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<br />IJatr~oasr COVENANTS. Borroter and Lender ti;vvenant and agree as fialltnvs:
<br />I. 1!aymeat of Pry sad Interest. Bvricrv~Yr shall promptly pay when due tlx principal of and interest on the
<br />intkbtedtuss evidtttced by the Mott, prepayment and late charges as pro+.•ided in the ?vote. artd tbe principal of and interest
<br />~ any Future Advances secured by this Mortgage.
<br />2. Faads for Tasa sad Ise. Subject tv appircabic law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly imtalltnents of principal and interest are payable under tbe Neste, umii the 'r'ote :s paid in full.
<br />arum therein "Funds") equal to one-iwelfrh of tbe yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearly premium installments fo: hazard insurance,
<br />pitrs one-twelfth of yearly premitun insiallmmis for martgage insurance, if anp. all as .-easonably estimated initially and from
<br />time to timt by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />the Futtds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency fincltrding Lender if Lender is such an institution}. Leader shah apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotmd rents. Lender may net charge for so holding and applying the Funds, analyzing said account.
<br />or verifying and compiling said assrsments and bilk, unless Lender pays Borrower imerest on the Funds and applicable taw
<br />permits Lender to make stuh a charge- Borrower and Lender may agree in writing at the time of execution of thk
<br />Mortgage that interest on the Funds shall 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 on the Funds. Ixnder
<br />shall give [o Borrower, without charge, an annual accounting of the Funds showing credits and 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 amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, a~ments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such 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 shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amotmt necessary to make up the deficiency within 3Q days from the date notice is mailed
<br />bl' Lender to Harrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />Geld by Lender. If under paragraph 18 hereof ehe 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 />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applkatian of payments, Unless applicable taw 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 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. Ctnrges; Liens. Borrower shall pay all taxes, assessments and other chorgcs. ; rtes 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, dirtctty to the
<br />payer 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 fumkh 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 tc discharge any sash lien so long as Borrower shat} agree in writing to the payment of the obligation secured by
<br />sorb 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 yr forfeiture of the Property or any part thereof.
<br />S. Hazard Irrearaace. Borrower shall keep 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 hazardc as Lender may require
<br />and in such amounts and for such perods as Lender may require; provided, that Lender shall not require that the amount of
<br />attelr aoversge exceed that amvtmt of coverage required to pay the sums secured sy this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval 6y Lender, provided,
<br />that such approval shall not be urueasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided trder paragraph 2 hereof or, if riot paid in such manner, by Borrower making payment, when due, directly to the
<br />instuattce carrier.
<br />Al! ins»rance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause is favor of and in form acceptable to Lender, Lender shall have rho right tv hold the policies and renewals thereof,
<br />sad Borrower shall promptly furnish to Leader all renews! notices and all receipts of paid premium=_. In tfie went 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 />Uttlga Leader 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 />bt 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 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 authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properly
<br />or to the staan secured by this Mortgage.
<br />Unless Lear and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or poupone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such iostaBmeats. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any ioatttance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />ur aegiasition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
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<br />L laserratioa and Maiateeance of Property, Leaseholds; Coodoadalnnts; Planned UNt Developments. Borrower
<br />shall kesgr the Froperty in good repair and shall not commit waste or permit impairattnt or deterioration of the Property
<br />sad shalt rnmply with the grovisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium a a planned trait development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covtmaats creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condt~init~ or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is eaeeuted bq Botrowwer and recorded together with this Mortgage, the covenants and agrcements of such rider
<br />shall be iooorporated into and shall amend and supplement the covenants and agreements of this Mottgage as if the rider
<br />were a pant hetceAf.
<br />~• Ptvlcetlw d Leatier'a 9etan~y. ~.f Borrower faik to perform the covenants and agreements ccntained in this
<br />3gartEair:, or if nay action ttr proexding is commenced which materially affects Lender's interest in the Property,
<br />mcI'itding, but nM limited to, eauicent domain, iruotveacy, code enforcement, or arrangements or proceedings involving a
<br />bankrupt of decedent, then Leander at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums attd take ststds action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />raeoaabte attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by lhis Mortgage, Borrower shall pay *he premiums required to maintain such
<br />iataueance in effect tmtil such time as the requirement for such insurance terrrtinates in accordance with Borrower's and
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