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<br />UtatronM CovExnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of PrI®ripal and Interest. Borrower shah promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nute, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fends for Y'aaea and Irraorance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />[o Leader on the day monthly 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 taxes and assessments which may 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 yeat•ly premium installments for mortgage insurance, if any, al! as reasonably estimated initially and from
<br />time to time by I.eadtr 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 by a Federal or
<br />state agency (including Lender if Lender is such an institution). Leader 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 rnmpiliag sand assessments and bills, unless Lender pays $orrower interest on the Funds and applicable law
<br />permits Leader to make such a charge. Borrower and Lender may agree in writing at ehe time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and unless such agreement is made ar 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 />ahait give to $orrower, without charge, an annual accounting of the Funds chewing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. Thy Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Ftmds held 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 premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br />promptly repaid fo Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be strf'ti dent to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Harrower 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 />Ur=... ra;,a•° f•,ii af~.t .., .•.°d by •his "4V tgage L°^d° shah pra^.:r.iy refund ao~ F.,.,~ts
<br />held by Lender If under paragraph°l g hereof the Property is sold or theVProperty 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 ante of application as a credit against the sums secured by this Mortgage.
<br />3. AppBitatioa of Payttneais Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note attd paragraphs 1 and 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 Nee, then to the principal of the Note, and then to interest and
<br />prittapai to any Future Advances.
<br />S. Cltragtx I3eae Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mottgage. and leasehold payments or ground rents, if nay, 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 />payex thereof. Borrower shall promptly furnish to Linder all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment direuly, 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 [tot 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 ma.+rrr ecceptahk to Lender, or shall in good faith contest such Lien by, or defend enforcement of such lien ia,
<br />legal procadiags which operau to prevent the enforcement of the lien or forfeiture of the Property or airy part thereof.
<br />S. limrd Iaaaraact. Borrower shall koep the improvemet+.ts now existing or hereafter erected on the Froperty insured
<br />against Itrss by fire, hazards included within the term "extended coverage' , and such other hoards as Lender may require
<br />aad in sudt amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />exh rnve=agr exceed that amount of coverage required to pay the sutras secured by this Morzgage.
<br />The insrtratxe cattier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval ~aB eat be tuutasonably withheld. All prrmiums oa insurance policies shall be paid in the manner
<br />ptovakd under paragraph 2 hereof or, if oat psid in such manner, by Borrower making payment, when due, directly to Ute
<br />ittwraaoe carries.
<br />AB iasnr~er° policies gad removals thereo# shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of gad in form acceptable to Ltndu. Lrndcr shall have the right to hold the policies and renewals thaeaf,
<br />and Burrower sball prq®ptiy furnish to Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />Sorrotru shall give prompt notice to the insurance carrier gild Leader. Lender rosy mate proot of loss if not made promptly
<br />by 8orro+rer.
<br />Uakas Leader gad Bexrawcr otherwix egret in writing, insurance proceeds shall be applied ro restoration or repair of
<br />the Pttaperty daataged, provided such restorauon or repot a economically ftasible and the security of this Mortgage is
<br />not thtxelxq ieapaircd. If such rsstoratiaa or repair ss ao[ tconamieallt• feasible ar if the security of this Mortgage would
<br />bt +• the insurance proceeds shall be applied to the sums se<:urcd b} this Mortgage, with the excess, if any, paid
<br />to Horrotve~. if life Proput! is ahaadoned b} Borrower, ar ii Borrower foals :o respo~ to Lender within 30 days tram the
<br />date is r,.s~3ed'a} Lcoc`r: to Bnrr:~xr t4at flu tnsur.rsre carrier a::cts to setts a claim far insurance beac5u, Lender
<br />is aulhOrintxf to ;pllect aed appt} the iraurarn-e pr-.x~s at Lender's ogtian either to restoration or repair of the Property
<br />ar to t#ae slams sccurw by this Mortgagae-
<br />Unleas Leader gad Borrower othem~ise agree to wrigng, any su:h appliczrion of proceeds to principal shall not extend
<br />or postpont the due dart at ti;e .anthly installments referred to is paragraphs 1 and ' hermf or change the amount of
<br />ata:k its. if under paragraph !S heaeof the Proput}' is acquired by Lender. all right, iiik and iaaerest of Barrawtr
<br />is gad to nay ietsuraaa policats a~ in attd ro [he proceeds *hereof resulting from damage [o the Property prior [o the sale
<br />or acgtaisifion shall pass to Lender to the noel of ibe sums seCUred by this lorgage imrncdiatc!}' prior to such sale or
<br />aeq[aseuon.
<br />ti. traaeavadata aetti M~6eaaam of Pmpetrtv; LeasehoteJs; Conda®itaiuete~ Pleased Unit Devebpmeot~. Borrower
<br />s~ kst{t *bt P•ope~•!y ~+ gaud repair znd ski t>~+* commit waste os pPtm'tt impairtrcnt or detc~iaration of the Pro~rty
<br />gad ~taB eaaply v[i1h the pravisioaa of any lease if this Mortgage is on a leasehold. if tills Alottgage is on a unit an a
<br />maaiaua ar a planned urxit tltvelopment, Borrower steal) perform a1I of Borrower's obligations uadtr the dcctaration
<br />or cotronaats creating ~ govtraing the cottdaminium or planced unit development, the by-lsws and regulations of the
<br />coodortiaitsn or plaatatxl amt development, and constituent documents. If a condominium or planned unit de±~elopment
<br />rsdet is eteaued by Harrower and recorder togtthcr with this Mortgage, [he covenants and agreements of such rider
<br />~oaB be iacatpmxed iffio and shag amend and supplrnuat the covenants and agreunenp of this Iriortgage as if the rider
<br />wsat a peat heaeol-
<br />7. lealeKtiss e[ Leartarb Seenrity. If Borrower fails to perform [Ile Covenants and agreesnentt contained in this
<br />MextgRge, ter if nay attioa ~ p:octtclit[g is commenced which materially affects Lenders interest in the Property,
<br />iny, tern not limited to, eminent ekmt~in, iasolvettcy, code enfarcenaent, or arrangements or proceedings involving a
<br />h~ivepe ~ elescedeat, rhea Lev at Leer's option, upon notice to Borrower, may make such appeazances, disburse such
<br />lt~s eat[ LkC 6aeh action as is t[ecesiaty to protect Ltnders interest, including, but not iia[ited to, disbursement of
<br />reasonable atteamay's lose cad catty upon the Propeny to make repairs. If Lender required mortgage insurance as a
<br />cas[dikioa of anirl~g the Imm sxured by this Mortgage, Harrower shall pay the premiums required to maintain such
<br />itsa[raatx m t~ci tmtii sane rime as rite regrtirenawc for such insurance terminates iu accordance with Borrower's and
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