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UxmonM Covexaxts. Borrower and Lender covenant and agree as follows:
<br />i. Paymeet of Pti;ndpd 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. Funds !or Tares and Iasnrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />,~ to Linder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in furl,
<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. Pius ene-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 initially and from
<br />3 time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an insCrmtion tbe ^eposiu or accounts of which are insured or guaranteed by a Federal or
<br />~^ state agency (including Ixnder if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotmd 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. Borrower and Leroder may agree in writing at the time of execution of this
<br />(~ Mortgage that interest on the Funds shah be paid to Borrower, and unless such agreement is made or applicable law
<br />requites such inietest to bt: paid, Lender shah not be required to pay Borrower any imerest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual acrnunting of the Funds showing credits and debits to the Funds and the
<br />Inirpose for which each debit to the Funds was made. The Funds are pledged az additional security for the sums secured
<br />by ibis Mortgage.
<br />ff [he amount of the Funds held by Leveler, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance pr°.rnrums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fail 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 by Lender shall not be sufficient to pay razes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shah pay to Lender any amount necessan to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. 1_ender shat) promptly refund to Barrower any Funds
<br />held by Lemkr. If under paragraph 18 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 Propem• or its acquisition by Lender, any Funds held by
<br />Lender at the time of application az a credit against the sums secured 6v this Mnrtnaae
<br />3. Apptlcatloa 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 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. Cif Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this hortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Sorrow•er making payment, when dire, directly to the
<br />payee itteteof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender recYipts evidencing Bich payments.
<br />Borrower stroll promptly discharge any lien which haz priority over this Mortgage; provided. [hat Barrower shall net be
<br />roquittd io discharge aay such lien so long az Borrower shall agree in writing to the payment o£ the obligation secured by
<br />attch lira in a manner acceptable to Le[t~r, or shall in good faith contest such lien by, or defend enforcement of such titn iv,
<br />legs[ proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ar any part thereof.
<br />S. 13>Qar+d Lsaaatre. Borrower shall keep the improvements new existing or hereafter erected on the Property insured
<br />against km by fits, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />gad in such atnounrs and for such periods as Leader may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of rnverage required to pay the sums secured by this Mertgage.
<br />The insurance carrier providing the itutrrance shall be chosen by $orrower wbject to approval by Leader, provided.
<br />that such approval shall not be unreasonably w5thheld. All premiums on utsurance policies shall be paid in the manner
<br />ptuvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payrrrent, when due, directly to the
<br />inntraece carrier.
<br />Alt ittstuantx policies and renewals thereof shall be in form acceptable to Lender and shah include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right ro hold the policies and renewals thereof,
<br />and Barntwer shall promptly furnish to Leader all renewal notices noel ail receipts of paid premiums. In the event of lass,
<br />$orrorrer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrowu-
<br />Uttkas Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and [he security of this Mortgage is
<br />not thereby impaired. If such testarstion or repaiz is not economically feasible or if the security of this Mortgage wouM
<br />be impaired, the insurance proceeds shall be applied to the Burns secured b}• this Mortgage, with the excess, if any, paid
<br />to Borrower- II the Property is abandoned by Borrower, or if Borrower fails to respond [o Lender within 30 days from the
<br />date sotto is malted by Leader to Borrower that the iastuance carrier offers to settle a claim for insurance benefits, Lender
<br />is attthorizod to co!!oa and apply the insurance proceeds at Lender's option tither to restoration or repair of the Property
<br />a W the sums sectrted by this Mortgage.
<br />Unless Leader .and Barrower otherwise agree in writing, any such application of proceeds to prim-.ipal shall not extend
<br />or poatpose late due date of ilre monthly ins[:tlmenu referred to is paragraphs I and ?hereof or change the amount of
<br />such ivsta2lmeats. If wader paragraph I$ hereof the Propem is acquired by Lender, ail right, tick and interest of Borrower
<br />is and to nay insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or aecttsiRition shall pass to Lehr to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />6 Prnervstkiota trod Mttfa,trnance of Proprrty; I.esseholds; Condomisinmsi Planned Unit Developments. Borrower
<br />shag ]csep the Property m flood repair and shall ~t commit waste or pertn%t impairment or deterioration of the Property
<br />and shag colaply with the provisions of nay lease if this Mongage is on a leasehold. If this Mortgage is on a unit i:t a
<br />coadaainium or a plaarxd twit development, Borrower shall perform all of Bonower's obligations under the declaration
<br />or covenants creating or governing the covdamivium or planned unit development, ttrr by-laws and regulations of the
<br />condominium or planned trait development, gad constituent documents. If a cond~xninium or planned unit development
<br />rids is esectttett by Borrower and rcearded together with this Mortgage, the covenants and agreements of such rider
<br />ahaB be incorporated iron ate shall amend and supplemem the covenants amt agreements of this Mortgage as if the rider
<br />nacre a pact hereof.
<br />~• Psa6telfotp of Center's &n~y. If Borrower fails to perform the wvenants avid agreemcnfa contained in this
<br />Itiort~t. or if any action or procading is comttrenced which materially affects Lender's interest in the Property,
<br />incittdisg, but rat lrmited to, emiaera dotsaia, insolvency, code enforcement, or arrangements or proceedings involving a
<br />baekrttpt or dtxedettt, then Lender sat Lettder•s option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is ' to protect Lender's interest, including, but rat limited to, disbursement of
<br />trasonsbk attot~y'a fee ate carry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of rnakiag the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />ttrsinaace in efrect tmtil such time as the requirement for such insurance terminates in accordance with Borr+oweis and
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