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<br />U~rtt~ottat Cava!~a:~rs. Borrower and Lender covenant and agree as foLlaws:
<br />I. Payateat of Ptinedpal and Ireterxst. Borrawcr shalt promptly pay when due €he prtncipa[ of and interest on the
<br />indebtetlrtess evidenced by the Note, prepayment and Late charges as provided in the Note, and 4he principal of and interest
<br />an any Future Advances secured by this Mortgage.
<br />~, Ftarsds ear Ta3~ an6 bnsttiwaee, Subject to applicable taw ar to a written waiver by Condos, Borrower shall pay
<br />€o Lender an the day tnonthly installments of principal and interest are payable under the Note, until the Nate is paid in full,
<br />a error therein "Funds' ~ squat to one-twelfth of the yearly taxes and assessments which tray attain priority aver this
<br />I:fartgage,-and ground rents on the Property, if any. plus one-twelfth o€ yearly premium installments for hereto instance.
<br />pints sae-twelfth of year"ty pt~rriiurat iustalt~~n`--s far raa~gag~ =nsur:~, if nay, aII as #asana~!y ~°tirnatedzr~tiatly and fearer
<br />time fa time by Lender an the basis of asse~ments and bins and reasonable estimates thereof.
<br />The Funds shad bt Ittld in an institueion the deposits_or accotmts of which are insured or guaranteed by a Federal oc
<br />state agency (inciuditig i.ender if Lender is such ansnsfitufian}. Lender shall apply rite Funds to pay said €axes, assessments;
<br />insuraace pzemiuin.} and ground rents. Lender may net charge far so holding and applying flte Funds, anaiyz'tng said account,
<br />ar vtrifying and compiling said assessments and bills, unless Lender pays Harrower interest on the Funds and applicable law
<br />permits bender to make such a charge. Borrower and Lender mac agree in writing at the time of execution at this
<br />hiarigage €hat interest on tl~~ Funds shall be paid to Borrower, and unless suc;t agreement is made or applicable law
<br />requires such interest to be paid, Lander she€T not be required to pay Harrower any interest or earnings on the Funds, Lender
<br />shall give to Horrawer, without charge, an annual acwunting of zbe Funds showing credits and debits to the Funds and the
<br />gntrpase for which each debit ea the Funds was made. 'ISte Funds are pledged as additional security for the soma secured
<br />by this Mortgage .
<br />If 'she aiTiau6i of t he Funds h a by I.or, ter, together w 1; the furors monthly tnsiallmanrQ of Funds payable prior to
<br />the d[te dates of taxes, assessments, insurance premiums and ground rents, shat exceed the amount required to pay said Laxts,
<br />assessmenu, insurance premiums and ground rents as they fa23 due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Harrower or credited to Borrower on monthly ittstaliments of Funds. If the amount of the Funds
<br />held by Lender shell net be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fait due,
<br />Borrower shall pay to Lender any amount necessary to snake up the deficiency within 3tT days from the date notice is mailed
<br />try bender to Borrower regetesting' 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 garagragh 18 hereof the Property is sold or the Prt;pecty is otherwise acquired by Lender, finder
<br />shall apply, no later than imt~diately prior to the sale of the Prr~peny ar its acquisition by Lender, any Fends held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. pgpHcatian of Paytttena. Unless applicable ia-ar provides otherwise, a2! paymenu received by Lender under the
<br />Na€e and pazagraphs i and 2 hereof shat be applied by Lender first in payment of amounts payable to Lender by Horrawer
<br />under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and then to interest and
<br />principal an any Fettles Advances.
<br />4, CI~g~; Betts. Bono•.ver shall pay aII taxes, assessments and other charges, fines sad impositions attributable to
<br />the Progeny which tray attain a priority over this Mortgage, and leasehold paytents cr ground rants, if ate, in tine maltase
<br />provided under paragraph 2 hereof or, if not gad in such manner, by Borrower making payment, whets due, directly to the
<br />payee thereof. Borrower shall gromi dy furnish to bender ai[ notices of amounts due ender this paragraph, and in the even:
<br />Borrower shat! make payment directly, Borrawcr shall promptly furnish to Leader receipts evidencing such payments.
<br />Borrower shall promptly discharge any Lien which ital. priority over this Mortgage: provided, that Harrower shall a-' ~
<br />required to discharge any s_ ~y Iitn so long as Borrower she#I egret; in writing to r_he payment of the obligation secured by
<br />such Lin in a manner acceptabh: to Lender, ar shall in good fai€It contest such lien by, of defend enforcetent of sut~i Kett in,
<br />ic$au pr,,:~'u~ w;'_h vt.., a.w .a pre.,.... the enfar~- nr r the !ie.. _r fa-rf?iture of the Property or any part-thereof.
