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Urvr>:oant Cover+nxrs. Borrower and Lender covenant and agree as follows:
<br />I. Pajaient of Principal 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 />jn. 2. Farads for Tares and lmuraace. 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 Note, until the Note is paid in full,
<br />Syq a lain (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 Properly, 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 to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />~,- The Funds shalt be held ir, an institution the deposi*s or accounts of which are insured or guaranteed by a Federal or
<br />state agency {including Lender if Lender is sues an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />;,7~ insurance 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 [he Fttnds and applicable law•
<br />:~ permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on [he Funds shall be paid to Burrower, and unless such agreement is made or applicable law
<br />requira such interest to be paid, Linder shall not be required to pay Burrower any interest or earnings on the Funds. Lender
<br />shall give to Burrower, without charge, an annual accounting of the Funds showing credits and debits [a 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 Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />[he due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said tales,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid [o Borrower or credited to Borrower on monthly installments of Funds. If [he amount of the Funds
<br />beld by Lender shall not be sutHcient [o 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 Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph lg hereof the Pro~rty is sold or the Property s otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to [he sale of the Properly ur its acquisition by Lender, any Funds held by
<br />Lt~.+d=r at tt~ SEtt~ at application as a cr€dit against t he sums secured by this Mortgage.
<br />3. Apnlic~loa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof .:h211 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- Charges; Liens. Borrower shall pay al! taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents- if any, in the manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payce [bersof. Borrower shall promptly famish to Lender all notices of amounts due under this paragraph- and in the event
<br />Borrower shall make payment directly, Borrawer shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shag promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />tegtured to dischazge any such lien so 1^ng as Borrower shalt agree in wriung 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 [o prevent the a^fnrr^ment of the lien ur forfeiture of the Property or an}' part thereof.
<br />5. Hazard lasarance. Borrower shag keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by firs, hazards included 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 reyuire 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 nor be unreasonably withheld. AIi premiums on insurance policies shalt 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 thereat shall be in form acceptable to Lender and shalt include a standard mortgage
<br />clause in favor of and in form arceptable [o Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shalt prampdy famish to Lender all renewal notices and alt receipts of paid premiums. Ln the event of loss,
<br />Harrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ur repair of
<br />the Propetty damaged provided such restoration or repair is ecunamicallp feasible and the security of this Mortgage is
<br />no[ thereby impaired. If such restoration or repair is nut econamicalh~ feasible or if the securit}• of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mattgage. with the excess, if any, paid
<br />m Borrower. if the Property is abandoned by Burrower, ar ii Borrower fails to respond to Lender within 30 days tram the
<br />dare notice is mailed by Linder io Borrawer that the insurance carrier afters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's apiion either to restoration or repair of the Propert}'
<br />or to tbe sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the dtte date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any irisurantt policies and in and to the proceeds thereof resulting tram damage to the Property prior to the sale
<br />or acquisition shat) pass to Lender to the extent of the sums secured by this iortgage immediately prior to such sale or
<br />acquisition.
<br />6. Pr+eaersation and Mamteamtt of Property; Leaseholds; Condominiums; Planned Unit Developments. Burrower
<br />shall kelp the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Martgage is on a unit in a
<br />cottdomirtium ar a planned trot[ development, Borrawer shall perform all of Borrowers obligations under the declaration
<br />or covettaats creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />-- condominium or planned unit development, and constituent documents. If a candaminsum ar planned unit development
<br />rider is exaxited by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be i»corparated into and snail amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />tvem a part hereof.
<br />7. Ptroteetlaa of Leader's Severity. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />-lndtxding, but not limited So, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />banlwpt or decedgtt, [hen Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />arms and take such action as in necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasonabk attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />tonditio6 of making the loan secured by [his Mortgage, Borrower shall pay the premiums required to maintain such
<br />ittsuratice in efftc[ until such time as the requirement for such insurance terminates in accordance with Borrower's and
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