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<br />Uerts~oast f_ovaet~.r~trs. Borrower and Letsdt:r covetrar~t a,r~.d agree as follows:
<br />I. I!`ayanta! at fwrlaclpal asd lutterest. BarriYwwer sfiaNl ~praamptly pa}~ :then dope the principal crf' and. interest a,n 'tlte
<br />indebtedness evdctttxd by the ztilote. prepayment and later cixarges as provided in the Nale, and, the principal of and Interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Feada for Ta:ta sad Iasaraace. Subject to applicab€e law yr to a written waiver by Lender. Borrower shag pay
<br />to Lender on the day monthly installments of principal and in€erest are payable under the Noit, until the Note is paid in full,
<br />a sum {herein "Funda'~ equal to one-twelfth of the yearly taxis and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus ono-twelfth of yearly premium installments for hazard irrwratrce,
<br />plus one-twelfth of yearly premium installments foe mortgage insurance, if any, all as reasonably estimated initially and from
<br />lima to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accaunLs of which ate insured or guaranteed Sy 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 renes. Lender may not charge for so fioiding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funos and applicable law
<br />permits Leader 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 shall be paid to Borrower, and unless such agreement is made ar applicable law
<br />requira such interest to be paid, Lender shall not be required to pay Borrower any interest ar earnings on the Funds. Lender
<br />shall give to Borrower, without chazge, 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 additianai security Ion the sums secured
<br />by this Mortgage.
<br />li the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />-he 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 instaGments of Funds. If the amount of the Funds
<br />held by Lender shall no[ 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 full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold ar the Property is otherwise acquired by Cinder, Lendee
<br />shal- 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nate sad paragraphs 1 and 2 hereof shat! !n applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph 2 hereof, then to interest payable on the Note, then to the principal of [he Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lleas. Borrower shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over tfiis Mortgage, and leasehold payments or ground rents, if any, 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 />payee thereof. Borrower shall promptly 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 dischazge 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 paymene 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 />Cegal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Itrsuronce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss 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 [he 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 chasm 6y Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier,
<br />All insurance policies and renewals thereof shall be in farm 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 to hold the policies and renewals thereof,
<br />and Borrower shall pramptly furnish to Lander all renewal naiices and all receipts of paid premiums. In the event of 1-~ss,
<br />Harrower steal} give prompt notice to the insurance carrier and Lender. Lender may make proof of lass 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 />net thereby impaired. If such restoration ar repair is net economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured 6y 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 Lander 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 Z hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proce~ls thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pan to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />S. Preeervatioa and Malateoance of Property; Leaseholds; Condomlotums; 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 unit in a
<br />condominium ar a planned trait development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit develal;ment, the by-laws and regulations of the
<br />condnminittm or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrows and rernrded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Pretsctloa of leader's Secoritp. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or ptocxeding is commenced which materially affects Lenders interest in the Property,
<br />ittclud'mg, but not limited to, eminent domain, insolvency, code enforcement, ar arrangements or proceedings involving a
<br />bankntpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary to protest Ixnds's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to 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 />~surattee in effect until such-time as the requirement for such insurance terminates in accordance with Hormweis and
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