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Uxffoant Covexexrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and 1!nterest Borrower shall promptly pay when due the principa] of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, aad the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Faada for Ta=ea aad Instrraace. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of grincipal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Fonda"} equal to one-twelfth of the yearly taxes and assessments which may attain priority aver this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelhh of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments far mortgage insurance, if any, alt az 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 ar 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 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. $orrower and Lender may agree in writing at the time of execution of this
<br />~ Mortgage that interest on the Funds shall be gaid 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 Borro vet, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />may. purpose for which each debit to the Funds was made. 'Ibe Funds are pledged as additional security for the sums secured
<br />J 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, 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 />h promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />Geld 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 />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 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />-`-°'I -
<br />apply, ro fat : is'ta-, uuredieioly prior to fhe sate of the Property or its acquisition by under, any Funds held by
<br />L.^nder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, ail payments• received by Lende: under the
<br />Note and paragraphs I and 2 hereof shall 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. Clwges; I3eas. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Ptaperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragngh 2 hereof or, if not paid in such manner, 6t' Borrower making payment, when due, directly to the
<br />payee thercef. Borrower shall promptly furnish to Lender alt notices of amounts due under this paragraph, aad in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to under receipts evidencing such payments.
<br />Borrower shall promptly discharge-any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />requited to discharge any such lien so long as Banower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, ar shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to grevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Huard Imoonce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by lire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in strch amounts and for such periods az 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 shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasena6ly withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such mancer, by Borrower making payment, when due, directly to the
<br />ittstrra~e rattier.
<br />AB insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mortgage
<br />clsua in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />attd Bazrowrr shaft promptly furnish to Lender all renewal notices and alt receipts of paid premiums. 1n the event of Loss.
<br />Borrower shaft give prompt notice to the insurance carrier and under. Lender may make proof of toss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt 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 Harrower. if the Property is abandoned by Borrower, or if Horrewer 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 wlkct and apply the insurance proceeds at Lender s option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Utekss Lender 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 />sttch iffitallmenu. If under paragraph IB hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in aad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property print 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 />acquisition.
<br />~. Preservation aad Maiateaance of Property; (xaseholdst Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall nut commit waste or permit impairment or deterioration of the Property
<br />and shag 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 shat! perform alt of Borrowei s obligations under the declaration
<br />or :oveaants treat"sag or governing the cottdaminium or planned unit development, the by-laws and regulations of the
<br />candominittm of 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 />shag be incorporated into and shag amend and supplement the covenants and agreements of this Mortgage az if the rider
<br />were a part hereof.
<br />7. Ps^otectlna of li,ender's &eeority, if Borrower fails to perform the covenants and agreements contained in this
<br />MortgaEe> or if any action or praceading is commenced which materially affects under's interest in the Property,
<br />indttding, but not limited to, eminent domain, irtsolvency, code enforcement, or a€rangements or proceedings involving a
<br />6twkrupt or decedent' then Lender at Leader's option, upon novice to Borrower, may make such appearances, disburse such
<br />sums and take sttch action as is necessary to proles Lender's interest, including, bm not limited to, disbursement of
<br />reasonable attotruy's fees a~ entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this b:ortgage, Borrower shall pay the premiums required to maintain such
<br />imuraMe in effect until such time as the requirement for such insurance terminates in accordance with Aorrower's and
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