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<br />UxrnottM Covexnxrs. Borrower and Lender covenant and agrce as follows:
<br />I. Payment of Prhtclpal and Interest. 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 any Future Advances secured by this Mortgage.
<br />2. Fasds fer'I'saes trrui I~nraace. 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 Nate, 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 one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initia0y and from
<br />acme to Ume by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tote Funds shat( 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). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotutd 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 applicable law
<br />permits Lender to make such a charge. Harrower 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 ar applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings nn the Funds. Lender
<br />shall give to Borrower, wiffiout chazge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for whit:h each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />6y this Mortgage.
<br />U the amount of Ute Funds 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, inswsnce premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promp8y repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrowu shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sutras secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />6e~ by Lender. If undo paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later thaw immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />tinnier at iec i;u-tc a# appiicaiion as a credit against the sums secured by this lvfottgage.
<br />3. Appdntion oI Prtyments. 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 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. Chi li.iens. Borrower shall pay all taxes, assessments and other charges, Braes and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold paymenu or ground rents, if any, in the manner
<br />provided under paragraph 2 hertof or, iF na paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrowu shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall prampdy discharge any lien which has priority over :his Morgage; provided, that Borrower shall not ~
<br />rcgtrnrd to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured 6y
<br />such Lien in a manner atxxptabk to Lender, or shall in good faith contest such lien bp, or defend enforcement of such liw in,
<br />~ proceedings which operate to prevent the enforcement of the lien or forfeiture of [he Property oT any part thereof.
<br />3. Ind It~ce. Borrower shall keep the improvements now existing or hereafter erected on the Property iroured
<br />against loss by firt, hazards included within the term "extended coverage". and such othu 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 amount of
<br />such coverage wxceed that amount of covuage required to pa}• the sums secured by this Morgage.
<br />The i~trance carrier provffiittg Ilse insurance shall fie chosen by Borrower subject to approval by Larder, provided.
<br />that such approval shat( ~t bt unreasonably withfte}d. Ail premiums on insurance policies shah be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrowu making payment, when due, directly to the
<br />itisvtsntt catriu.
<br />AB itrwrance polictts and renewals thereof shat! be in form acceptable [o Lender and shall include a standard mortgage
<br />darrse ffi favor of and in form acttptable to Lender. Lender shall have the right to hold the policies and rerrrwals thereof,
<br />and Horrowtr shah prtnnptly furnish to Lender all renewal t'<tticu and a!! ~:eipts of paid premiums. In the went of loss.
<br />Borro+s~r stall give prompt tiOtiix to the insurance Barrier and Larder. Lender may make proof of loss if not made promptly
<br />by Botrowu_
<br />Unks Leadu and Borrower ottxrw•tse agree in writing.:asuratice proceeds shall be applied to restoration or repair of
<br />the Prt>perty dantaged, provided such teuorati,tsn or reps=r is xonomically feasible and the security of this Mortgage is
<br />not thereby mrpaired- If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be imFaa'ed. the insuratce proceeds shall Ix apples :o the sums secured by this Mortgage, with the excess, if any, paid
<br />m Jibrrowu. if the Propem n abandoned by Borrower, ur tt Sorrowu fails to respond to Lender within 30 days from the
<br />date uotict es tnail~ by Linder to Borrowu that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />n authortztd to collect and apply the insurame proceeds at Leodtr's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage..
<br />Uti~ss Lender and Borrower athctwise agree is writing, any such application of proceeds to pnncipal shall no[ extend
<br />N postpone the dix date of the monthly itrstatl~nts referred to in paragraphs !and 2 hereof or change the amount of
<br />web irts~.++ents. if under paragraph 18 hereof the Property is acquired by Lender, all tight, tick and interest of Borrower
<br />in and to nay insuraatt poiiciet and in and to the proccxds thereof resulting from damage to the Property prior to the sale
<br />or scgtssition shall pass to Leadu to the extent of the surtts secured by this Mortgage immediately prior to such sale or
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<br />f. Aeaervtttlrw od Maiwaunce of Property; Leaseholds; Condominiums; Phoned Unit fJevdopments Borrower
<br />ahaH iieep the Property in good repair and shag not commit waste or permit impairment or deterioration of the Property
<br />sad shall comply with tfre provisions of any lease if this Mortgage is ao a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planrttd attic development, Barrowu shall perform all of Borrower's obligations under the declaration
<br />to eatreaanb ertati>rg or gvvernittg the condominium or planned unit development, the by-fawn and regulations of the
<br />cvndominitmt or pJaaned unit devdispment, and constituent documents. If a condominium or planned unit development
<br />ridtt is executod by Borrowu and i•QOrded togeUre: with this Mortgage, the covenanu and agreements of such rider
<br />slmt! tie int:orparatrd into and shall arrxad anti suppkmem the covenants and agrcements of this Mortgage as if the rider
<br />worn a part hereof.
<br />7, t d)C.~aia'`s lilaeaaigq. If Boirowtr fails to perform the covenants and agreements contained in this
<br />1'r#ortgage, as if any ataion tv leatxeding is cammertced which materially allects Leader's interest in the Property,
<br />Inelnding, tart not limited to, eminent domain, insolvency, code enforcement, or arrangemenu or proceedings involving a
<br />b+atrttpt or dettdeat, then I_ende. at Leader's option, upon Mice to Borrower, may make such appearances, disburse such
<br />smtts sad take nteh action as is aeoessary ro protect Leaders interest, including, but not limited to, disbursement of
<br />rwonahlt attornt}rs fete and try upon the Propert}• to make repairs. If Lender required mortgage insurance as a
<br />condition of malciag-the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />iaaurmce in etdtei until such tiurt as tl~ requiretntnt for such insurance terminates in accordance with Borrower's and
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