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Usrx~ost~t Covetvarras. Borrower attd Lender cxsvtnam and agrac as folt~tnvs:
<br />I„ paiynteat ,~ grioc3gai sad Isr~te€e~. Boru+crtw^er isltatl promptly Pay w,bcn due thz principal o'f and interest ott the
<br />iDdebteidatess evid+zrrctd by the Note, prepayrncnt anal, Lrte charges as provided in tftr: Note, oral the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Reads far ?>aa asd Iear$asee. Subject to applicable law tar to a written waiver by Lerr~r, Borsower shalt gay
<br />to Lender an tl~ day monthly t`trstallments of principal and imerest are payable under *he Note, umsl the Nate i/ paM in fufl,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and grotmd rents on the Property, if any, plus one-twelfth of yearly premi,im installments for trazard irsurance,
<br />plus a~twelfth of yearly premium installments for mortgage insurance. if any. all as reasonably eunnated initially and from
<br />dme to time by T..eader oa the basis of assessments and bills and reasonable estimates thereof.
<br />Tee Funds ahaB be held in an institution the deposits or accounts of which are insured or guazanteed 6y a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Ftmds to pay said taxes, assessments.
<br />inrtrrancE premiums and grotmd rents. Lender may not charge for sa holding and applying the Fins. anaiyvng said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest an the Funds and applicable law
<br />permits Lender to make such a charge. Harrower and Lender may agree in writing ai the time of execution of this
<br />Mortgage that interest on the Funds shat! be paid to Harrower, and unless such agreement is made ar applicable law
<br />requires sash interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. i.cnder
<br />shall give to Borrower, without chazge, an annual accounting of the Funds shvwir,g credits :nd .r,~,t.;*< to +!!' 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 />Tf the amount of the Funds held by Lender, together with the future monthly install:tents of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amotmt required to pay said taxes,
<br />assear:._ntc, insurance premiums and ground rents as they fall due, s~~.h 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 Funds
<br />held by Leader shalt 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 deficiency wiWin 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 arty Funds
<br />held by Lender. If under paragraph I8 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 Properly 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 Mortgagz.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lernfer under the
<br />Nate 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, 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; Dens. 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 iD the event
<br />Botxower 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 />requited to discharge any such lien so long as Borrower shall 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 thereof.
<br />S. Iia~ard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within [he tetra "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 />"Ihe imurance 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 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 form acceptable to Lender and shall include a standard mortgage
<br />clause in favor o€ and in form acceptable to Lender. Lender shalk have the right to hold the policies and renewals thereof,
<br />and Harrower shalt promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In 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 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 wry, 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 autltorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender attd Borsower otherwise agree in writing, any such application of procceds 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 />snob installments. If under paragraph 18 hereof the Property is acquired by Lender, alt 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 Mortgage immediately prior to such sale or
<br />acgttisitioD.
<br />b. PedenatioD aed MaLatenance of Properly; Leaseholds; Combmiaiums; Pbeaed UDit DevelopmeDts. Borrower
<br />shall keep the Property in good repair and shall oat commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is an a leasehold. If this Mortgage is an a unit in a
<br />coadomiaitun or a planned unit development, Borrower shat! perform ail of Borrower's 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 planned trait development, and constittrent documents. if a condominium or planned unit development
<br />-rider is aeecuted by Borrower sad .recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the „ovenants sad agreements of this Mortgage as iE the rider
<br />were a part hereof.
<br />7. PrefeetBoa o[ Lereler's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding r commenced which materially affects Lender's interest in the Property,
<br />it+cludiag, but »ot limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt: or decedent, then Lender at Lender`s option, upon notice to Borrower, may make such appeazances, disburse such
<br />saran and twice such action as is necessary to pro-ect Lender's interest, including, but not limited to, disbursement of
<br />trs~rable attorney's foes attd entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eosidation of a~tking -tbe-.loan seethed by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />irssttratce iri effecL:nntt7 such time as the regttireaunt for such insuuance terminates in accordance with Borrower"s and
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