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<br />L2NrPaaM CovaaEttazs. Borrower and Lender covenant and agree as follows:
<br />1. Payareat of Prhtetpal Interest. Bortaxver shall promptly pay when due the ;~rinrapal of and intereaf on the
<br />iadebtedaess evidenced by rite Note, prepayment and late charges as provided in the Note, sad fire principal of snot interest
<br />oa any Future Advances secured by this Mortgage.
<br />a. IEt for ~'~ ~~, .~,rb~ct ro atklicabla Ia°.v ar to a written tvaiver by Learler, Eotrawer shall pay
<br />to Lender on the-day monthly instailmerats of pri>raipal and interest are payable wader the Note, until the Nola is paid'in full,
<br />a atmi (herein "Funds"}.equal tq one-twelfth of the yearly taxes and assessments which may attain priority aver xhis
<br />MortgttgG, earl ground rents oa the Propetfy, if any, plus one-twelfth of yearly premium installments for haaard insurance,
<br />~7 phis o~-ta~ifth of yearly yrtemittm ir~al3ttttat+ far txnattgage insurance, if any, aB as reasonably ~titaated inidalty and from
<br />~ titrte to time lay Lezuler oa the baste of a~ssmetus and bills and reasoaabie estimates thereof.
<br />~j f ac Funds snail be held in an institur~on the deposits ar accounts of whiett are ittsur~ or guaranteed by a Fedzrsl of
<br />~~„ state agency (including Lender B Lender is such an imtittttion). Leader shalt apply the Funds to pay said taxes, assessments,
<br />~ insurance premiums earl ground Teats. Lender may not charge for so hcldiag and applying the Ftmds, anal7..iag said account,
<br />~ or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds sad applicable law
<br />permits Lender to make such a charge. Borrowe: and bender ;tray agree in writing at the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and- unless such agreement is made or applicable law
<br />regt»res such interest to be paid, Letrder shall not be requited to pay Borrower arty interest or earnings on the Ftmds: Lender
<br />~ shall give to Borrower, without charge, an annual accourning of the Funds showing credits end debits to the Funds and the
<br />t`` ~ ptarpose for which each dtbit to the Funds was made. '17re Funds are pledged as additional security for the autos secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Leader, together with the future monthly installments of Funds payable prior m
<br />[tae-due dares of taxes, asse~ments, insurance premiums and ground rests, shall exceed the atttotmt required to pay said taxes,
<br />asse4 ++ts, insurance ptenriums and ground rents as [trey fall due, such excess shall be, at $orrowet's option, either
<br />promptly iapaid to Borrower or coedited to Borrower on monthly installments of Funds. If the amount of the Fads
<br />held by Leader Mall sot be suf6rd~t to pay taxes, assessments, insurance premiums and gmtmd rents as they fall due,
<br />Borrower shall pay to bender any amount necessary to make up the de5ciency within 30 days from the date notirx is mailed
<br />by Leer to Borrower requesting payment thereof.
<br />Upon payment in full of all atlas secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Irndu. if ua~r paragraph lt3 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shah apply, no later than immediately prior to rite sale of the Property ar its acquisition by Leader, any Funds !rv!d by
<br />Lander at the time of application as a credit against the sums secured by this Mortgage.
<br />1. Apoa of Payments. Unless applicable Iaw provides otherwise, at} paytnems received by Ixttiler under il~
<br />Note earl paragraphs l sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />wader paragraph 2 hereof, then to interest payable on the Note, then to the principal o€ the Note, and then to interest atad
<br />principal on soy Futttte Advances.
<br />4. Charges', Bens, Borrower shall pay aU taxes, assessments and other charges, Ernes and impositions attributable tc
<br />the Properiy which tttay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof ar, if not paid is such manner, by Horrowee malting psymerrt, when dtte; direelfy fo-tire
<br />-payee thereof, Borrower shall promptly (ululate to Leader all notices of amounts due under thin-paragraph; and in the event
<br />Harrower shaA make paytaeot direc8y, Bariower shall promptly furnish to Leader receipts evideaciag stxh payments.
