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<br />lINrPORM CoverrnrtTS. Harrower and Lender cavenani and agree as follows:
<br />I. I~ym+ent of Prltteiftsl and Interest. Borrower shall prampzly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment sad Sate charges as provided in the Nate, and the princ[pa! of and interest
<br />on any Future Advances secured by this Mortgage.
<br />~. F`nnds for 'Taxes attd Iststirattee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />• iv I-ender- im the day r~soniriry insialir~° F-nzs of pnracipai and iiricicsi aEC pajvable ur at2, t;:,til the i`.`at:, 's cold in f'~ 1,
<br />a sum (herein "Fuads`~ equal to one•twelfth of the yearly taxes and assessments uwhich may attain priority over this
<br />Alortgage, and ground rants on the Proper ty, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />plus one-iwetfth of yearly premium installments for mortgage insurance, if any, ai{ as reasonably estimated initially and from
<br />time to tittle by Lender on the basis of a~essments and buts and re'asonalsle estiroat~ tfitereaf.
<br />Tlts Futtds shall Lae held in an iastitutian the deposits ar aeconnts of which are insured or guaranteed by a Federal or
<br />_ state agency fiaciuding Lender if Lender is such an instiiutioni. I.endar shall apply the Funds to pay said taxis, a;>.:,sns,
<br />insurance premiums earl ground rents. Lender may not chazgc for sn ho'.diag and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest nit the Funds end appdicataie law
<br />~trttits Leader to matte such a charge. Borrower and Lender mac• agree in writing at the tins of execution of this
<br />Mortgage Thaisaterest on the Funds shall bo paid to Harrower, and unless such agreement ss made or applicable taw
<br />requires such interest to ~-paid, Lender shall eat be required to pay Borrower any interest ar earrtings on the Fends. Lettdor
<br />shall give to Hotrowez, without Charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose far which each debit to the Funds was made The Funds are pledged as additional security for the sums secured
<br />lay this Mortgage.
<br />If the amount of Ehe Funds held by Lender. ingather will: the future monthly instaBtneats of Funds payable prior to
<br />the due dates of tries, assessments, insurance premiums and ground rents, shall t:xcetd the amount required to pay said lazes,
<br />assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
<br />protapfly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufHoieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount accessary to make up the deficiency within 34 days from 4he date notice is rtsailed
<br />by Leader to Borrower requesting payment thereof,
<br />Upon payment in full of atl sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Propettyss sold or the Property is othettvise acquired by Lsn$er, Lender
<br />shall apply, no later than imme-die*_ely prior to the sale of the Property cr its acquisition by Lender. any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3, AgtplleaElon of Psytneuts. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall ix applied by Lender fist in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 horeo€, Then to interest payable on rho Note, then en the principal of the Note, and that, to interest and
<br />principal on zny Future Advances.
<br />4. Cbterg4a; I.Ietts. Harrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehnfd payments ar ground rents, if any, in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Barrawer making payment, when due. dita-try to ilia
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts duo finder this paragraph, and is theevent
<br />Harrower shall make payment direcEly. Barrawer shall promptly furnish to Linder receipts evidencing such pap..~enis
<br />Hort'owsr shalt promptly discharge any lien which has priority aver this Mortgage; provided, that Barrawer shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lion in a manner acceptable to I.eoder, or shall in good faith contest such lien by, or defend enforesttxnt of such lien in,
<br />Legal proceedings which operate to prevent ttte enforrxmeni of the Iien nr forfeiture of the Property ar any part thereof.
<br />$. $azard Insurance. Borrower shall keep the imgtovetnents now existing er hereafter erected on the Property insured
<br />against Lass by Ere, hazards included within the term "extended coverage", an8 such other hazards as Lender may require
<br />and in std amounts and for such periods as Lender may require; provided, that Lender shad! not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />Tlae insures cagier prarrding u`te insurance shall be chasm by Hartover subject to approval by Lender, Prov=ttted,
<br />'.hat such approval shall net !ta unreasonably withheld. All premiums an insurance policies shall be paid in the manner
<br />provided under paragraph ~ hereof or, if not paid in such manner, by Harrower making payment, when due, dire.'tIy to the
<br />ittsura~e carrier.
<br />AB insurance policies and rettswais thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clay±~ in favor a€ and in farm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Leader ail renewal notices and ail receipts of paid premiums. In the evens of toss,
<br />Barrow~* sh~tl give pramgi notice to the insurance carrier and Lender. Lender may make proof of loss if eat made promptly
<br />~~y Harrower.
<br />finless Lender and Borrawet otherwise agree in writing, insurance proceeds shall be applied to resioraiian or repair of
<br />rho Properly damaged, provided such resioratian or repair is cconomicatiy feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not ecanamically feasible nr if the security of this Mortgage would
<br />be impaired, tttc insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If rho Praperry is abandartt~ by Harrower, or if Barsower fails to rsspoad to Lender within 34 days from the
<br />date taotice is mai.ied by Lender to Borrower that the insurance carrier offers to settle a claim far insurance btnefits, Lender
<br />is authorized to colledt and apply the insurance proceeds at Lender's option either to r~taratian ar repair of the Property
<br />or To the sums secured by this lvlortgage.
<br />Unless Lender and Barrawer atlte:svise agree in writing, any such application of proceeds to principal shall act extend
<br />or postpone the due dace of ttte monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such ins#allments. if under paragraph I8 hereof the Prap~rty is acquired by Lender, all right, title and interest of Borrower
<br />in aad to any insurance ¢olicixs and is and to the prnc~:s thereof resulting from damage to the Property prior to the Salo
<br />or ,acquisition shall pass m Lender to the extent of she sums secured by this bfortgage immedtatefy prier to suc0 sate or
<br />acquisition.
<br />a. Preacna#ittn a~ ll<Ialnfenance of Property, Leasshoids; Candorttatitmts; Piaaaed tlnii Developments. Borrower
<br />shalt tssp tits Propcre3 in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />a:-,ad shall comply with the provisions of any lease if this Mortgage is on a leasehold. I€ this Afartgags is on a unit its a
<br />sandominium or a planned unit development, Horrower shall perform all of $orrower's obligations under the declaration
<br />ar cove_ts creating ar governing the eorrdomiaium ar planned unit develcapmene; the- by-laws and regttlatioas of the
<br />candaminittm ar planned unit dovefapment, and constituent documents. If a condominium or planned unit devetepmsnt
<br />rider is executed bl+ Harrower and recorded together wi°,h this Mortgage. the. covenanu and agroettteafs of such -rider
<br />st+~!,t IA is ~rparated into and slsall amend and supplement tt~ covenants and agreements of this Mortgage as if the rider
<br />were s gait hsre»f.
<br />T. Pts#ectkta of Lender's Secaaitq• If Borrower faits to perform rite covenants and agteemenes contained in this
<br />I, Mortgage, or ~f any action or pri,~ccediag is comnietaced which materially affects Lender's interest in the Property,
<br />iaeltadsag, bur not-Emig! tea,-etniacnt damaia, insolvency, code en€orcemoiat, or arrangetaents or proceedings involving a
<br />bankrupt ai•aiecedent; then Lender at Leader's option, upon notice to Harrower, may matte such appearances, disburse such
<br />sutras and loge such- orrice as is necessary to proieci Lender's interest. including, but not limited to, disbursement of
<br />reasonable attorney`s-foes sad entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of male':rag the -loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such erne as rite requirement far such insurance terminates in accordance with Hortawer's and
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