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UMroaM CovEUeurs. Borrower and Lender covenant and agree as follow;:
<br />1. F.ytnent of Ptiadpal and lnferest. Borrower shat! promptly pay when due [he principal of and interest on the
<br />indebtedness evidenced by the Note, prepayroent and late charges as provided in the Note, and the principal of and interest
<br />as any Future Advances soured by this Mortgage.
<br />~ 2. Fnne~ for Taxes attd lrtauaaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />~ to Lender on the day monthly installments of principal and interest ere payable under the Nate, until the Note is paid in full,
<br />T,,,, a slue (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 />`- 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 />r elate agency !including bender if Lender is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />' inuurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />l31 or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />h permits Lendu to make such a charge. Burrower 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 />regturra such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oo the Funds. Lender
<br />shall give tD Borrower, 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 additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the fuWre 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 />rssessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrowu or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be suffiedent 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 Lettdet to Bortvwu requesting payment thereof.
<br />Upon payment a.[ full of all sums secured by this Moregage, Lender shall promptly refund to Borrower any Funds
<br />held by Leadu. If undo paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />~ apply; no latr_.r than i~me.~lneely prior to the sale of the Property or its acquisition by Lender, an}• Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Appllntioa of F;yeseals. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 trod 2 hereof shall be applied by Lender firs[ in payment of amounts payable to Lender 6y Borrower
<br />undo paragraph 2 hereof, then to interest payable on [he Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Ileea. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided carder paragraph 2 hereof or, if rem paid in such tttanner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrowu shall promptly famish to Lender all aotirxs of amounts due under this paragraph, and in the event
<br />Borrower shall make payment diroctiy, Borrower shall promptly famish to ).ender 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 discharge nay such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />stilt titre in a manner axeptame io Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which opuate [o prevent the enforccmem of the lien or forfeiture of the Property or any part thereof.
<br />S. Hazard Ittarraace. Borrowu shall kcep the improvements now existing or hueaftet 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 atnounta and for such periods as Lender may require:; provided, that Lender shall not require that the amount of
<br />such covuage excetd that amount of coverage required to pay the sums secured by this Mortgage.
<br />The iffiurance cattier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall vot be utareasonably 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 pamtent, water. due, directly to the
<br />iasura>xe carrier.
<br />AB 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 Bomowu shalt promptly fttrttish to Lender alt renewal notices and all receipts of paid premiums. [n the event of loss,
<br />Borrower shalt give prompt notice t4 the imurattce carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borravu.
<br />Uttksc Lewder and Borrowu aherwise agr« in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Proputy damaged, provided stxh ratorauon or repair is economically feasible and the security of this Moregage is
<br />ntn thexetty impaired. If such restoration or repair is not economically feasible or i( the security of this Mortgage would
<br />be impaired, the insurance: proceeds shall be applied tt> the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. Tf the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date antler is matted by Lender to Borrowu that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is atnhotize>d to collect and apply the itsurance proexcds at Lender's option either to restoration or repair of the Property
<br />or to the atra sexeued by this Mortgage.
<br />Unless Lcnc#er earl Borrower othuw~i;e agree in writing, nay such application of proceeds to ptixipal shall rot extend
<br />or potgpane the dtre date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />stint ittallments. If ttadu paragraph ig trereo# the Property is acquired by Lender, ail right, title and interest of Borrower
<br />in tend to any insuuance poiidsa and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall paw to Lendu to the exieitt of the sutra secured by this Mortgage immediately prior :o such sale or
<br />ae:quisitian.
<br />6. Preaavidloa aced Mmfeaance of Property; Iraseholds; Condominiums; Plattned Unit Drvelopmeols Borrower
<br />shall keep tlx Proputy in good repair and shaIl not commit waste: or permit imFsirtrnnt or deterioration of the Property
<br />and shall comply widr the ptovisiom of any lease if this Mortgage is on a leasehold. ]f this Mortgage is on a unit in a
<br />condominium or a planned uai[ devctnpmeat, Borrower shall perform all of Borrower's obligations under [he declaration
<br />or covwants creatma or aovemit[g the condominium or planned unit development, the by-laws and regulations of the
<br />caadorriaium ar planned amt developtrunt, and constirteni documents. If a condominium or planned unit development
<br />rider is eeceeutcd by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag he incotpetrated into attd shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hetead.
<br />7. l?roteccUom ai I.ndea'a liKCnriil. If Borrower faits to perform the cnvrnants and agreements contained in this
<br />I[4ortgagse, or ~ any action or proceeding is commetteed which materially affects Lender's imerest in the Property,
<br />iaeludiag, but tun limited to, etttintm domain, it[sotvency, cods enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Linder at Leader's opting upon notice to Borrower, may make such appearances, disburse such
<br />s[ttntc a»d titke atich action as is tecessary to protect Lenders interest, including, but not limited eo, disbursement of
<br />reasonable attorney's feex oral entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eonditioA of making the loan secured by this Mortgage, Borrower shall pay the premitttns required to maintain such
<br />ittstgr[mro in effect tmtil such time as the requirement for such insurance terminates in accordance with Borrower's and
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