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<br />Uxrnoaxt Covexexrs. Borrower and Lender covenant and agree as follows:
<br />1. Yaymeffi of Pdaclpal and Interest. Borrower shall promptiy pay when due the principal of and interest on the
<br />indebtedness evidenud by the Note, prepayment and late charges as provided in the Note, and the principa! of attd iniarest
<br />on any Future Advanus secured by this Mortgage.
<br />2. Fang for Tales and Iasonnce. 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 arc payable under the Note, until the Note is paid in full,
<br />a suet (herein "Fonda") equal to one-twelfth of the yearly taxes and assessmenu which may attain priority over this
<br />Mortgage, and ground rests on the Property, if any, plus one-twelfth of yearly premium installments for hazard insuranu,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, al[ as reasonably estimated initially and from
<br />time ro time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal ar
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />t~cttranu 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 Borcower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borower and Lender may agree in writing at the time of execution of this
<br />Mortgage thatsnterest 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 shat! not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shell 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. "['he 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 />the due dates of taxes, assessments, iffiuranu premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, iasutauce premiums and ground rents as they fall due, such exuss 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 sot 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 make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requtsting payment thereof.
<br />Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrowu any Fonda
<br />held by Lender. If under paragraph I8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shad apply, na later than immediately prior to the sale of the Property or its acquisition by lender, any Funas held by
<br />Lender at the tune of application as a credit against the sums secured lay this Mortgage.
<br />3. AppBcadon of Pigments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note tied paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Y hereof, then to interest payable on the Noie, then to the principal of the Nate, and then to interest and
<br />principal oa any Future Advances.
<br />4. Charge; IJeas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold paymenzs or ground rents, if any, 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 />payee thereof. 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 promptiy furnish to Lender reuipts evidencing such payments.
<br />Borrower shall prompSy dischazge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to dixharge any such lien so long as Eorrower shall agru in writing to the payment of the obligation secured by
<br />strdt lien is a maatror acceptable to Lender, or shall in good faith contest such lion by, or defend enforcement of such lien in,
<br />legal grocaedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thettof.
<br />S. Hazard ]lassraace. Borrower shall keep the improvements now existing or hereafter erected on the Property ituured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />sad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exued that amount of coverage required to pay the sums secured by this Mortgage.
<br />the insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mariner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dirertiy to the
<br />ina.~ra+w. CarriCr.
<br />AB itrsureace policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clartse in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shah promptly furnish to Lender all renewal notices and all reuipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may maL-e proof of loss if not made promptiy
<br />by Borrower.
<br />Unless Lender and Boaower otherwise agrce in writing, insurance proceeds shall be applied to restorarioa or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />he impaired, the insuranu proueds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower- If the Property is abandoned by Borrower, or if Borrower fails 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 authorized to collect and apply the insurance protxeds at Lender's option either to restoration or repair of tbe Property
<br />or t4 the sums secured by this Mortgage.
<br />Utaless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph I8 hereof the Propem is acquired by Lender, all right, title and interest of Borrower
<br />in artd To any insurance policies and in and to the proceeds thereof resulting from damage to the Properly prior fo the sale
<br />or asgrosition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition,
<br />~ti. lrexrvalim sad Maiateaaaee of Property: Leaseholtl& Condamiviums; Planned Unit Developments. Borrower
<br />shall Peep 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 ieasehcld. If this Mortgage is on a trait in a
<br />condominium or a planra;d unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants rseatitrg or governing the condominium or planned unit development, the by-laws and regulations of the
<br />coaZomiaium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shell be incorporated into and shall amend and sugpkment the covenants and agreements of this Mortgage as if the rider
<br />-were a part hereof.
<br />7. Praacetlaa td Leerke's Stearlty. If Borrower fails to perform the covenants and agreements contained in this
<br />b~ortgage, ar if any action or proctediag is tYammcuced which materially affects Lender's interest in the Property,
<br />iadgding, but ant liatited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />6aakrttpt or decedent, then Leader ax Lender's option, upon trotiu to Borrower, may make such appearances, disburse such
<br />soma and take such action as as necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reawnable attorney's fees and catty upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eon<tition of malting the loan secured by this Mortgage, Borrower shall pa}• the premiums required to maintain such
<br />imruanee is effect until sorb tixae as the requirement for such insuranu terminates is accordance with Borrower's and
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