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<br />Uxtiroa;h! C-.r,~v~xxxrs. Borrower and 'Lende.* s:ovem,am and agrtt as fc~l~tows: ~
<br />I. Payment of Pr4ncfpd aad Enterest. Borrower shall irornptly page Khen due the pri,nsipal of and interest an ths:
<br />indebtedrtess evidenced by the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on arty Future Advances secured by this Mortgage.
<br />2. Fonds for Taws anti Insurance. Subject to applicable law or to a written waiver by Lender,- Boaawer shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priariry over this --
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfrh of yearly premium irstallments for harard insurnce,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to lime by Lender on the basis of assessments and bells and reasonable estimates [hereof.
<br />"Rte Funds shall be he16 in an institution the deposits ar arcounts of which are insured ar guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for sa holding and applying the Funds, analyzing said account.
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Ixnder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage Ehat 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. 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. "Rte 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, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as [hey fall due, such excess short be, at Borrower's option, either
<br />promptly eepaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall no[ 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 pazagraph 18 hereof the Property is sold ar 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. AppHcatfon of Payments. Unless applicable law 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 pazagraph 2 hereof, then to interest payable on the Note, thrn to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower 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 />pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the -
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event E
<br />Borsawet shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. 7,
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<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 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 enforcerent of the lien or forfeiture of the Property or any part iitereof.
<br />3. hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured ~-
<br />against loss by 5re, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and 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 lviortgage.
<br />T1te insurance cazrier providing the insurance shall be chosen by Borrower subjeM to approve! by Lender: provided, `
<br />that such approval shall not be unreasonably withheld. Alt 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 />insurance carrier.
<br />Ail insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right eo hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and ail receipts of paid premiums. In the event of loss,
<br />Harrower shall give prompt noti~= to the insurance carrier and Lender. lxnder may make preet' of lass if not made promptly '
<br />by Borrower. `
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt 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 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 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 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 />ar to the sums 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 l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and [a the proceeds thereof resulting [rum damage to the Property prior m the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale ar
<br />acquisition.
<br />6. Preaervatian and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developtnenfs. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any (ease if this MMortgage is an a leasehold. If this lvfartgage is on a emit in a
<br />condominium or a planrted unit development, Harrower shalt perform all of Borrower's obligations under the declaration
<br />or covtnants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit developmen4 and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hetet.~f.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insaiveney, code enforcement, or arrangements or proceedings involving a
<br />bankmpt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect I-ecder's interest, including, but not limited to, disbursement of
<br />,~a58aable 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 [his Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect trtttil such time as the ; :quirement for such insurance terminates in accordance with Borrower's and
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