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<br />ttran[Fann~t ~Gav~,er;.+r.rs. Borrower and L~ntlar eov~n-ant and agr~ as fal::;vr,.
<br />I. iasym~aat of Prfiac~al and Iatercat. Borrower shall promptly pay when d.re the principal of and interest oa the
<br />indelscuxlaess evidenced by the Note, Prepayment and tale charges as provided in the Nate, and the principal of and interest
<br />:m any Future Advances sectued by this Mortgage.
<br />Z Fnntk for Taws and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender oa the day monthly installments of prixipal and interest aze payable under the Note, until Lhe Nate is paid in foil,
<br />a sum {herein "Funds"} equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents oa tbe Property. if any, plus oue-twelfrh of yearly premium installmenu for hazard insurance,
<br />pk~ oae<twelfth of yearly premium installments for mortgage insurance, if any, aU as reasonably estimated initially and from
<br />time to Gene by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an irstitution}. Lender shall apply the Funds to pay said taxes, assxssmenu,
<br />insurance premiums and ground tents. Lender 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 Borrewer interest oa the Funds and applicablt 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 uu the Ft:ndr° shall he paid to Harrower, and unless such agrcemem is made or applicable law
<br />requires streh interest to be paid, Lender shall not be required to pay Borrower any interest or ~ ri.^.a. on the Funds• Lender
<br />shall give to Borrower, without charge, an anuual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. Tae Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with 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 ercess 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 shall no[ be strtEcient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall gay io Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lcaa'"'w'r to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender sha!1 premgdy refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 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 nr its acquisition by Lendec, any Funds held by
<br />Linder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall 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 then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Ideas. Borrower shall pay atl taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall prompLy furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall 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 />streh 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 enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against ions by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not 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 Ehe insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shalt 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 />iffiurance cazrier.
<br />All insurance policies and renewals thereof shall be in form acceptable la 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 the policies and renewals thereof,
<br />and Harrower shah promptly furnish to Lender alt renewal notices and ail receipts of paid premiums. In the event of lass,
<br />Borrower strati give prompt rrotiee 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 the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums 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 />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or 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 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph t8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this h3ortgage immediately prior to such sale or
<br />acquisition.
<br />aE. Prsaervatlon and 1171aintenanee of Property; Letueholdst Condominiums; 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 />aad shall comply with the provisions of any lease if this Mortgage is an a leasehold. If this Mortgage is on a uniut, in a
<br />condominium or a planrrod unit development, Borrower shalt perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or plarttted trait development, sad 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 be incorporated into and a:hal! amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />ware a part ttercof.
<br />7, Pnsteeuoaa of F.entkrb 5ecasrity. If Borrower fails to perform the covenants and agrcements contained in this
<br />Mortgage, a[ if any action or proceeding is commetrced which marerislly affects Lenders interest in the Property,
<br />including but not limited to, etnirront domain, insolvency. code enforcetrtent, ar arrangements or proceedings involving a
<br />batnltrttpt of decedent, [Iron Lender ati LR?lEler a option, upon !entice to Borrower, may make such appearances, dishurse such
<br />stuns aad take such action as is necessary to protect Lenders interest, including. but not limited tu, disbutsemen! of
<br />rea~nalak attorney's fece and erttty upon the Property to make repairs. if lender required mortgage insurance as s
<br />ci~:tio: of r,, r~:ng t~ }fin s~c~r~i by t<itig Mortgage, $orrower shall pay the psemittms requirs•d to maintain such
<br />tn±.u ht eBarxt taitll such time as the rcq_rriremem for such insurance terminates is accordance with $ortawer's and
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