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Uxtt=oaM Covet+erars. Borrower and Lender covenant and agree as follows:
<br />I. 1?ayment of 1?rincipat and laterest. Borrower shalt promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepaymeut 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. Fang for Tatra and Iaetrraece. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day mouthly installments of principal and interest are payable under the Note, until the Note is paid in foil,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly Saxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Froperty, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if auy, all as reasonably estimated initially and from
<br />time to time by Lender en 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 by a Federal or
<br />state agency (including Lender if Lander 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 so holding and applying the Funds, analyzing said account,
<br />{+~ or verifying and rnmpiling said assessmeuts and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to rooks such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />~ Mortgage that interest on the Funds shalt be paid to Borrower, and oases 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. "Ibe 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 dtu dates of taxes, assessments, iffiurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />~ assessmen~, instuance premiums and ground ants 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 b}' Lender shall ant be sufficient to pay taxes, assessments, insurance premiums and ground renu 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 ro Borrower requesting payment thereof.
<br />U~,a, ~~m .a r..n of ~n si,ms szctsed by this Mortgage. Lender shalt aromptty retund to Borrower any Funds
<br />Ixtd by Lender. If under paragraph ]g 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 tithe of application as a credit against the sums secured by this Mortgage.
<br />3. Appticatinn of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs I earl 2 hereof shall be applied by Leader filet in payment of amounts payable to Lender by Borrower
<br />tantaer 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. Liens. Borrower shall pay all taxes, assessments and outer charges, fines and impositions attributable to
<br />t>~ Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee iheteof. Borrower shall promptly famish to Lender all notices of amounts due vuder this paragraph, and io the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts erideracing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower si:all nr. be
<br />mquiral to discharge any such lien so long as Borrower shalt agree in writing to the payment of the obligation se.^ured 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 />S. Itlaaed Itae. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />againetLoss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />sett in sorb amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such co~rorage excced thst amount of coverage required to pay the sums secured by this Mortgage.
<br />The is>aaranee carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall ant be tmreasonabty withheld. All premiums on insurance policies steal? 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 fa the
<br />iasmaatx carrier.
<br />AII insurance policies and tetaewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />clause is favor of and is form acceptable to Lender Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly famish to Leader all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt entice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Ualess Lender and Burrower otherwise agree in writing, insurance proceeds shall 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. Ig such restoration or repair is not economically feasible or if the securit;~ of this Mortgage would
<br />lac impaired, the i~ttrantx procxds shall lac 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 />dais notice u mailed by Leader to Borrower that the instuance carrier oilers to settle a claim for insurance benefits, Lender
<br />is authorized to coped and apply t}x insurance proceeds at Letder's option either to restoration or repair of the Property
<br />or W the stints secured by this Mortgage.
<br />Uakss Lender a~ Borrower otherwise agree in writing, acy such application of proceeds to principal shall not extend
<br />or pnstpoae the due date of the monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />soh installments. if tuxdcr paragraph t8 hereof the Property is acquired by Lender, alt right, title and interest of Borrower
<br />in atsd to any insurance policies and in and to the proceeds thertwf resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acgtusinon.
<br />tw 1P[xservafian earl h'Ististeaaact of Property; Lrrsebolds~ Condominiams; Planned Unit Developments. Borrower
<br />shalt keep the Property in good repair and shall ant catamit waste or permit impairment or deterioration of the Property
<br />and shall comply with the pravsiom of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit ir. a
<br />cvedomininm or a planned tacit development, Borrower shall peirform al! of Borrower's obligations under the declaration
<br />or covetaartte creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />casadaminitmt or planmd unit development, and constituent documents. it 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 />shalt tae ittmrpora~d into and shall aaaend and supplement the covenants and agreements of this Mortgage as if the rider
<br />woe a part heregf.
<br />1, Proieetiata of Lender's S'y I€ Botrowcr failx to perform the covenants and agreements contained in this
<br />A4ortgac¢, ar if say a~ or proceeding as commenced which materially affects Lender's interest in the Property,
<br />iaeltrdiag, but rot limited to, eminent doatain, irasolve[acy, code enforcement, or arrangements or proceedings involving a
<br />'- Or decedent, rhea Lender at LendePs opting upon notice to Borrower, may make such appearances, disburse such
<br />aloha sad take such action as is nsxssary to protect I-er~ers interest. including, but not limited to, disbursement of
<br />reasaiaablc attorney's fees sad easy upon tlx Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan sxurad Lry this Mortgage, Bortawet shalt pay the premiums required W maintain such
<br />ifiacrrais:E in ei~z th.d''' st:.h its a tl~ :..YUIr€.^.tan! for sttth i~!ra<+~e tr_~minates in accordance with Borrower's and
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