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~i Uurnoazvt Covert,ttvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Priaclpal and Lttertxt. Borrower shall promptly pay when due the principal of and interest on the
<br />r~ indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />..:f 2. Fatter for Taaes and Iasutsnce. Subject to applicable law or to a written waiver 6y Lender, Borrower shall pay
<br />~ to Lender oa the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />t a stun {herein "Funds") equal to one-twelfth of the yearly taxes 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 />R plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lander on the basis of assessments and bills and reasonable estimates thereof.
<br />The Frauds shall be held in an insttutioa 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 shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Leader may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower attd Lender may agra 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, Leader shat! not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shat! give m 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. ~ funds arc pledged as additional security for the sums seared
<br />` by this Mortgage.
<br />ff the amount of the Ftrads held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtre dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assettsmtnts, instrance premit=,.,` and ground rmu as they fall due. such excess shall be, at Borrowers option, either
<br />prornpdy repaid w Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be stmt to pa}• taxes, assessments, insurance premiums and ground rents as they fall Sue,
<br />Borrower shall pay to Letder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender m Borrower requesting pa}'ment thereof.
<br />Upon payment in full of ati stuns eecutcd by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Cruder. If under paragraph 18 hereof the Properly is Bald or the Property is otherwise acquired by Lender, Lender
<br />sig. ,yt„r, , ~, .~-., rhom :.__----' ~,ely r::.,. to eht ~>e t,f the PronetYy or ire acquisition by Lertdcr, any Funds held by
<br />Itnder at the tune of application as a credit against the sums secured by this Mongage.
<br />3. Appktatioa d la~ymeeb. Unless applicabk law provides otherwise. al! payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lcndtr first in payment of amounts pavabk m Lender by Borrower
<br />under Fu'+greF'h 2 hereof, 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. ~ Item. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a pritttiry over this Mortgage. and leasehold payments or ground rents, if any, in the meaner
<br />provided under paragraph 2 hereof or, if not paid in sueh manner, by $orrawer making payment, whin due, dirtcUy to the
<br />payee Borrower shall pr~tptly furnish to Lender all notices of arLOUnu due under this paragraph, and in the event
<br />Betrottrct shall make payment directly, Borrower shall promptly furnish to Lender receipts evi~ttcing such payments
<br />Bortomr shall prt~ptty discharge any lip which has priaritg over this Mortgage: provided, that Borrower shall net be
<br />raptired m discharge any streh lien so long as $orrower shall agra in writing to the payment of the obligation secured by
<br />sulk }im rn a mataner acoeptab~ to Leader, ar shall in good faith contest su.:h lien by, or defend enforcement of such lim in,
<br />legal ptraeediogs which operate to prevent the enforcement of the lien err farfciture of the Property ur any pan thereof.
<br />S. HaaA kamaaee. Harrower shall koep the improvements now existing or hereafter erected on the Proptny insured
<br />agasffi loss by fne, harirds ittchtdcd within the term 'ectatded covuage", and such other hazstds as Lender may require
<br />sad in alert amounts and for such periods u Lender may require; provided. that Lender shalt root require that the amount of
<br />stack tbverage tamed that amount of coverage required to pay the sums secured by rhts Mangage.
<br />She inswanet carrier providing the incimr+t~ shall be chosen by Borrower subject to approval by Lender, ptov~dtd.
<br />that stab approval shag not be tmtrasonably withheld. Ail premiums on ittsurarece policies shall be paid in the manna
<br />prwMed tender paragraph 2 heraod ~, if not paid in such :naaner, by Borrower tusking p:,mtent. when due, directly to 'the
<br />itwsmae carrier.
<br />,~ its polies and resiewals thereof shall tae in form acoeptabk to Lender sad shall include a standard mortgage
<br />t ®fsvm of a~ ~ f^~ ~ to L.cnder. Lender shall have the right ra bald the policies and renewals thereof,
<br />aad $rataswer shall prnm~ly fura~ah to L,cuder all reartv,•al notnxs and all receipts of paid premiums In the evrnt of logs.
