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<br />U'ts~tntis Corartwwrs Bornrrrer and Leader eov+ntaxsC and' agree as foV1a^-s:
<br />1. ~ of Itslar3pal sssA ] B~r+swu shag promptly pay when due siu principal or. sad inures; ou the
<br />evidntsced by tlse Nate, ~t and #su charges as prsn~'aied in the Note, and rlre pr"srscipsl of and iu3~ertst
<br />on say Future Advances seczn+ed by etas Mortgage.
<br />Z FtstNs for 3amas stet Lts~rtica Subject to applicable law or to a wtidea waiver by Lerxder> $arrower shag PaY
<br />to Leader on the day monthly itsslanmeats ~ principal and interest are payable under the Notc, until the Note is paid in fun,
<br />a sum (herein "Funds"} equal to ooo-twelfth of the yearly taxis arm assessments which may attain priority over th's
<br />MorttRsge, said ground teats on the Property, if any. plus one-twditlt of yearly prmium i++:Jnnms.,~ for hazadd irutumce,
<br />plus ono-twelfth of yearly premium installtmttts for mortgage inwrance, if any. an zs rtxsombly estimated initially and from
<br />bate to time by Leader on the bas's of assesatrxsLS and bt7b attd reasonable estimate thereof.
<br />The Ftmds shall be heM in an instittnion the dtposits or accounts of which are insured or guarameed by a Federal or
<br />state agency f including Lender if Leader is such an itstitntion}. Lender shall apply the Fins to pay said taxes, assessments,
<br />iasuraace premntma sad gtouad rents. Lender may not charge for so holding artd applying the Funds, analyzing said account
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest oa the Furls and applicable law
<br />permits Leader to make sash a charge. Borrower and Lender may agree in writing az the time of execution of this
<br />Mortgage that interest on the Futrtds shall be paid [o Borrower, and unless such agreement is made or applicable law
<br />requires sash interest to be paid, Lender shall not be required to pay Borrower any inters[ or earnings on tix Funds. Lender
<br />,shall give to Borrower, without charge, an annual accounting of the Funds showing credits a~ debits to the 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 />If the amoumt of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtte dates of taxs, asseffiments, insurance premiums and ground renu, shall exceed the amount required to pay said taxs,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. tf the amount of the Funds
<br />held by Lender shall not be stufficiem to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shalt pay to Lender any amount necessary [o make up the deficiency within 30 days from the date notice is mailed
<br />by Letuler Lo Borrower requesting payment thereof.
<br />Upon payment in full of all stuns secured by this Mortgage, Lender span promp+!y 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 />shall apply, rto later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the tune of application as a credit agairut the sums secured by this Mortgage.
<br />3. AppBcatloa of Paymeata. Unless applicable ]aw provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to iend8r by Harrower
<br />tinder paragraph 2 hereof, then to inters[ payable on the Note, then to the principal of the Note, and than to interst and
<br />ptinuapat on any Future Advances.
<br />4. Charges; Ilene. Borrower shall pay all laze, assessments and other charges, fins 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />paya 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 shat' -t be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation s. - cd by
<br />such lien in a manor acceptable to Lender, or shall in good faith coots[ 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 />5. BLaard Imt¢ana. Borrower shall keep the improvements now existing or hereafter ereMed on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and is stuh amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />sash coverage exceed that amount of coverage required io pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policie shall be paid in th^ manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />itmrratsce carrier.
<br />All insurance policis and renewa}s thereof Shall be in form acceptable to Lender and shall include a standard mortgage
<br />~ in Favor of sad in form acceptable to Lander. Lender shall have the right to hold the policies and rt newaL thereof,
<br />a~ Borrower shall promptly furnish to Lender all renewal notice and all receipts of paid premlum~. 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 retoration or repair of
<br />the Property damaged, provided such rstoration 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 zhe security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />m Borrower. If the Property is abandoned by Borrower, or if Borrower fails to rspond to Lender within 30 days from the
<br />date nods 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 shalt not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs i and 2 hereof or change the amount of
<br />such installments. If under paragraph IS hereof the Property is acquired by Lender, ail right, tide and interest of Borrower
<br />in and to any insurance polic'ts and in sad to the proceeds thereof rsulting 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. PreservsBon sad Maiolenance of Property; Leaseholds; Condominiums; Planned Uait Developments. Borrower
<br />shall keep tlx, Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is os a leasehold. if this Mortgage is on a unit in a
<br />oandominitun or a planned trait development, Borrower shall perform all of Borrowei s obligations under the declaration
<br />or covenants creating or governing the condominitun or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent doctunents. If a condominium or planned unit development
<br />rider is eaecueed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag Ize,inmxgorated into and shall amend and supplemem the covenants and agreements of this Mortgage as if the rider
<br />were a part h®rijof.
<br />T. Ptroaeet~a of Cinder's SeeeAts. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage;, or if say actiea or proceeding is cootmeruced which materially affects Letder's interst in the Property,
<br />including, but not limited to, eminetrt domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deadest, Hutt ixnder at Lender's option, upon antis to Borrower, may make sash appearance, disburse such
<br />stints and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fss.and-sorry upon the Property to make: repairs. If Lender required mortgage insurance as a
<br />condition of making the loan stxw-ed by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurancet in eHeet until such time as the t+equirertunt for such insurance terminates in accordance with Borrower's and
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