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Uxxrottxs Covrxnxrs. Borrower and Lender covenart and agree as follows:
<br />Y. Payment of Ptirtdpal and Interest. Borrower shall pcomptIy pay when due tae principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fends lot Taxes and Imaranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder on the day manihly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a slim (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which rriay attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yeazly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premiltm installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />dme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be Reid in an institution the deposits or accounts of which are insured or gua::.nteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply the Funds W 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 [fie 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 i$ made or applicable law
<br />shall give to Borrowerowiihouc harge,ran alnntial account g ofhe Fundsvshow ng credits and debl~~o he Fund andnthe
<br />~ purpose for which each debit to the Funds was made. Z12e Funds aze pledged as additional security for the sums secured
<br />>~ by this Mortgage..
<br />~ If the amount of the Funds Geld 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 premitans and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />~ promptly repaid to Borrower or tredIted to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be su~tieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Linder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leger to Borrowtt requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shalt promptly refund to Borrower any Funds
<br />held bq Lender. If under paragraph ]8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no lour char[ immediately prior to the sale of the Property or its acquisition by Lender, am Funds held by
<br />Le+rder at iht lime of application as a cttdit against the sums secured by this Mortgage.
<br />3. A;ptkatkw of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nat and paragraphs 1 a~ 2 hereof shall lee applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, rhea to interest payable an the Note, then to the principal of the Note, and then to interest and
<br />ptinapal oa any Future Advances.
<br />Q. ChatEn; L3eae. Borrower shall psy all taxes. assessmenu and other charges. Sees and impositions attributable to
<br />the Froperty which tttay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided lender paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />pays thereof. Borrower shall promptly furnish io Lender al! notices of amounts due under this paragraph, and in the event
<br />Borrower shall mate payment directly, Borrower shall promptly furoish to Lender receipts evidencing such ,payments.
<br />lorrower shall promptly discharge any lien which has priority over [Eris Mortgage: provided, [hat Borrower shat: not bo
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secureu oy
<br />such Tien in a mnnaer acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such Iron io,
<br />legal proceedings which operau to prevent the enforzement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hstsard Lsimatitro. Borrower shall keep the improvemerts now existing or hereafter erected on the Property insured
<br />agaiastfoss by 5rc, hazards included wi4`iin [he term "extended coverage", and such other hazards as Lender may require
<br />a>d in such amounts and for such periods as Lender may require; provided, that Lender sl;all 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 inwrance Carrie: providing the insurance sha7! be chosen by Borrower subject to approval by Lender, provided
<br />that such approval shall not be unreas.;nably withheld. All premiums on insurance policies shall he paid in the manner
<br />providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />inauaaee carrier.
<br />All +"~ ~~ policies sad retKwals ihercof shall be in forot acceptable to Len_~r a::d shalt include a standard mortgage
<br />ctafrse iii favor of and is form r-eceptable to Len~r. Lender shall have the right to hold the policies and renewals thereof.
<br />sad ltorrovver shall promptly furnish fo Lrnder all renewal entices and all receipts of paid premiums. In the event of loss,
<br />Bortawer sbatf give prompt notice to the insurance carrier and Lender. lxnder may make proof of loss if not made promptly
<br />b5' Sarrower.
<br />Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall he 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 />net thaehy impaired. If such ratoration or rcpalr is not economically feasible or if the security of this Mortgage would
<br />be impaired the ineutatux proceeds shall Ix applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />m Borrower. If Pee Property is abandoned by Harrower, or if Borrower fails to respond to Lender witFtin 34 days from the
<br />date Mice is mailed by Lender to Borrowtt that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorasd to collect and apply the iastirance proceeds at Lender s option either to restoration or repair of the Property
<br />or io the aims secured by ihls Mettgage.
<br />Unless Lender acid borrower odrerwise agree in writing, any such application of proceeds to principal shall not extend
<br />~ postpone the due dau of lire monthly iastallr~ats referred to in paragraphs 1 and ?hereof or change the amount of
<br />etch intuumeau. If under paragraph ig boreal [lie Property is acquired b; Leader, all right, title and interest of Borrower
<br />in and to a[iy iasataoce polities sad in sad to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acgtssitiaa shall gees to Leader w flu extent of the sums secured by this Mortgage immediately prior to such sate or
<br />acgtti~t~n.
<br />f. Apavaflao said Malsterneee of Prapetty; Leaseholds; Coodomfuiai~; Planned Liolt bevelopaunfs. Borrower
<br />shi;lt keep the Property in good repair and shall trot commit waste or permit impairment or deterioration of the Properly
<br />and shat) casnply with flu provisions of any lose it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />alum or a gtaoaed unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenants crestatg m governing tlx condominium or planned unit development, the by-laws and regulations of tf[e
<br />cmdomiaitnsi or planned unit developtrient, sad constitt:_nt documents. If a condominium or planned unit development
<br />rider is eseeuted by ltatzowa and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be iz:.rorporatsd iota sad shaft amend arui suppktaeat the covenants and agreeroenta of this Mortgage as if the rider
<br />was a part herd.
<br />7. Psi ~ I,mise'tr y If Borrower fails to perform the covenants and agreements contained in this
<br />lti[artgtae, a if any actiaa or ptaceedio~g is commenced which rttateriaily affects I.endtt's interest in the Property,
<br />isclttding, but cwt Bmited ta, eaii~ domain, insotvetity, code enforcement, or azrangements or proceedings involving a
<br />batikritpi as do:edent, rhea Lettdts at Lender's option, upon notice to Harrower, may make such appearances, disburse such
<br />stare and take such actiaa u is necessary to protect Lender's imerest, including, but not limited to, disbursement of
<br />reawasble attorney's foes and entry upon the Property to make repairs. it Ixnder required mortgage insurance as a
<br />canditioa of making the ban sceured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />~~ ;a ~t La"t such tip as .h.:_itt?rest.t, at far such i>,s,~rant3 t~rminares in accordance with Borrowers and
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