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<br />GJ1Wrr'ns!tu~t t;;ovt:nrnr+zs. Borrower attd Lander covenant and agcte as rollows:
<br />I, Pay~snettt of PrincFpal and Interest. Borrower shad promptly pay when due the principatt of and interest an the
<br />irdebtednes evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />an any Future Advances secured by this Mortgage.
<br />2, Funds far Taxes and h~-u+r.•e. 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 Nate, until the Note _: paid in foil,
<br />a sum (heain "Funds") equal to one-hvelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rants on the Property, if any, plus one-twelfth of yearly rremium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, al[ a4 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 ar. institution). lender shall apply the Funs 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 pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and tender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt 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 to 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 debiu to the Funds and the
<br />. purpose for which each debit to the Funds was made. The Fords are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />1f 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 trots, 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 Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />tzeld by Linder shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lendtr any amount necessary to make up the deficiency within 30 days from the date 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 to Borrower any Funds
<br />held by Lender. if under paragraph IR hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shat! apply, nc toter than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time at application as a credit against the sums secured by this Mortgage.
<br />3. 4ppUr~tiarr of Payments. Unless applicable law provides otherwise, all payments received by Lander under the
<br />Mott and paragra~:h~ 1 and 2 harlot shall be applied by tender first in payment of amounts payable to Lendi;r by Borrower
<br />tender paragraph 2 hereof, then to interest payable on the Nott, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />v, twhar~ts„ Iattiffi. Barrowtr shalt pay alt 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 manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender a!1 notices of amount due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Lien which has priority aver this Mortgage; provided, that Borrower shall nut be
<br />required to discharge any 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 contest such )ten by, or defend enforcement of such lien in,
<br />legal pnxeedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereat.
<br />5. hazard Iawrrartce. Borrower shall keep the improvements nov+ existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as tender map require
<br />and in such amounts and for such periods as Lender may require; provided, that Linder shall not require that the amount of
<br />such ~ vFrage s;x~d Yha€ arrsaum of eavtragt rtquirtd to pay the sums secured by this Mortgage.
<br />Th>= i=~sc±raticp carter pxaviding t1~ i~tsur-~ttct shall bz chosen by Boxrowex sta6jttt to approval 6y L.cnder: provid~i,
<br />that such approval shall not ~ unreasonably +vithheld. All premiums ou insurance policies shall bt paid itr the manner
<br />provided ender paragraph ~ hereof or, if not paid in such manner, by Borrower making paymene, when date, dirctaty to the
<br />insurances +<arritr.
<br />All insurance [tohcies and rtntwaisrhtreof shall Lx in farnt scceutahle to Lender and shall includ€ a standard morteattt
<br />clause in favor cf and in form accep€blt to Lender. lender shall haa•e alit right to hold the policies a;;d renewal; tlttreaf.
<br />a~ ~,=ratvtr s t9 prompt= ftisnisit to ,,,. ,,., .,,. v=al nattees and a . ttipt4 of paid prentiutns. .. ,.., ._ t of
<br />~crraut-f s+~tt ~vr , r~,~n: a.,r~ t. th~~t ~ufa?t~t ~*r=t* ~ Lender, l~rt~r ,.~: t:~t_a pxonf rif t<~~ .:.~ - .~ p==ity
<br />by Borrower.
<br />Unless (..ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar ropair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such rtstorauan or repair is oat economically feasible or if the security of this Mortgage would
<br />bt impaired, the insoranct ptacteds shall fx applied co the sums secured 6y this Mortgage, with the excess, if any, paid
<br />to Borrower. tf the Properh is ahandontd by Borrower, or if torrower fails w rtspnnd to Lender within 3t} dove from iht
<br />date notice ix mail.;d by Constar to Dorrower that the insurance carrier atTers ut settle a claim for insuraucr. benefits, Lendtr
<br />is authorized to collect and apply the insurance pro:eeds a[ Lender's optiar. tither io restoration or repair a1 the Properly
<br />or to the runts secured by this Mortgage,
<br />Slnlt~Ms lender and Borrower otherwise agree in writing, any such application of pnxettls eta principal shall nut extentfi
<br />or postpone the dot oats of the miutthly installments reftrrtd [o in paragraphs t ;uul ~ hereof ur cFtangt the amount of
<br />such installments. if under paragraph ! g harlot the Property is acquired by Lendtr, all right, title and interest of 1;orrnwer
<br />iu atxd to any insoranct policies acid in and cu the proceeds thertol resulting from daotage [o the Property print to the sole
<br />or acgttisitinn shall toss to Lender to the extent tit the sums sectutd 6y this Mortgage innusttiately prior to such sale ar
<br />ttegnt~atttan.
<br />6. Ptrosttrwailan and Pftiilntenanct a[ Ptropeny; Leteaehalds; Candamlaiutnst Pfannad Unit I)tvelapttittitb. Dorrower
<br />shall keep the Property in goad t~tpair and shalt oat cumntit waste or t=-troll impairment ar deterioration of the Property
<br />,~._ ~=.;-. =_<ra~ly ~s::h the grr ._ , - =f ally Ses,~ if this ``~_ortgsge i= ~u a 1tas:hold, if the3 M srtsagt t= tit= ^it its :~
<br />condantittium ar a planned unit~dto°claprnent, Borrower shall perform all at' Dorreswcr's ubiigatiaus und..r the dt:claratian
<br />ur covenants creating cx governing the atndaminium ar planned unit devtlopnttnt. the by-laws and tegulatiom of the
<br />condominiturt ee planned unit devclapmen[, and constituent documents, if a caetdominium or planned tutu tkvtloputent
<br />rider is cxtcuttd by $orrowtr and recorded together with this Mortgage, the covenants and agreements of such rides
<br />shat! bt incorporated into and shalt amend and supplement tall covenants and agreements of this Mortgage as if [hc ridi+r
<br />were a part hereof.
<br />7, k'rutcttiwt of (,cedar's Security. If Borrower faits to perform the covenams and agreements contained in this
<br />Mortgage, or if any aetiott or proceeding is cotnrz€tnced which materially affects tender's interest in the Property,
<br />inchtding, but not limited to, eminent domain, insolvency, cods enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, thin Lendtr at Len•.ter's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest, including, but not limited ro. disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lendtr required mortgage insoranct as a
<br />caadstio;, of making t..e loan secured 6y this Mortgage, Barrow~r shall pay the prtmiams required to maintain such
<br />insurae-ir~ is titcf uatiF such tirr;t as alto rtquirtnitnt for such insoranct terminates in accordance with Barra~wer's and
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