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<br />UrvmoxM Cavr:rvnrvTS. Borrower and Linder covenant and agree as r"allows:
<br />f,~ 1, Payment of Principal aad Interest Borrawer shall pram tl -
<br />p ypay whin due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and tale charges as provided in the Note, and the principal of and interest
<br />{°~ on any Future Advances secured by this Mortgage.
<br />},~ 2. I7urtds for Taats aad Insarance. Subject to applicable law or to a written waiver try Lender, Borrower shalt pzy
<br />fo Lender on the day monthly installments of principal and interest are payable under the No[e, 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 />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus aae-rwelftli of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender an the basis of as<essmettts and bills and reasonable estimates thereof.
<br />The Funds shall be held in ar. institution the deposits or accounts of which are insured er guaranteed 6y a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shat) apps}' 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 hilts, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a chargz. Borrower and Lender may agree in writing at the time o[ execution of this
<br />Mortgage that interest on the Funds shall !+z paid to Borrower, and unless such agreement is made or applicable !aw
<br />requites such interest to be paid, Lender shall not be requirtd to pay Borrower any interest or earnings on the Funds. Lender
<br />ahall give fa 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. "Iht Funds are pledged as additional security for the sums secnrcd
<br />by this Mortgage.
<br />ll the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of coxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said saxes,
<br />assessments, insurance premiums and ground rents as they fall dui, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. ff [he amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay [o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mai{ed
<br />by Lender to Borrower requesting paymzot thereof.
<br />Upon puvmeni in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by I.;.s:..'er if " ~' r paragraph 1R hereof ihz Propz~+y is said ae the Praptriy is c+therwise acquired by Lender, Lender
<br />shall appl,l-, na later than immediately prior to the sale of the Property or its acyuisition by Linder, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this btongage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under Che
<br />Note and paragraphs i and Z hereof shall be applied by Lende* first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable vn tbt Note, then to the principal of the No[e, and then to interest and
<br />principal ou any Future Advances.
<br />d, Ciaarges; Lk~. Borrawer shall pay elf taxes, assessments and other charges, fines and impositions attributable to
<br />'the Property which may attain a priority over this Mortgage, and leasehold rayments or ground rents, if any, in thz manner
<br />provided under paragraph 2 hereof or, i[ not paid in such manner, by Harrower making ~aymenf, when due, directly [o the
<br />payee themof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shat; make payment directly, Borrower shall prompity furnish to Ixnder receipts evidencing such payments.
<br />Borrower shall ptamptl}' discharge any lien which has priority over this Mortgage: provided, that Barrowtr shall not be
<br />required to discharge any such lien so long as Borrower shat{ agree in writing to the payment of the obligation secured by
<br />such stn in a manner atctptable 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 or forfeiture of the Property or any part thtreof,
<br />5, Harar9 I~ttt'aaec, Borrawer shag keep the improvements now ex is€ing ar hereafter trecttd an the Frapztty insured
<br />against loss by F,re, hazards included within the term "extended coverage", and st-~h other ttaz~rds a~ lxndzr ^tay t'equira
<br />and in such amounts and fur such periods as Lender may require; provided, that Lender shat! net require that the amount of
<br />such cove: age excc~cd that amount of raverage requirtd to pay the sums secured by this Mortgage.
<br />"t'!= insitrae+.ct carrtr providing •ht insure, ce shall ?x zLas..n try Borrower sttbjzct to approval try I.~nder; provided,
<br />that su:ft approval shaft na+ bt unreasonably wiehhtld. All premiums att insurance paltcitx sltalt to paid in €tte manner
<br />pry --d,:;: undt: paragraph 2 t:trt.;i ar, it oat paid in suc'fi tnaaner, by Borrawer making payment, wlttn due, directly to Eht
<br />insurance carrier.
<br />Atl insutanct policies and renewals cheroot shalt bt in form acceptable to Lender and shall inr7udz a standard mortgage
<br />-- eiausz iu favor of and in farm acceptable to Louder, Lerida shall have the right to he-id the palv:its :t.^.il renewals ihtrtaf,
<br />and Borrower sha}I prompity furnish to Leader ail renewal notices and alt roctipts of paid premiums. In the event of lass,
<br />Harrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass if net made promptly
<br />by Borrower.
<br />Unless Linder and Borrower otherwise agree in writing, insurance proceeds shall be applied to rrswration ar repair of
<br />the Property damaged, provided such restaraaon or repair is economically feasible and the securry of this Mortgage rs
<br />not thereby impaired, if such restarsttian or repair is not economical",y feasible ar if [he szcunty of this Mortgage would
<br />he impaired, the insurance proceeds shall be ttpplied to thz sums secured by this Mortgage, wnh thz zxcess, if at•.y, paid
<br />to Borrower. If the Prapert~~ is abandantd by Borrower, ar it Borrower fails u. respond to Linder within 30 days Yram tilt
<br />data notice is mailed by Lender to Bo:rowtr that the insurance carrier afters to settle a claim fcr insurance bent6ts, l.eudtr
<br />is authorized to ratted and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or tv the Hums secured ny this Mortgage.
<br />Unless l.todtr and Harrower otherwise agree m writing, any such application of prix cods [o principal .Irdl riot exttttd
<br />or postpone the due data of the monthly installments referred to in paragraphs I and '? hereaf or chuirge ihz amount of
<br />such installments. it under paragraph t8 hzfcof tltz Property is acquired by Leudtr, all right, title and in[crtst of Barrowtr
<br />in and to any insurance palicits and in and to the proceeds thereof resulting from dantagz to the Prapzrty prior to the salt
<br />ar acyuisition shall pass is Lander ar the extent of the runts stcurcd by this Mortgage immediately prior to such salt or
<br />ncquisitian.
<br />6. Prceervatlna and Mt$ataaaact of Property: l,easchoids: Caadonrialams; Planttrtl Llrtlt Drrelapmtnis, Borrawer
<br />aitali ktbp the Ijropes[y in gaxt repair and shaft not commit waste ar permit impairment or deteriorahan of the Property
<br />and shalt comply with the previsions at aria leas: if this Mtartgags is an a {easehoid. ff this Matigal;t is on a unit is a
<br />condominium or a planned unit development, Boreowtr shall perform all of Boerowt['s ahbgations under the daelaration
<br />ar covenants creating of gavtrning the condominium ar planned unit deveiapmznnt, the by-taws and ttgutatians of the
<br />condominium or planned unit development, and cottstituent dxuments. if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrtemenls of such rider
<br />- shat! he inctsrparattd into anti shalt amend end supplement the eavrenants and agreements of this Mortgage as if [he ridte
<br />-wart a Batt httcof.
<br />7. PrMectlna of bender's Se. nrit}t. If Borrower fails to perform the covenants and agreemcnes contained in chi.
<br />Mortgage, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but not limited to, eminent domain, insolvency, code tnfarcemen[, or arrnngements or proceedings involving a
<br />bankrupt or decedent, then Leader at Lender's option, upon notice to Harrower, may make such appearances, disburse such
<br />aunts and take such action as is necessary to protect [.ender's interest, ituluding. but teat limited to, disbursement of
<br />reasonable attorney's ices and t-ntry upon the Prot>rrty to make repairs. tf Lender required mortgage insurattice as :.
<br />conditlan of snaking Lhe loan .:eared by this Mortgage, Borrower shall pay the premiums required [a maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accardancc with Bartvxer's and
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