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<br />Utat[~otrat Covt;tva~rrs. Borrower and Lender covenant and agree as follows:
<br />f. Payment of Prirtrlpal and Interest, Harrower shaft promptly pay when due the principal of and interest on the
<br />indebtedness evir'~nced 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 />2. Fttat~ foe Taws anti Insurance. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable tender the Note, until the Notc is paid in full,
<br />a sttrtt (Protein "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 far mortgage insurance, if any, all as reasonably estimated initially and from
<br />time fa time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Frmds 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). 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 Borrower interest an 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 />r2quir ,such intezst to be paid, Lenc!er shall not be required to pay Borrower any interest or earnings on 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 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 sexes, 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 shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower en monthly installments of Funds. If the amount of the F~.+nds
<br />held by Lender shall no[ be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fat? due.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 3t? days from the date notice is made:
<br />by Lerxier to Borrower requesting payment thereof.
<br />Upon payment in felt of all sums secured by this Mortgage, lender shall promptly refund «r Borrower any Fttnds
<br />held by Lender. If under paragraph 18 hereof the Property is said or the Property is otherwise acgwred by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acyuis~uon by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mottgagr.
<br />3. Anptirnt[nn of Payanenta Unless applirable law nravirles a[herwisg, all payments rCreived by Lender under the
<br />Note and paragraphs 1 attd 2 hereof shall tee applied by Lender first in payment of amounts payable to Lender by $orrower
<br />under paragraph 2 hereof, then to interest payable an the Nate. then to the principal of [he Nate, and then to interest and
<br />principal on any Future Advatues.
<br />~i. Charges; Betts. Borrower shall pav ail taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a pnority over this Mo..gage, and kasehald payments or ground rents, it any, in the manrttr
<br />provided under paragraph a hereof or, if not paid in such manner, by Borrower making payment, when due, directly ta the
<br />payce ehereaf. $orrower shall promptly furnish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall make paymrn[ directly, Harrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt prarnptiy discharge any lien which has anarity over this Mortgage: provided, that Borrower shat) not ire
<br />required to discharge any such {ten so tang as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shalt in gaud faith contest such lien by, or defend enforcement of such lien in,
<br />kgal proceedings whictT operate to prevent the en(arcement of the Iron or farfrnure of the Property or any part thereof.
<br />S. Hrtaard Irtsrrrance. Harrower shall kcep the improvements now existing ar hereafter erected nn 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 amounts and far such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage rxc~si that amount of coverage required ro pay the runts secured by this Mortgage.
<br />`I`:[r ittsurancc- carrier providing the insurance shah to ettasen trv Harrower subject to approval by Lender: provided,
<br />that such approval shalt nor be unreasonabl}' withheld. Aii p[emhrms on insurance politics ,hail bt paid in the manner
<br />.svirt~~! utter .,..,~ ~ ? h,er~?f o., ,f n.sr paid i., :.rch €:t.:n,^„<r, by ~rrevr;<r mss inB r r.'~nr, tilt:n =!t~..t.~...-ih: t., :ttg
<br />tr urti~-~ c~+-ri€r, --
<br />nll ir;surat,ce p;;ti: it:s and rynew'als thereat slta.i ~ in Earn. ;.F~rpt..L+te to Lrt:.ier an~i shall iu,<tudt a stan:far3 +nartga~
<br />Clause in favor of and en farm acceptable to1.rnder, Lender sh:dt have (hc right to bald the pnhcies and renewals therroL
<br />and SOC[OWer SFiall pPOn3pt1}' Illrttibh !O LCnder 811 rCttCw81 notICCS and all EEL"Clpts Ot pald prrminmc. ltr ti[C rs°rni of lass.
<br />Borrower sl;ai? oi"y pranrp; Warier to the iresura.tcc ::airier artd t.endrr. Lender Wray make proof of ![rss if not ntadc pre=mpity
<br />by Borrower.
<br />Unless Lender and Boerawer othettivise agree in writing, insurance proceeds s2[all br applied to restoration or repair o;
<br />the Property damaged, provided such rrstarauon ar repair is economically trasible and the security of this Mortgage +~
<br />not thereby impaired. 11 retch restoration or repair is not economically feasible ar it the secunry at this Martgugr would
<br />be impaired, the insurance proceeds shall be aaplird to the sums secured by this hlitrtgage, wrth the excess, if any, yard
<br />to Borrower. If the Property is auanduned by Harrower, or if Burrower fails to respond tc* Lender within 3!a days trvm the
<br />date notice is mailed by Lender m Borrower that the insurance carrier otters ro srnlr a claim far rnsurance i+enefits, t-ender
<br />is authorized to collect ar[d apply tlee insurance pevcttds at Lrttdrr's option tither to rrstarauon or repair c*f ehc Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such applic:etiun of pr.~erds to prncipal sh,a!! not rxFrttd
<br />or postpone the due date of the monthly installments referred to in paragraphs I and '_ hereof ur change the unuxtnt of
<br />such installments. If under paragraph t8 hereof the Property is acyuired by l.rnder. al! nght, title and interest of Harrower
<br />in turd to any insurance policies end in and to the proceeds thereof resuhing from damage to the Property prior [o the laic
<br />or aeiluisition shat! pass to 1-ender to the extent of the sums secured by this Mortgage inmmediately prior to such sale or
<br />acquisition,
<br />B, Preservatfan and Maintenance of Property; l,casettolds; Cornlominiums; Planned Unit Developments. Borrower
<br />shall kcep_ it+e P[[~_ us?rii• in good repair and she#1 not commit wastz or prt7tti€ impuirr~;nt ar u'rttriara[ian of the Praptrty
<br />amt shall comoly with the tsravisians of env least if this Martaattr rs on a leasehold. if this Murtr;ar[e is on a unit in a
<br />candaminiprri ar a piatrned unit develaprnene, Harrower shall prrfvrm all [rI 8oreowce's ahligaii[xisiutidcr ihr dcei,cratiuu
<br />or covenants creating or governing the condominium or pl:tnnrd unit drvelapnrrnt, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned uni[ development
<br />rider is rxe:uted by Borrower and recorded together with this Mortgage, the covenants attd agreements of such tittle
<br />sha{1 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as rf the rider
<br />wire a part hereof.
<br />7. Pro#eetiav+ at Let~sr's Serurit . !f Borrower fails to perform the covenants and agreements contained in this
<br />hlortgar~e, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />ettcluding, but not limited to, eminent domain, insolvency, code rnfarcement, or arrangements or proceedings involving a
<br />trankrup[ or decedent, then Lender at Lender's option, upon notice to Harrower, may make such appearances, disburse such
<br />sums and take such argon as is ttettssaty to protect Lender's interest, including, 6u[ not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />eonditian of making the Loan secrued try this Mortgage, Borrower shalt pay the premiums required m maintain such
<br />insurance in etlect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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