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<br />Lltait=oaM COVENANTS. Harrower and Lender covenant and agree as fellows:
<br />Y, I'aymtnt of FainsIFPI and Interest. Borrower shaft promptly pay when due the principal of and interest an the
<br />indtlatedrtess evidenced by the Nate, prepayment avd late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funt;s for 2'axts and i~attante. Subject to applcable law ar to a written waiver by Lender, Borrower shall pay
<br />to Lends on the day monthly installments of principal and interest are payable under the ivaie, anti[ rite Naie is pa;d is Eull,
<br />a stain therein "Funds") eoual to one-twelfth of the yeazly taxes and assessments which may attain priority over this
<br />Isforfgage, and ground rents an We Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />pins atto-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to bate by Lebeer on the basis of assessments and bi1Ls and reasonable estimates thereof.
<br />'the Futtds shall f~ hMd in an iastiiutian the deposits or accauaiv o€ which erg insured ar guaranteed by a Federal or
<br />state agency [including Lender if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />itvcuraace premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the: Funds and applicable law
<br />permits Lander to make such a charge. Barrawtr and Lender may agree in writing at the time of execuf~an of this
<br />Mortgage that interest an the Ftmds shall be naid to Borrower, and unless such agreement is made or applicable law
<br />rtquir~ such interest is be paid, Lender shall not he required fa pay Barrawer any interest or earnings on the Funds. Linder
<br />shall give to Borrower, wiihaut charge, an annual accounting of the Funds showing credits and debits to the Funds and We
<br />purpose far which each debit to the Funds was made. The Funds are pledged as additional security far the sums secured
<br />by this Mortgage.
<br />If the amount of tbe Funds held fry Ixnder, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, s_nstuance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, itrsuraace premiums and ground rents as they Ealt due, such excess shalt be, at Borrow'er's option, either
<br />pramgtIy repaid Yo Borrower or credited to Borrower on monthly installments ai Funds. If the amount of the Funds
<br />held by Lender shaA net be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,.
<br />Borrower sha[I pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lerakr to Harrower requesting gaynxnt thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Leader shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, r,a later Wan immediately gror to the sale of the Property or its acquisition by Ixnder, any Funds held by
<br />Lender at We time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender- under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, Wen to interest payable on the Na*.e, then to the principal of-the Noie, and Wen to interest anc2
<br />principal on any Furore Advances.
<br />4. Clpttgt<; li.ieus. Harrower shall pay ail taxes, assessments and other charges, fines and impositions attributable t©
<br />We Property which may attain a priority aver this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />pmvidtd tinder paragraph 2 hereof or, if not paid in such manner, by Harrower making paytttent, when due, directly to We
<br />payee Wereof. Botrawer shalt promptly furnish to Lender all settees of <amounts dete under this paragraph, and in the ever:
<br />Borrower shall make payme~*. directly, Borrower shall promptly famish io Lender r~ctipts evidtnring str~h payments.
<br />Batrowea shalt promptly dischazge any lien which has priority over this Mortgage: provided. that Barrawtr shall net be
<br />reRUired to discharge any such lien so long as Barrow~r shall agree in writing to the paytaem of the obligation sectartd by
<br />such live in a manner acceptable to Leader, or shall in goad faith contest such lien by, or defend enfotcemen3 of such lien in,
<br />legal pmceedirtgs which operate to prevent We enforcement of the hen or forfeiture of the Property or any part thereof.
<br />5, )Elszard Insarartce, Harrower shill keep the improvements now existing or hereafter erected oa the Property insured
<br />against loss by fire, hazazds included wiWin the term "extended coverage", acrd such other hazards as Lender may require
<br />and is such amounts and for such periods as Lender may require; provided, Fhai Lender shall [tat require that the amount a€
<br />such coverage exc~d that amotutt of coverage required to pay We sums secured by this Mortgage.
