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<br />UxrroxM CovexAxzs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Prineipai and Interest, Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evideeced by the Note, prepayment and late charges as provided in the Note, and the principal of end interest
<br />an any Future Advances secured by this Mortgage.
<br />~. Tiinnds for Taws attd Insttrttnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender a :the day mo:[ih!y irsia!!trents of principal and interes*_ art payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to onedwelfth of the yearly taxes and assessmenfa which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, al[ as reasonably estimated initially and from
<br />time to Ume by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds steal! be Geld in an institution the deposits or accounts of which are insured or 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 />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and campiliag 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 that interest on the Funds shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />regvires sucle interest to be paid, Leader shall net be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give to Horrawer, without charge, an annual accounting of the Funds showing 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 />6y this Mortgage.
<br />If the amount of the Funds held by Lender, together with [he future monthly installments of Funds payable prior to
<br />the due dates of taxes, asseumenis, inuurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall ire, at Borrowers. option, either
<br />prompHy repaid to Borrower or credited to Borrower on monthly installments of Funds. If she amount of the Funds
<br />held by Leader shelf net be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amwnt necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender she!! promptly refuted to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold ar 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 />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Apgiicatitrn of Payment. Unless applicable Saw provides otherwise. all paymems received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender fits[ 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 Noie, and then to interest and
<br />principal on any Futctre Advances.
<br />4. Charges; Liens. Borrower shalt pay ail taxes. assessments and other charges, fires and impositions artributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if noe paid in such manner. by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Borrower shaft make payment directly, Borrower shall promptly tarnish to Lender receipts evidencing sash payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provides, That Borrower shall not 6e
<br />required to discharge any such lien s.+ long as Borrower shalt agree in writing m the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shat' in goad faith contest such lien by: er defend enforcement of such Sion in,
<br />legal graceet5ngs which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thr°--'.
<br />5. Iieaard Insarancc. Boe7ower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agsinstloss by fire, hazards included within the term "extended coverage", and such other hazards as Lender tray require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shalt net require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Harrower subject to approval by Lender; provided,
<br />that such approval shall rmt be unreasonably withheld. All premiums on insurance policies shat! be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direedy to the
<br />lnauranf?e C4C17eI.
<br />All insurance policies and renewals thereof shat; !~ in farm acceptable io Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold :fie policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid premiums. ]n the event of lass,
<br />Borrower shelf give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not mad: promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and ehe security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is net economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to the sums secured by this Mortgage, with the excess, Ff any, paid
<br />to Borrower. If the Propem is abartdareed by Borrower, ar it Barrawer fails to respond to Lender within 30 days from the
<br />sate notice is mailed by Lender to Borrawtr that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is auUzorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />ar to the sums secured by this 4iortgage.
<br />Unless Lender and Borrau~er otherwise agree in wrsting, any such application of proceeds to principal shall net extend
<br />ar postpone the due date of the mamh!y installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, a{t right, title and interest of Borrower
<br />in and to any insurance policies and is and [o the proceeds thereat resvhing from damage to the Property prior to the sale
<br />or acquisition shat! pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acgttisiUan,
<br />6. Pteservatian a~ Maintenance of Propertr; Lea.~twlds; Condominiums; Planted Unit I)lveiopments. BOfrOWCP
<br />shelf keep the Property io good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of arty lease if this hiartgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium oz planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is ~.~,:.::'~ by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shalt tie itteorporated into and ~.a±l ~wro..a aa~± supplement the covenants and agreements of this Mortgage as if the rider
<br />wsrta a part hereof.
<br />7. Protection of Lender's Secarity. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or protxeding is commenced which materially affects Lender's interest in the Property,
<br />'i~Ittding, but not limited to, emineti4 domain, insolvency, code enforcement, ar arrangements or proceedings involving a
<br />battikn;I# or decedent, Uten Lender at Condor's option, upon notice to Borrower, may make such appearances, disburse such
<br />-stuns and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attamey's fees and entry upon the Property Ya make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect tmUt such time as the requirement lot such insurance tP~?!d :aces in accordance with Borrowers and
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