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U:vrr=axtwt Cavz;Nex•rs. Borrowrr and Lender art•rnant and agree as follows:
<br />I. Payment of Principal and BntrresL Borrower shalt pranrptly pay when due. the principal of and intrrrst an the
<br />yr indebtedness evidenced by the Note, prepaymem 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. Fonds for Tales and Insunnre. Subject to applicai,ir law or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day monthly installments of principal and imerest are payable undzr the No[r, until the Note is paid in fail,
<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 cents on the Property, it any, plus one-twelfth of yearly premium irstallments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if ary, 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 />~ 'I`he Fords shall be held in an instiCUtion the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency finciuding Lender if Lrnder is such an institution). Lender shall appty 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 />ar verfying and compiling said assessments and bills, unless Lrnder 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 that interest on the Funds shalt be paid tv Bormwer, and unless such agreement is made or applicable law
<br />requires such interest to be paid, tinder shall not be required to pay' Borrowrr 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. T'he Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If ttte amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dur 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 />promptly repaid to 8vrrower yr credited to Burrower on monthly installments of Funds. If the amount of the .'ands
<br />held by Lrnder shall not 6e sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lrnder any amount necessary to make up the deficiency within 30 days tram the date notice is mailed
<br />by Lender to Harrower requesting' payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later Sha^ immediately prior iv the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a crediE against the sums secured 6y this Mortgage.
<br />3. Applicatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Nate and paragraphs I and ~ hereof stlall be applied by Lender first in payment of amounts payable to Lendrr 6y Borrower
<br />undzr paragraptl 2 hereof, then io interest payable on the Note, ff.en to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />b. Chsrg~s: I,ietts. Borrower shall pay all taxes, assessments and other charges, 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 msntror
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, what due, directly to the
<br />payee thereat. Borrvwer she!! promptly furnish to Lender all notices of amounts due under thss paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to I-ender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrvwer shall not be
<br />required to discharge any such lien so Ieng as Burrower shall agree in writing to the payment of the vbligativn secured by
<br />such lien in a manner 2ccepta6le to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate tv prevent the enforcement of the lien or forfeiture of the Property ar any part thereat.
<br />5. Hazard luwrance. Borrowrr shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and such other hazards as Lander may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of
<br />such catzrage exceed that amount of coverage reyuirrd to pay the sums secured by this Martgagc.
<br />Tlt€ irtsurattce carrier providing the insurance shalt be chosen by Harrower subject to apQrvval by Lender, prc+vidrd,
<br />that such approval shall not be unreasonably withheld. All premiums an insurance palicirs shall be paid in the manner
<br />peovidrd under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />Ael insurance paiiciex and renewals thereof shall be in form accratabie rv Lender and shall include a standard maru~age
<br />clat~ it[ fever ztf ar:J in farm acccpiat[Ie to Lender. Lendrr shall have the right io .hold the policies a:td €enrwals thereat.
<br />an" °_-- -. -- -= Wish ender a..._;€ew;€i null t and al`s ripis 4.= ga;i p `.^;iu ,. in ,,... ven Yf ivs~s
<br />Bac~rvlvr-~1~~!!4gF'.!~ pro ~~ln~~ti~ is t_haEinsura~v carrir'r a=nd L~n+±~r. L~ac1€r may W=ise Qr~~tilq tell it n~ r.adr Q. ~?Qt1y
<br />by Harrower.
<br />L1nlcss I_rndrr and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
<br />the Prvp°rty damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is
<br />nut thereby impaired. If such restoration or repair is not economically tensible or if the security of this Mortgage would
<br />6r impaired, the insurance proceeds shall br applied to the sums secured by this htvrtgage, with the excess, if any, paid
<br />to Borrowrr. if the Property is abandoned by Borrower, or it Borrower fails to respond to [x[lder within :i0 days from the
<br />dart notice is nlailyd by Lender to Burrower that the insurance carrier otTers to seine a claim for insurance benefits. Lander
<br />is authorized to collect and apply the insurance proceeds at Lender's option tither to rrsturation yr repair of the Property
<br />ar to the soots secured by this Mortgage.
<br />Unless Lrnder and Borrowrr otherwise agree m wasting, any such application of proceeds to principal ,hall n~u rxtenrl
<br />yr pastpane the clue date of the monthly installments referred tv in paragraph 1 and ~ hereof yr change the ~3ti[vunt of
<br />such installments. if under paragraph lg hcreut the Property a acquired b}' Lendrr, till right, title and interest of tkurower
<br />irx and to any insurance policies and iu and [o ihr practtJs thc4raf ruuhing Irl.m dawagc to the Fro~rty prier to the sale
<br />ar acquisition shall pass tv Lendrr to the extent of the sums secured h} this 41a;rtgagr :mmrdiatrly privy to ,uch sak or
<br />acyuisition.
<br />6. ProservaNvn sod Msintenanre of Property: Ls3nsrholds; C.oadominiums; Plantred Udt lkreinpments, Hvrrawer
<br />shall keep the Prupei•ty in gcwd repair and nhall nut cavtmit waste yr permit €mpairment ar deterioration of tk[c Property
<br />a.d iiisall so;,tply with ts~ p.-vvssian3 i~f any ixasr ii th#3 Mortgage: t~ :.;;a a 1cas~ftaid, if €hts hTor€gag-c', [i am a r€ni€ in a
<br />i:anU'(3r[!ir[Iitm l>r a planned tllllt drvrlagment, Bitrrawrr shall prrlaPnl all of Harrower 3 atlhgat4ans llndrr t1tC dri:laratlatl
<br />or covenarus creating ar governing the condominium ar planned tine development, the bylaws and rrgulatians of the
<br />condominium yr planned unit development, and constitttrnt dcxuments. ti a cvndvmiaium yr planned unit development
<br />rider is rxrcutrd by Bvrrowac and recorded together with this Mortgage, the covenants and agreements of stash ri€lrr
<br />shall br incorporated into and shall amend and supplettrert the covenants and agreements of this Mortgage as if the ri[ler
<br />ware a part 1[emttf.
<br />'7. Protrrtlon of Leader's Sernrlty. if Borrawu fails tr: prrfornl the covenants and agreements contained in this
<br />,Mortgage, or if any action yr proce:ding is commenced which materially afTccts I-ender's interest in the Property,
<br />including, but not limited to, eminent domain, insvlvrrtcy, code enfonr.nent, or arrangements or proceedings 3nvolvu[g a
<br />trankn[pt or decedent, then Linder at Lender's option, upon notice to Borrvwer, may make such appearances, disburse such
<br />sums and take each action as is necessary to protect Lender's interest, irlchrding, but nut limited to, disbursement of
<br />reasvnahic attorney's fens and entry upon the Property rv make repairs. If Lender required mortgage insurance as a
<br />cvndiiian of making the Ivan secured by this Mrtrtgage, Borrvwer shalt pay the premiums required to maintain such
<br />insurance in etlect until such time as ihr requirement fur such insurance terminates in accvcdance with Borrower's and
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