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<br />Uxraoaat Covrsrnxzs. Borrower and Lender covenant and agree as fellows:
<br />1, Payment of Prlnclpal and Iteterest, Borrower shat! promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any nature Advances secured by this Mortgage.
<br />a. IPUatts fae'i'ases a>ad Ittsuraaee. Subject to apgiicabte law or to a wttiiten waiver by Candor, Borrower shall pay
<br />t. t~nsl€r on rite day monthly iastaltnt?ttis of principal and interest are pavable under the Note, until the Alote is paid in full,
<br />a stt-n (literein "Pandas"} equal to ane•twelfih of the yearly taxes and assessments which may attain priority over this
<br />Riertgage, and ground rents on the Property, if any, Plus one-twelft~, of yearly ptzmium instalittteats far hazard insurance,
<br />plus tittc•twelfth of yearly premium installments for mortgage insurance, if any, nit as reasanabiy estimated initially and -from
<br />tirrx tt> tithe by Let~ler an the basis of assessments and bills and reasonable estimates thereof.
<br />17te Funds shall 6e held in an institution the deposits or aa-.aunts of which are insured or guaranteed by a Federal or
<br />state agency (including Winder if Letttler is such an institution). Lender shalt apply the Funds to pay said taxes. assessments,
<br />insurance aremiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying sad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to tttake such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds she!} be paid to Borrower, and ttaless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shalt not be required w pay Harrower any interest or earnings on the Funds. Lender
<br />shall give to Bo€rawer, without charge, sn annua! accounting of the Funds showing credits sad debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />6y ribs Mortgage.
<br />if the amount of the Fundx held by Lender, together with rise future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance prenuums and ground rents, shell exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower`s option, either
<br />promptly repaid to Harrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />held by Lender shat' not be sufficient to gay taxes, assessments, insurance premiums and ground rants as they fa11 due,
<br />Borrower shalt pay to Lender any amount necessary to make vp the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting' payment thereof.
<br />Upon payment is full of a12 sums secured by this Mortgage, Lender shall promptly refund to Horrawer any Funds
<br />held by Lender. If under pazagraph 18 hereof the Progeny is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of tine Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Agglicatinn of Payme~. Unless applicable }aw provides otherwise. al! payments received by Lender under the
<br />Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal an any Future Advances.
<br />4. Charges; Liens. Bnrrawer shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, is the matmer
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Harrower making payment, when due, directly to the
<br />payee ther~tof. Harrower shah promptly tarnish to Lender all notices of amounts due under this paragraph, sad in the event
<br />Borrower sha}f make payment directly, Harrower shall promptly famish to Lender receipts evidencing- such paymrnis.
<br />Borrower shall promptly discharge any lien vehich has priority aver this Mortgage; provided. that Borrower shall eat be
<br />required to discharge nay such lice so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />sttzh lien in a utaruier accepiMxible to Lender, she : ash f°:u': ~ me ..,..^h l:en bv, :defend enfarcemerst of soh iitstsn;
<br />legal praceedittgs which operate to prevent the enfor..ement~of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard lfisitrance. Borrower shalt keep the improvements now existing or hereafter erected an the Property insured
<br />against toss by fire, hazards included within the term "extended coverage", and such other hazards as Leader may require
<br />and in such amounts sad far such periods as Let:der may require; provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage requires' to pay the sum<_ secured by this Mortgage.
<br />The insurance carder providing the insurance shall be chosen by Borrower subject to apgrovaf by Lander, provided,
<br />that such approval shag not ix unreasonably wilhlteid. Ali premituns on insurance policies shall be paid in the manner
<br />pravid~ nndcr ga.~raph 2 h~r~} ar, if ~t paid i st,~it r-,an Nr, by Br~rasver ~k.,kiag p?yntsnt, when due, directly to the
<br />iasuranrx carrier.
<br />Alt insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lander. Leader shall have the right to hold the paficies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices sad alt receipts of paid premiums. In the event of Ioss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of l~s if not made promptly
<br />by Borrower.
<br />Unless Leader and Borrower otherwise agt~ Sn ivritirg, insurance proceeds shad be applied to restoration or repair of
<br />the Property damaged, provided stt;:h restoration or repair is economically feasible and the security of this Mortgage is
<br />hat thereby impaired. If such restoration or repair is nai econonticaliy feasible or i, the sxurity of this Mongage 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 Banower. If the Property is abandoned by Borrower, or if Borrower faits to respond to Lender within 30 days from the
<br />dale aariee is mailed by Leader to Harrower that the insurance carrier offers to seine a claim for itvsnrance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums sectttxd by this Mortgage,
<br />Unless Lender and Borrower otherv.°ise agree in writing, any such application of proceeds to principal shall ncrt extend
<br />or postpone the due date of the monthly installments referred to in paragraphs l sad 2 hereof or change fhe amount of
<br />stack installments. If under paragraph 1~ hereof the Property 'ss acquired by Lender, alt right, title sad interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to ~ttder to the extent of the sutras scoured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Praatrvation a~ Nlainteaagce of Property; Leaseholds; Caode®iniams; Platttted Unit Ikveb@sten9s. Harrower
<br />shall keep the Frapettytn good retaair and shall hat commit waste or permit impairtaeat or deterioration of the Property
<br />and-shall catnply with the gtavisiana of any lease if this Mortgage is nn a leasehold. If this Mortgage is on a unit in a
<br />condominium ar a planned unit deveiagment, Harrower shalt perform a!1 of Borrower's obligations under the declaration
<br />err co'rsnants ereati~ or governing the condominium ar planned unit development, the by-laws and regulations of the
<br />candomiaittm ar planned unit development, and constituent documents. Tf a condomhtium or planned unit development
<br />ride; is executed by Burrower sad trcerded together with this Mortgage, the covenants and agreements of such rider
<br />Rhatl be itteorpot~aied into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protaetlon al' Lsatler's Secaalty. If Borzower faits to perform the covenants and agreemenffi contained in this
<br />Mortgage, of if nay action or proceeding is commenced which materially affects Lender's interest in the Property;
<br />itlcfittliag but hat limited ta, eminent domain, insolvency, Cade enforcement, or ariangements or pzoceedfngs involving a
<br />hrrrkt-,igt ar s'ecadsat, then Lender at Lax.et is option, upon notice to Bta'rower, may n?a~ §tich appeararsces, disburse such
<br />sums and take such action as 'ss ttace~ary to protect Leader's interest; including,. but xiat limited to, disbutsetnent of
<br />reasontble attorney's fens and entry -upon the Froperty.to make .repairs. if Lender required mortgage insurance as a
<br />condition of making the-loan secured by this Mortgage, Boirawer strait pay the premiums requ+red to maintain such
<br />insurance in effect until such time as the requitement-far such insurance tertnfnates in accordance with Borrowers and
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