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<br />U?TrrottM CovetteHrs. Harrower and Lender covenant and agree as follows:
<br />1. Prayatent of Prlm~ipal and infetett. Borrower shall promptly pay molten due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and Late charges as provided in the Noie, and the principal of and interest
<br />an any Future ~,dvanse; soured by this Mortgage.
<br />r, Frztttds fcr '3'aaes acd ittae:raric€. Subject to applicable law or to a written waiver by Lender, Borrowar shalt pay
<br />t4 Lender oa ilre day monthly inctalltr~nu of principal and interest are payable under the Nate, unlit the Note is paid in foil,
<br />a „tun (herein "Funds"} equal to Otte-iwaifth of the yearly taxes and assessments which may attain priority over this
<br />iiotTgage, aril ground ants an the r vpesty, if nay, plus one-twei~rh of }°eary pratttium irtsiailrants far ka~ard insursr~c~>
<br />plus Otte-twelfth of yearly premium irtsiallments for mortgage: insurance, if any, ati as reasonably estirrtated initially and from
<br />bane to time by Lender rut the basis of a~~~ aunts and bills and reasonable estimates thereof,
<br />Tlae Funds shall be held ist afl institution the deposits or accounts of which are insured ar guaranteed by a Fedexa] or
<br />state avgeusy f including Lender if Lender is such an institution}. Lender shall apply ±he Funds to pay said taxes, assessments,
<br />iasuraflce premiums attd ground rents. Lender may not charge far so holding and applying file Funds, analyzing said account,
<br />ar verifying and compiling said assessmenu anti bii}s, unless Londe; pays Borrower interest on the Funds and applicable. law
<br />permits Lender to malts such a charge. Borrower and i.ender may agree in wriring at fire time of execution of -this
<br />Mortgage that interest on the Fettrds shall be paid Ya Borrower, and unless such agreement is made or applicable law
<br />requites such interest to be paid, Lender shall not be required to pay Borrower any interest ar earnings op the Fonda. Lender
<br />shall give to Harrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and iHe
<br />v purpose for which each debit to the Funds was made. The Fwtds are pledged as additional security €ar the sums secured
<br />ifs ibis in`octgagc.
<br />If the smoimt 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 />assessments, insurance premiums and ground rents as they fail due, such excess shall be, ai Borrower's option, either
<br />promptly repaid to Harrower or credited Yo Borrower on monthly installments of Funds. If fire amount of the Funds
<br />held by Lender shall not be sutTtcient to pay taxes, assessments, insurance premiums and groursd rents as tttdy fail due,
<br />Borrower shall pay fo Lender any amount necessary to make up the deficiency within 3C7 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of ail sums secured by this Mortgage, Lender shall promptly refund to Horrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is othetwisa acquired by Lander, Lendet
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds .held by
<br />Lender aY the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applleatioa of Paymeata Unless applicable law provides otherwise, ail payments received by Lender under the
<br />Note sad pazagraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then [o interest payable on the Note, then to tl:C p;;rcipa] of the 1Erote, and then to interest and
<br />¢rinsipal on any Future Advances.
<br />4. Charges; I,4ttts. Borrower shall pay a}i taxes, assessments and other charges, fines and impasitians attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments or graurtd rents, if any, in tht: manner
<br />provided under paragraph 2 hereof or, if not paid in such manre;, try Borrower making payment, when due, directly Yo the
<br />payee thereof. Bartower shall promptly furnish to Lender a}i notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lendt;r receipts evideac.ing sash paym~.
<br />Borrower shall promptly ~'i-,barge any lien which has priority aver Yhis Mortgage; provided, that Harrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to [he pay~tttent of the obligation, scented by
<br />~., .. ,uan, ~i s... ~pta.`,ia [o L~ :dR.,i: o; S.`,ali :n gad fain; sani~st sucl; lien by, ar defend enforwment at B~4:h iii
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />3. Ha~td Iasuraatte. Batrower shall keep the improvements nau existitrg or hereafter crested an the Property insured
<br />against loss by fire, hazards included within the term "ex[ended coverage ", and such otl[er hazards as L,^tider may require
<br />and th such amounts and far suds periods as Lender may require; provided, that Lender shaft not require that the amount of
<br />sucH coverage exceed Yhat amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. A71 premiums on insurance policies shalt be paid in the manner
<br />prav° and;.: para6raplt 2 fiereaf ar, °.: rtat paid in susli tnan[ier, by 1'~:rrrawer making pay~ht, wit_at dt~, directly Yo the
<br />lflSUranCSS CarrEer.
