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<br />Uxmonat Covexnxrs. Borrower and Lender covenant and agree as tollaws:
<br />i. PaymenE of Prittelpal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedtress evidenced by the Note, prepayment and late charges as provided in the Note, and the orincipai of and interest
<br />on say Future Advances secured by this Mortgage.
<br />2. Funtk far Taxes end Insurance. 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 are payable undec the Note, until the Note is paid in full,
<br />a stun (herein "Funds") equal to one-;welfth 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 far hazard insurance,
<br />plus ano-twelfth of yearly premitun installments for mortgage insurance. if any, all as reasanabh• estimated initially and from
<br />Ume to time by Lender on the basis of assessments and bills and reasonabfc estimates thereat.
<br />Ttte Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Fedora] or
<br />state agency finduding 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 Borcower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Leader 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 ar applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower anx' interest or earnings an the Funds. Lender
<br />shall give to 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 far 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 fa:. .:ae, such excess shall be, at Borrower's option, either
<br />promptly repaid zo Borrower or credited to Borrower on momhly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay t~.zes, assessments, insurance premiums and ground rents ss they fall due,
<br />Borrower shat] pay io Lender any amount necessan• 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 is frill of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />6e.Id by Lender. if under paragraph Ig hereof Cho Property is sold or the Property is otherwise acquired by i.ender, Lender
<br />shall apply, no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this ~fartgage.
<br />3. A~plieedon of Pigmttn[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 9rst in payment of amounts payable to Lender by Borrower
<br />tmt3er paragraph 3 hereof, :hen to interest payable en the Note, then to the principal of the Note. and then to interest and
<br />principal on any Ftrt[ne Advances.
<br />3. Ckatgetti F.iens. Bnrrowe: shop, 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 tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender al! notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Barc9wer shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has prorit}• over this Mortgage; provided, that Borrower shall not be
<br />required fo discharge any such ti:.n so long as $orzower shall agree in writing m the payment of the obligation secured by
<br />Stich lien in a ttrantter acceptable ro Lender, or shat] in good faith contest such lien 6y, or defend enforcement of such lien in,
<br />legal proceedings which operaae to prevent the enforcement of the lien or Forfeiture of the Property or any part thereof.
<br />5. Heard Inwranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included w•Sthin the term "extended coverage". and such other hazards as Lender may require
<br />and in such amounu and for such periods as Lender may require; provided, that Londe: shall not require that the amount of
<br />such coverage extend 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 approv" by Lender, provided.
<br />thaz such approval shall sot be unreasonsb}y withhc!d. All premiums on insurance policies shall be paid in the manner
<br />provided Hader paragraph 2 hereof or, if not paid in such manner. by Borrower msl:ing payment, when due, directly to the
<br />insurance cazriu.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />dmtst in favor of and in form acceptable ro Lender. Lender shall have the right to bald the policies and renewak thereat.
<br />acrd Borrower shall prompt]}' furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Jio;rower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of los it not made promptly
<br />by Borrower.
<br />Uakss Lender and Boerawer otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
<br />the Propert}• damaged, rtnvided such restoration or repair is economically feasible and the security of this Mortgage is
<br />net thereby impaired. If such restoration or repair is Hat economically feasible or if the security of this Mortgage would
<br />6e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the ezms, if any, paid
<br />to Borrower. If the Propem i~ abandoned by Borrower, or it Borrower fails to respond to Lender within 30 da}'s from the
<br />dart notice is mailed by Lender to Borzower chat the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and acgly ilre insurance proceeds ai Lender s option either to restoration or repair of the Propem•
<br />or tq the sums secured by r4j~ Mortgage.
<br />Unless I.ettdcr aztd Borrower otherwise agree in writing. any such application of proceeds to pr;ncipa! shalt not extend
<br />or postpone the due date of the monthly installmenu referred to in paragraphs) and 2 hereof or change the amount of
<br />such iasrallmenrs. Tf under paragraph 18 hereof the Propem• is acquired by Lender- ail right, title and interest of Borrower
<br />in and to sap instrranee policies and in and to the proceeds thereof resulting from damage to the Properly prior ;o the sale
<br />qr acgnisidon shag pass to Lender to the extent of the sums secured by this Sortgage immediate)}• prior to such sale or
<br />at:quisitian.
<br />5. PeexnaBan and Ms®tenanee of Property; I.easetwlr$ Condrrrnirriums; Phnatd Utrit Devehrpments. Borrower
<br />shall keep the Property itr good repair and shag nai commit waste or permit impairment ar detetiaration of the Property
<br />and shall comply with tlx provisions of any lease if this Mortgage is an a leasehold If this htongage is on a unit in a
<br />cosdominitna or a planned unit development, Borrowe: shall perform all of Borrower's obligations under the declaration
<br />or cgvettsats creating or governing the condominium or planned unit devebpment. the by-laws and regulations of the
<br />eondotninittm or planned emit ttiwelopment, and constituent documents. If a condominium or planned unit development
<br />rider is eaeeuted by Borrowu and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be ittcgrporat~ into and shall aatend and suppkatent the covenants and agreements of this Mortgage as iF the rider
<br />were a part hete~.
<br />7, Peatet•Bon of Loder's SecvrEty. If Borrower fails to perform the covenants and agreements contained in this
<br />blgrt=age, or if arty action or procxtding is commenced which materiat!y affocts Lender's interest in the Property,
<br />}nC]trdittg, art t~ l'srtited kt, etaiaent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt qr fit, they Leader at LeaBer's option, upon notice to Borrower, may make such appearances, disburse such
<br />wins and take ouch action as is necessary to protect Lenders interest, including. but not limited to, disbursement of
<br />[eamnable attorney's foes amt try ttptm the Property to make repairs. 1( Lender required mortgage insurance as a
<br />eandiNoa of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />imtuanet in etltxt tmtd such timrc as the regteire~ent for stub insurance terminates in accordance with Borrower's and
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