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<br />LJtv[r~oaNt 4.'~rrvervntw•rs. Borrower and Lender covenant and agree as follows:
<br />[. Payment of Principal rand Lattrest. Burrower shat{ promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Nnte, 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. Fronds for Tares and Insaranee. 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 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 yeaziy premium installments for mortgage insuranet, if any, alt 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 shalt 6e 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 rants. 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 zgree in writing at the time of execution of this
<br />Mort$a$e {hat interest on the Funds shalt 6e paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eartvngs 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 mad(. The Funds art 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 taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to day 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 on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be suffruent to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shat) pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting' payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sate of the Property or its acquisition by Lender, any Funds htld by
<br />Lender at the ti;=;~ of application as a credit against the sums secured by this Mortgage.
<br />3. Appllcatiatt of 1?symeats. Unless applicable law provides othtrw•ise, all payments received by Lendtr under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by tender first in payment of amounts payable to Lender 6y Borrower
<br />under paragraph 2 hereof,then to interest payable on the Nott, thin to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />~. Chafes; ileos. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which n'iay attain a priority over ibis .Ltortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided t[nder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lizn which has priority over this Mortgage: providtd, that Borrower shalt not be
<br />required to discharge any such Lien so long as Borrower shall agree in writing to the payment of the obligation secures by
<br />such lien in a manner acceptable to Lender, or sha{P in good faith contest such tiro 6y, or defend enforcement of such Lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pare thtreof.
<br />S, Hazard I>~urance. Borrower shall kelp the improvements now existing or hereafter erected on the Property insured
<br />against Toss by fire, hazazds included within the term °extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />~.;~?; ~ _ _ _,~__ n =rtat n... ~nr ~t onveraee rewired m paF the sums secured by this Mortgage.
<br />ThV~it~nrance Carr-i;:r providing the insurar~t--c shall bk rtrostn by Bc~rrowcr subject it? apprt3vai b}~ Lent-iee, prc~vi,
<br />ghat sorb approval shah not be unreasonably withheld. All premiums on insuranet pahcies steal! bt paid in the manner
<br />provided under paragraph 2 hereof or, if nut paid in such rnanner, b}• Borrowtr making paymtnt when dot, directly to the
<br />iast[rant.-c carrier.
<br />A!t insurance policies and renewals thtreof shall lrz in form acceptable to (-.ender :and shall inchtdt a standard mortgage
<br />clause in favor ot` and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thtreof,
<br />~-~Erosvtr s^.aii pronipily furnish to Ltnder ail rtnewsl notices and alt receipts of paid pren=iums. in ilre even: of lass,
<br />Ba3rrv'+v2r Sltali .,t-tVC aretnpi rtsiiet to the insuranet earriti and Lendtr. Ltnder may tmakt p.'c at of i6ss if net madC pr3rrlptiy
<br />by Borrowtr.
<br />Unless Lzndzr and Borrowtr uthtrwist agrez in writing, insuranet proceeds shall bt applied to restoration or repair of
<br />the Property damaged, providtd such restoration or repair is ec<rnomically feasible and the security of this Mortgage r.
<br />not thereby impaired. If such restoration or repair is not economically Erosible or tf the security of this Mortgage would
<br />ere impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, pard
<br />to Borrowtr, if the Proptr~ is abandonzd try Borrower, or if Borrowtr fails to respond to Lendtr wtthin 30 days from the
<br />date notice is mailed by Ltnder to Borrower that the insurance carrier afters to settle a claim far insurance benefits, Lender
<br />is authorized to collect and apply [ht insurance proceeds at Lender's option etcher to rptoratlan or repair of the Property
<br />or to the runts set ured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. any such application of pnxetds to pnncipai shalt not extn[d
<br />or postpone the due date of the monthly installments referred to in paragraphs I and ~ hereof or change the arnount of
<br />such installments. if uad:r paragraph 18 hereet the Property is acquired 6y Ltndtr, al! right, title and interest of torrower
<br />in and ii any insitr-(net pniicies and in and fo fire practtds thtreof resulting from damage to the Property prior ic. the sa3e
<br />or acGtiisition shah pass io i..endtr to the extent of the sums secured b}' [his tttortgage immediately prior tt such sate ar
<br />acquisition.
<br />fi. E`r~ervatka[a and Malarttnaace of P[+nperty: ll.easeho:dc; Coadnminiuans; Ptanntd !fait Ihvelopmtnts. Borrower
<br />shall ke_p the Property in good repair and shat! not commit waste ar permit impairment or de[trioration of the Propert}•
<br />and shall comply with [he provisions of any tease ii [his Mortgage is on a icasehold. if this Mortgage is oft a unit in a
<br />cott•3smittium or a planned unit development, Borrowtr shat! perform all ut' Barrou•e€'s obligations under the dzclaratiort
<br />or covenants crzating or governing the condominium or planned unit development, the by-laws and eegulations of the
<br />condominium or planned unit development and constih[ent documents. [(a condominium err planned unit development
<br />rider is extcu[ed by Borrower and rtcordtd together with this Mortgage, the covenants and agreements of such rider
<br />shalt tie incorporated into and shat! amend and supplement the covenants and agreements of this Mortgage as iE the rider
<br />Wert a part htreaf.
<br />i. Prottetioa of €,tader's Stenrity. If Burrower fails to perform the covenanu and agreements contained in this
<br />Martgagt, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />"including, but no[ limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, rosy make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest including, but 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 />condition of making the loan secured by this Mortgage, Borrowtr shall pay the premiums required to maintain such
<br />insurance in effect unfit such tint as the requirement for such insuranet terminates in accordance with Borrower's and
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