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<br />Uxrnoatt COV$NANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Petndpal and Ltterest. Borrower shall promptly pay when due the- principal of and interest on the
<br />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 />2 Feuds for Taza and Imuraace. Subject to applicable law or to a written waiver by Lender, Borrower shall 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 sum (herein "Fonda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Froperty, if any, plus one-twelfth of yearly premium instal-menzs for hazard insurance,
<br />plus o~-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated inieially and from
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Fttttds shall be held in art institution the deposits or accounts of which are insural 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 acrnunt,
<br />or varitying and compt'ling said assessments and bills, unless .Lender pays Borrower interest on the Funds need applicable law
<br />perntits Lender to make such a charge. Borrower and Lender may agree ir, writing at the time of execution of this
<br />More that interest on itte Funds shall be paid to Borrower, and tmless such agrcement is made or applicable law
<br />raRrirts such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oo the Funds. Linder
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds sad tbe
<br />, purpme for urhicfi each debit to the Funds was made. The Funds are pledged as additional security for ttr_ sums secured
<br />by this Mortgage.
<br />if the amount of the Funds Geld by Lender, together with the future monthly installmnts of Funds payable prior to
<br />7t the due darts of [saes, assessmmzs, insurance premiums and grouted rents, shall exceed the amount required to pay said fazes,
<br />".. aasasamentt, iawrenoe prtarit®s and ground rents as they fall due, such excess shall be, at Borrowtrs option, either
<br />t promptly repaid to Borrower or uedited to Bomnwer on monthly installments of Funds. If the amount of the Funds
<br />'""f lidd by Leader she}! not be swat to pay texts, assessments, insurance premiums and grouttt' rents u they fall dot,
<br />~ Botmwer shall pay to Linder nay ataount necessary to make up the deficiency within 3(t days from the date notice is mailed
<br />by Leader to Borrower requesting payrncnt thereof.
<br />~ Upaa payment is full of all arms securvl 6y this Mortgage, Lender shall promptly refund io Borrower any Funds
<br />^ ixM by i.ttaaa. if uaver~ ~irrg -ap` io u:cv..'`ic i tope :y :s :. u ~ ilt2 Prot..:,.y :s ~lt.°rwi;r. o~°u:tya hy~ [ ~ _ treder
<br />~ shall apply, no Isla thaee uo~rliately prior to1Lht sale of the Property or i[s acquisition by Lender, any Funds held by
<br />~' Caroler at the time of application as a credit against the sums secured by this Mortgage.
<br />3. A~easioa e[ Unless applicable law provides otherwise, all payments received by Leredtr under the
<br />Nutt and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Harrower
<br />unafer paragraph 2 iteteof, then to interest payable on the Note, thee. to the principal of the Nat, and thin to interest sad
<br />principal on any Fuhu Advances.
<br />~. Clmssr I3eea. Borrower shall pay all taxes, a«^+ents and other charges, fines and impositions attributable to
<br />the Property which rosy attain a priority over this MaYgagc, sad Ieaxhold payments or ground tents, if any. in the manner
<br />pmvidod tinder paragraph 2 hereof or, if not paid in such manner, by Borrower makiug payment, when due, dirnctty to the
<br />payee therea#. Borrower shag promptly furnish to Lender all notices of amounts due under this paragraph, sad in the event
<br />Borrower shag mate payment directly. Borrower shall promptly furnish ro Lender rereipts tvideariag such payments.
<br />Botzawv shag prarnptly discharge ant Ilea which h~ priority over this Mortgage; provided, that Borrower shall twt be
<br />required 6o tliacharge arty stxh lien so bag as Borrower shall agtec in writing to the payment of the obligation tecurtd by
<br />start ties in a titatirem eceeprahte to Leader. or shall in good faith contest such lien by, or defend rnforcement o: such lien iq
<br />leg:i prorzediags which apetatt to prevent the eetforcartent of the lien or forfeiture of fix Property or any part thereof.
<br />S. Idmti IMs~ Borrower shag keep the improvements now existing a hucafttr erected on the Property inserted
<br />against Loss by flee. hazards included within the term "extended coverage", and such steer hazards as Lender may require
<br />send in suc3r amounts and for such periods as Ltetder may require; provided, that Lender steal! tea require that the amoum of
<br />ardt carted that amount of coverage required to pay the sums secured by this Mortgage.
