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<br />Uma~aant Covgrtexrs. Harrower and Lender covenant and agree as follows:
<br />1. Payment of Prlrtciisal am3 Interest. Borrower shall promptly pay when Sue the principal of and interest on the
<br />indebtedness evidenced by the Rote, grepaymtnt and late charges as provided in the Note, and the psfncipai of and interest
<br />an any Future _P dvaaces secured by this Mortgage.
<br />Z. Fonds for Taws and Ittsara®te. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly insfalimeats of principal and. interest are payable under the Note, until the Note is paid in fuU,
<br />a stun (herein "Funds"} equal to one-twelfth of the yearly [axes and assessments which may auain priority over this
<br />;at~~-agc, and ground znrw an u,e-Pr[sy>?rt-,y, if arty, plus anE twelfth cf yearly premium it:stalitaen#s for ha:.ard insttranee,
<br />glusone-tcrelfth of yearly premium instalitnents for mortgage insurance, if any. ail as reasonably estimated initially and from
<br />[ime to time by Lender an the basis gf assessments and Gilts and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (incinding Leader i€ Lender is such an ins#i#u[ian}. Lender-shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums aad ground ret[ts. Lender map not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Harrower imerest on rite Funds anct applicable law
<br />permits Lender to make such a charge: Borrower and Lender may agree in writing at rite time of execution of this
<br />Mortgage that interest on the Fuads shad be paid to Borrower, and unless such agreemen[ is made or applicable law
<br />requires such interest to he paid, Lender shaft not be required to pay Borrower anp interest or earnings on the Funds. Linder
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which tacit debit to the Funds was made- The Funds are pledged as additional security far the sums secured
<br />6y this Mortgage.
<br />H the amount of the Funds held by Lender, together with the future moathty installments of Funds payable prior to
<br />the due dates of Loxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they faEl due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Harrower an monthly installments of Funds. If the amount of tfie Fuads
<br />held by Leader shall not be sufficient to pay taxis, assessments, insurance premiums and ground rants as they fall due,
<br />Borrower shall pay to Lender any amount necessary io make up the deficiency within 30 days from the date notice is mailed
<br />by Lender its Harrower requesting payment thereof.
<br />Upon payment in full of all sutras secured by this Mortgage. Lender shall promptly refund to Hormwer any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Leader, Lender
<br />shall apply, tea later than fmrt~iattly prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Loader at the firm of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Paymeata. Unless appfieabie law provides otherwise, all- payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by .ender first in payment of amounts payable to Linder by Borrower
<br />under paragraph 2 hereof, tlxn to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advance.
<br />4. Charges; I:dem. Borrower shaII pay ail taxes, assessments and other charges. #tnes and impasi[ians attributable io
<br />the Property which may attain a priority aver this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dui, directly to the
<br />payee thereof. Borrower shalt gromptty furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make gapment directly, Borrower shalt promptly furnish to Lender receipts evidencing such payments.
<br />Harrower shall gromptty discharge any lien which has priority over this Monga[gt; provided, that Harrower shall not be
<br />req,nrtd to discharge anp such lien so long as Borrower shad agree ir, writing ic. list payaterst of rise obligation secured by
<br />such &tn in a manner acceptable to Ixnder, or shall in goad faith cet[test such lien by, or defend enforcement o€ such lien i -.
<br />legal proceedings which operate to prevent the enforcement of the Lien or farfeimrt of the Property or any part thereof.
<br />5. Hazard Iaearance. Harrower shall keep tine imptavements now exis[ing ar itertafter erected on the Property insureii
<br />against toss ay fire, hazards iacludetf within the term "extended coverage". and such other hazard as Lender may require
<br />sad itt such an[aunts and far such germs as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage txcced that amount of coverage required to pay the sums secured by this Mortgage.
<br />'The insurance carrier providing zhe insurance .shall be chosen try Borrower subject to approval by Lander; provided,
<br />that such approval shall- not be urtreasanably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided render paragraph Z heretsf ar, if not paid in such meaner, by Borrower making pay=ment, when due, directly to the
<br />ittattance carrier.
