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<br />UNIFORM CovErtnrtrs. &orrower and Lender covenant and agree as follows:
<br />I, ;?sytsteat of Pttneigal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and sate charges as provided in the Note, and toe principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Tfizes and Insffrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder on the day monthly installments of principal and interest are payable under the 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 ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly gremium 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 hilts and reasonable estimates thereof.
<br />T'he Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). i.ender shall apply the Funds to pay said taxes, assessments,
<br />instrance premiums and ground rents. Lender may not charge for so holding and appl}•ing the Funds, analyzing said account,
<br />or verifying and compiling said azsesstrunts 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 Borrow-r, and unless such agreement b made or applicable law
<br />requites such interest io be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, ar. annual accounting •af the Funds showin¢ credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made 'Ihe Funds are pledged az additional 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 [hey fall due, such excess shall be, at Borrower's option, either
<br />gromgtly repaid to Borrower or credited to Borrower on mon:hlq installments of Funds. If the amount of the Funds
<br />held by Leader shall not be su[ficien[ to pay saxes, assessments, insurance premiums and ground rents as they fait due,
<br />Borrower shad pay to Lender any amount necessar}• to make up the dcficiencg 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 securzd by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held oy' i.znder. if u i prv agTaph i - c ~ ~y~r4 ' . .. „- opera is 3il'~°~•_, a u ~^d h•: t a,,dr [ Pnder
<br />shall agpiy, no later than immediately gror to=the sale of iheVPropert}' or its acquisition~by Lender, any Funds held by
<br />Linder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Appliratloa of Pgymeaffi. Unless applicable law provides otherwise, ail pa}•ntems received by Lender under :he
<br />Note and paragraphs 1 and 2 hereof shall be applied b}• Lendu first in paymer+.t of amounts payable to Lender by 8orrawer
<br />ua~r paragraph Z hereof, thin to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Adva.aces,
<br />4. C~eg Iieas. Bortower shall par all taxes- assessmenu and other charees, fines and impositions attributable to
<br />the Property which racy anain a priority over this Mongage, and leasehold pa}vtents er ground rents, if any, in the mancer
<br />provided under paragraph 2 Hereof or, if not paid in such mariner, by Borrower making payment, when due, directly [o the
<br />payce thetmf. Bctrower shall pmmptly furnish to Lender all notices of amounts dire under this paragraph, and in the event
<br />Borrower shall make payment airectly, Borrower shall promptl} fumish to Lender receipts evidencing such payments.
<br />Borrow=er' shall promptly discharge any Lien which haz priori[} ever this Mortgage; provided, that Bormwer shall not be
<br />required to discharge any such lien so long az borrower shall agree in writing to tlu pa)'ment of the obligation secured b}'
<br />stab lien in a mantret• atxeptabk to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien 4n,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or an}• pzrt [hereof.
<br />5. Heard ;ItaQacaace. Borrower shall keeg tau improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", :.rid such other hazards az Lender ma} require
<br />and in such attwunts and for such periods as Lender may require; provided, that Lender shall not require the[ the amount of
<br />such eovezsgt exceed that amount of coverage required to pay the sums secured by this Mongage.
<br />The itssurante carrier providirtg the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />thu su.-h approval shag not Ix unreasanabt}• withheld. :qll premiums on insurance policies shad M paid in the manner
<br />provided under patagaagh 2 hereof or, if net gaid is such manner, b}• Borrower making payment, when due, directly to the
<br />m carr'itr.
<br />~= AB :.,~=rance policies and renewals thereot shalt be ir. form acceptable to L.,nder and sha31 include a standard mortgage
<br />Clause ~ favcu of and in fo*m acceptable to Lender. .Lender sha!1 have the right to hold the policies and renewals thereof,
<br />sad Borrower shall pivmptiy furnish to ientier ail renewal notices anti ail rev~eipts of paid premiums. In :he event of l.^ss,
<br />Borrower shall give prompt notice to the irssurance carrier and lender. Lender ma} make pn~of of loss it not made promptly
<br />by Borrower.
<br />UiLress Lender and Borrower otherwise agree in writing. insurance priczeds shall be applied to restoration ar repair of
<br />the Prapeny damaged, provided such restoration or repair is economically feasible and the security of this Ainngage is
<br />not thereby impaired. If such ratoration or repair is not economical]) feasible . r if the s-cCUrit}' of this Mortgage would
<br />be impaired. tIx itssirrtuice ptocu+9s shall be apglkd to the sums secured M this Mongage, x~uh the excess, if any, paid
<br />to Borrovutr. If the Property is ahandorxd ts} B. rmwer, of it Borrower tails to respond to Lender within 30 da)s from the
<br />dale >mtice is mailed b} Lender to Barroxer that the insuran,-e carrier r-ffers to scale a claim Cor ensutance betufits, Ixnder
<br />is attthorvtd to collect and agplr the !nsum~ce prooc~cds at Lendcfs option either to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Uflt~ Lender and liorrsvu oiherw ire agree n writing. an; s;:ch applicatior, of prc'~eeds :c prrncipa! steal! nc! extend
<br />or postgoae tbe due date of the month;-: installments referred to in paraeraphs t and ?hereof or .hence the amount of
<br />stfeh inatallrtuents. If under paragrapf! l$ hereof the Prepert} r> acquired 6} trader, alt right use and interest of Borrower
<br />IA and IO aar 3n5nranCe gnl[tae5 and in and to the prcxxeds thereof resulung from damage to the Property prior to the sate
<br />~ acgttisitiim shai# pass to Lender to the eaten[ of [lie sums rewired by this Mongage immediately peer to such sak or
<br />acgoisitroa.
<br />b. I'mttxvaflioe fed h3a~tc>aa$ee of Prvpem; ixasehoids; Coadamitvatr~ Panned Unit Developments Borrower
<br />shall keep the Property in good repair and shag riot commit waste or permit impairment or deterioration of the Property
<br />and Shag txamgly with t)x provision of any lease if this Afongage is on a leasehold. If this Mortgzge is eu a unit in a
<br />tbadominittm or a planned trait development, Barrow~zr shalt perform al! of Borrower's obligations under the declaration
<br />or covattaats creating or govuning the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned ttnit develapmait and constituem documents. If a condominium nr planned umt development
<br />tides' is exexuted by Borrower a~ recorded togtther with this Mortgage, the covenants and agreements nt such rider
<br />shall be ineorporatod into and shall amend and supplement the covenants and agreements oC this Mortgage as if the rider
<br />wrae a part hereof.
<br />7. Trslet'fia~ d I,pdds If Borrower fails to perform the covenants and agreements contained in tits
<br />or ~ any acrion or proomding is cmm~xitced which materially affects Lender's interest in the Property,
<br />iaeludittg, but not limited to, e,,,~,...+. domain, ittsolvency, code enforcement or arrangements or proceedings involving a
<br />haakttrpl or t thin Leader u Lender's option, ugon rwtice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is iret:essar- to protect Lenders inrerest. including, but not 3imited to, disbursement of
<br />reaaostable attorney's fns sad entry upon the Propemr to make repairs. If Lender required mortgage insurance as a
<br />rnadition of making tIx loan sectored by this Mongage, Boaower shalt pay the premiums required to maintain such
<br />iriaurattee in effect tmtii such tir>x as [tu tegttitement for such insurance terminates in accordance with Borrower's and
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