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UNtronxt Covexetvrs. Borrower and I-endryr covenant and agree as fellows:
<br />1. Payment of Priodpal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />iadebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />~ on any Future Advances secured by this Mortgage.
<br />M 2 I?lmds for Taws and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />*'^f to Leer on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />~ a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />„~; Mortgage, az!d 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 />time to timt by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tbe Funds shall be held in an institution the deposits or accounts of which are insured oe guaranteed by a Federal or
<br />f state agency (ixltrding Lender if Lender is such an institution). Lender shat! 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 />r`' 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 requited to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrowtr, 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. The Funds are pledged as additions! 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, 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 Borrowers option, either
<br />prompily repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Linder shall not be strHitaient 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 ip full of all sums secured by this Mortgage, Lender shall pro.ptly refund to Borrower any Funds
<br />Geld by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shell apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Ftmds held by
<br />Leader at the time of application as a coedit against the sums secured by this Mortgage.
<br />3. ApplicaNoa t>f Pgmenla Unless applicable law provides otherwise, ail payments received by Lender 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 Nate, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lens. 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 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, direcily to the
<br />payce thereof. Boaower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad is the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly dischazge any lien which has priority over this Mottgage; provided, that Borrower shall 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 lien in a manner acceptable to Lender, 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 />5. B.amrd Iasarantt. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards inehided within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Leader 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 instrra~e carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shat not be unreasonably withheld. All premiums on 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 />All ittsutanre 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 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 carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unkae 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 o€ this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns 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 rmtice 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 ei[ixr to restoration or repair of the Property
<br />or to the sums second by this Mortgage.
<br />Unless Leader and Borrower otherwist egret in w•ritiag- any surh application of proceeds to principal shall not cxtend
<br />ar poupone the due date of the monthly installments referred to in paragraphs I and Z hereof or change the amount of
<br />such ineF~!Ies~nts, If under paragraph t8 het~f the Property is acquired by Lender, all right, title and interest of Borrower
<br />is and to any ituurance pdicies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale
<br />ac acgtrisi[ion shall pass to Leader to the extent of the sums secured by this hortgage immediately prior to such sale or
<br />acgtsition.
<br />6 Ptescrvatioa sad Maiabea~aace of Property; Ltasebolds; Condominiums; Planned Uuft Devetopncents. Borrower
<br />shall ~ the Property in good repair and shag not commit waste or permit impaumem ar deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. [f this Mortgage is on a unit in a
<br />condott»nium or a planned trait development, Borrower shall perform all of Borrowei s obligations under the declaration
<br />or covenants creating or governing the condominitun or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit developrent, and constituent documents. If a condominium or planned unit development
<br />rider is exexttted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall 6m incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />?. Prima of LendaPa Security, If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage; of if say action - or proceeding is commenced -which materially affects Lender's interest in the P*operty,
<br />iacFndiag, but not lirnitad to, eminent dotnaio, insolvency, code enforcement, or arrangement or proceedings involving a
<br />baalcrupt or dxedea[, then Lender az Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and tape such notion as is necessary to protect Lender's interest, including, but no[ limited to, disbursement of
<br />reasonable attorney's fern and-entry uprns the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secttrtd by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance th effect until such tip as the regtriretnent for such insurance terminates in accordance with Borrowers and
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