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<br />
<br />Ue~t~rosns COVEtvzfttra. 'Bruroawer and Lein6tr ¢rrvemwm and .sgrte as fnNlkrus.
<br />I. P+Jtetat of Pritaripi grad latesbt. HtnrawC shall proraptY.• pay when due the principal of and intense ao the
<br />indeModness evidenced by the Note. prepayment and tate ::barges as provided in the Non. gad the: principal ai gad interest
<br />~ any Future Advances secured by :his Mortgage.
<br />S. Ftm~s for Taxes anti laasaree. St~jea to applicabk law or to a written waive by Cruder, $orrowtr shag pay
<br />to Lender oa the day monthly installments ~ principal and-interest are payable under the Note, umil the Note is paid in fup,
<br />a stmt (herein "Fuads'~ equal to one-tweNt}t of the veady razes uul nsesvnents which may attain priority over this
<br />Mortgage. and ground rents ~ the Property. if any, plus one-twelfth of ytarly premium irstallments for hazard insurance,
<br />plea one-twelfth ~ Y~Y Pt=mium instal)matts far mortgage inaratxe. if gay. all as reasonably estimated iosrially artd fret
<br />bate io time by Lender on the basis of assessments and bilk acrd rtawnabk estimates thereof,
<br />The Fend, slaI! y L•tld ir• ar. i:stitu~~an !1!e dsposi>< ~ aunts ~f srl;ic:; are irst:red „- g;taraateed by a Federal or
<br />state agency (including Lender if Lender is such an institution) ~I.emler shat) apply the Funds to pay said taxes, assessments,
<br />insurance premiutna and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account
<br />or verifying gent compiling said assessrrxnts and bills, unless Leader pays Borrower interest an the Funds and applicable law
<br />permits Leader to make such a Marge. Borrower a~ Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, atui uatess such agreement is made or applicable law
<br />requires such iniexest to be p_id, Lender shalt not be required to pay Borrower any intareat or earnings on the Funds. Lender
<br />shall glue to Borrower, without charge, an annual accounting of the Funds showing credits and titbits to the Funds and the
<br />purport far which each debit to the Funds waz made. The Funds are pledged az additional security for the stuns secured
<br />by this Mortgage.
<br />Tf the amount of the Fttads held by Linder. together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, irmrrance premiurtu and ground rents, steal! exceed the atrwunt required to pay said taxes,
<br />aastsaments, insurance premiums and ground rents az they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Harrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shag not be sufficient to pay taxes, asrcssments, insurance premiums and ground rents az they faB due,
<br />Borrower shall pay to Lrnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in frill of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Ftmda
<br />held by Lender. 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 prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of apphcatiort az a credit against the sums secured by this Mortgage.
<br />3. 'was rrf P~yateats. Unless applicable law provides otherwise, all payments received by Lender tender the
<br />Note and pazagraphs 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; Liens. Borrower shalt 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 manger
<br />provided under pazagtaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dirtcdy 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 shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to dischazge 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 />regal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Iosorance, Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against Toss 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 az Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay [he sums secured by this Mortgage.
<br />'flee insurance 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 be paid in the manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />iasuranct carrier.
<br />All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of gad in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />a~ Btrtrowtr shall promptly furnish to Lender ail renewal notices and alt receipts of paid premiums. In the event of loss,
<br />Borrovaar-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 to 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 proceed, 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 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 bevefits, Lender
<br />is authorized to wllect and apply the insurance proceeds at Lendei s option either to restoration or repair of the Property
<br />or to elm earns secured by this Mortgage.
<br />Unless Leader 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 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in attd 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 />acquisition.
<br />6. Preservation artd Maiahaance of Property; Leaseholds; Condominiums; Planned Unit Devebpmeats. Borrower
<br />shag keep the Property is good repair and ahaU no[ commit waste or permit impairment or deterioration of the Property
<br />and shall comply-with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />candamiaium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />oc 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 extett[ed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be int<arporated iota and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. ProhcHaa of Leadetaa Seearity. If Borrower fails to perform the covenants and ogre-manta contained in this
<br />Mortgage, or if any action ar protxedirg is commented which materially affects Lender's interest in the Property,
<br />including, but cwt limited ta, etttiaent dosuaiu, insolvency, code enforcement, or arrangements or proceedings involving a
<br />ttaakrupt or decedent, then Leat~r at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />stems and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reaaonaGle attorney's fees attd entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condititta of making the loan artttrtd by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />ithttratxe is effeet tmiil such -time as the requirement for such insurance terminates in accordance with Borrowers and
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