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<br />Utttraii~t Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />I. Ptrymeat of Pdac~tal atl interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the. Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Ftrture Advances secured by this Mortgage.
<br />2. fltreda for Tales sad Iswrrasee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on tbe day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a s»m (herein "Ftmda'~ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents oa the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus o~-twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be head. in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (inchiding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding 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 />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 shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall rtot he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose.for which each debit to [he Funds was made. The Funds are pledged as additional security for- the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, rogether 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 />assessments, insurance premiums and ground rents as they fall due, Bach excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Barrower 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 />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender [o Borrower requesting payment thereof.
<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 pazagraph I S hereof the Propert}• is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Properly er its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applieatioo of Payments. Unless applicable law provides otherwise, all payments received by Lender under [he
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable un the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Barrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in [he manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shalt not be
<br />required to discharge nay such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any- part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amamt of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The-insurance cazrier providing the insurance shall be chosen 6y Borrower subject to approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided tinder pazagraph 2 hereof or, if not paid in such manner, by Barrower making payment, when due, directly to the
<br />insuuance carrier.
<br />AB insurance policies and renewals thereof shall 6e in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />and Borrower shalt promptly furnish to Lender all renewal notices and alt receipts of paid premiums. In [he event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the inswance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower [ails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim For insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the loins secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs land 3 hereof ox change [he amount of
<br />stick installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propetty prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this !vtortgage immediately prior to such sale or
<br />acquisition.
<br />- 6. Pteservtttlon-nod Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shag keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and sbalt mmply with the piovisitina of any .ease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium or a planned uait.dovelopment, Borrower shall perform all of Borrower's o6ligaiians under the declaration
<br />ar covenants creating ar governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium of planned unit development, and constituent documents. if a condominium or planned unit development
<br />rider is. executed by Barrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />atiali be irtcorporated into and shall amend and supplement the covenants and agreements of this Mortgage as tf the rider
<br />were a part hereof.
<br />- ?, lRodecUo4 0[ tender's Security. If Borrower fails to perform !ht covenants and agreements contained in this
<br />Mortgaq~ or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />itxluditig, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pm.cedin$s involving a
<br />Itankrupt or decedene, then Lender at Lender's option, upon notice to Borrower, map' make such appc.- es, disburse such
<br />surne and take st~h ata~ as is necessary to protect Lender's irtcrest, including. but not limited i~--. disbursement of
<br />rtittsonttbIs attorney's fees and entry upon rho Property to make repairs, If t.endor required mart$a$e insurance as a
<br />condition of makind ehr lean secwed by this Mortgage, llarsower shalt pay the premiums required to maintain such
<br />iastirimoo in eilect tmeil such ti+ue as ilte requirement for such insuranee terminates-in accordance wish Borrowers and
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