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Uxrnoxat Covaxexrs. Borsower and Lender covenant and agree as follows:
<br />1. Payment of Prlnctpsl 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 [he Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fnnds for Tales and Iaaurance. 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 tinder the Note, until the Note is paid in full,
<br />a slim (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 initially and from
<br />time fo lime by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt 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 ground rents. Lender may not charge for so holding and applying [he 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 Lender may agree in writing a[ [he time of execution of this
<br />,~ Mortgage [hat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />~ requires such interest to be paid, Lender shall not be required ;o pay Borrower any interest or earnings an 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. The Funds are pledged as additional security for the sums secured
<br />:^ by this Mortgage.
<br />If the amount of the r'unds 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 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 nut be sulficient to pay taxes, assessments, insurance premiums and ground rents 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 to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Ivfortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. 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 Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by [his Mortgage.
<br />3. Application of Payments. Unless applicable taw provides otherwise, all payments received by Lender under the
<br />Note and paragraphs t and 2 hereof shalt be applied by Lender tint in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and [hen to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over thi; Mortgage, 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 Borrawer making payment, when due, directly to tbe
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and io the even[
<br />Borrower shall make payment directly, 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 not be
<br />tmtrired 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 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 am' part thereof.
<br />5. Ilstaar'd I~arantt. Borrower shall keep the improvements now existing or hereafter erected on tht Property insured
<br />against loss 6y fire, hazards incWded within the term "extended coverage", and such other 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 exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shall 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in farm acceptable to Lender, Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid oreminms. In the event of loss,
<br />Borrower shall give gromp[ notice to the insurance :artier and Lender. Lender may make prxf of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriliag, insurance proceeds shall be applied to restoration ar repair of
<br />Cite Property damaged, provided such restoration or repay is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restowtion or repair is not economically feasible or ii the security of this Mortgage would
<br />be impaired, the insurance pra.eeds shall be applied is the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrawer. If the Property is abandoned by Borrawer, or if Burrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is atuhorized to collect and apply the insuranw proceeds at Lender's option either to restoration or repair of the Property
<br />ar to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such applicauan of procuds to principal shall not extend
<br />or postpone the due date of the monthly insaallments referred to in paragraphs I and Z hereof or change the amount of
<br />such installments. [f under paragraph i8 hereof the Property rs acyuired by Lender, all right, tide and interest of Burrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to ttte extant of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Ptssenati~ sad Maiatesaae of Property; Leaseholds, Condominiums; Planned Unit Developments. Borrower
<br />shall keep thz Property in goad repair arrd shall nut ~sinmit waste or permit impairment or deterioration of the Property
<br />acrd shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform ail of Borrowers obligations under the declarattan
<br />or covenants creating or zoverning the condominitun or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents It a condominium or planned unit development
<br />ride is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be incorporated into and shag amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protecties of Leader's Seearily. If Borrower faits to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceeding is commenced which materially affects Lendei s interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code en[orcement, or arrangements or proceedings involving a
<br />6ankinpt ar decedent, then Lender at Lea?-se's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is t~cessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable a[tot'ney's fees and entry upon the Property to make repairs, if Lender required mortgage insurance as a
<br />condition of malting the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such tune as the requirement for such insurance terminates in accordance with Borrower's and
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