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Uxrnotent Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />Y. Payment of Princigd and Intet~est. Borrower shall 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 Note, and the principal of and interest
<br />on arty Future Advances secured by this Mortgage.
<br />2. Fonds for Taus ate liasuraace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender an the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<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 yearly premium installments for hazard insurance,
<br />plus Otte-[weifth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Linder on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the depasiu or accounts of which are insured ar guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shad apply the Funds 20 pay said taxes, assessments,
<br />i2suraaee 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 the Funds and appticable law
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<br />Mortgage that interestyon-the Funds shall be' paid to uBorrower, and unless such agreement is made or appticable law
<br />requires such interest to be paid, Lender shall not rte required to pay Borrower env interest or earnings an the Funds. Lender
<br />shalt give to Borrower, without charge, an annual acrnunting of the Funds showing credits and debits to the Funds and tbe
<br />.. purpose for which each debit to the Funds was made. The Funds are pledged as additional sec»rity for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together wish the future monthly installmenu of Funds payable prior to
<br />the due dates of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessmenu, insurance premituns and ground tenu as they fall due, such excess shall be, at Borrowers option, either
<br />jj, prompt)y repaid to Borrower or credited to Borrower oa monthly installments of Funds. If the amount of [he 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 to Lender any amount necessary to rnake up the deficiency within 30 days from the date notice is mailed
<br />~„t by Lemler to Harrower requesting paymem 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 I8 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender
<br />strati apply, no later Than irtimaiiaieiy prior ro the sale of the Properly or its acq[tisiiian by Lendee, soy Frnas he)d b}'
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Apr}ieatioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />~ Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />~ under paragraph :hereof, they to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />p~rincip:i an any Future Advances.
<br />0. IJeas. Borrower shall pay alt taxes, assessments and other charges, fittcs and impositions a[tributablc to
<br />the Property which may attain a priority over this Mortgage, and leasehold paytnenu or ground rents, if any, in tbe manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to tbe
<br />payee thereof- Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, az>d in the event
<br />Borrower shall make payment directly, Bouower shalt 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 io distharge any such lien so long as Borrower shall agree in writing to the payment of the obiigateon secured by
<br />such Ilea in a manner av«ptabk to Ixnder, ar shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />~ proceedings which operate to prevent the enfot~centen[ of the lien or forfeiture of the Property or any part thereof.
<br />5. Smsi lansraoce Borrower shalt keep the improvements nos existing or hereafter erected on the Property insured
<br />against loss by 5re, beards included within the term "extended coverage", and such other hazards as Lender may zequire
<br />earl in ~ amounts and for such periods as Lender may require; provided, that Lender shalt 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 iaatrattce artier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that srtc6 approval shall trot be unreasoaabiy withheld. All premiums an insurance policies shad 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 />»~ carrier.
<br />,.., AH insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />tgatue ~ over of and in farm acceptable to Ltn~r_ Lender shall have the right to hold the policies and renewals thereof,
<br />~ 8arraer.•cr shall promptly furnish to Leader all renewal natives and ail receipts of paid premiums. In the event of loss,
<br />I3ortvurer shalt give prompt notice to the insurance carrier and Lender. Lender ma} make proof of )oss if not made promptly
<br />by Borr'osv~.
<br />Utiloa Loader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />tbo Property damaged, provided such restoration of repair is economically feasible and the security of this Mortgage is
<br />sot tht~y impaired. If such restoration or repair is eat economically feasible or if the security of this Mortgage would
<br />bo impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If tix Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />dace mlito is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance bendfits, Linder
<br />is atatharized to collect and apply the insurance proceeds at Lender's option wither to restoration or repair of the Properly
<br />oa fct the aline snored by leis Mortgage.
<br />Unless Ltnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the tnonthty installmenu referred to in paragraph 1 and 2 hereof or change the amount of
<br />ratn~ i++~¢rottxr~e.nLc_ If ,~ .~~ .~ ; g hereof the Prapeety is acquired by Lender, al: right, title and interest of Borrower
<br />in sad to say iawrance policies and in and to the proceedt thereof resulting from damage to the Property prior [o the sale
<br />or aat~atiott shalt pass to Lender to the eateni of the sums soured by this Afartgage immediately prier to such sale or
<br />~.
<br />f. Petiv,r~so trot Maisteaaoce of Property; Leaseholds; Condominiums; Planned Unit i>evebprtsents. Borrower
<br />tthaN ktep rho Fropeety is good repair acrd shag not commit waste or permit impairment or deterioration of the Property
<br />sad shall caasply with the provisions of any )case if this Mortgage is on a leazehold. If [Iris Mortgage is on a unit in a
<br />or a plattaed unit dovelapmertt, Borrower shall perform all of Sarrowers obligations under rho dularation
<br />or cntratsaats creating or governing [hc condominium or planned unit development, the by-laws and regulations of the
<br />caitsdoatiaitnn or plaaaa3 twit deve}apsaettt, acrd constituent docturtents. If a condominium or planned unit development
<br />tidy tt esorxoed by Btxrow~ and recorded together with this Mortgage, the covenants arx) agreements of such rider
<br />tthaB be imerxpasaed into and tthaki antead and supplement the covenants and agreements of this Mortgage as if tbe rider
<br />ware a pus hmnai.
<br />?. lstofsetlias of I.aeder's If Borrower fails to perform the covenants and afire=mends contained in [!his
<br />. os' if r~ s~etian ~ protxediag is commeoad which materially affects Lender's interes. in ,'~e Properly.
<br />ittchrdisst, but n~ limited io, aniaent dosttaitt, insolvency, cock enforcement, or arrangements or proceedings tn: ~lvin;g a~
<br />httaYsttpt at dexdeat, then Leads at LendeYs option, upon notice to Borrower, may make such appearances, disbars.. -such
<br />sm'os acrd take welt action as is aeotssary to protect Lender's interest, including, but not limited to, disbursement ..t
<br />[aasanabk atuuaey's foes a~ entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />conditioa of making tlsE ban severed b}' [his Mortgage, Borrower shall pay the premiums required to maintain s+tch
<br />iasrvattax is e&tct ttmnl stint time as the regt:ire•t~rt for srsch iasurattce terminates in accordance with Borrower's t.nd
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