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UNtt=~x CovEt.zrvTa_ Borrower wind Lender ecsrrnam and agree as follouy:
<br />1. tPaytmeiat of Prbteiltd asd lmetrtsY. B4rr'JWer shall promptly pay wt>~n due she principal tsf a,ntl interest etc zite
<br />indebtadruss evideaud by the Note, prepaymrnt and late sltarges as provided :n arse Note. a:,d the principal of arui interest
<br />.~ on say Future Advances secured by this Mortgage.
<br />_ 1. Ftt~ for Taus asd lee. Subject to applicable law or to a wriuta weever Iry Lender, Borrower shall pay
<br />to leader on rite say monthly installrrtenis of prim ipal and interest a,2 payable under zhe Note, until the Note is paid is full.
<br />,, ~ a sum (heron "Funds") equal 20 one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />.'•;..:..aggt, situ' ground rtnis on lire i•nsperiy, if any, plus ^^< *wrtfrh of yearly premium installtrtents for hazard inwrance.
<br />plus Otte-twelfth of yearly premium irtstaliments for mortgage insurance. if any. all as reasonably estimated ini*_ially and from
<br />;:+ brae to tithe Lry Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Ftmds shalt be held in an institution the deposits or accounts of which are irtsured or guaranteed by a Federal or
<br />;T" state agency (including Lender if Lender is such an institution}. Lender shat! apply the Futtds to pay said tares, assessments,
<br />e°, iastttance premiums and Bound rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying sad compiling said assessments and bills, unless Lender pays Borrower imerest en the Funds and applicable law
<br />permiffi Lender to make such a charge. Borrower and Lerxter may epee in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agcement is made or applicable law
<br />requires such interest 20 be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />• shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits tc the Funds earl the
<br />ptttyose for which each debit to the Funds was made. The Funds are pledged az 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, assessntevts, insurance premiums and ground rents, shall exceed the amount required to pay said fazes,
<br />assessments, insurance premiums and ground rents az they tall due, such excess shall 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 Funds
<br />held by Lender 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 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 lg hereof the Property is sold or [he Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than itttmediately prior to the sale of the Property 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 Mortgage.
<br />3. Applirasioa of Paytttenfs. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs ?and 2 hereof shall be applied by Lender &zt in payment of amounts payable to Lender try Borsowtr
<br />tinder paragaph 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 Advatces.
<br />4. Charges; I&m• Borsower 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 paragaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly [o the
<br />payce thereof. Borrower shall promptly famish 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 />Borsower shall promptly discharge soy lien which has priority over this Mortgage; provided, that Borrower shall not tee
<br />required to discharge any such lien so long as Borrower shall agree in writing [o the payment of the obligation secured by
<br />such lira is a manner acceptable to Leader, 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 [he Property or any part [hereof.
<br />S. 13ssard Insurance. Borsower shall kcep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazatt;s as Lender may require
<br />and in such amounts and for such periods as Leader may require; provided, that Lender shall not require that the amount of
<br />Beech coverage exceed that amount of coverage required to pay the sums neared by this Mortgage.
<br />The insuratce carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shall no[ be unreasonably withheld. All premiums on insurance policies shall 6e paid in the manner
<br />provided trader paragraph 2 hereof or, if not paid in such manner, by Harrower making payt»ent, when due, directly to the
<br />ittauraace carrier.
<br />All insurance policies sad renewals thereof shall 6e in form acceptable to Lender and shall include a standard mortgage
<br />elattse in favor of and in form acceptable to Icnder_ Lender shad have zhe right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Leader a!! renews! ttotices and all receipts of paid premiums. In the event of Toss.
<br />Borrower shalt give prompt notice to the insurance carrier sad Lender. Lender may make proof of loan if not made promptly
<br />hY Borrower=
<br />Uttkss Lender sad Borsower otherwise agree in writing, insurance proceeds shall rte 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 />trot thereby impaired. If sash restoration of 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 Borcower fails to respond to Lender within 30 days from the
<br />date ttotice is mailed by Lender to Borrower that [he insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the instrance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums sectttnd by this Mortgage.
<br />Uttless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or pttstpoae the date date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />stxh installments. If tinder paragraph IS hereof the Property is acquired by Lendee, all right, title and interest of Borrower
<br />in and to any insurance policies sad is and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acqusition shall pass to Lender to the extent of the Burns secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />b. PtaavrNion sad Mai®tenarce of Property; Leaseholds; Coattoteiniattts; Plantred Unit Developuteats. Borrower
<br />shag keep the Property is good repair sad shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of say lease if this Mortgage is oa a leasehold. If this Mortgage is on a unit in a
<br />condotniniitm 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 unit development, the by-laws and regulations of the
<br />condort»ttittm of planned unit development, and constituent docttments. If a condominitm or planned unit development
<br />rider is executed by Botrowez and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be iiicoxporated itrto and shall amend and suppler~nt the covenants and agreements of this Mortgage as if the rider
<br />weraa part he3eof.
<br />7. ?Protcetloa of Leaders y If Borrower fails to perform the covenants and agreemenffi contained in this
<br />-Mortgage, or if any action or proceeding is corumenced which materially affects Lender's interest in the Property,
<br />iaeladiag, but sot limited to, eminent domain, ittsotvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, rhea Leader at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />stress and tales such action as is ttecessary to protect Lender's intettst, including, but not limited to, disbursement of
<br />reasonable attoraey'a fees and entry upon the Property to snake repairs. if •.xnder required mortgage insurance as a
<br />condition of tasking the Man secreted by this Mortgage, Borrower shall pay the premiuttts required to maintain such
<br />itaattraetx its effect anti! sttch tiu~ as the requirement for such insurance terrttinazes in accordance with Borrowers and
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