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Ux[t:oart Cov>?xaxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by [he 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 Ittsureoce. Subject to applicable law or io a written waiver by Lender, Berzower 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 priority over this
<br />Mortgage, and ground rents on fhe Property, if any, plus one-[welfrh of yearly premium installments for hazard insurance,
<br />plus one-twelft.. of yearly premium installments for mortgage insurance, if any, a{l as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />O The Funds 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). [_ender shall a?ply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying tae Funds, analyzing said account,
<br />e 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 writing at the time of execution of this
<br />Mortgage chat 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 [o 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 arc 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 lx, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amourt 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 to Lender any amount necessary to make up iiie Jcficiency w,,,,,n 3C days from t?ee da?e notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund u, Borrower any Funds
<br />held by I_enJer. If under paragraph 18 hereof the Property is sold or the Property is otherwise acymred by Lender, Lender
<br />shall apply, nu later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of appii~aiioa as a C.-c..., against :............. .___red by ?t?~c hlnrroaoe.
<br />3. Application of Payments. Unless applicable law praviJes otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender fim in payment of amounts payable 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 />principal un any Future Advances.
<br />4. Charyies; f.iens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />tae Property which may attain a priority over leis Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph Z 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 event
<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 be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of [he obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest 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 any part thereof.
<br />5. hazard Insurance. Borrower shell keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extendeJ 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 shat) not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />' ~. The insurance carrier providing the insurance shall be chosen by Borrower subject M approval by Lender; provided,
<br />that such aavroval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />~, provided under paragraph 2 hereof er, if no[ paid in such manner, by uorrower making paymcui, ..+,a..,,,.., :.'icea:`._1 '_ ;t,.,
<br />insurance carrier.
<br />~~, AlI insurance pohcies and renewals thereof shall be in form acceptable to Lender ant shall include a standard mortgage
<br />clause in fever of and in form acceptable to t_endet. Leander sftail nave the right to hold the policies and renewals thereof.
<br />and Boerowet wall promptly furnish to Lender all renewal notices attd all receipts of paid premiums. In the event a€ lass.
<br />Borrower shall give prompt notice to the insurance Carrier and Lender. Lender may make privet of loss tf not made promptly
<br />by' Borrower.
<br />lJnless [.ender and Borrower otherwasa agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provide) such restoraton or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. ff such restoration or repair is not economically feasible or if the secunty of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secure) by this Mortgage. with the excess, if any, paid
<br />to Borrower. 11 the Propeety is abanJnned by Borrower, nr it Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by lender to Borrower that the insurance Carrier offers to settle a claim fur insurance benefits, Lender
<br />is aulhorizcd to collect and apply the m,urrnce proceeds at 1_endcr ~ option either to restoration or repair of the Property
<br />ur to the sums ..+ecurcd h}' this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds u, prmapal ,hall not extent
<br />or postpone the dur date of the monthly iostallments roferred to in paragraphs I and hereul or Change the anmunl u(
<br />such7nsurllment.c. It under paragraph I8 hereof the Proper[} is ucywred by !.enter. all nght, Utle ami intcrrst of Borrower
<br />in and to any inawancc policies and in and to the proceeds thcroof resulting from damage to the Pry+prrt}• pear to the sale
<br />or acyuisition shall pass to Lender to the extern of the stuns secured b} this Mortgage unnteJratcly ptux te± xtCh sate ur
<br />acyuisition.
<br />6. Prtservalion and Maintenance of Property: Leasehuldc; l'ondaminiums; Planned Un11 Ihrelupmrnts. Borrower
<br />shall keep the Property in good repair and shall not Commit waste ar perrr,.n impairment or dcteriaratrun of the Property
<br />and shall Comply with the provisions of any (ease if this Mortgage is on a leasehold. It this Mortgage rs on a unit ur :r
<br />condominnnn or a planned unit Development, Borrower shall Ixrform all of Bornrwer`s oE+ltgations under the dectaruuon
<br />ur covenants creating or governing the condominium or planned unit development, the bylaws and regulation of the
<br />condominium ar planned unit devekipmen6 and Constituent do+:uments. Ir a rondaminium or planned unie development
<br />rider rs executed by Borrower and recorded together with this Mortgage, the covenants and agreements ut such rider
<br />shall be incorporated into and shall amend unJ supplement the covenants and agreements of this Mortgage as if the rider
<br />were :t part hereof.
<br />~. Protection of Lender's Security. If Borrower fails to perform the covenants ant agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which mater'ally affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, cede enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Leoder's intcrrst, including. but not limited to, disbursement u!'
<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 sxured by this Aiartgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until suca time as the requirement for such insurance rerminaces in accordance with Borrower's and
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