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~ >(:Iro[t'=oam€ Covtrr~etaTS. Bon~ower anel Lender covenant. arod agree as .`u'tlows:
<br />I. Payment of Prentipaal and Intercest. Borrower shall promptly pay whin due the principal of and interest an the
<br />~+., indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, sad the principal of and interest
<br />on any Fuiurt Advances se;:ured by this Mortgage.
<br />Z. Fronds far 'razes sled lltanrance. Suoject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Z,tader on the day monthly installments cf 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 />1 iitongage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />iT plus oat-twelfth of yearly premium instalments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />(v time to €ime by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Fuuds 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 sucfi an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground tones. Lender may not charge for so holding and applying the Funds, anatyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Linder 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 be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to )>e paid, Lender shall not be required tc 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 are pledged as additional sa~uray for the sums secured
<br />by [his 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 [o pay said taxes,
<br />assessments, insurance premiums and ground rents as they fat! due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly ins[aUments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufncient to gay taxes, assessments, insurance premiums and ground rents as they fail due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 36 days form the data notice is mailed
<br />by Lender to Borrower rtyuesting payment thereof.
<br />Upon payment in foil of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph lg hereof the Property is sold or the Property is otherwise acquired 6y Lender, Lender
<br />shell apply, no later than immediately prior to the sale of the Property or its acquisiton by Lender, any Funds held by
<br />Lender at th:; ;;nee of application as a credit against the sums secured by this Mottgage.
<br />a, elppiication of Papmeats. Unless applicable law provides otherwise, all payments received by Lender under the
<br />.ofe and paragraphs C and i hereof shah be appiicd'ay Lender nest in payment of amounts payable [o 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 on any Future Advances.
<br />4. Charges; Leas, Borrowtr shall pay a!1 saxes, assessments and other charges, fines and impositions attributable to
<br />the Properly 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 paid in such manner, by Borrov,• r making payment, when due, directly to the
<br />gayer thereof. Borrower shall promptly furnish to Lendet all notices of amounts due under this paragraph, and is [he event
<br />Borrower shall make payment directly, Borrower 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 the obligation secured by
<br />such lien in a manner acceptable [o 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 enforetment of the lien or forfeiture of the Property ur any part thereof.
<br />S. Hazard lasurartce. Borrower shall keep the improvements now 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 L.tndtr may rcyuire
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall nut require that the amount of
<br />ouch coverage exceed that amount of caveracc rcyuired to gay the sums secured by this Mortgage-
<br />The insurance. carrier providing the insurance shalt br chosen by Borrower subject to approval by Lender, provided,
<br />t1Yat such approval shall nut be unreasonably withhetd. Ali premiums on insurance policies shalt bt paid i:a the manner
<br />grovidtd under paragraph 2 hereof ur, if not paid in such manutr, by Burrower making payment, whtn dot, directly iu tho
<br />•--'-_- Trite.
<br />3'~All irlst ranctt policies and re[tewals thereof shall Ie in furor acetptab3t tv Len.!ee snd tiaPe iu~lude ~ starwar3 tnangage
<br />slaiist iri fa"rGt C[f arid in ferrn acceg[abie ro Linder, Lender Shall have [hc right !R hold the pi=t tti!C=- 9ni] rt:Rwal1 tlMrei~I,
<br />and 6armwer shall prn_mptty f~ rnich to t~nA~:'.~.Il ro.,~.. a! :,., .t.,a an•i_ '11 r°••tirt, :'r ••°;,a ,• ._- :"' =- ~ a- ., of lam.`:
<br />1lorrOWer St1:Sti give pRlnlpt n0[l4r SO IIlE 1aFllfaltee Carrlrr 81Yd Lender. Lender n13V n1akC pYacx)t '-futa~ti if[Rt'+t made promptly
<br />L•y Borrower. = - - - -
<br />Unlcss Lender and Borrower uthenvise agree in writing, itnurance prcx:eetis shall 6r applied to etswratiun of repair of
<br />the Property dmnaged, provided such restoretion ur repair is economically feasible and the security of this hlartgage is
<br />not thereby impalrcd. If such restoration or repair rs nut economically feasitllr or iC the seeurlty of this Mortgage would
<br />be impaired, the insurance pracetds shall be applied to the sums secured try this Mottgage. wtlh tits excess, if any, paid
<br />ttl Borrawrr. If the NroF~l;v is abasldul>Cd by Burrower, or if Borrower fails to respond to Lender wtthtr: 3tt dar°s Eton! the
<br />date aatlce is mailed by Lender to Burruµrr that the insurance rattier offers to srltlr a claim for Insurance t+tntfits, Lender
<br />is auihnriztd in colle;.T and apply the insurance pnxrtds at t.rndrr's option Hither to restorahan or repair of the Progeny
<br />or to the slsnrs stcur•eci by this Mortgage.
<br />Ilrlless Linder and Borrower otherwise; agree in writing, any such application of pn><erds to pr;nclpa! +ha;t nc,t t><ttnd
<br />er p:)stposte the dot data of tE:c tncmthly installments referred to iu pa; agraphs 1 and '_ tterti)C c)r than t ,- srls.>ur+t oC
<br />sack installments. If uuJer paragraph tt3 hereof the Property Is acyuirtd by lender, all right, !tilt and interest +>t Barre+wer
<br />in and ul any insurance policies and in and to the prui:etds tharraC resulting from duatage to the Property prior to the sale
<br />or acquisition shalt pass to !.ender to the extent of the coins secured by this ttlungage ,rnnretiiattt} prior err ,tuff sale or
<br />acquisition.
<br />b. Ptteaenatfon and biaiatenaact of Property; Lraarhatda; Co[vfomiaiums; Planned UaN UtveM,ptnepb. Borrower
<br />shall keep the Property in gaxi repair and shalt not commit waste ar permit impairment ar efettrioration of the Progeny
<br />sad shall comply with [he prvvisiuas of any iea.~ if this Mortgage is on a leasehold, if this tit)rtget;+? is o:, a unit to a
<br />conduminiurlt or a planned unit devilopmtat, Bvtrowtr shall preform all of Burruwer's oblt~auunr wYder the dtc;lerat,au
<br />or Gvvrnants creating ur ~uvc'rtririg the condarntnium or piannrd unit development, the by=lawx and regutatiun of the
<br />condonlinitua or planned unit development, uad constituent dtleumems, If a condominium or planned trait devtlapmtnt
<br />rider is executed by Barrrawtr and recordad tagteher w°ith this Mortgage, the covenants and agreements of such rider
<br />shall bt ineot'poraied into and shall intend and supplement the covenants and agreements of this Mar[gagc as tf the rider
<br />Wert a part hereof.
<br />7. ProttcHoa te[ Leader's Stew#ty. If Bunewer fails to perform the covenants and agrc~tnents contaitll:d in this
<br />Mortgage, or if any action or proceeding is commenced which materiallyaffecas Lender's interest in the Properly,
<br />including, but not limited to, rltt'rnent domain, insolvency, Cade tnforeetnent, or arrangements ar proceedings iavoh•ing a
<br />haakrupt or der:tdent, then !.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take sorb action as is accessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If I.rnder rcyuired mortgage insurance as a
<br />eonditian of making tht loan sttuMd by this Mortgage; Borrower shall pay the grrmiurtts required to maintain such
<br />insurance in effect until such titnt as the requirement for such insurance terminatts in accordance with Borrower's and
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