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<br />Uf[itvbtea Covi?xsxrs. Borrwver and Lender covenant and agree as follows:
<br />1. Paymeai of Pfd aed Iderest. Borrower shall promptly pay when Sue the principal of .and interest on the
<br />iadsbtednscs evidenced by the Nute, prepayment and tats charges as provided in the Note, and the principal of and interest
<br />oa arty Future Advances secured by this Mortgage.
<br />Z. Faads for Taza atsd l.®..+r~.- Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installmenu of principal and interat are payable unber the Note, until 6he Nots is paid in full,
<br />a sum {herein "Ftmds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and grotmd rents on the Property, if any, plus one-twelfth of yearly premium i~tallments for hazard insuratce,
<br />plus ono-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and fret
<br />time to time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender shall app!; the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said aceount,
<br />or verifying and compiling said assessments and bills, unless Leader pays Borrower interest on the Funds and applicable law
<br />permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage- that in*.erest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requites such interest io be paid, Ixnder shalt oat 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 to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pl~ged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held 6y Lender, together wit}; the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assents, insurance premiums and ground rents as they fall due, such excess 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 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 sutra secured by this Mortgage, Lender shall promptly refund to Borcower any Funds
<br />held by Lendec. If under paragraph I8 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 />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nate a~ paragraphs 1 cad 2 hereof shall be applied by Lender first in payment of amounts payable io Lander 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 oo any Future Advances.
<br />4. Chtttges; Ijetss. 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 manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to [he
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall males payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Tien which has priority over this Mortgage; provided, that Borrower shall not be
<br />regained to discharge any such lien so long as Borrower shall agree in writing to [he payment of the obligation secured by
<br />such Gen in a manner acceptable to Lender, ar 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 the Property or any part thereof.
<br />5. Hazard Insurance, 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 hazards as Lender may require
<br />cad in such amounts and for such periods as 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 />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shalt not be unreasonabty withheld. Alt premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borcower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clatue is favor of and in form actxpta6ls to Lender. Lender shall have the sight to hold the policies and renewals thereof,
<br />and Borrower shall promptly furniah to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Harrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Bottow~r:
<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 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 groceeds 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 Leodcr 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 auWorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sum.: secured by this Mortgage.
<br />Unless Lender 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 I8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and 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 />ti. Preservation and Maintenance of Property; I.caaholds; Condominiums; Phoned Uait Lkvelopmeab. Borrower
<br />shall keep the Property in good repair and shag 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 on a leasehold. If this Mortgage is on a unit in a
<br />condominium ar a planned unit development, Borrower shall perform all of Borrowers obligations under the deelaration
<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 [mil development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />stroll 6e incorporated into-and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part lzr.~f.
<br />7: P7obeetlen o[ Letder's Sesnrity. If Borrower fails to perform the eovenants and agreements contained in this
<br />Ddartgage, or if any- acdan or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deoedeitt,-then Leildei' ai Lsitder's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and takt each action as is accessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable at_toraey's fees and entry upon the Property to make repairs. If Leader required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insutattce in effect until sudt tutu as the requirement for such insurance terminates in acwrdance with Borrower's and
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