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<br />Utrtroau aCovatnx~ta. Borrower anti l.tatdu covtna:arx and agree as fallowa:
<br />1. Payrseetsk of ~ sad lateteat. llorravu~xr aRtaii promptly pay when due the principal of and interuesit tm ttk
<br />indebtedness evidenced by the Nate, prepayment and late charges as provided in the Note, and the principal of and ;ntcrtst
<br />on any Future Advances seared by this Mortgage.
<br />1 Prmds for Taus aed Irs~aoee. Subject to applicable law or to a wntttn waive by Lender. Bortawu shall fray
<br />to Lender on tbe day monthly installments of principal and interest are paya6!e under the Note, anti! the Noe is paid in full,
<br />a sum (herein "Fonda"} equal to one-twelfth of the yearly taxes and assessments which may attain priority aver this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />plies orstwelfth of yearly premium installments for mortgage insurance, if ate, al! as rrossenably estima[cd initially sad from
<br />time to time by Leadu on Ute basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which art; insured or guaranteed by a Federal or
<br />state agency (including Lender if Lendu is such an institution). Lender shall apply the Funds to pay said raze, assessments,
<br />irisuzarae premiums and ground rents. Lender may net chazge for so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a chazge. Borrower sad 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 unites 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 on the Funds. Lender
<br />shall give to ;larrower, without charge, an annual accounting of the Funds showing credits sad debits to the Funds and the
<br />,, purpose for which each debit to the Funds was made. Tbe 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, sha[1 exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, scc:. excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda
<br />held by Lender shall not be suf&cient 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 ehereof.
<br />Upon payment in full of all stems 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 />ahail apply, no later-than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Le>Mler at the time of application as a credit against the sums secured by this Mortgage.
<br />a_ s~ ~ ~ va;•~•wrs Uni?s< applicable law provides otherwise. alt paymen[s received by Lender under the
<br />Note and garagraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, [hen 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; Ideffi. 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 to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish 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 discfiarge any such lien so tong as Borzower 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 />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part therwf.
<br />5. Hazard IrrsuraHCe. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />°-d in st,~h am~.tnts and for ~~ F. r.riods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amoun[ 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 gazagraph 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 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 paiicies and renewals ihereaf,
<br />and Borrower shall promptly furnish to Lender ail renewal notices and ail receipts of paid premiums. In the avant a€ 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 Borrowu.
<br />Unless Lender and Borrower otherwise agrce in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Properly 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 shah be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borroter, 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 far 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 stuns seenred'~y this Mortgage.
<br />Unless bender and Borrower otherwise agrce 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 t and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 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 shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Prtservatian sad Maintename of Prolurty; Leaseholds; ~attdamlaiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commie waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if [his Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condomininm or a planned unit development, Borrower shall perform all of Bortowei s obligations under the declaration
<br />or covenants creat'sng or governing the condominium or planned unit 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 Phis Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the rider
<br />were a part hereof:
<br />7. Petatsetlwt of Lwi~'s fiacaAt~. Tf Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if nay action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />~ntcluding, but not limited ta, eminent dtsmaio, imolvency, code enforcement, or arrangements ar proceedings involving a
<br />bankrupt. or decedent, then Lender az Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and lake such action as is necxssary to protect Lender's interest; including, but not limited to, disbursement of
<br />reasonable attottiey's fees and entry upon the Property to makx repairs. Tf Lender required mortgage insurance as a
<br />condition of mating the loan secturod by flits Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect unttl such time as the requirement for such insurance terminates in accordance with Borrowers and
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