<br />Borrower shall promptly discharge arty lien which has priority over this Mortgage; provided, that Borrower -shall -non he
<br />riq~;red to di"~'mr;;~ ~y s-r~-lien so long ss Bawer shall ag.~z in writing tc the pay~m a# the ~tigati~n sceuted^ by
<br />such lien is a manner acceptable ro Leader, or ghall in-good faith cotrtest such lien try, or Mend enforcement of such ilea its,
<br />legal proceedings which operate to grevem the enforcement of the lien ar forfeiture of the Property or any part itureaf•
<br />3. I;<azard lee. Borrower shidt keep the improvements now existing or hereafter erected on the Pro~rty insuerd
<br />pga-~ teas try $re, hazards irscluded widtin the term "~ctended coverage', and sue oflrer hazards as Lender may-fequire
<br />sad is such amotmts and for such periods as Lender may require; provided, that Lender shall oat require that the amount of _
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />'The ittsttrance carrier providing the insurance shall be chosen by Borrower subject m approval by Lender, provided,
<br />that such a,-tproval-shall not I~ urrraase~sahly withheld. All prcmitrrtts on insuraance pelici~ shall lrE-paid in rite maartmr
<br />provided under paragraph 2 hereof ot, if not paid itt such manner, by Borrower making payatent, whet[ due; directly to t[ie
<br />insurance carrier.
<br />All insurance policies and renewals thtrao€ shall. be in form acceptable tc Lender and shall include a standard mottgagt
<br />clause in favor of sad in form acceptable to Lender. Lender shall have the nght to hold the policies-and renewals t7iereof;
<br />sad Borrower shalt promptly furnish io Lender all renewal notices and all receipts of paid premiums. Fn the event of toss,
<br />Borrower shall give prompt notice to the insurance eerier and Lender. Lender may make proof of low if sot made promptly
<br />by Barracver.
<br />Umess Lender sad Borrower otherwise agree in writing, insura~e proceeds shall be applied to restoration ar repair of
<br />the Property damaged, gmvided such restoration or eepair is economically feasible and the murity of this Mortgage is
<br />rztK thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />tu impairal, the iasueaace proceeds shall be applied to the sums secured-by this Mortgage, with the,excess, i€ any, paid
<br />to Borrower. If the P~nerty ri abandoned by Borrower, or 'tf Harrower fails to respond to Leader within 3t3 days from the
<br />date notice is mailed by Leader to Borzower that the insuuance carrier offers io settle a claim for insurance benefits, Lender
<br />is authorized to collect sad apply the insurance pracceds at Lender's option either to restoration or repair of the Property
<br />or x3 the sums se{xrred by dtis Mortgage.
<br />Uakss Lender earl Borrower otherwise agree in writing, any such appticatioa of proceeds to principal shall sat extend
<br />or postpone the due date o€ the taan~tly itrstallrtretrts referred to is paragraphs 1 sad 2 hereof or change-the amount of
<br />such irrsiallments. If under paragraph I g hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />is sad to any insurance policies and in and to the protests thereof resulting from damage to the Property prior to rite sale
<br />tit atxluisitian shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to -such sale ar
<br />~•
<br />6; Fee sad of Property[ , C~ Plaaaetl Ah~ I9erdopesee~. Borrower
<br />strati keep the Property in goad. repair and. steal} not commit waste or permit impaamcnt or deterioration of the Property
<br />and-shag tx~rnpty with the piavvisions o€ any, lease i€ this Mortgage is oa a leasehold. If this Mortgage is on a unit in a
<br />taBtdomituttm ae a ptaztrted unit-development, Borrows shall perform all of Borrower's obligations wader the declaration
<br />rir covuitints creating ar gow~iiag ire condomiaitm: or Alarmed unit development,. the by-laws sad- regulations- of the
<br />txindumittitiaz or vianMd unit i3eve2opment, and eoagtituent documents. if a condominium oz plaatiat welt .development
<br />`rider is exeiuied by Brsrrowec and recureled tagetlser with this Mortgage, the covenants soli agreetaenta of such rider
<br />snail ire iuatrg3orated itrsa au:1 shad amend and supplement-:the covenants sad agreements of tills. Mortgage as i# the rider
<br />were a part hereof.
<br />F, Proicctiau e! bender's Sesvrtty. If Horrow~er fails to perfartn-:tire cavmaats-end agreemenCa contained in this
<br />i+4crtg.-,gc, or if any action or proceeding is mmutenced-which materialty.afi~ts Lentler's interest in-the Property,
<br />including, 6ui nut limited to, eminent domain, insolvency, cosle enf4teement,,or arrangements oc ptritrtgs favolving a
<br />baskrspt or decdtnt, Then l.: n3^.r at I,ettder's apiiott, upon notice 40 >~er, may_rnake such Nppearances, disburse such
<br />autos and take.st;oh action y is nxessary W pntect Leader's interest, including, Sur-not limited w, disbursetttent of
<br />tenable attetD@~'s #ezs earl entry upon-the: Property. to make:-;repairs: If Lender required mortgage insurance as a
<br />cotidltioa of. making. the lean secured lay this A~lortgage, Brirracver shall pay rite premiums required to maintain such
<br />insurauce iri etTect until stieli tiafe as tl~ requirement foratah insurance terminates in accordance with Borrowers and
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