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<br />Uxtaoaat Cavaxnxrs, Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Inferest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and laic charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fends for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sutra therein "Funds"}.qual to one-twelfth of the yearly lases and assessments 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, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be hold in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including bender 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 applyir:g the Funds, analyzing said account,
<br />or veriffying 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. $orrower and Lender 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 applicable law
<br />requires such interest 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 showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged az additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together whit the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance 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 be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />held by Lender shalt not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower 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 fu31 of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph ]8 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 b}• Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Ma-tgage.
<br />3. App3ication of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shalt 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 oboe to interest and
<br />principal on any Future Advances.
<br />4. CMatges; Liens. Bottower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a griont° over this Mortgage, and leasehold payments ar ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if net paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrcwer shall promptly furnish to Lender all notices of amaurts due antler this paragraph, and in the evouc
<br />Barrower shall make pay.nent directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any ]ten which haz priority over this Mortgage; provided, that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enfarcement of the lien or forfeiture of the Property or any part thereof.
<br />5. r'Iazard Ynsnraaee. Borrower shall keep the improvements now existing ar hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and snob other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, chat Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required [o pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />Ghat such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier..
<br />Ail 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 Lender Lender shall have the right ca bald the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid gremiums. In the event of loss,
<br />Borrcwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made 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 he security o€ this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasrble or if [he security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />dace notice is mailed by Lender to Svrrower that the Snsurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Leader's option either t~ .:aioration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Proper(}' is acquired by Lender, all right, title and interest of Borrower
<br />is and to any insurance policies and in and to rho proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Leader to the extort of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Prt•sen•alion and Maintenance of Yreperty; Leaseholds; Coadorcniniums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a trait in a
<br />condominium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />or covenants treating ar governing the condominium or planned unit development, the by-laws and regulations of the
<br />tandominirun or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall fie incorporated into and shag amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part herertf.
<br />?. ProteeUon of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commented which materially affects Lender's interest in the Fraperty,
<br />iachtding, but not limited to, eminent domain, insolvency, Lode enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action az is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees-and Dotty upon the Property to make repairs. tf Lender required mortgage insurance as a
<br />condition of making rite -loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as-the requirement for such insurance terminates in accordance with Borrower's and
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