pra>ceeds at Lender's option either to restoration or repair of the Prolrerty
<br />or to the sums secured 6y this Ivtongagi.
<br />Utdess Lender and Borrower otherwise agree m w-citing, any such application of prceeeds to prncipal shall not extend
<br />or postpone the due date of the monthly instalments referred [o in paragraphs l and '_ hereof or change the amount o[
<br />such instailmcntx. If under paragraph i$ hereaf the Propicn is acyuurd by Linder, a(I right, title and incerist of Horrnwer
<br />in and to any insurance policies attd in and to the proceeds thereof resulting tram damage to the Property prior [o the sale
<br />or acquisition shall pass to Leodir to the extent ai the sums secured by thi> tilartgage immediately prior to such sale or
<br />a::.,.,
<br />~~6.. P[taervatioa and Maiofenance of Property; i.easelwlds; t'oodominirmu; Platuted Unit UevelopmenG. Borrower
<br />shalt keep the Property in good repair and shall not c~rrtmit waste cr permn impairment or deteriaralion of the Property
<br />and shall iontpty with the provisions of any lease it this Mongage a tin a kaschold. If tors Mortgage is an a unit in a
<br />condominium or a plarnid unit divelapment, Harrower >hall pirfoim all of Borrower's obliganons under the declaration
<br />or epvenaots creatirtg ar gevermng the ttnrdeminium ar planned unit diveAipntent. the by-laws and regulations of the
<br />canndamivium nr planoett unit deveiapmint, and constituent dwuminu. If a condominium er planrid unit devilopnrent
<br />rider is exeevied by Borrowtr and recorded tugeihir with :his hfortgagi, the cawenants and agreement: +~I >uch rider
<br />shall bt incorporated in[v amt shalt aa[end and ~upplcment the: cowinanes and agreimems of this Mangag+ the rider
<br />were a part hereof.
<br />1. Protecli~ of Leader's Sacwiry. If Harrower fads to per6rnn the tt:vinants and aKrgements c-.utainud sn this
<br />Mortgage, or if any aw'haA or praciedtng is c.»nnremid whrch materially atfectc Lt[icler's merest in chi P*uperty,
<br />includinY, but rent limiiod to, eminent domain. mscrlvenc}, ,real cn[arecmtnt, or arrrngeutints or prcuridings involvrng a
<br />Mnlirupf or deredeat, then Lander at Lender's upuar, upon natiet m Barrowct, may maki such appea~anias, d[sbar.e such
<br />wins and take soil[ artier as is naetssary to protect Lender's mtartst, snehrding, hat not. limned to, drcbursement of
<br />rtawttahk attorney's tats and entry upon the I'rapirt} u, nraki ripasrs. 3f t<rid<tr rayaiired munkagi insuranw as a
<br />condition ant making the lean ~aured hp this Mongage. Horraw-er shall paq [he nrertuunrs requrr+w:1 to manila+n such
<br />itputanct in eiftit until such dare as tM; rt'yuirernent far such Inauranc< tcnninaves ,n eccardancr wub H+>ra+wrr's and
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