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<br />Uxtaonxt Covexsrvrs. Harrower and Lander covenant and agree as follows:
<br />1. Payment of Prlnclpal and Interest. Borrower shall promptly pay when due the principal of and interesk on the
<br />indebtedness evidenced 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. )E'tmds foz Taxes rand Insuraerce. Subject to applicable Saw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments cf principal and interest are payable under the ivutr, until the :'cte is paid in fulh
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />itilortgage, 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 any, all as reasonably estimated initially and from
<br />time to ttme by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured oc guaranteed by a Federal or
<br />skate agency (including Lender if Under is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance pm.~tiums 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 hills, unless Lender pays Borrower interest on the Funds and applicable Saw
<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 to be paid, Lender shall not be required to pay Borrower any interes4 or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accouming of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit Yo 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 io
<br />the due daces 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 they fall due, such excess shall be, at Borrower a option, either
<br />Promptly repaid to Borrower or credited to Harrower an monthly instal{meets of Funds. If t:ae amount of the Funds
<br />held by Lender shall not be sttfftcient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />U on oavment to full of ail sums secured b leis :vivii a c, L-- -- -,.a. -° •'° •°fu^d rn nnrrnwer any Funds
<br />P Y K K Y•""i•w
<br />held by Ixnder. If under paragraph 18 hereof the Property is sold or the~Propetty is otherwise acquired by Lender, Lender
<br />shall apply, na later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender ae the time of application as a credit against the sums secured 6y this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs i and a hereof shall be applied lay lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interese payable on the Note, then to the principal of the Nate, and ehrn to interest and
<br />principal on any Future Advances.
<br />~. Clrnrg> _; r~trs, Barrawer shalt pay a!! taxes, asstscrnents and ether charges, fines and impositions attributablz is
<br />the Property which may attain. a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hrreof or, if not paid in such manner, 6y Borrower making payairnt, when dot, 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 sha}I promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lrnder, ar shall in good faith contest such lien by, or defend enforcement of such Tien in,
<br />Legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
<br />S. hazard Iiasur~inct. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />againstlnss by fire. hazards included within the term "extended coverage", and such o(her hazards as Lender may require
<br />and in such amounts and fur such piriads as Lender may reyuirr; provided, that Lrnder shall Pat require that the amount of
<br />_ ,its : - _ ~~=•~a:t its::: arnnunr of crvera¢e rezlu,rrd to paV the sum, secured try this h#ongagi'.
<br />Thtaiurartce ~irrriYr providing the incur: Pct steal! h~ chasr'n by Barrowee subject to appravat ny i_~nt~r, Pt~> is~r
<br />drat such approval shall not br unrrasonabiy withheld. All premiums on insurance paicies shall hr paid in [ht marsnrr
<br />provided under paragraph 2 hereof or, tf cwt paid in such manner, lay Borrower making payment, when dire, directly to thr-
<br />insuran„-€ carrier,
<br />All insurance policies anil renewals thereof shall fx i^ form ac,:rptablr to Lrnt9cr and shall include a standard ntungagr
<br />clause in favor of and in form acceptable ra 9,ender. [.ender shall hove the right to hold the policies and rtnrwalc Chcrrof,
<br />and Barowt'r g1°saif peak ptly furnish ii; Lender all rEnew-al ncircrs and alt r>i-~ripts nE paid prrmiuen=. le (h,^ event of Imo,
<br />Barrawer shall gtva prartipt notice to the; insurance cacr,t€ and Lerailer. Ltntis_r tnay make grout of lass if nai tuaile prcantptly
<br />by Barrower-
<br />Unless Lender atad 1(urruwer aiherwtse agree in writing, insiuaner pr~x:erd, shall tx applied to restoration ar repair of
<br />the Property damaged, provided such rrstorauon or repair rs ccanomically trasiblc anti the security of this Mortgage is
<br />^ot thereby impaired. if such rts(uratian or repair rs na[ tconumicaliy feasible or +f the security of this Mortgage waukt
<br />be impaired, the insuraner proceeds shall be applied to the sums srcurril 6}' thrs htangage, w+th the excess, if tiny, pawl
<br />to Borrower. It the Prapert}' is ahanduneil by Borrower, ar r( Harrower tads w respimil to Leudrr within 30 days from tht~
<br />date notice is mailed by l.erxfrr tit Burrower that the uasurunce carrier offers to settle a claim for inx+rance btnafits, Lrnder
<br />is aufharized a-, caltct anti' apply the insurance proceeds a( Lciidrr aptiuti tither (v rtstutattari cr repatr al the Proprny
<br />or to the sums secured ray this Mortgage.
<br />lJnless Lrnder and Borrower otherwise agree in venting, any sash application of prtxceds to pnncrpal shall nut extend
<br />ar postpone the due date of the monthly installments referred to in paragraph. I and 2 herrof or change the amount of
<br />such installments, !f snider paragraph 18 hereof the ;aoperty is scquired h}' Lender, alt nght title and interest c*f B~iernwer
<br />in and to any inswunct paints and in anti ur the proceeds thereof rt~suiting from damage to the Property prior tc. the s.+lt
<br />.,r cyuisitiun shall k.as to i,2ndtr to the extent of the sums secured by this hiartgagc immtdiairt-y prior tt~ su~ii sole or
<br />acquisition.
<br />E. '>°s+escrvatfas aaad htalatrnaa(ec at Property; tx>tlveholds; Condamiaturiu; Planned Uak I)evrlaprueais. Barrawer
<br />shall keep the Properly in got+d repair and shall Pat commit waste or permit impairment ar deterioration of the Property
<br />and lira9i comply with tha pravisiaas ui any lease if this Mortgage is tin a itasthaid. If this Mar(gage is an a unit in a
<br />cnndotnirtium ar a planned trait devriapment Bormvver shall perform alt of Bornnvzr c obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, rht by-laws and regulation. of the
<br />condominium or planned writ development, and constituent documents. !f a condominium or planned unit devekrpnrent
<br />rider is executed by Borrowzr and recorded together with this Mangage, the covenants and agreements of Bach rider
<br />shall tae incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />ware a part hrreof.
<br />7. PrafecNon of ?l.esder's Security, If Borrower fads to perform the covenants and agreements captained in this
<br />Mortgage, or if any action ar proceeding is commenced which materially atlects Lender's interest in the Property,
<br />including, but not limited to, eminent domain. insolvency, code enforcement or arrangements or proceedings involving a
<br />bankrupt or decedent, then bender at Ixnder's option, upon notice to Harrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's int+"rest including, but not limited to, disbursement of
<br />reasonable attarnep's Errs and entry upon the Property to make repairs. If i_ender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in elect until such tune as the requirement for such insurance terminates in accordance with Borrower's and
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