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Utart+oat~t Cov>;Nnxss. Borrower and Lender covenant and agrce as follows:
<br />;, Ifaytseat of Principal aad Interest. Harrower shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidettced by tbe Note, prepayment a~ late charges as provided in the Note, and-the principal of and interest
<br />on any Futu~•e Advances secured by this Mortgage.
<br />x. ]R> Ior ~'attes ~ Itastreere. Subject to applicable law ar to a written waiver fry Lender, Borrower shall pap
<br />ttr Lettdar an the day montttiq installments of principal and interest are payable tinder the Note, until the Note is paid [n full,
<br />a sum -{herein °Funds") egttal to one~twel#tb of the yearly taxes and assessments which tray attain priority over this
<br />-~-`-*^~rgiag', 2.~ g~~ =_n~ t:~t =t:^ P~Yorty, if ate;, g=tv~s cne tvrsifih of y~tly prea~~unt ' a t _eot5 far hazard insurance
<br />plus one-t-weifth of yearly premium ittatalitaeatis for mortgage insurattte. if any, all as reasorabiq estimated inii'sally and fratn
<br />time to tittle by Lettde; on the basis of assessments and bills and reasonable estimates ttrereo€.
<br />'Tile Funds shall be held in an institution the deposits os accounts of which-.are insured or guaranteed by a Federal ar
<br />~~~ state agency firicittdittg Lender if Lender is such an it~tih lion). I.oatder shall ap~y the F:u~s ur pay said taxes, assessments,
<br />`r" insurance premiums aad grotttid rents. Lender may not charge for so holding and applying the Funds, analyzing said accouns,
<br />~ or verifying and compiling said assessments-aad bills, unless Lender pays Harrower interest oa the Funds and applicable taw
<br />~ permits Lender to rriake such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />i/ 2wtortgage that interest an the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />.~ requires such interest fo be paid, Lender sttaii not be required to pay Harrower xny interest or earnings as the Funifis. Lender
<br />shall eve to Borrower, wstlwut charge, an annual accounting of the Funds showing et~tits and debits to the Funds attd the
<br />propose for which eaala debia to the Funds was made. "The Funds are pledged as additional security for the sutras sexuted
<br />t~ by Ls hlan~~.
<br />I'' If the amounf of the Funds held by Lender, together with the future monthly installments of Funds payable pror to
<br />the due dates o€ saxes, assessments; inswance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />aSSt:~,sHtegis, insuramx premiums and ground rents as they fall due, sw:h excess shall be, at Borrower's option,. either
<br />protnptty repaid to Borrower or credited to Bortvwer on manihly installments of Funds. if fire antouat of the Funds
<br />held by Leader shall not be suffiicient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Bottawer shall pay to Lender any amount necessary to make up the deficiency within 3fl days from tfte daM notice is mailed
<br />by Leader to Borrower requesting" payment thereof.
<br />Upon payment in full a€ alt slims secured by this Mortgage, Leader shah promptly refund to Btsrsawer any Futids
<br />Kehl by Lender. If under paragraph #8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior zo the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lerrdex at the-time of application as a credit against the sums secured by this Mortgage.
<br />3. Applisatfon ~ Paymr~. Unless applicable Iaw provides otherwise, all gayments received by Lender wader the
<br />Note and paragraphs 1 aad 2 hereof snail Ire applied by Lender fast in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nate, then to the grincipat of the Nate, and then to iatet•est and
<br />principal on any Foliate Advances.
<br />4. Charges; X:ie~. Borrower shalt pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payatentc ar ground rents, if say, is the manner
<br />provided tinder paragraph ?Hereof or, if nar paid in such manner, by Borrower making paytuent, when due, ditectty to the
<br />payer thereof..Iiorrower shall promptly furnish to Leader all notices of amounts due under this paragraptr, andrn the ment-
<br />Borrower shalt make p;.,_.eat directly, Bor7owes shxli promptly furnish to Lender receipts evidencing such payments
<br />Borrower shall giomptly discharge any lien which has. priority aver this Mortgage; provided, that Bat•rovrer-shat! not: Ile
<br />tequfred to diacisarge -any such Iien so Tong as Harrower shall agree in writing to the paytnem of the ohlsgatian secured bq
<br />such Iien in a manner acceptable to Lender, or shalt in good faitH contest such &en by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the eaforement of the Iien or forfeiture of the Property or any part thereof.