<br />Ttte insurance carrier providing the insurance snail be chosen by Borrower subject to approval by Lander; prmvidaf,
<br />Wat such approval shall sot tee uare$sonabiy withheld. All premiums on insurance policies shall be paid in the manner
<br />provided wader paragraph 2 htreaf or, if not paid in such maaaer, by Borrower making payment, when due, directly io-the
<br />insurance cazrier.
<br />All irsurance policies and renewals tbereof shall be in form acceptable to Lender sad shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have We right to hold the palieies and renewals Weteo#,
<br />sad Borrower shall promptly furnish to Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />watt-'ti uer shall give prompt naiice to t3t2 insurance ca :tar and L2rder. Lander may make proof of hiss if not mad; promptly
<br />by $arfaweF.
<br />Unless Lender sad Borrower otherwise agree in writing, insurance prar_eeds shall !te applied to restoration or repair of
<br />xhe Property damaged, provided such restoration or repair is economically Feasible and the se.-.urity of Ibis MatYgage is
<br />rani thereby impaired. If such restoration or repair is net tconamicallp feasible or if fire security of Wis Mortgage would
<br />be impaired, the insurance procceds shall be agghed to We sutras secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by $orrawer, or if Harrower fails to respond to Leader wrthsn 30 days from the
<br />date notice is mailed by Lender zo Harrower that We insurance carrier afters to settle a Claim for insurartcr btaefits, Lender
<br />is authotirxtl to collect sad-apply the insurance proceeds at Lender's option either to restoration ar rei,..ir of the Frapert}'
<br />or to the stuns secured by this Mortgage.
<br />Unless Linder and BatTawar aWer~visa agree in writing, arty such application of proceeds to principal shalt-not extend
<br />ar postpone We due date of the maathly installmenu referrxd to in paragraphs 1 and 2 bereaf ar changGC the amount of
<br />such installments. If under paragraph t$ hereof the Prapert is acquired by Leader, ail right, tine and interest of Borrower
<br />in atxt to any insurance policies and is sad to the praeeeds Werenf -tsultiag from damage to the Property -prior to the sale
<br />tar acquisition shalt pane io Lender to We extent of the sums secured by this Mortgage immediately prier to -such sale ar
<br />..~ ueiti~on.
<br />6. Preaervatioa and MsWtenantt of Property; I.e CattdOnritiiuros; Planned Unit ITevelapments. Harrower
<br />shall keep the Property W goad repair and sbaIl not commit waste ar per[[[t[ impairment w deteriaratian of the Property
<br />and shall comply with We provisions of any least if Wis Mortgage is on a leasehold. If this Mortgage is an a unit- in a
<br />condominium or a gtanntd unik development, Borrower shall perform a!1 of Borrower's obiigaeians under the declaration
<br />at cavet~ats creating ar governing the condominium ar planned unit dgvefopmtnt, the by-laws arni regulations of the
<br />condominium or plattaed unit development, and constituent dacumends. If a condominium or planned unit development
<br />rider is executed fay Botrawer and retarded together with this- Mortgage, the egveaaMs and agreetttents of such rider
<br />shag lee incarporatad iota and shall amm'ietttd and supplement bSe carznants sad ag:eetnents of this Mortgage as if the rider
<br />wire a part hereof.
<br />T, PtWectlaa of Lenders Seearity. If Bonowtr fails to perform the covtaants and agreementit contained in this
<br />7;!Iattgagt, or if any action or procexding is czamintnced-which materiaiiy atfects Lender's interest in the Property,
<br />including, but nat. limited to, ernirnttt domain, irtsalvency, code- enforcxment, or arrangements or proceedings involving a
<br />bankrrtpt or decedent, then Ltndet at Lender's option,-upon native to Barrawer, may make such appearances, d'asburse such
<br />sums and take sash action as is necessary to protect Lender's- interest, including, bat not limited to, disbursement of
<br />reasonable attatatey's fees and entry upon the Property to treake repairs. If Lender required mortgage insurance as a
<br />conditiomm of making the lean secured by this Mortgage, Borrower snail pay We premiums required to maintain such
<br />itastttaace in effect until-such time as the requirement for such insurance terminates in accordance with Borrower's and
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