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<br />Ur.rFOant CovtstveN•rs. Borrower and Lender covenant and agree as follows:
<br />f. Payment of Principal and Interest. Borrower 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 Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on 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 prioriry 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-Iwalflh of yearly premium installments for mortgage 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 Funds shall he 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). 1_ender shah apply the Funds [o 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 w•ri[ing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />require;' such interest to be paid, I-ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Burrower, without charge, an annual accounting of the Funds showing credits and debits [o 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 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's option, either
<br />promptty 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 [n Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower rayuesung payment thereof.
<br />Upon payment in full of oil sums secured by this Mortgage. Lender shat! promptly refund to Borrower any Funds
<br />held by [.,ender. If under paragraph 1K hereof the Property is sold 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 acquisition 6y [-ender, any Funds. held by
<br />Lender u! the time ofapplication as a credit against the sums secured by this Mortgage.
<br />3. Application of Yaymems. Unicsa app;; - - ;deg ^rherwice. all payments received by Lender unJtr the
<br />Note and paragraphs 1 and 2 hereof shall be applied~by Lender first in payment of amounts payable to Lender by riouo»~r
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of [he Note, and then to interest and
<br />principal on any Future Advances.
<br />d. fharges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over [his Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in 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 in the even[
<br />Borrower shall make payment directly, Burrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not tx
<br />required to discharge an}• 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 Lender, or shall in good faith comest such lien by, 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 tin}' part thereof.
<br />_S. Hazsrd Insurance. Borrower shall keep the improvements now existing or hereafter erected en the Pn.:perry 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 for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pat' the sums secured h}• this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject u: approval by lender: provided,
<br />that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid in the manner
<br />rrnvuied under oarartraph 2 hereof or, rf oat paid in such manner, by Borrower making pa}•ment, when due, direotFy to the
<br />insurance carrier.
<br />Ail insurance puhcies and renewals thereof shall be in loon acceptable to Lender and shall include a stsn.fard mortgage
<br />Clause u: favor of and in form acceptahie to C.endcr, Lender shall have the right k± hold the policies and rtnewais thereof,
<br />and Borrower shall promptly foolish to Lender all renews! notices and all receipts of paid prenuunrs_ la the ,?vent of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender nw} ntakc pnuit of loss tr not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwtse agree in writing, insurance proceeds shall be applied io restoration or repair of
<br />the Properly Damaged, provided such restoration or repatr is economically feasrble and the security of this lvtortgage n
<br />not thereby impaned. if such restoraunn or repair is not economically feasible or tf the security of this hlortgagc would
<br />be tmpaued, the insurance proceeds shall be applieJ to the sums secured h} this Mortgage, with the excess, if any, peed
<br />R+ Borrower !f the Propem is abandoned b} Horrowcr, or d Borrower lath to respond to Lender wuhm 3U da}s from the
<br />date notice is made.! b} [.ender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, tender
<br />rs authonzed to collect and apply the wutrancr proceeds tit Lender's option wither to relaxation or repair of the Property
<br />or to tea sums secured b}' this Mortgage.
<br />Unless LcnJer and Borrower otherwise agree m writing, any such application of proceeds W pnne:pal shall oat extend
<br />or postpone the der dote of the monthly installments referred to is paragraphs I and ~ herent ix chairge the amount of
<br />such utstallments II under paragraph IK hereof the Property is accpnred by Linder, all nght, tide and uuerest of Burrower
<br />in and to any imurunre pohaes and m and to the proceeds thereof resulting from dautage to the Property prier ro the lair:
<br />cr uayuunian shall pass to Lauder to the eitent of the cams secured by this Mortgage immediatcl} prior a+ loch Sala or
<br />acquisition.
<br />6. Prescrvallaa turd ~faintenanre of Properly; Leaseholds; fundominiunts; Planned Unit 1)evetopmrnts. Borrower
<br />shall keep the Property in good rcpau anJ shall not commit waste or perms intpautnent or deteriaratiuu at the Property
<br />and shalt comply wirh that provisii,ns sf any lease if thts Mortgage is on a k;tsehold. IF this Mortgage i. on a unit in u
<br />candomimuin or a planned uml dock+pinant, Borrower ,hull perform all nt Borrower's ohhgatwus under the declarat!ott
<br />or covenants crcaung or gnva:rnmg the condominium or planned writ development, the bylaws :rod rcgtdations of the
<br />condominium ar planned unit developnteot, attd consrintent d!xumems If a condominium or planned unit development
<br />rider is executed by Burrower and recorded together with tail Mortgage, the covenants and agreemems of such rtdrr
<br />shall be incorporate) into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Gender's Security. If Borrower fails to perform the covenants and agreements comuined in [his
<br />Aortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited tit, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankntpt or decedent, then tender at Lender`s option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action at is necessary to protect Lender's interest, including, but not limited to, disburseme t of
<br />reasonable attorney's fees and entry upon the Properly to make repairs. If Leader reyuired mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Horrowcr shall pay the premiums required in maintain stch
<br />insurance in etfert until such dine as the requirement far such insurance terminates in accordance with Borrower's and
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