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<br />Urtit•'aakt Cowa~tsNTS. Bonrav+~ar and Lender revertant aatd agree as frypiows:
<br />1. Payment of Princlgal and iatttest. Borrawrr shall promptly pay whin due tht principaP of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the tiote, and the principal of and interest
<br />on any Future Advances sectued by this Mortgage.
<br />2. Fug for Taxes and Iasnnnce. 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, untiE the Note is paid in full,
<br />a sum (herein "Funds' equal to one-iwzlfth of the yeazly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Propetry, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yeazly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />nme to time by Lender 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 6y a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and ap~,lying 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 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 law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earrings on the Funds. Lender
<br />steal! give to Borrower, without charge, an annual accounting of the Funds showing ctediu and debits to the Funds and the
<br />purpose far which each debit to the Funds was made. The Funds are pledged as additional security for the sums seared
<br />by this Mortgage.
<br />If the amount of the Funds held 6y Lender, together with the furur^ 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 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 amaunt of the Funds
<br />head 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 Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Property is otherwise acyuired 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 6y 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. Charges; Lkos, 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 />provided 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 />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 aver this Mortgage: provided, that Borrower shall not 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 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 Iosnrance. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured
<br />against ions by fire, hazards 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 amaunt of
<br />such coverage exceed that amount of coverage required to pay the sums secured 6y obis Mortgage.
<br />The insurance carrier providing the insurance shall be choser, by Borrower subject to approval 6y Lender, provided.
<br />that such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall be paid itt 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 carrier.
<br />All insurance policies apd renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in fcrm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />apct Harrower shall promptly furnish [e Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />$orrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<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 proceeds shall be applied to the sums secured by this Mortgage. with the excess, iC any, paid
<br />to Borrower. If fhe 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. 1-ender
<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 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 I and Z hereof or change the amaunt of
<br />such installments. [f under paragraph IS 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 thereat 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 />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit llevelopm:nts. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shat! comply with the provisions of any lease if this btertga$e is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants crezting or governing the condaninium or planned writ development, the by-taws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit Development
<br />rider is executed by Borrower and recorded together with this Mortgage. the co~~enams and agreements of such rider
<br />shall be incorporated into a;td shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protect[on of Leader's Security. If Borrower fails to perform the covenants and agreements captained in this
<br />Mortgage, or if nay 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 />battkrupf ar 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 tecessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the town sectued by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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