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<br />iJxttfoixM Cot<aent.+trtxao„ Borrower and Lender covettaat and agree sa folgiows;
<br />3, iP!apm~rt of Frhtcf~f'rm~d fatteektA, Borrower shall prom,~ily pay wir-p~cn dun than pnittt~ipal of an3 int~tciut vn Lie
<br />indebtedness evidenced by the Note, Prepayment and late ehasges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />1. 1 foe Taxes tmd Iaanraoee. Subject to applicable law or to a written waiver by lender, Borrower shag pay
<br />to Lender on the day monthly installmenu of pri~ipal and interest are payable under the Note, until the Note is paid in full,
<br />a. start (herein "Funds"I equal to one-twelfth of the yeasty taxes and assessments which may attain priority over this
<br />i'siortgage, end ground rents an the Pro~xrty, if any, plus ulia- wxlfih of yearly premiu^_ in<allments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, al! as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates tharcaf.
<br />The Ftmds shall be held in an institution the deposits or accounts of which are insured or guarantees by a Federal or
<br />state agency finclttding 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 account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicably law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at [he time o[ execution of this
<br />Mortgage that interest on the Funds shalt be paid to Borrower, and unless saach agrcement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eatttiags 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 additional security for the sums secured
<br />by this Mortgage.
<br />If the amoum of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of saxes, assessments, insurance premiums and ground rents, shall a: reed the amount required to pay said taxes,
<br />assesstttents, insurance premiums and ground rents as they fail due, such excess shall be, at Borrower's option, either
<br />pmmgtly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be su$cient to pay taxes, assessments, insurance premiums and ground rents as they tali 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 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 or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBeatioa of Payments. Unless zpplicable law provides otherwise, al[ payments received by Lender under the
<br />Note and paragraphs 1 sad 2 hereof shat! be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />unaer pazagraph ~ hereof, Then io interest payable on the .ore, rhea to nc~ p:incipat of the Note, and then to interest and
<br />principal an any Futtue Advances.
<br />4. Charges; fieos. Borrower shall pay all [axes, assessments and otfier 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 />pmvided under paragraph 2 hereof ot, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shall make paymerst 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 shaft not be
<br />required to discharge any such lien so long as Borrower shalt 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 />-egal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. 13azard Insnrtmce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by 5re, 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 the insurance shall be chosen by 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 under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AB 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 to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender ail renewal notices and all receipts of paid premiums. to the event of lass,
<br />Borrower 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 [.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration of 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 18 hereof the Property is acquired by fender, all right, title and interest of Borrower
<br />in sad 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 Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />fi, presenetfon a~ Mainteaence of property; f.easeholds; Condominiums; Planned Unit Developments. Borrower
<br />shall ktxp the Property n 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 {easehold. if ;his Mortgage is on a unit in a
<br />condominium of a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or cavenartts creating or governing the condominium or planned unit development, the by-taws and regulations of the
<br />coctdomin"rum or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by &~rrotver and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall he ittcotporated into and shall amend and supplement the covenants and agreements of this Martgagc as if the rider
<br />were a part hereof.
<br />7. 1Protectlon of Lender's Security. If Boac~uer fails to perform the covenants and agreements contained in this
<br />ffifottgage, or if any action or prcxeediag is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />lmakrttpt or decedent, then Lander ai Leader's option; upon notice to Borrower, may make such appearances, disburse such
<br />stuns attd intro such action as is ttecesaty to praiser Lender's interest. including, but net limited to, disbursement oC
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required rnartgage insurance as a
<br />eottditum at tanking ;lam loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />itaturaac~ in e~tect until such titeae as rite requirement fat such insurance tstmina[es ir, aecardancc with Borrower's and
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