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I?s[IFaatb C"ovr!ristars, Bormwcr and Lender canr~enatttt and agree as fallaws:
<br />1. Pa;'meat of Principal and Intet'~. Barrawer shall promptly pay when due the prin~ipei of and interest on Lhe
<br />~nr}ebtedness evidenced by the Note, prepaynxnt and late charges a: provded m the lvote, and the principal of and intetest
<br />on any Future Advances secured by this Mortgage.
<br />2, Funds for Taws and Iffinrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the 'Note ~s paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assesstrtcr~ts w - ,ay ..ri p^a::iy •_• th[s
<br />Mortgage, and ground coats on the Property, if any. plus one-twelfth of yearly premium13installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if nay, all as reasonably estimated initially and from
<br />time to time by Leader on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounu of which are instued or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an insY.rution). Lender shall apply 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 account,
<br />or verifying and compiling said assessments and 'bills, unless Lender pays Borrower interest on the Funds and applicable Iaw
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings an the Funds. Lender
<br />,ghall give to Borrower, without charge, an annual accounting of the Fun~+s showing credits and debits to the Funds and the
<br />ptrpose 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 insta8ments of Funds payable prior to
<br />the due antes of taxes, assessments, insurance pr?miums 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 Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. ]f 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 Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured b}• this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shah apply, as later than ;^wr^Pdiately' prior to the sate 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 b, th[s i4fertgage.
<br />3. hppiicatlon of Payments. Unless applicable taw provides otherwise. ail payments received by Lender under the
<br />Note and pazagraphs 1 aad 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 [o the principal of the Note, and then to interest and
<br />principal on any Future Advances,
<br />4. Charges; Liens. Borrower shall pa}' all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which taay attain a prority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />ptnvided 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
<br />Borrowar shall make payment directly, Borrower shall promptly furnish to L ender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority aver this Mortgage: provided, that Borrower shall non be
<br />required to discharge 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 goad 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 />S. Hazard Iroatanre. Borrower shall keep the improvements now existin¢ or hereafter erected on the Property insured
<br />against loss by Sre, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />aad 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 Harrower subject to approval by Lender, provided.
<br />that such approval shall not be unreasonably withheld. All premiums an insurance policies shall 6e paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
<br />insitraace currier.
<br />AU insu;ar.ce policies and renewals thereof shalt be in form acceptable to Lender and shalt include a standard mortgage
<br />tlauxe in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Bormwer shall promptly furnish to Lender all renewal Hovers and nit receipts of paid premiums. In the event of toss,
<br />Borruwu shall give prompt notice [o the insurance carrier and Lender. Lender may make proof of loss if pat made pr ~mp[ly
<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 ar 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 shalt be applied to the sums secured by this Mortgage, with the excess, it 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 />'s authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the solos 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 I and 2 hereof ur change the amount of
<br />such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest oi' Borrower
<br />in cad to any' insurance policies and in and to ttte 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 Martgage immediately prior [o such sale or
<br />acquisition.
<br />6. Proservalion attd Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shat! not commit waste or permit impairment or deterioration of the Property
<br />aad shall comply with the provisions of any lease it this Mortgage is an a leasehold. If this Mortgage is oa s anit in a
<br />condominium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium ar planned unit development, the by-laws and regulations of the
<br />condominium or planned snit development, and constituent docttments. If a condominium or planned unit development
<br />rider is executed by Barrowet 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 ~f the rider
<br />werE a part het:x~f.
<br />9. Protection of Lender's Secasity. 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, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt 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 Lender's interest, including, but not limited io, disbursement of
<br />reasonable attamey's fees and entry upon the Property ao make repa;rs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Martgage, Borrower shalt pay fhe premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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