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<br />L'rrteoans Covert,sxrs. Borrower and Lender covenant and ogres as follows:
<br />1. Payment of Primelpal aad lateres#. Borrower sEnall' prtnmp[By pay wEnsn due tine principal of and inu.7sst on the
<br />indebtedness evidenced by the Nate, prepayment and late charges as provided in the ?date, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fmrds for Taus and Iffiaranee. 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 Nate is paid in full,
<br />a sum (huein "Funds') equal to one-twelfth of the yearly taxes and assessments which may attain priority ovu this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shop be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal ar
<br />state agency (including Lender if Lender is such an institutionl. 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 assessrnenis and bills, unless Lender pays Borrower ineerest on the Funds and applicable law
<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 irierest 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 [o Borrower, without charge, an annual accounting of fire 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, assessments; insurance oremiums and eround 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. 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 eo Lender any amount necessar} 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 al! sums secured by this Mertgage, 1_ender shall promptly refund m Borrower arty 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, 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 />Nofe and paragraphs I and 2 hereof shall be applied by Lender first in payment of amoums payable to Lender by 8orrawer
<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. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />ehe Property which may attain a priority over this Mortgage, and leasehold payments or gro;:nd 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 fo the
<br />payee thereof. Borrower shall promptly furnish to Lender alt notices of amounts due under this pazagraph, 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 shall not be
<br />required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shat! 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 an}• part thereof.
<br />5. Hazard Ireorance. 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 coveragz', 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 tltat 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 shall not be unreasonably withheld. All premiums an insurance policies shall be 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 />insurance carriu.
<br />All 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 hale the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and alt receipts a( paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lsndsr may make proof of loss if not made promptly
<br />by Harrower.
<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 thr security of this Mortgage is
<br />not [hereby impaired. If such restoration or repair is net economicall}• feasible or it 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 tails to respond to Lender within 3U 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 appl}' the insurance proceeds at Lender's option either to restoration or repair oY the Properi}'
<br />or to the sums secured by this Mortgage.
<br />Unless Under 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 or chance the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Harrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior [o the sale
<br />or acquisition shall pass to Lender [o the extent of [he sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />b. Preservation gad Ivlaintenance of Property; Leastholds; Condominiums; Planned Ualt liMvelopments. 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 lease it this Mortgage is an a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development. Borrower shall perform atI of $orri~wer s obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />eondnminium or planned unit development, and constituent da;uments. If a condominium or planned unit development
<br />rider is executed ley Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall emend and supplement the rnvenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />'f. Protee8on of Lender's Security, 1f Borrower fails ro 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 'r ropetty,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />biinkrupt 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 Lenders interest, including, but not limited to, disbursement of
<br />reasonable attamey'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 this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such tittle as the requirement for such insurance terminates in accordance with Borrower's and
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