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<br />Ur+rpoaM COVPNx1Vrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Ftiaclpal and Iat¢rest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment end late charges as provided in the Note, sad tGe principal of and interest
<br />on any Puture Advances secured by this Mortgage.
<br />2. Fumh for Taws sad Imaraace. Subject to applicable law or to a written waiver by Lender, Hortower shall pay
<br />to Leader on the day monthly installments of principal and interest are payable under the Note, 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 initially and from
<br />tithe to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt ho hcld in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />Gate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />imursace premiums and ground rents. Lender may not charge for so holding and applying the Funds, anal zing 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 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 or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without chazge, 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. "[7[e Funds are pledged as additional security for the sums secured
<br />by this Mort~ge.
<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, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they €all 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 />hdd by Lender shall not be stffiiccient xo 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 Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Leader. If under pazagraph 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 this Mortgage.
<br />3. AppBcatba d Payments. Unless applicable law provides otherwise, ail 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 herwf, 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. Charts; Lleas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Proptnty which may attain a priority over this 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 Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly famish to Lender all notices of amounts due under this pazagraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such paytirtents.
<br />Harrower shall gromptly dischazge nay lien which has priority over this Mortgage; provided, that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such Gen in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal groccedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof.
<br />5. Heard Imeraaea. Borrower shall keep the improvements now ousting or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />sad is such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />wch coverage exceed that amount of coverage required to pay~he sums secured by this Mortgage.
<br />'I~ 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 manner
<br />provided trader paragraph 2 hereof or, if hat paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AB iasltrance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause is favor of and in form acceptable to Lender. Lendec shall have the right to hold the policies and renewals thereof.
<br />arld Harrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance cazrier and Lender. Leader may make proof of 3oss if not made promptly
<br />by Harrower.
<br />Udeas Lender and Borrower otherwise agree in writing, insurance proceeds shat! be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasibly and the security of this Mortgage is
<br />ant thereby impaired. If such restoration or repair is not economically feasible cr if the security of this Mertgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with rho 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 nonce 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 proceeds at Lender's option either to restoration or repair of the Property
<br />or ro the suns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ar postpone the titre date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such iasta[-ments. >f under paragraph Ig hereof the Property is acquired by Lender, all right, tide and interest of Borrower
<br />in and to any insurance policies and in and to tEse proceeds thereof resuking from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquiaitixta.
<br />6. Prsaervstlon and Malnteaaace of Property; Leaseholds; Condominiums; Planned Unit Developmenk. Borrower
<br />shall keep the Property in good repair and shall not cammit waste or permit impairment or deterioration of the Property
<br />sad 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 trait development, Borrower shall perform ail of Borrower's obligations under the declaration
<br />oz covenants crratmg of go~-turning rho condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and cotutitueat documents. If a condominium or planned unit development
<br />rids is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shtdl be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />ware a part hereof.
<br />9. lsstecNa® of I.eeder'a 3acsdq. If Borrower faits to perform the covenants and agreements contained in this
<br />'Montage, or if any action. or proceeding is cotnmenced which materially affects Lender's interest in the Property,
<br />itx9ttt3iag, but nM limited to, etnineat domain, ittsoivency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or deceda[t, then Lender at Lender's option, upon notice to Dorrower, may make such appearances, disburse such
<br />twtas and take such action as is necessary to grotut Lender's interest, including, but not Limited te, disbursement of
<br />reasonable attomey'a Eees and emtry uptut the Property to make repairs. If Lender required mortgage insurance as a
<br />ca~ition of making the Loan sethtred by this- Mortgage, Bortower shalt pay the premiums required to maintain such
<br />insurance in effect tmtil such tiia as the requirement for such insurance terminates in accordance with Borrower's and
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