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<br />Utvmoaat Cavartertrs. Borrower and Lender covenant and agree as follows:
<br />I. Paytttent of Frincipal and Interest. Barrawer shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />$. iH`ttnds for Tales aid Ittsurancc. Subject io applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender en the day monthly installments of principal and interest are payable cadet the Note, until the Note is paid in full,
<br />a sttrrt (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 premium installments for mottgage insurance, if any, 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 />The Tundi shalt be held in an institution the deposits or accounts of which are insured or guaranteed b}• a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pny said taxes, assessments,
<br />insurance premiums and ground trots. Lender may no( charge for so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and hills, unless Lender pays Borrower interest an the Funds and applicable law
<br />-yermiis Lender tv make such a charge. Borcawer and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall tx paid to Barrawer, and unless such agreement is made or applicable law
<br />regturVs such interest to be paid, Itacler shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shaft give to Ecrrawer, without charge, an arnuat accounting of the Funds showing credits and debits to the Funds and the
<br />putpasc far which cacti debit to the Funds wss made. "Cite 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 taxes, assessments, insurance premiums and grouttd rents, shall exceed the amount required to pay said taxes,
<br />assessmentse. insuranct preaniums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br />prompts;° repaid to Sarrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fail due,
<br />Borrower shall pay to i-ender any amount nectssar}' to make up the deficiency within 30 days from the date notice is m„sled
<br />by Lender to Borrower requiting payment thereof.
<br />Upon pa}°ment i:: full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph lg hereof the Froperty is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apple. ~,.; later than immediately prior [a the sale of the Property or its acquisition by Lender, any Funds held by
<br />].ender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. ,#pp3ieat6tw of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and DaraQraahs I and 2 hereof shall be aaalied by Lender first in oavment of amounts twva6le 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 and
<br />pritrocipal alt any Future Advances.
<br />4. Ghargcs; Ltetoa. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Propeny which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manor
<br />provided wrodcr paragraph 2 hereof or, if not paid to such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower chats make payment directly, Borrower shall promptly furnish ta Lender receipts evidencing ouch payments.
<br />Barrawer shall promptly discharge any lien which has priority aver this Mortgage: provided. that Borrower shall not be
<br />required to discharge any such lien so long as Sarrower shall agree in welting to the payment of the obligation secured 6y
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such Ilan in,
<br />legit proceedings which operate to prevent the enforcement of the lien or [arfeiture of the Property or any part thereof.
<br />5. 1Haaard It»rrance. Sarrower shall keep the improvements now existing or hereafter erected an the Property insured
<br />against lass by fire, hazards included within the tarot "extended coverage", and such other hazards as Lander may require
<br />and in such umoums and for such periods as i.ender may require; provided, that Lender shall not require that the amount of
<br />such eaverage execed that amount of eaverage required :a pay the sums secured by this Mortgage.
<br />:2tt tnsuranee earner providing [iroe insurance snail be ciwxu Uy Su ~. auujcii tv aNp.a~a; bf :.- ° ; L,r,~;°iw .'.,
<br />that such approval chili oat be unreasonably withheld. All premiums an+insurance policies shaft etc paid inythe manner
<br />provides] under paragraph Z hereof or, if not paid in such manner, by Barrawer making paytncnt, when dtte, directly to the
<br />itt$rxra €+en £~rreet'.
<br />All insurance pahci~s and renewals thereof shall be in form acceptable tv Lender and shall include a standard tnongage
<br />clsttse in favor of and in form accepta[le tv Ltu:fot. Leader shat; have the tight to hold the pofi4irs :uti rcntwals thtr~~f,
<br />and Borrower shall nrvmatly ftuttiah to Under all renewal notices and all rtkein(s vI paid premiums. In the event of lass,
<br />Borrower chili give prompt notice to the incur:mce circler and Lender. Ltndcr may make proof of loss it not made promptly
<br />by Earrawer.
<br />Unless Gender and Borrower vtherw•~se agree in writing, insurance proceeds shaii be applied to restoration ue roiwir ++f
<br />the Prapersf damaged, provided such restvration or eepatr is ecanontically feasible and the security of this Mortgage t.
<br />not thereby impaired. If stxh restoration ar reltatr is not economically feasihle or tf the secuntp of this Mortgage would
<br />l~ impsired, the insurance pra:.~eeds shall be applied to the. sums steered by this Mortgage, faith the excess, if uny, paid
<br />to Harrower. if the Pri+ptrty is atxandoned by Barrawer, or it Barrawer fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender tv Borrower the[ the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds a[ Lender's optivn tither to res[arattvn ar repair of the Property
<br />ar to the runts secured by this Mvngage.
<br />lJnltss Lender and Borrower otherwise agree m writing, any such application of pnxetds tv principal shall not extend
<br />ar pastpant the due date of the ntanthiy installments referred to in paragraphs 1 anti r hereof or change lire amount itf
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, ulI nght, title and interest vi Borrower
<br />in and to any insurance pa!ieics and in and tv the proceeds thereof resulting from damage to the Property prior to the sate
<br />ar ttc.tuisitian shall ]sass tv Leader tv the extent of the sums atcured 6} this Mortgage immediately prior to such sak ar
<br />ttcquisitian,
<br />ti. ttrnsxrvatlan clod 11;aistenaerr of ProlOCrty; l,raerhalde; Canda+nin3uc~; Planned Unit Ihvelupments. Borrower
<br />shall kter the Property in goad rtpaic asxi shall not commit waste or permie impairment ar deterioration of the Property
<br />and shall cgmojY with (he ornvisians :+f anY ita±r? tf this Marrnr~ t<_ an a ttasehald. Iz` tilts hfartga~tts on a unit in a
<br />candamit(ium ar a ulen3ted east desetoam~t, Barrawer shall perform :~If of Borruwe~s abtioa((a,(_ U..rier (hg de~lf~ra(i~+(t
<br />ar covenants creating or governing the candaminiurn or planned unit development, the by-laws and regulations of the
<br />condominium ar planned unit development, and canstiutent dtxumena. It a condominium ar planned unit deveiopmtm
<br />rider is srxccuttd by Borrower and rec:atxied togtthtr wuh this Mortgage, the covenants and agreements of such rider
<br />shat) he insarparated into and shaii amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />'S. Prateetiazn a€ Grnder'a 5er;tity. If Barrawer tails to pcrfarttt the covenants and agrtenttnis contained in this
<br />I}iartgage, yr if any action or prt~~ding is cammcnced which materially affects Lender's interest in the Property,
<br />including, but not limited to, cmittent domain, insolvency, Cade enforcement, or arrangements or proceedings invoh'ing a
<br />bankrupt or decedent, then Lender at I.endcr's aptian, upon notice to Harrower, may maka such appearances, disburse such
<br />sums and take such action as is necessary to praiect Lender's interest, including, but not limited to, disbursement of
<br />reasonuble attorney's fees and entry upon the Property to make repairs. If Gender required mortgage insurance as a
<br />condition of making the loan se-cured by this Mar(gage, Sarrower shall pay the premiums required to maintain such
<br />inaurance in effect until such time ns the requirement for such insurance terminates in accordance with Borrower's and
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