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Uxtaoasa Cnvex~xrr,. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Prlnc~al and Interest Borrower shall promptfy pay when due the principal of and interest on the
<br />indebtedness evidenced by the Nore, prepayment and late charges as provided in the Note, and the principal of and :merest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Tries aml Iroaraoce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to tender 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-twelhh of yearly premium instalments for hazard insurance,
<br />plus otte-twelfth of yearly premium installments for mortgage insurance, if any, alt 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 shall 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 [o pay said taxes, assessments,
<br />inattraace 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 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 />inquires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lendr.
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />`purpose far 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 suture 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 shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 1f the amount of the Funds
<br />~t held by Lender shall not 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 requesting payment thereof.
<br />M 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 ]g hereof the Property is sold or the Property is .;~herwise acquired by Lender, Lender
<br />~ _ _ _ _ ~ ~ ~ ~ :.,. fe.^,der v Flt.^.d5 hglrl by
<br />shah apply no later than itnmeaiateiy prior ea u`te salt ~f t h~ Property o. it acqu:;:uon .,, -
<br />Q Lender at the time of application as a credit against the sums secured by this~Mortgage. ..^
<br />3. Application of Pagmen[s. 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 />n under paragraph 2 hereof, tben to interest payable on the Note, then to [he principal of the Noie, and then to interest and
<br />principal on any Future Advances.
<br />-. 4. Charges, I3eas. Borrower shall pay all [axes, 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shag make payment directly, Borrower shall promptly famish 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 />required to dischazge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such ben in a manner acceptable to Leader, 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 any part thereof.
<br />S. Hazard insurance. Borrower shall keep the improvements now existing 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 />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such cove :_•_: exceed 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 approve[ sh~l not be tmreasonably withheld. All premiums nn 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 />AB insurance 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. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender alt renews! notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to [he 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 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 />be impaired, the insurance proceeds 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 Leader to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is atnhorized to collcet and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />ar to 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 />nr postpone the due date of the monthly instalments referred to in paragraphs 1 and Z hereof or change the amount of
<br />such installments. If under paragraph lg hereof [he Property is acquired by Leader, nit right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sate
<br />or acgttisifion shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
<br />acquisition.
<br />6. Prcservatiua aed Mahstenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
<br />shall keep the Property in good repair and shall ant commit waste or permit impairment or deterioration of the Property
<br />and shafl comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />wndominitrm or a planned unit development. Harrower shall perform all of Borrower's obligations under the declaration
<br />ar oovenartrs creating or gaveraing the condominium ar planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and rnnstituent documents. [f a condominium or planned unit development
<br />rider is executal by Botmwer gad rernrded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were s part hereo[.
<br />'/, Protectbq of Leadet"s See~By. if Borrower faits to perform the covenants and agreements contained in this
<br />Mortgage, or if any aetiort or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but ooi limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
<br />badaopt or decedent, then Lender at LettdePs option, upon notice to Borrower, rr,ay make such appearances, disburse such
<br />sums and [site such action as es necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reemnable attorney's toes end entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan seaiued I*g this Mortgage, Bortower shall pay the premiums required to maintain v:ch
<br />instuance in eHeet until sash time as the requiremem far such insurance terminates in accordance with Borrowers and
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