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<br />LIN'[PO1Rbs Cavt=.tvnrars. Borrower and I.tndtr covenant and agree as follows:
<br />1. fir ayment of Principal and Intrrest. Borrower shall promptly pay when due the principal of and inwrest on [he
<br />indebtedness evidenced by the Note, prepayment 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. Pnnds for Taxes and Insurance. 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 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 />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium instailments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, 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 />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 an institution). I_cnder shall apply 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 bills, unless Lender pa}s Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is rtrade or applicable law
<br />requires such interest to be paid, Lender shall not be requi:ed to pay Borrower any interest or earnings on the Funds. Lender
<br />shall glee to Borrower. without charge, an annual aceamting of the Funds showing credits and debits to the Funds and the
<br />purpose (or which each debit to the Funds was made. The Funds are pledged as additional 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 pror 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 to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Furies
<br />held by Lender shall not ht sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from [he date notice is mailed
<br />by Lender to harrower reyuesting payment ihereaf.
<br />Upon payment in full of al! sums secured 6y this Mortgage, Lender shall promptly refund ro Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is soW or the Property is otherwise acquired by Lender. Lender
<br />shall apply. no facer than immediately prior to the Bait 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. Al7plitation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 7. hereof shall be applied by Lender first in payment of amounts payable to 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 />~. Charges; Tarns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Iortgage, and leasehold payments or ground rents, if any, in the manner
<br />ptarided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the 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 he
<br />required [o discharge any such lien so long as Borrower shall agree in writing to the payment of the abligatian stGUrtd by
<br />such lien in a manner aeceptabfe to Lender, or shall in gaud faith contest such Tien 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 er any part thereof.
<br />g. Flazard Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by Rre, hazards included within the term "extended coverage'", and such other hazards as Lender may require
<br />and to snob amounts and for such pericxls an Lender may require; provided, that Lendtr shall not require that t:te amount of
<br />such Goveragt exceed that amount of coverage required to pay the sums secured by Yhi+ Mortgage.
<br />'The insurance carrier providing the insurance she!! be chosen by Borrower subject to approval by Lendtr; provided,
<br />that such appravai shall nor be unreasanabiy withheld. All premiums on insurance policies shat! 6t paid in the manner
<br />proviaitd under paragraph v hereof ar, if not paid in such manner, by Borrower making payment, when due, ditectty to the
<br />inAi3ra17Ct Garner.
<br />A!i insuran,:t paltrier and rencwafs thereof shaif bt in form aceeptablc to bander and shall irieludt a standard mortgage
<br />41a~~ in f?Yer ~f nn5f in form a;.ctptab"tv ' -Winder, Le :der shaft ha4,t the right fig fft~fd the ~tiu:tea acrd rtn€wals tlrertc=f.
<br />and Borrower s1:aH promptly fztr-+igit to L~nd~r Qii re-rowel rfatices and off rttip#s of paid pzmiut:ts. in t:,r z~~ttt r:+f h..=
<br />Borrower shaif give prompt notice to the insurance carrier and Lender. Lender may make pnwt of lass it not madr prompt€y
<br />by Burrower,
<br />Unless Lender and Bmrawer otherwise egret in writing, insurance proceeds shall be replied W restoration or repair ut
<br />the Property damaged, provided such restoration or repair is econamtcally feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not econornically feasible or if [he security of this Mortgage would
<br />bt impaired, the insurance proceeds shall be applied to the stems scoured by this biortgagr, with the txcrss, if any', peed
<br />to Borrower. If lht Property is atwrdoned by Borrower, or it Borrower fails to respmd to Lender within 3U days from the
<br />date notice Ls mailed by Lendtr to Borrower that the insurance carrier otfurs to settle a claim far insurance tstntfin. i-ender
<br />is autifarizeal !o collcs;t and apply the insurance prc+aaeda at Lender's option either to restoration os repair of the Property
<br />or to the sums secured by this Mortgage,
<br />Unless i.ender and Harrower otherwise agree m writing, any such application of proceeds to principal shalt pal extend
<br />or postpone the due ahtte of rho manrhly instaltmarts referred to in paragraphs !and ?hereof or change the unurunt of
<br />such installments. If under paragraph t8 htreaf the Property' is acyuircd by Lendtr, all rtght, title anal interest of Borrower
<br />in and to any ittsurauce policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />ar saluisition sftall pass to tinder to the extent of the sums secured by this Mortgage tmmediately pricer to such sale ar
<br />ncquisition.
<br />6. Pret;en•atloa rend hlaiatrnattce of Proprrty; Lerwrholds; f'ondominlnnts; Ntannrd Unit 1)evrlapments. Borrower
<br />allele keen •rhw Property itt gaa?d repair atfd she!! oat eatntnit waste . r permit impairnttnt ur ~ttrtoration art tltc Property
<br />and shut! comply with the provisions of any lease if this Mortgage is ore u Itasehald. It this Morfltagc is on a unit in a
<br />condomiuiuut or a planned unit cievtlopment, Harrower shall perform rill of Borrower's obligations under the deelaration
<br />or coveaants creating ar governing the condominium or planned unit development, the by-taws and mgtdations of the
<br />condominium or planned unit devetapment, and constituent da~utttettts. If a condominium or planned unit altveloptttent
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcemtnts of such rider
<br />shall ce incorporated into and shall an rnd and supplement the covenuntx and agretnfents of this Mnrigage as if the rider
<br />were a part hereof.
<br />7. Ptotectlaa of Lender'r Secntity. If Barcower fails to perform the covenants and agreements cantuintd in this
<br />.Mortgage, or if any action ar proceeding is commenced which materially affects Lender's interest in the property,
<br />including, but not broiled to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lander at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sutra and take such notion us is necessary to protect Lender's interest, incfuding, but not limittcf w, disbursement of
<br />reaseaab!t attorney's fees and entry u~ron the Prap€rty to make repairs. If Lendtr etquimd mortgage insurance as a
<br />eardition of making the loan sfcttred by tills Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in efftet until such time as the requi_r•ement for such insurance tetmittatts in accordance with Borrower's and
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