<br />5, ifd Insurance. Bs=rrawei shad keep the improvements now existing or hereafter erected on the Property iffiured
<br />against lass by Elie,- hazaids included within the cerrn "extended coverage", and such other hazards as Leader may require
<br />and in such amounts aad for such periods as Lender may require; provided, that Lender shalF net require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />'Tile insurance carrier providing the insurance shall be cho~n by Borrower subject to approval by Lender, provided;
<br />that such approval shag not be unreasonably withheld. Alt premiums on insurance policies shall be paid in the tnauser
<br />provided under paragraph 2 Hereof ar, if net paid in such manner. by Borrower making paymenF, when due, dfrectiy to the
<br />i~aratrce carrier.
<br />AB insurance pal%cies aad renewals thereof shall be in form acceptable to Lender and shall include a statida.u mortgage
<br />alause fn favor of and in bras acceptable to Lender. Lender shalt have the right to hold the policies and mnewals thereof.
<br />atxl Harrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. to the event of Ions,
<br />Bnt•mwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass if net made promptly
<br />Hy B~.t~er_
<br />Unte$s Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restot~tion or repair of
<br />the Property damaged, provided-saach restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not econoroieatty feasible or if the sezurify of this A.fortgage would.
<br />be impaired, the insurance proceeds shall be appl'sed to the sums secured by this Mortgage, with the excess, i# atn,•, paid
<br />to Harrower. If the Property is abandoned by Borrower, or if Borrower fails ro respond to Lender within 30 days from t}te
<br />date notice is mailed by lender-w Bortewes Yhaf the insurance carrier offers to settle a claim far insurance benefits, Lender
<br />is sutltorized to collect and apply fns insurance proceeds at Lender`s option either to restoration ar repair of -the Ptapeny
<br />or to iht sums sectued by this Mortgage.
<br />YJaiess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due dale of Lire monthly instaHinents referred to in paragraphs t and 2 Hereof or change [he amount a€
<br />such itrstalltnents. If under paragrapH 18 hereof the Praperta is acquired by Lender, all right, title aad- interest of $orrawer
<br />is aad to any i~urance policies and in and to the proceeds thereof resulting from damage to the Property prier to the salt
<br />ar acquisition shall pass to Lender to the extent of the stuns sectued by this Mortgage immediately prior to such -safe or
<br />acquisition. -
<br />5. ;Ea~arvathrn }ussree at Property; Ll~; Cosdrt~+ai~; P~aneel U~ Deve~ttteats, Borrower
<br />shall k~ep.Ikte Property in good repair and shall net t:vtnrrtit waste or peranit intpairttaent or deterinra6on of tile-Progeny
<br />soil shelf. complq with ffte pi~vss'ioas of any base if this Mortgage is oa a Ieaaehafd. i# this ARortgage- is on a unit in- a
<br />ctmdam"taium ar a planned unit development, Borrower sha[f perform aU of Borrower's obtigaiions under the dtctaration
<br />ar covenants treating or governing the condominium ar planned unit development, the by-laws attd rt;gufations of the
<br />eoradominium trr ptantaed unit ditveiopmenG and e(rit~ititettt documents. if a condominium. or planned unit deveiopttteat
<br />riot' is eatxittetf by Borrower amt tecarded ragether with this Mortgage, the covenants and agteemeitts of such rider
<br />shall_[ta iaattrpu€a~d`iti#cr and shall atnand and sup~ement the cu°+anants and agreements of this iaTotgagc as if the rider
<br />were a-part Isatotsf:
<br />9, . ~ Lemler°tr }'• If Borrower faiirz m perform tfie covenants attd agreements contained. in this
<br />)tytauet or if any action-or proi~ediag is cormtACnced which materially affects, Ltsttder's interest in the Property.
<br />including, Imt niit limited tn, emfaenf domain, insolvency, code enfarcerrtent, -or arrangetnenis or ptotxeedings involving a
<br />rtr rlen¢tietEt, then Letidei at Lentlet's option, upon ixrtice to Borrower, may make such appeatartces, disburse such
<br />slims apd take soh action .as is becessary to prarett Ixnder'a interest, ittc}udiitg, but not limited to, disbursement of
<br />ieasooable.attomeq`s fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />cnridiiaa of tnakiag the lean secured try this Mortgage, Borrower. sltalf pay the premiums required. to maintain such
<br />imuranee in effect until swell tittle as tbe requirement £ar such insurance terminates in accordance with Borrower's and
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