<br />Btxrxrss s3ull give prompt ntkice to the insurancx carrier and Lender. Ltndcz may make proof of loss if not made promptly,
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<br />Utaksc Lasder a~ BosTOarr othtr+vnt ague ir, writing. insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged. purnided sttrh restoration or repair is rx-.onortically ftasibk and the security of this Mortgage is
<br />not therd>t~ impairod. I# larch rrsteratian or repair is net tconomicalig feasible err rf the securi[)• of this Mongage would
<br />he mspairad, tIx itutuaace premeds shall be applied ra the stmss sa-uttd i+y ehts Mortgage, with the exctss, if any, paid
<br />m Borrrwer. If the Propeng' is ahatrdoaed by Borraaver, or ii Borrower fails to respond to Lender within 30 days from tl~
<br />die sotirx a truikd by I.elader tea Barrow+er That the ~^~,~*~^•^~ :artier ariers to settle a claim for ittsuraoce benefits, Lender
<br />is aathorimd to r~11eu sad apply the instuaxtce proceeds at L.er~er's aprons other to rcuoranon or repair of the Property
<br />err m the atana seaubd by this Mortgage..
<br />Utttess L and B+xmw~ txherw-isc agtrs rn outing, ang such applicaticm of precede to principal shalt not extend
<br />or poatpotae the due lisle of :he monthly intisllnxextts rrfr=red ro in paragraphs 1 amt '_ hereof or change the amount of
<br />sack ice. Lf tmd,er paragtaplt 1g hereo# thr Praperiy rs acquirer 6y Loader, al! nght, tick sad interest of Burrower
<br />i$ sad ua arty instearn-e prdit9es and ua send to the }soceeds tbermf resulttag fmtn damage to the Progeny prior to the sak
<br />er shall prss to I,mder to tbe extent of the sums sccttted b} thu Mortgage tntmediateiy prior to inch sak err
<br />;„ iaaaar+amiar. ai 1-faiethararate M Pre~erty: [ Caeiemis~man Phtawed Unit I)evdopmeats Borrower
<br />~ kmp the Property is lpemd repair sad shtdl not commit want or permit impairment or deterioration of the Pr~rty
<br />end ; txraepty with eke pe'ovsioes of say knee if this MottgaYe ix an a icasthold. If this Mortgage is on a unit in a
<br />err a pktaaed trait desg3ppmern, Borrower studs perform all of Borrowers abligauons under the dtciarat;on
<br />~ a : ~ 3 she cotinium or planned unit development, the by-taws and regulations of the
<br />- - or 1? tmia , and coaaittxot tfoctrrttents. If a condotrtinium err planned umr tkvelopmrnt
<br />rides is etdea#od by Btxroarx smell recnrded together wrth this ltortga~, the covenants and trgrumcnts of wch rider
<br />risu~ he i~oaeparraed ime atad shag ameed and s:em the covenants and agr+xmottts of this Mortgage as ;f the rider
<br />ware a part hereof.
<br />7. Psaiee~a of I.oitar5r fisctsidis• If Betrow+er fails to perform the ~artts and agreements ciuatained in this
<br />err ~ ~* at~iea or procaedias as comareactd which tnateriaily affxts Lender's interest in the P-openy,
<br />i !~ sat tad tea, etaism[ t3ottersio, insalvuxy, code mforccrnent, or arrangements or proceedings involving a
<br />,err decd, thaa Lsarda at I.seder's option, upon notice to Borrower, may make such appearances, disburse such
<br />s~ sold late sack aexioa as is aecsnray to protect Ltusder's iattrest,rra:iuding. but not limited to, disbunemeat of
<br />temmai~e attoroay's f:a end entry ~ the Property to tusks repairs. If Lender required mongage insurance as a
<br />taoodAioie ad ~g the loan aetarred 5Y this Mortgage., Barrow°cr shall pay the prtmiutns required eo maintain such
<br />imnmea its er<Iett troll! such terse as the regt~enr for such tnstuantx terminates rn accordance with Borr~wtr's and
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