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<br />Utarnotev,t Covxr~,s:+rrs,. Bornuwer atnd Lander coveraamit and egret alt folW€>wrs,°,
<br />1. Psymeat of I~nrltt nand fatertrt, Borrower shall pitomptiy gray when dtrt the principal of andunatresi omn the
<br />indebrte+dness evide,ncedl 67` the l~iote, pmepaymeaa and lane t:!harges ax pro~viidtdl ira the Nate„ and the principal of and iaatrest
<br />on nay Future Advances secured by this Mortgage.
<br />2. Faad; for Taxes ~ Itssar~ee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to lender on the day montlily installments of principal aad interest aze payable under the Mott, until the Nate is paid in full,
<br />a sum (herein "Funds"1 equal to ene-rxelfth of the yearly taxes and asseasmenu which may attain priority over this
<br />Mortgage, and ground rents an the Property, if any, pltn one-twelfth of yearly premit_*m installments for hazard insurance,
<br />phrs o»e-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially a~ from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of which aze insured or guaranteed by a Federal of
<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 account,
<br />or verifying and compiling said assesstents and bills, unless Lender pays Borrower interest oa the Funds and applicable lax
<br />permits Lander to make such a cha:a~. 8orower 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 agrcement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Funds. Ltndez
<br />shall give to 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. 'Ihe 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, she" exceed the amount required [o pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due; such e.. -hail be, ai Borrower's option, either
<br />pros.Y.;y .cpSld io Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall not 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 deficier+.cy 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 Leader. 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 grim 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, tlren 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. Ghatges; 1[diers. Borrower shall pay all taxes, assessments and other charges: fines and impositions attributable to
<br />the Property which may attain a priority over this 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 io 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 nay 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 />such lien is 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 farfeieure of the Property or any part thereof.
<br />S. Hazard Iffiarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and is such amounts and for such periods as Lender may require; provided, that Lender shall no[ 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 carver providing the insurance shall be chosen by Borrower subject to approval by Lender-, provide!,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iasurattce carrier.
<br />Ali insurance ~ticies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause itx favor of and in form accepeable to Leader. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of toss if not made promptly
<br />by Borrower.
<br />Ualessss Leader and Bower otherwse agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damage'u, 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, wish the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower faits 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 stems 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 l8 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 Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. PrnervaNon and Mainteaaoce of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the PropetYv tat good repair and shalt not commit waste or permit impairment or deterioration of the Property
<br />and shah comply with the provisions of any lease i# this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned trait development, the by-laws and regulations of the
<br />condomittittm or planned unit development, and 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 />shat be incorporated taro and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Proteetioa of 1Lendt~s Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding 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 />banktvpt or decedent, then Lander at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />slams and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />t'easortabte 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 />ittsuraaace in effect wail such tithe as the requireaneat for such insurance terminates in accordance with Borrower's and
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