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<br />I}xIPaRM CovExnxrs, Borrower and Lender ca*rtnant and agree as follows:
<br />1, Payment o€ Principal and Interest. Borrower shall prompty pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />~. Fonda for Taa~ and Insurance. Subject to applicable law err to a written waiver by Lender, Borrower shall pay
<br />rn r. dn~r nn *.h^, day mettthly installmtrts of pri.^=eipaf a d interest arp payable under the Nrte, until the Nett is paid in full,
<br />a stmt (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priatity over this
<br />h9ortgage, and grnuttd rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurartct,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and tram
<br />elms to time by Lender on the basis of assessments and bills and reasonable esiim?ies thereof.
<br />The Funds shat! be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal err
<br />slats agency (including Lender if Lender is such an institution). Lender steal! apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so ho3ding and applying the Funds, analyzing said account,
<br />of verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lemier may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicablt law
<br />requires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credsts and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. Tfie Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />ff the amount 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 renu, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Harrower on monthly instailmenu of Funds. If the atnoun[ of the Funds
<br />held by Lander shall not be sttfficien*_ to gay taxes, asre:srrtents, insurance premiums and ground rents as they tali due,
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting' payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund fo Borrower any Funds
<br />held by Lender. ff under paragraph IS hereof the Property is sold or the Praparty is otherwise acquired by Lender, I.endet
<br />shall apply, no Safer than immediately prior to the sate of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Isfortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lertdsr under the
<br />Nate and paragraphs I asst 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 bereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessmenu and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and Ieaseho3d payments or ground rents, if any, in the manner
<br />provided under paragraph ~ hereof or, if not paid in such manner, by Borrower making payment, when due, dits::tly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounu due under this paragzaph, need is the evens
<br />Harrower shall make payment directly, Borrower sha3l prampdy furnish to fender receipts evidencing such payttrents.
<br />Borrower shall promptly discharge a~,y lien which has priority over this Mortgage; pravadad, chat Harrower sha31 not ere
<br />required in discharge any such Tien so Song as Borrower sha31 agree in writing tc the payment of the obligation secured try
<br />such lien in a manner acceptable to Lender, or sha33 in good faint contest such lien bv, err defend ettforesmeni of stteh Sieu ..
<br />legal proceedings which e,_,:raie to grevenL the enforcement of the 3ien or forfeiture of the Property err any pare thereof
<br />5. Hazard Iffieirance, Borrower shall keep the improvements now existing err hereafter erected on the Property insured
<br />againstioss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that fhe amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insura.~+ce carrier pravidsng the insurance shalt be chosen by Barrawer subject to approval by Lender, provided,
<br />that such approval shaA not be unreasonably withheld. A31 premiums an insurance policies shall !x paid in the manner
<br />provided under paragraph 3 hereof err, if not paid in such moaner, by Borrower making paynntnt, when due, directly to lets
<br />insurauct carrier.
<br />Al! insurance policies and renewals thereof shall ~, is form acceptable to Lender and shall inc3ude a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shaft have the right to ho{d the policies and renewals thereof,
<br />and Harrower shalt promptly furnish to Lender alt renewal notices and all eeceipu of paid premiums. In the event of Toss,
<br />Barrawer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Sass if not made prompEly
<br />by Harrower.
<br />Unless Leader and Horzower atfierwise agree in writing, insurance proceeds sha{I )ze applied to restoration err repair of
<br />the Property damaged, provided such restoration or repair is econamicat[y ftasib3e and the security of this Mortgage is
<br />not t}Sereby impaired. If such testoration or repair is not tconamically feasible er if the security of this Mortgage wou}d
<br />be impaired, the insurance proceeds shall be agp3ied to the sums secured by this Mo.~tgage, with the excess, if any, paid
<br />to Harrower. If the Property is abandoned by Borrower, or if Harrower fails to respond to Lender within. 30 days from <~,e
<br />der€e notice is mailed by Lender to Barmwer that rtes insurance carrier offers to acetic a claim far insurance benefits, Lender
<br />is authorized to collect and apply tfie insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such app3ication of proceeds to principal shaft nai extend
<br />or postpone the due date of the monthly instailmenu referred to in paragraphs S and Z hereof or change the amount of
<br />such installments. If under paragraph 28 Stereof the Property is acquired by Lender, all right, title and interest of Harrower
<br />in and to any ittsuranc~ policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shalt pass to lender to the extent of the sums secured by this Mortgage immediately prior to such sale nr
<br />acquisition.
<br />S, Preaenation anti IDiaintenance of Property; Leaseita3dst Condermininms; PlanrttM Unit IDevalopments. Borrower
<br />shall Scalp Lhe Property in pond ragair acrd shall not commit waste or permit impairment err deterioration of the Property
<br />and shale cnmply with ilia provisions of any leare if this Mortgage is an a leasehold If this Mortgage s en a unit in a
<br />eandaminium or a planned unit development, Borrower shalt perform all of Bortnwar's obtigatiotts under the dectaratioa
<br />err cotenants creating err gawrning the candamiaium ~r planned unit development, the by-Saws and rtguSations of the
<br />condominium or planned unit development, and constituent documenu. If a candomittitur, ar planned unit development
<br />rider is executed by $prrowet and recorded together with this Mortgage, the covenants and agreements of such rider
<br />sSraii >x incnrporated inter and steal? amend and supplenteat the covenants and agreemartts of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protectloa of Lendei'a Security. If Borrower fails Eo perform the covenants and agreements cantaitted in tfiis
<br />1ortgage, or if any action of proceeding is commenced which materially affeeu Lender's interest in the Property,
<br />iticludeng, but trot limited to, eminent Domain, iusoSvency, cods enforcement, or arrangemenu of proceedings involving a
<br />baaitrupi or decedent, thin Lander at Lender's option, upon native to Borrower,-may make such appearances, disburse such
<br />sums. and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. tf Lander required mortgage insurance as a
<br />condition of making the ]oan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such tune as the requirement for such insurance terminates in accordance with Borrower's and
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