<br />5. hazard Itsaranee. Harrower shall keep the improvements now exssting or hereafter erected an the Property insured
<br />against lass by fire, hazards included within the tet-at "extended coverage". sad such other hazards as Leader may reiluire
<br />and in such amounts and for such periods as Leadex may require; Provided, abet Lender sha:I eat require chat the amount of
<br />such coverage exceed that amount of coverage required to pay iha sums secured by this Mortgage.
<br />'I'be insurance carrier providing the insurance shall be cho`..en by Borrower subject to approval by Under, provibed,
<br />trier such approval shall not be unreasonably withhe3d. All premiums on insuran>•~ policies strati be-paid in the manner
<br />provided under paragraph ~ hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iastrr:,~.:. „~ ter.
<br />All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renevals thereof,
<br />anti Borrower stroll pramp€t'y iutYiish to (.ender alt ,-~newal notices and alt xeceipts of paid premiums. In the event of Iris,
<br />Borrower shall give prompt notice [o the insurance carrier and Lender. Lender may make proof of loss if eat made promptly
<br />by Harrower.
<br />Unless Lender and Harrower otherwise agree in writing, insurance proceeds silai[ be appIie3 to restorattan ar t~p°ir of
<br />€he Property damaged, Provided such resioraiion or repair is economically feasible and the security of this Mortgage is
<br />eat thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied [a the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrawcr. If the Progeny is abandoned by Borrower, ar if Harrower Sails to respond to Lender within 3Q days from the
<br />date notice is mailed 6y Lender to Borrower that the insurance carrier offers Lo sett3e a claim far insurance benefits, Lender
<br />is a~~ :zed *.a callt~ and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to rite sums secured by this Mortgage.
<br />l;nless Lender and Harrower otherwise agree in writing, any sash application of proceeds to grin ;pal shall eat extend
<br />ar gcstgcne she dn:: data of the mani¢ly insis3lrttents referred to in garagraghs t and 2 hereof or change the amount of
<br />such installments. li under paragraph I8 hereof the Property is acquired by Lender, art right, title and interest of Borrower
<br />in and to any insurance policies and in and to the prods t,s~~reof resulting from damage to the Progeny prior to the sale
<br />ar acquisition shall gals to Corder to Le extent of the suss= secured by this Mortgage immeaiiateiy prior to such sale or
<br />acgruisition,
<br />6. I°reservatian watt iwirdmisrtaHCe of Property; Ixaaetraids; Condomintttms, t'Ian?icd Unlt Ilevelogneents. Harrower
<br />shall keep the Property in good legate and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comrtly with tltt; provisions of any Iease if this hlartgage is as a Leasehold. If this Mongage is on a unit in a
<br />candamiaium ax a planned unit development, Borrower shaSL perform alt of Borrower's obligations under the declaration
<br />ar covenants ctpa3ing ar governing ihs condam'snium or planned unit development, the bylaws and regulations of the
<br />sondamirtium ar planned unit development, and constituent documents. If a condominium ar planned unit development
<br />rider is executed isy Renewer and recorded together with this Mortgage, the covenants artd agreemen€s of such rider
<br />shall be ixt~tporat+xl into and shall amend and supplement the covenants and agreet~nts of this Mortgage as if the rider
<br />wet' a part horse€.
<br />7. Aratectltra of Leader's Seentily- If Borrower fails to perform the covenants and agre<tnents contained in this
<br />Marigage, or B nay action or iiroseeding ;~ commenced which materially affects Lender's ineerest in the Property,
<br />including, but not Iirnited to, eminent. domain; insolvency, code enforcement, or arrangements or proceedings involving a
<br />bsrakntpx ar ddent, then Lender at :,etider's option, upon notcx to Harrower, may make such appearances, disburse such
<br />notes n~ tgke-ooh act:'ott as i§ n~ to protecf Lenders interest, including, but eat Iitnited to, disttursement of
<br />reasonable attorney's fats and cnt*y upon the Prapeny to make repairs. If Tinder required mortgage insurance as a
<br />canditiaa of making the loan secured s> this Mortgage, Harrower shaIl pay the premiums required to mainlain such
<br />insurance in effect unte~ such time as the r+tquirement for such insurance terminates in accortixnce with Borrowers and
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