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Uwmoant Coveiv~rtrs. Borrower sad Lender covenan! and agree as follows:
<br />1. Payment of Prlnclpal sod 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 grid interest
<br />an any Future Advances secured by this Mortgagc.
<br />Z. Foods Eor Taws sad Ireoranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pa}'
<br />to Lender on the day monthly installments of principal and interest are payable under [he 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 grotmd rents on the Property, if any, plus one-twelfth of yesdy premium installments for hazard insurance,
<br />plus ane-twelfth of yeazly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to Ume by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Ftiinds shall be held in an institution [he deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Linder 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. 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 Boaower, 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 [o Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpou 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 rotors 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 Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrowec on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall not be su$icieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrowu 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 in full of all sums sec;tred by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later ;ban immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held b_y
<br />Lender at the lime of application as a credit against the sums secured by this Mortgage.
<br />3. Applicatloa of Payment. 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 5rst 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; likes. Borrower shall pay all taxes, assessmenu and other charges, fines and impositions attributable to
<br />the Propet4y which tray attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided undo paragraph 2 hereof or, if nos -paid in such mancer, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shag promptly furnish [o Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />13orrowu 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 lien is a manner acceptable to Linder, or ,hall in good faith contest such lien by, or defend enfnrcement 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 />5. Hazard Imarasce. Borrower shat! keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by 8re, hazards included within the term "extended coverage', and such other hazards as Lender may require
<br />and in such atriount and for such periods as 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 ire.~ranrn carrier providing Ute insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not !>e unreasonably withheld. All premiums on insurance policies shall be paid in the manna
<br />provided under paragraph 2 hermf or, if not paid in such mariner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />llarrowu shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Harrower.
<br />Unless Lender and Borrowu 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 thueby 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 [o Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offer to xttle a claim for insurance benefits, Lender
<br />is authorized m collect and apply the irsurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unltas Leader and Borrower oUicrwise agree in writing, any such application of praeeeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in pazagraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph i 8 hercof the Properly is acquired by Lender, all right, title and interest of Borrower
<br />is and to any insurance policies and in and to the proceeds tltereof resulting from damage to the Property prior to the sale
<br />or aoquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition-
<br />~. PnservaNon and Maintenaaee of Property; Leaseholds; Condominiums; Planned Umt Developments. Borrower
<br />shag keep Llroe Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shalt comply wits the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condomiaitrm or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenant treating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />con:romiaium 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 />shall be iacatporatad into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a pail hereof.
<br />?. Proseetbn of Letukr'a Seemity, If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if nay action or prceeetling is rnmmenced which materially affects Lender's interest in the Properly,
<br />indudiag, but not i-im-ited to, eminent domain, insaivency, code enforcement, or arrangemenu or proceedings involving a
<br />bankrupt or deced~t, then Ltader ar Lender's option, upon notice ro Borrower, may make such appearances, disburse such
<br />sums and take stub salon as is necessary to protect Lender's interest, including, but nor limited to, disbursement of
<br />reasonable attorney's fees snot entry upon the Properly to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan xcnred by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect rmtil such time as the requirement for such insurance terminates in acwrdance with Borrower's and
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