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I,Fret~otatb5 t'~.ovis~s.ty'rs_ &tsratwcr and Lsnr aa~verrant and agree as fotlo~a+s:
<br />I. Pajyat»ein# of Ptincl~d and #aNereat. Borrower shall promptly pay when due tfte principal of and mtsrsst on the
<br />imafb,btaEdna~s ev'q'denced by ihs Npta, prepayatent grad lots charges as provided ire, the Noss, anceL ttae principal of and interest
<br />on nay Futuue Advances secured by this Mortgage.
<br />2 ]irtaait for Tries ant tnsaaaes. Subject to agpticabie law ar w a written waiver by Lerxl~, Borrower shah pay
<br />to Lender on the day raeeathty installments of principal and interest are payal>ie under the Noe, until t1x Note is paw in full,
<br />a rum (berttin "Funds' equal to one-twelfth of tbe yearly taxes and usessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if an ius vuot..etft, o -'° ^• :nw:iH..e^.,r~ frsr harard insurance.
<br />plus one-twelfth of yearly ptartiatm installments for mortgage insurance, if any, all u reasonably estimated iraitiaily and from
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />Tne Funds shall be held in an institution the deposits or accounts of which are irts~ted or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asse~ments,
<br />insurancx premiums and grotmd 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 Ftmds a~ applicable law
<br />permits Linder to make such a charge. Borrower and Lender may agree in writing at tbe time of execution of dtis
<br />Mortgage that interest on the Funds shah be paid to Borrower, and unless such agreement 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. Lender
<br />shall give to Borrower, without charge, an annul accounting of the Funds showing credits and debits to the Funk and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged u additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds Geld by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtu dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums anal ground rents as they fall due, such °: _ess shat! be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Farads
<br />held by Lender shah not be sufficient to pay taxes, assessments, insurance premiums and ground rents u they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dots notice is mailed
<br />by Leader 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 78 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 titrae of application u a credit against the sums secured by this Mortgage.
<br />3. Appfication of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs t a.^d 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. Chagas; Liens, Borrower shall pay all taxes, assessments and other 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 manntr
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dtae, 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 shat) promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
<br />required to discharge any such tier. so long u Borrower shall agree in writing to the payment of the obligation secured by
<br />such lisp in a manner acceptable to Lender, or shall in good faith contest such lien hy, 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. 1Eiaaard Irtsmaace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by Sre, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods u 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 />Tbe insurance carrier providing the insurance shall be chosen by Borrower subject w 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dtrw, ditcetly to the
<br />insuratue carrier.
<br />All insurance goticies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />elattse in favor cf and in form acceptable to Lender. Lender shall have the right to hold tbe policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal noetsxs and all receipt 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 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 feuible and the security of this Mortgage is
<br />not thereby impaired. If stub 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 faits to respond to Leader 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 stuns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ar 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 Lender, all tight, title and interest of Borrower
<br />in and to any insurance policies and in turd 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 />acquisition.
<br />f. Praervadoe sad Mainteoatace of Property; Leaseholds; Condominiums; Planned Unit Dsveloptnents. Borrower
<br />shall keep the Property in good repair and shag not commit route or permit impairment or deterioration of the Property
<br />and shaft comply wiW the provisions of any lease if this Mortgage is on a leasehold. If this Mortgaga is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform alt of $orrower'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 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 />ahali be i~orporated into sad shall amend and supplement tbe covenants and agreements of this Mortgage as if the rider
<br />were a part hs.-eof.
<br />7. Prosectba of Lendefs Secndty. if Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proeeedigg is canmentxd which materially affects Leader's interest in the Property,
<br />' including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt to tlecsdent,-then I:ender at Leader's option, upon nonce to Borrower, may make such appearances, disburse such
<br />studs and take such action as is ttetxssary to protest Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees sad entry upon il~ Property to snake repairs. If Lender required mortgage insurance as a
<br />contrition of'makittg-the Loan secured by this Mortgage, Borrower shall pay Lhe premiums requited to maintain such
<br />ittattrattce in effect until such liras as rite requirement for stub insurance terminates in accordance with Borrowers and
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