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Uxmoanr Covexnxis. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Harrower shalt 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 ?vortgage.
<br />2. Funds for Taxes and insurance. Subject to applicabie 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 [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 />Q Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus ooe•Iwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />' time io time by Lender on [he 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). Lendir shall apply the Funds to 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 pa}•s 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 that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicabie law
<br />requires .ach interest to be paid, Leader shall not be reyuired to pay Borrower any interest or earnings or: 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 [or 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 Linder, 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 razes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option. either
<br />promptly repaid to Borrower or credited [o Borrower nn monthly installments of Funds. If the amount of the Funds
<br />add b-y L°-der shs!! net bi sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to I-ender any amount necessary to make up the deficiency -within ?0 days from the date notice is matted
<br />by Lender to Borrower reyuesung paymem thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lendrr shall promptly refund to Borrower any Fund:
<br />held by bender. I( under paragraph IS hereof the Property is sold or the Property is otherwise acywred by Lender, Lender
<br />~!;_!! ~,~..nlv nn later than immediately poor to the sale of the Property or its acquisition by Lender, an} Funds held by
<br />Lender sl the dine e*t application as a crida against the suu,n ;a ., by this MnrrQaee.
<br />3. App4cation of Paymenb. Unless applicable law provides otherwise, all payments received by Lender under tttc
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment oC amounts payable to Lender b}' Bc+rrc~wer
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and they. to interest and
<br />principal on any Future Advances.
<br />4. i`harAes; Liens. Borrower shall pay all cues, assessments and other charges, fines and impositions attnbutahle tc
<br />the Properly which may attain a pnority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />' provided under paragraph 2 hereof ar.:f not paid m such manner, by Harrower making payment, when due, ditzctly to the
<br />~~, payee thereof. Borrower shall promptly furnish to 1_ender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Bora+wer shall promptly furnish m Lender receipts evidencing such payments-
<br />Borrower shall pmmpd}• 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 hp
<br />such Tien in a manner acceptahlr 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 ur forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or heroafter erected on the Property insured
<br />against loss by fire, hazards indudrd within the term "extended coverage", and such other hazards as Lendir may require
<br />and m such amounts and for such prnods as Lender may require; prrn•ided, that Lender shall not reyuire that the amoum of
<br />' such coverage exceed the[ amount of rnserage required to pay the sums secured by this Alortgage-
<br />The ,nsuranci carrier providing the insurance shall be chosen by Burrower subject to approval b}' lender; provided,
<br />that such ap},w•a~ ,,,> - • !:e • _ .~n>+hrt• withheld. Alt premiums on insurance policies shall he paid m the manner
<br />provided under paragraph « hereof or~if not paid in Bitch manner, by Borrowee making t,ai,;,k~,;.:e!:Yn ''t~..t~rP.-tlv to the
<br />insurance carrier.
<br />AlI insurance pohc•res and renewals thereof shall be in form aeteptabli to Lender and shall incletdi a standard mortgage
<br />clause in favar of and :n form areptable tit Lender. !..ender shall have the right to hold chi policies and renewals thereof.
<br />' and Burrower shall promptly tunash to Lender all renewal nmmes and all receipts of paid premiunn. In the event of loss.
<br />Borrnwet shall give prompt notice to the msuran;:e carrier and tender. Lender may make proof of loss if not made promptly
<br />6y Borrower.
<br />Unless Lender and Borrower otherwise agree m wriung, insurance prx:ceds shall be applied to restoration or repair of
<br />the Property damaged, provided such restorauon ur repair is economically leasihlr :wd the security of this Mortgage is
<br />not thereby impaired. t( such restoration or repine is not econunucall} Icasihle or d the security of this Mortgage woutct
<br />br impuued, the imatrancc prtceeds shall be applied to the sums secured te} this !+tortgagc. wnh the excess, if any, paid
<br />to Borrower. It the Property is ahandonrd b} Harrower, nr tt Borrower tails ro respond to Lendrr within 30 da}'s tcotn the
<br />date notice i+ mailed by Lender to Borrawcr that the insurance c:uricrr alien to acme a claim for insurance henetits, Lender
<br />is authorized ut collect and apply the utsarance prtceeds ut LcncJrr's option either ta restoration or repair of the Property
<br />or to Itiv sums secured by This Mortgage.
<br />Unless Linder and Borrower uthrrwise agree m wrung, any such application al proceeds to principal shall not exrend
<br />or postpone the due dote of the monthly installments referred at m paragraphs I and hereof or change the amount of
<br />such utxtallmwus. It under paragraph 18 hereof the Property is acyuued i*}' lender, :di right, alto and interest of Born+wcr
<br />iu and to any utswaurc pnlicira and iu and to the p!vcreds therm[ ruulmtg tram damage to the Proyxrty pour to the sale
<br />or ucyuisinon shall pass to bender to the extent ut the nuns secured by this 1lortgugr mtntrdiatel} pt~or to such sale or
<br />ucyuisition.
<br />6. Precervadon and Maintenance of Property; Leaseholds; Cundominiums; Planned Unit Lkrelopmrnts, Borrower
<br />shall keep the Property in good repair and shall not commit waste or pernut impuuntenl or detcriorut:un of chi Property
<br />and shall comply' with the Provisions of any (ease it this Mortgage is un a leasehold, li this Mortgage is cart a unit iu a
<br />condominium or a planned unit development, Borrower shat) perlonn all of Borrower's obligations under tht declaration
<br />or covenants creating nr gitvermng the iandonunium ur planned unit drvrlapmrn4 the bylaws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium nr planned unit development
<br />rider is executed by Harrower and recorded together wuh this Mortgage, the covenants :utd ugrrements of such rider
<br />shall be incorporated into and slid! amend and supplement the covenants and agreements of Ihis Mortgage as if the rides
<br />were a part hereof.
<br />7. Pretectimt of I.ettder'c Security. If Borrower tails to perform the covenants and agree.roents cuntaineil in this
<br />Mortgage, or if any action or proceeding is commenced which materially atfrcts Lender's interest in the Proprny,
<br />including, but not limited to, eminent damain, insolvency, code rnforcemrnt, or arrangements or prcxredings im^oh^ing a
<br />bankrupt ar decedent, then Lendir at Lender's option, upon notice to Borrower, may make such appearances, dishurse such
<br />sums and [eke such action as is necessary to protect 1-ender's interest. including, but not limirod ter, disbursimem of
<br />reasonable nttomey's fees and entry upon the Property to make repairs. If I-tinder reyuired mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shat! pay the premiums reyuired to maintain such
<br />insurance in effect until such tune as the requirement for such insurance renninates m accordance with Borrowers and
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