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<br />7~-- ~U4637
<br />Uxtroaxt ~ovax~xrs. Borrower and Lender revenant and agree as follows:
<br />L Peymeat of Pdnclpal anti Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and Tate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage,
<br />2. Fltnds for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender an the day monthly installments of principal and interest are payable under the Note, until the Note is gaid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the }'early 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 nay, 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 />Tl±e Funds shalt 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). Lender shalt apply the Funds tc 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 Borrower, and unless such agreement is made or applicable law
<br />requires such interest m be paid, Lender shall not be required to gay Borrower any interest or earnings on the Funds. Lender
<br />shaft give to Harrower, without charge, an annual accounting of the Funds showing credits and debiu 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 Ftmds held by Lender, together with the future monthly installments of Funds payable pr!or to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessmenu, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowei s option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender nay amount necessary to make up the deficiency within 30 days tram the date notice is mailed
<br />by Lender to Batrawer requesting-payment thereof.
<br />Upon payment in full of ail sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shm17 aaph•, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applicatloe of Payments. Unless applicable law gravities otherwise, all payments received b}' Lender under the
<br />Nate and pazagraphs 1 and Z 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 Note, and then to interest snd
<br />gria^ipal an any Future Advances.
<br />3. ~->ta[ges; Ilrt>ls. Borrower shall pay all taxes. assessments and ether charges, fines and impositions attributable to
<br />the Property which tray attain a priority aver this Mortgage, and leasehold payments cr ground rents. if any, in the manner
<br />provided under gazagraph 2 hereof or. if not gaid in such manner. by Borrower making payment, when due, directly to the
<br />pa}roe thereof. Borrower shall ptampih• furnish to Lender alt nouces of amaurts due ender this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish t.: Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien v:hich has priority over this Mortgage; provided, that Borrower shall net be
<br />required to discharge any such lien so long as B<~rrower shall agree in writing to the payment of the a6ligation secured by
<br />such lien in a manner acceptable to Lender, ar shall in ¢aad faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the Tien or forfeiture of the Property ar any pan thereof.
<br />5. Hata['d 1>osvranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lays by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and far such periods as Lerner may require; provided, that Lender shall not require that the amount of
<br />st[ch rnverage exceed 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 approval by Lender, prodded,
<br />Shat such approval shall net be unreasonably withheld. All premiums an insurance policies shalt be ;aid in the manner
<br />prav7ded tutber Paragraph 2 hereof or, if eat gaid in such manner, by Bs~+rrowir making payatent, when due, direcdy to the
<br />iasttram r:arriu.
<br />AII insurance policies and renew'ais thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />dattse in favor of and in form acceptable to Linder. Lnder shall have the right !o hold the policies and renewals thereof.
<br />and Borrower shall grompth• furnish to Lender all reniwai nouces and al! receipts of paid premiums. In the event of loss,
<br />Barrews<r shall give gmmgt notice to the insurance carrier and Lender. Lender may make ort+of of loss if net made prompth~
<br />by Barrawer.
<br />Unless Lerida and Borrower otherwise agre>: in writing. insurance proceeds shall be applied to restoration ar repair of
<br />t}x Property damaged, provided such r~taratian ar repair is ecanomicalh feastbli and the security of this Mortgage is
<br />riot thereby impaired. If such restoration ar repair is not economically feasible or tt the szturity of this Atertgage would
<br />be impaired. the instu'aace proceeds shalt Ix applied to [he surrts secured by thts Mortgage, with the excess. if any, patd
<br />is Borrawu. if the Propem is ahaadoned fi B<,rrou'er, or ti Barrawer fa6s ;c. respond to Lender within i0 days from the
<br />dato noutt :s mailed by Lender to $orrowir that the insurance earner otletn to settle a claim far insurance benefits, Lender
<br />is atrthorix~ ao ca¢kci and appiv the insurance proceeds at Lenders apuor. ettMer ti, restoration M repair of the Property
<br />ar to the sums scoured by this Mortgagc-
<br />Lttlzas Lenaxr at[d B.~rzavver atiserw ise ag; ie to uriing. an} su. h application of pr>veeds [a pnnapa3 shall net extend
<br />or postnane the due date of the mottzhh~ installments refirre~ to to paragraphs : and '_ hueat or ;Mange the amount of
<br />stt~''t tr.~rttents. !f u_~+tier paragraph f S hereof the Prapem is acquucd b} Lender, all ngF,t, title and interest of Borrower
<br />is tend to env ittsurawe policies amt in and to tax pro;,-ed. zftetmt resuhmg Pram damage to the Propim prior to the sale
<br />or a~trsitioa shall pass to Lendv to the extent ai the sums sa:ured by this Mortgage immediately Briar to such sale or
<br />acqugttma.
<br />li. Prtxervation trod !-Taio[eeaece of Property; Leasebotds; f'ondominiums; Planned [;nit Developments. Harrower
<br />shall keep the Property in good repair and shall nx commit caste or permit impairment ar deterioration of the Propene
<br />a~ shall carnply with the provisions of any lease if this Mortgage is an a leasehold. If this 3ortgage is on a snit in a
<br />txmdomtatum a: a planned unit development, Borrower shall perform all of Borrower's obligauans under the deciazation
<br />or a3venanis creating or gavrrning rite condamemtm¢ ar planned unit development, the by-laws and regulations of the
<br />condominium ar planned unit development, and canstitueni documents. Sf a condominium ai planned umt de+ilogment
<br />rider a ezstttu: by Barrawer arx3 recarkd tagithir unM this Mat-[gage. !Me ceveaan[s and agrretnints of such rider
<br />stall be incorporated into and shall amend and supplcrtr"m the covenants and agreements of this Mortgage as if the rider
<br />wen a part hcteof.
<br />1. Proh~ae of Leader's Secnrdy. if Barsower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action ar proceeding a commenced which materially affects Lender's interest in the Property,
<br />$xltaling, but not limited [o, emittent domain, insolvency, code enforcement, or arrngements or proceedings involving a
<br />banltrupt ar decedrn4 Shea Leader at Leader's aptian, upon notice to Borrower, may- make such appearances. disburse such
<br />stuns and take stash action as is necessary to protect Lender's interest, including. but not limited ta, disbursement of
<br />reasonable attamey's foes and entry upon the Ptapen}' to make repairs. If I~nder required mortgage insurance as s
<br />condition of making the loan satued by this Mortgage, Harrower shall pa}' the premiums required to maintain such
<br />iffiuraace in ef1eC1 tmtil sttcb time as the requirement for such insurance terminates in accordance with Barwwer's and
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