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<br />UxrnaxM Cavaxsxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prlnclpal and itterest. Borrower shall pramptly pay tivhen due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and !ate charges as provtded in the Note, and the principal of and interest
<br />on any Future Advances secured 6y this Mortgage.
<br />d. iraads sor'Ta:es and lt~trrance. gubject to applicable law or to a written waivex by Lender, Borrower shall pay
<br />to Lender an rho day monthly inst~Ilments ei pritcipal a..d inte.~t are payable under the Note, anti! the Note is paid in full,
<br />a sum {herein "Funds"} eggalTto one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />74fortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments foe hazard insurance,
<br />plus one twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />Mime to Time by Lender nn the basis of assessments and bills and reasonable estimates thereof.
<br />tae Funds shall be held in an institu[ion the deposits or accounts of which are insured or gttarameed by a Federal or
<br />state agency (including Lender if Lender is snob an !nsiitution). Lender shall apply the Funds to pay said taxes, assessments,
<br />iasuranc:n premiums and ground tents. Lender may not charge tar so holding and applying the Funds, analyzing said account,
<br />or verifying and wmpiling 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 Lender may agree in writing at the time of execution of this
<br />Mortgage chat interest on the Funds shall 6e paid to Borrower, and ttniess such agreement is made nr applicable law
<br />r~{uires such inieresi to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge; an annual accounting of the Funds shaving credits and 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 />by ibis Mortgage.
<br />Sf the amount of the Funds held 6y Lender, together with the Future monthly installments of Funds payable prior to
<br />Ehe d•,re dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount requited to pay said taxes,
<br />assessments, insurance premiums and ground rents as they faSl due. such excess shall be, at Borrower's option, either
<br />prnmpily repaid to Borrower or credited w Borrower on manfhly instalments of Funds. If the amount of the Funds
<br />held by Lender shall not be suf&cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Harrower shall 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 Mertgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lander. If under paragraph 78 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lereder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable taw provides ethenvisz, a!7 payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shat[ be applied by Lender h'rst in payment oT amounts payable to Lender 6y Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nate. then to the principal of the Note, and tfien to interest and
<br />principal on any Future Advances.
<br />Q. Charges; Dens. Borrower shall pay all taxes, assessments and other charges, fines and imposhions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or. if not paid in such manner, by Harrower making payment, when due, directly to the
<br />payee 4herenf. Harrower shall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Bdrrnwzr shall nrompdy Tarnish to Lender receipts evidencing such payments.
<br />Harrower shall promptly discharge any lien which has priority aver this Martgaae; provided, Eshat Borrower shzf not be
<br />required to discharge any such lien so Sang as Harrower shah agree in writing to the payment of the obligation securert sy
<br />such lien in a manner acceptable to Lender, or steal} in good faith coolest suds lien by, or defend enforcement of such tier in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part thereof.
<br />5, Elazard Ir~arance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the [erm "extended coverage', and such other hazards as Lender may require
<br />attd is such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mertgage.
<br />The insurance cazrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be tmreasnnably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borsower making payment, when due, diteotly in the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />ciattse in favor of and ir. farm aeceptahIe to Lender. Lender shall have the right to hold the policies and renewals therea€,
<br />and Yarro;.=r shall pramptly fu wish [a Lender al! rznewa} novices and a!i receipts of paid premiums. in the event of Iris.
<br />Borrower sisal) give prompt novcc to the insurance carrier and I.zndzr. Lender may make proof of toss if not made promptly
<br />by Borrower.
<br />Unless Under and Borrower otherwise agree in writing, insurance penceeds shall be applied to restoration or repair of
<br />the °roperty damaged, provided such restoration at repair is economically feasible and the security of thee Mortgage is
<br />oat thereby impaired. If such resioratinn nr repair is not economically feasible nr if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stems secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Bgrrawer, or it Harrower fails to respond to Lender within 30 days from the
<br />data notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefxts, Lender
<br />is authorized to collect and apply the insurance proceeds ai Lender z option either to restoration or repai€ of the Property
<br />or zo the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall oat extend
<br />or pastpoae the duo date of the monthly installments referred to in paragraphs 1 and 2 hereof os change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, at! right, title and interest of Bexrower
<br />in and to any insurance policies and in and to the proceeds tftzreof resulting from damage to the Property prior to the sale
<br />or z:.quisition shall pegs to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Pstt~ervatioa and M14auYtename of Property; Leaseltofds•, Condominiums; Planned Uttit Devrloptreenis. Borrower
<br />shall keep the Property in goad repair aqd shall not commit waste or permit impairment ar deterioration of tbe Property
<br />and shall comply with the provisions of any lease if this M1lartgage is on a leasehold. If this Mortgage is an a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Bormwer's abiigations under the declaration
<br />qr covenants creating or gaveming the condominium or planned unit development, the by-laws and tzgulatioos of the
<br />condominium or planned urtif tlevelogtrtent, and constituent documents. If a condominium or planned unit development
<br />rsd2r is exec_ted b3` Btngower and recorded -together with this Mortgage, the covenants and agreements of such rider
<br />small be incorparazed iota and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part ,beregf.
<br />7. ProleeNan of I.mttdeds Secwaty. Ff Borrower fails to perform the covenants and agreements contained in this
<br />„isiiartgage, or if nay action pr ~tocceding is commenced which materially affects Lender's interest in the Property,
<br />including, brat not limited ta, eminent domain, insolvency, code enforcement, or arrangemcnk or proceedings involving a
<br />liankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stems and- take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attgmey's fees and entry upon the Property to make repaifs. If Lender required mortgage insarance as a
<br />condition of making the loon secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />instrance is effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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