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<br />Ut+taeara Cov>;rvnnrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and tote charges as provided in the Note, and the principal of and interest
<br />an any Future Advances secured by this Mortgage.
<br />jj7 2. Fonds fur Taxes and Insurrmee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />p [o Lander on the dry monthly installments of principal and interest are payable under the Note, until the Note is paid in foil,
<br />® a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priori[}' over this
<br />Mortgage, and ground rents on [he Property, if any, plus one-twelfth of yeazly premium installments for hazard insurance,
<br />~ plus one-twelfth of yearly premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
<br />time fo time by Lender or, [he basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall he held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />s4~tte agency (including Lender if Lender is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may eat charge far 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 charge. Borrower and Lender msy agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shag be paid to Borrower, and unless such agreement is made or applicable law
<br />regal[[-s such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />_ shad give to Borrower, without c:~arge, an annual accouming 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 additiena! security for the sums secured
<br />by this 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 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 [o Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lander shall eat be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fati due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Harrower requesting paymen; !hereof.
<br />Upuu payment in full of art sums sec+_red by rhis Mortgage, Lender shag p•a^r^t!y refund to Borrower any Funds
<br />held 6,g• Lc:zder. If under paragraph 18 hereof the Property is Bald or the Property a otherwise acquired by Lender, Lender
<br />shall :apply, na later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note end paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lemter by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nole, and then to interest and
<br />principal on any Furore Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, finis and impositions a[tributakrle to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manmr
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, 6y Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender alJ notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such paymen~s.
<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 Harrower shall agree in w~riung to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in gakxi 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 ar any part thereof.
<br />+. Hazard Irtatirantt. Borrower shat) keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by $re, hazards included within the term "extended coverage"', and such other hazards as Lender ma}' require
<br />and in such amounts and for such periods as Lender may require; provided, that Lendrr shall not requim that the amount of
<br />such ceversge exceed that amount of caveraee reouired to pay the sums secured h}° this Martgaga.
<br />T`he i[~uranco carrier providing the insurance shall be chasm by Borrower subject to ag~raval by Lender provided,
<br />..that sue!; ~uv_-~a? sh;~ ;ot lx ;;rr~3tanabl} ri ~,heis;. Af6 prem:errrrs an insurance p:;:;cies ;hot: trr• ;.aid in the r.[ann:.r
<br />pravidcd under paragraph 2 hereof or, if no[ paid in such manner, by Harrower makinit payment. when~drrc, dit'ealY tq the
<br />in~W az-'-~ rt`is-P. - - - - - - -
<br />- All ~.~t3r ;z.e r~::si:-s acid res~~l titzrs'c3i sn~}t be in ivttr a4cepiavie to Lender and sFiaB include a ~[aeTdFrd ntui[gny~
<br />clause in favor of and in form acceptable to Lender. L.endtr shalt have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in ¢he event ai lass,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make pnwt of loss i[ nut made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance praxeeak shall be applied to restoration or repair of
<br />the Property damaged, provided such restaratian or repair is economically feasible and the security of this Mortgage is
<br />not thxreby impaired. If such reAOntuun or repair is nos economically feasible ar it the secant} ut this Mortgage would
<br />he impaired, the insurance proceeds shall be applied to the surus secured by this Mortgage, with the excess, if any, paid
<br />to Bcrrawer. If the Property is ahandonrd by Burrower, ur it Harrower tads to respaixt to Lender wuh:c 30 days from the
<br />date notice is mailed by Lender to Burrower that the insurance carrier offers «~ settle a claim for insurance berxfits, Lander
<br />is authorized to collect and apply the insurance g;acceds at t.ctrdcr's cep«ari either to restaratian ar repair .rt [ire Property
<br />or w the suers secured by this Mortgage.
<br />Unless bender and Borrower otherwise agree m writing, any such application of pnxeeds [a pnneipal shall not extend
<br />ar pasryrane the due date of the monthly insiaitmenis referred tar in paragraphs i and ? hereof ar :hangs the amount of
<br />such installments. If under paragraph Ig hereof the Property is acyuited try Lcndtr, ail nght, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereat resulting from damage to the Prapert}' Ixior to the Sala
<br />or acquisition Shall pass to !.ender to the extern of the ewes secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />t4, i~reaervarioa end hiairaF~ertatrce of i~ropettipt I.raaelr+rlrls; C'onduminlurust P'Ianned [fait Aerelopmcat~ Borrower
<br />shall keep the Property in goad repair and shalt rxr[ commit waste or permit impairment or decerfaratiari a{ the Property
<br />and 3hatl comply with the provisions of any (rase iF this Mortgage is on a leasehold. If this h{artgagu is on a unit in a
<br />condominium or a planned unit development, Harrower shalt perform ail of Borrower's obligations under the declaration
<br />ar caveaaats creating ar guvernirrg the condominium or planned unit davelopnwnt, the by-laws and regulations of the
<br />condominium ar planned unit development, and canstintent documents. It a condominium ar planned unit development
<br />rider is executed by Borrower and recnrded together with this Mortgage, the covenants and agreements of such rioter
<br />chat! be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection oI Lender's $ecutity. If Bartower fails to perform the covenants and agreements contained in this
<br />lilortgage, ar if any action or proceeding is commenced which materially affects Lender's interest in [he Property,
<br />including, but nai limited [o, eminent domain, insolvency, Cade enforcement, or arrangements or prvicee[lings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearancrs, dishursx such
<br />sums and take such action as is necessary to protect Lender's interest, including, but eat limited to, disbursement of
<br />reasonable attomty's fees cad entry upon the Properly to make repairs, If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Harrower shall pay the premiums required to maintain such
<br />inauranee in et~eci unUif such limo as the regniretnent for such insurance terminates in accordance with Borrower's and
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