<br />A;! insttrattcl; policies aril reaewafs thtrepf shall be in farm acceptable to Lender and shall include a standard mortgage.
<br />clause in favor of and in farm acceptable Fo tender. Lender shall have the right to bald tits policies and renewals thereof,
<br />atsd Horrawtr shall promptly furnish to Lender ah renewal notices and all receipts of paid premiums. In the event of-loss,
<br />Harrower shall give promaf native to the insurartrr carrier and Lender. Linder may make proof of lass if not made promptly
<br />by Borrower.
<br />Uri Leader and Ba.~awer otherwise agree in writing. insurance prmc~.'.s shall ~ applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is econotnicaily #easible and the security of this Mortgage is
<br />not thereby impaired. If such testaratian ar repair is rant ecanamically feasible or if the security of this Mortgage would
<br />Ise unpaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If tl[e Property is abandoned by Harrower, or if Borrower fails to respond to Lender wiStin 30 days from the
<br />date notice is mailed by tender to Borrower [hat the insurance carrier of€ets to seine a claim for insurance benefits, Lender
<br />is auskarfzed to coliest and apply the insurance proeeecis at Lender's op'.iaa either to restoration or repair of the Property
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender a~ Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due daft of the monthly imstatfmtnts referred to in paragraphs 1 and 2 hereof or change the amount of
<br />s[klt installments. if etntltr paragraph 28 hereof the Property is acquired by Leader, ail right, title and. interest of Borrower
<br />ist at'sd ea any ittaurance poliei~ and in and to the proceeds t)tereaf resulting from damage to ttce Property peior to the safe
<br />or acquisition shall pass to Lender to the extent of the suttts secured by this Mortgage imraediatefy prior to such sak ar
<br />5: Attu sad anets o£ Paopezty: ~ C P~aed U~t ~. Harrower
<br />shat! ~ the Property in goad repaie and- shall not commit waste ar permit impairment ~ deterioration of the Property
<br />sod shall cxrmpiy with the provisions of any & if this Mortgage ss an a teas:,ioM. If this Mortgage is on a uttft in a
<br />c~dominium or a planned unit devetapmeszz, Borrower shall perform all of Borrowei s obligations under the declaration
<br />or covcnanis creating or governing the candomirtiutu or planned unit development,- the by-laws amt regulations of $he
<br />randomnitwt or planned unit development,-and constituent documents. If a condominium or planned unit devetopnter[t
<br />rider is executed fey Borrower and- recorded togetl[tt with this Mortgage, the covenants amt agttxments of strcdt rider
<br />shall be rated into. aril shall atnxad sail supptemem the wvenants at[d agteeattents of this Mortgage as if the rider
<br />were a part hereof..
<br />7. fly et I.eder°a Szei~#q. if Burrower: faili to perform flee ecsveaaata and agreements contained in this
<br />, car if any aefii?at or pfasg is comme which materially , aflecis I,endc's interest in the Property,
<br />`tuclttditrg btrt trot-limi6ed to,-e®litetst 3omafn;:fnsolvesiey, code: enforcement,: or arrangements or grtsceedinga involving a
<br />faaokrulrt-~ deti~ast, tl~i Lehr at t..tader'a atgtlan. upon notis$ to Harrower; may ttfitke such appearancr;s, disburse such
<br />sums-amt take sttrh acthsn as-its. necessary acs protect teat'ar`s ihtc.rst, it~Fitdiag> -bill ±+ot fimittd to. disisursement of
<br />reasortaltle attatnep's #eea and en:ty; upon the Pmptrty to make rtpasrs. If Lender required mortgage insurance as a
<br />condition a€ rualtittg the ksari secured by this-lirfuttgage; Harrower-ahaii pay the- premiums required to maintain such
<br />imtaimte is-effect tmnl stYCh-tfnst as the. raluirement fit such insurance terminates In accordance with Borrower's and
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