<br />The ittatra~e peeler providing the iasrsrance shall be chosen by Borrower subject to approval by Lender, provided,
<br />tint arch approval shall not fie uarsasmabfy withheld. AB premiums on iasnrarece polleies shall fie paid in the manner
<br />pswridpd tinder parspaph 2 hereof or, if not paid in such manner, by Borrowrcr makin8 payment. when due, directly to the
<br />iastaasoe ssrtitr-
<br />AB insnt~ct paw a~ r.~exak thu-pf shat' be is Elam a~ptablr to Le_~+er awl shall incltede a standard mortcate
<br />dame is farad of and m form ~oepiairk to Lender- Lender shall hair the right to hold the policies and renewals thereof.
<br />sad Bartvs>er steal! pras~ly firtnish to Lender ail r=newel rtotices sad all tPCtipfs of paid pratsiuttss. !n the evgtt of l~s,
<br />Harros-a shelf give prompt m~ to the imurance carrier and Lender. Lender may teueke proof of loss if tent made promptly
<br />by tlaaosstr.
<br />Unless Leader sad Borrower otherwise sync in wetting, insuranoe procceds shall be applied to restoration err repair Of
<br />the 1*raperty damegtd, prgntded srtch tesiatati~ oa repair is eentetunicaBy feasible and the security of this Mortgage is
<br />not rhptaby iat~taired. If arch restoration err repair ss not ewnanitxBy feasible or if the stctuity of this Mortgage would
<br />tee > ~ its prncoeds shall Me appiiod to the sums secured by this Mortgage, with the ertrxsc, if any paid
<br />tri Borrtrv+cr- It the ° is ahaadaatd ita~ Harrower, err if Iorrower fails to resptmd to Lender within 30 da}s from the
<br />dace atti6ae is mailt+I by Leader w Barrusrer that the inarrarwe carrier afters to settle a claim for insurance berxfits, Leader
<br />is a~gigad to txrliea and apply tlrp iawranx proceeds at Leader's option ether sQ restoration err repair of the Property
<br />~mthpt~hy~-
<br />Ualas Leader sod Badnower aehetwiae agree m writing. any rxh application of proceeds to principal shall na extend
<br />tr poetpoae the dne dine of tae mtutidS' is reitrreet to is paragraphs 1 curd Z hereof or change the amarnt of
<br />streh imeets. 1# trader paragraph i8 Iseyeof the Property is acquirod by Leader, all right, title and lateral of Borrower
<br />im amd ~ nary i polices sad is sad in the proceeds thereof rtatrltittg from damage to the Property prior to tht sett
<br />ter awn shag pass &r Leader to the eattent M the auras aerated Irv this Mortgage immadiauly prior to such sale or
<br />~ ltasraradea aai ftlaiatmaoe *f iraperty; iaseaYoldS Ce~aia Pleased Uatit Oevebpuen~. Borrower
<br />ate I~ the Prapetty is Baosl repair sad shag not mpnmit waste or permit impairment err detesuoration of the Property
<br />sad aha$ >~Y wgh the proses of any lease if thiz Mortgage is as a kasehofd. if [his Mortgage is on a unit in a
<br />err a ptsaaal trait devdop~, Borrower sltai! perform all of Borrowers obligations under the declaration
<br />ter oar or i ilre candosninitaa or plueexd unit devtbparcn4 the by-laws and regulations of the
<br />gpado~s m pitmpgd trait development, and castxittreat dorumeneL #f a candantinitan or planned unit development
<br />rider is ertaraiWd iy Boetvser sad rat;otdad r with this Mortgaat, the rxivenanis and agreements of such rider
<br />~ ie iawepatdpd stet sod shs8 amend azsd m the caveaaats and agreenwnu ~ this Mortgage as if the rider
<br />laces a par! lrerepL
<br />4. Iearteetiea sf I.eaiePa I# Boaanuer fails to ptrfarm ttx covanaass and agreerrxaes contained in ibis
<br />COs. ar ~ arty apliaa err psnoat~gg is whirl[ materially affxts Lea+der's interest in the Property,
<br />lace not l to, aeaisatt damaia, it:tbtt~rrcy, code rntorirematt, err arrangements or proceedings involving a
<br />he~tt~ or dpredmt tires Learkr at Leaders opts, upon antis to Borrower, may make such appearances, disburse such
<br />satins sad ~ sach action as is pptssssy W prdoct Leaders inters, including. but nor limited to, disbursement of
<br />tatlnaa6le ads fieCa sad seNry trp4n the Property to make repairs. If Lender required mortgage insurance as a
<br />ras~iEioa of nrrtkiag tip ins axmt~d by this Mortgsige, Borrower shall pay the premiums required to maintain such
<br />`s~sa®oa ~ t sttriD limp sa ihp legrr~t tar such iusutrarei itrrsinat=s i;i ida~ with Bararxer's astd
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