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Utvteattrt CovF[vnNrs. Borrower and Lender covenant and agree as follows:
<br />I. 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 artd late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z> Foods for Taxes and Iru-ut'ance. 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 [he Note, until [he 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 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 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). Lender shall apply the Funds [o pay said [axes, assessments,
<br />i\ 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 Ftrnds 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 he 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 earnings on the Funds. Lender
<br />shall give to Borrawer, without charge, an annual accounting of the Finds showing credits and debits to 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 />Lf the amount of the Funds held by Lender, together with the future monthy' installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall he, at Borrower's option, either
<br />promptly repaid to Borrower or credited [o Borrower nn monthly installments of Funds. It the amount of the Funds
<br />i,eid by Lender shall no ;u9lcirn: to pay taxes, assessments, ins,rrartCt premiums and ¢round rents as they fall due,
<br />Borrower shall pay to 1_endrr any amount necessary to make up the dcfiacncy within 30 days from the date notice is mailed
<br />by Lender [o Borrower requesting payment thereof.
<br />Upon payment m full of all sums secured b} the Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IR hereof the Propert?- tz sold or the Pruptrt)• is otherwise acquired by Lendee, Lender
<br />ayal! ~ ,.,ty n parer rh?- ;:,,meKiia:n:v art. r tr+ the sale of the Prtri?trtv or it- acquisnfan by Lender, any Fund; held by
<br />'., Lender at the time u[ application as a credit against the sums secured by [hisaMortgage.
<br />3. AppBcation of PaymenLS. Unless applicable law pnrrdes otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hcreu( shall be applied by !.ender first m payment of amounts pa}'able to Lender by Borrower
<br />under paragraph 2 hereoL then to interest payable on ilia !lots. then to the prncipa} of the Note, and then to interest and
<br />' principal on any Future Advances.
<br />~', 4. Charges; Dens, Borrower shall pay all taxes, assessments acrd other charge., fines and impositions attributable to
<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 hereof or, if not pa,d in such manner, b}' Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shad promptly furnish to Lender alt notices of amamts due under this paragraph, and is the event
<br />Borrower shall make payment directly, Borrower shall promptly furnrsh to !.ender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien which has pnnrity over this Mortgage; provided, that Borrawer shall not be
<br />required to discharge any such lien so long as Borrower shall agree ie. arnmg to the payment of the a6hgation secured by'
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defend cnfonement of such Iitn in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now cxis!mg or hercalter ;rested on the Pmpert}' tenured
<br />against Toss by fire, hazards included within the term "extended coverage", and sueh ether hazards as Lender may require
<br />'~, and in such amounts and far such periacls as Lender may rtqurre; ptos'idect, that Lender shall not require that the amount of
<br />''., such coverage exceed that amount of coverage required to pay the Burn. secured by the Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Horrower subject to approval by Lender: provided,
<br />~~, lost sacra apprnvai shah not be uureaauuai~l} iibuki::. .,: pr.at:a ~; : ..............ce ..~,. .war r,,. „~..:a in the manner
<br />provided under paragraph Z hereof ur, rf not pard in such manner, by Borrower making payment, when due, directly ter the
<br />insurance carrier.
<br />~~, All insuran;=-e paticizs and renzwafs thtrcof shall be in forte aco€ptabiE to I4o1€r and sh.+3l rnclrrde a standard rrortgaez
<br />'' clause is favor c,f and in form acceptable to Lender. (.ender shall have the right to held the policies and rrnewak thereof.
<br />and Borrower shall peamptly furnish ro Lender all renewal onuses and all receipts of paid },remiums. In the Brent of loss,
<br />Borrower shall give prompt notice to the insurance earner and l.endtr. Lender may make prewt of loss tf not nwdr promptly
<br />by Borrowtr.
<br />Unless Lender and Barrower othrrwnr agree in writing. insurance proceeds shall br. appiietl to restoration or repair of
<br />the Property damaged, provrded such restoraton or repair is rconomicully feasible and the securiq' of th,s Mortgage is
<br />not thereby impaued. It such restoraton or repair rs not economically feasihlr or d the secunty of this Mortgage would
<br />be: ,mpaired, the insurance proceeds shape be applied ro the sums secured by this Mortgage, with rho excess, if are, pard
<br />to Borrower. If the Property is ahanduned h Borrower, or it Borrower fads h, respond to tender wuhin 30 days from the
<br />date uotice is mailed by Lender a, Barrower that the insurance currier otters to srtile a clauu fur insurance benefits, I,rndc•r
<br />is uuthorikd to collect and apply the insurance proceeds at Lender's option either w restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless !.ender and Horruwer otherwise agree m writing, any such: application of pn+cerds nr prutc,pal eh:+Il nut extend
<br />or postpone the due date of the month!} imrdlmenn referred to in paragraph 1 and 2 hereof in• change the amount of
<br />sueh u,n[alht,enls. It under paragraph t8 hereof the Property is acquired by Lender, a!I right, ttde and interest of Borrower
<br />in and to any rnsurancc Ix?hcirs and tit and to the proceeds thcreul' rosultirtg from damage to the Property prior to the oats
<br />or acyuinition shall pans to Lender [a the extent u[ the sums secured by this Mortgage rmmediatrly poor to such safe or
<br />acquisition.
<br />6. Preaers•aUon and hfaintrnance of Property: Leaseholds; Condominiums; Planned Unit I)evrlopnrrnr,. Burrower
<br />shat! keep the Property ire good repair and shall rant commit waste or p€rmit impairment or deterioration of the Property
<br />and shall comply with the provisions of an}' lease if this Mwtguge is on a leasehold. if this Mortgage is an a unit in a
<br />condominium ur :t planned writ development. Burrower' shall perform all of Borrower's ahhguGuos under the tlecLrrahnn
<br />or covenants rrC:l4ng ur governing the condominium or planned amt develnpmant the by-laws and regulations of the
<br />condominium or planned unit development, and constituent Documents. If a condominium or planned amt development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenann and agreements tit such ndrr
<br />shall be incorporated into and shall amend and supplement the covenants and agreements rat thrs Mortgage as tf the rider
<br />were a part hereof.
<br />7. Protection of Leader's Security. IF Borrower fails to perform the covenams and agreements cuntainrd in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Propeny.
<br />including, but not limited to, eminent domain,. insolvency, code enforcement, or arrangements or pnxeedings involving a
<br />banxrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such ap{xarances, disburse such
<br />runts and take such action us is necessary to protect Lender's interest krauding. but not limned ro, disbursement of
<br />reasonable attorney's f€es and entry upon the Property to make repairs, if Lender reyuired mortgage insurance as a
<br />condirion of making the lean secured by this Mortgage, Bortower shall pay the premiums required to maintain such
<br />insurance in ef[ec:[ until such time as the requirement for such insurance terminates tit accordance with Borrower's and
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