<br />AU insurance policies sad renewals thereof steal! be in form acceptable eo Lender and shat] inchtde a standard mar[gage
<br />sia•.tse in favor of and in form acsegtair{e to Leader. Lender shall have the right [u hold the policies and renewals thereof.
<br />and Harrower shalt promptly furnish to Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />Harrower shat] give prompt notice to the insurance carrier and Lender. Lender ma} make proof of loss if not made promptly
<br />by Bnrrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat! be applied eo restoration or repair of
<br />fhe Property damaged, provided such restoration or repair is economically feasible and the security of this hfortgage is
<br />not tlierelry impaired. If such restoration ar repair is nest economically feasible or if the security at this hfortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to $orrower. ]f the Property s abandoned by Barrawet, ur if Harrower fails to respond to Lender within ?0 days from the
<br />date notice is maims -d bg F Ftadsr to &arraw~r that ti~~ insura*tse carrier at€ers Ya settle a claim far insurance ]renefits, Lendes
<br />is autlsorized to collect aaa apply the insurance proceeds aY Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Iicarrower other-Flee agree in writing. any such application of proceeds to principal shall not extend
<br />or past_pone the due date of the monthly installments referred to in paragraphs 1 sad 2 hereof or c,`,sagcc t .:,,^.t sf
<br />such ittstallmenYS. If uadtx paragraph i 8 hereof the Ptropert} is acquii-e~u by Leader, alt right, title and interest o£ Harrower
<br />in and to any itsurance policies and in astd to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or asquisitiofl shall pass to Lendes m the extent of tine sums secured by this Mortgage immediately prior to lush sale or
<br />acquisition.
<br />&. Preaeervatlon sad lti7aHYtenattre of Propertyt Leasrhalds; CandoYninlams; Planned Uni# I?evelopments. Horrower
<br />shah keep the Property in good repair and shall not commit waste or pet•mit impairment or deterioration of the Property
<br />and s#tali coritply with the provisions of any lease if this Mortgage is an a teasehald. If this Mortgage is on a unit in a
<br />sofidom'snium ar a planned un's± development, Borrowar shall perform all of $arsower's obiigatiens under the deslaxation
<br />ar soveaa?ints sreafiYig or goveanipg the casdaminium or planned unit development, the by-laws and tegttlatioits of -the
<br />condtim_inium or planned uttit development, and coriszituent documents, if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, t#te covenants and agreements of sash rider
<br />shall ~e inso;poratad into and shall amend and supplement the crovenanYS and agreements of this ~.~origag~. as if [he r'dQr
<br />-were a part Hereof.
<br />7. P'tt~ceflon x# Y.ender*s Secnrifg: If Harrower -fails [o perform the covenanu and agreements contained in .this
<br />Mortgage, of if arty action ar proceeding is commenced which materially affects Lender's interest in the Property,
<br />aitYSltrding, but not limited io, eminent dotnaitt, insolvency,-code enfa[sernent, or arrangements ar proceedings involving a
<br />batiktsipt ar des,.[it, €.heri Lr~r;der at Lender's eon; upon noise to ~€rrrowe4,-may make such appeatattses, distrurse such
<br />stints'and take sucH ae[eori as is necessary to protect Lender's interest, inchidiug, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Properly to make repairs. If Lender- requii~d mortgage insurance as a
<br />condition of making the loan secured ~y this Mortgage, -Borrower shall pay the premiums required to maintain such
<br />ii~usanee in effect until such time as the requirement for sash insurance terininates in accordance with Borrower's and
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