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<br />tj N'[FOAt~Y Covatanvrs. Bvrrawer' and Lender covenant and agree as follows:
<br />t. Payment of Prinslpal earl Interese. Borrower shall promptly pay when due the principal of and inkc:rest an the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nnte, and the principal of and interest
<br />en any Future Advances secured by this Mortgage.
<br />2. Funds far Taws and In~suranee. Subject to applicable law or to a written waiver by Lender, Borrower mall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in foil,
<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-twelhh of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and fmm
<br />time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds sha4 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). Gender 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 />yr verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />aermits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this
<br />Ivlvrtgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable lacy
<br />reyuirss such interest to be paid, Lender shall not be required to pay Borrower any interest ar earnings on the Funds. Lender
<br />shall dive to Borrower, without charge, an atanual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which Hach debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />Ity 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 tv 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. 1f the amount of the Funds
<br />held by Lender shall not be sufficient :~ pay taxes, assessments, insurance premiums and ground rents as they fall dd~<•.
<br />Borrawsr shall pay ro Lender any amount necessary tv make up the deficiency within 30 days from the date netted is nmail._,:
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. 1_ender shall promptly refund to Burrower any Funds
<br />held by Ixnder. It !fader garagraph t8 hereaf [he Property is sold or the Property is otherwise asgtured txy Lender, Lender
<br />shall apply, no later than irmediately prior tv the sa{e of the Property or its acquisition sty' Lender, any Funds held by
<br />Lender ut the ume 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 tinder the
<br />Nate and paragraphs i attd 2 hereaf shall he agnli_~d by Lends-r first in payment of amvunts gays+ht~ tv t ~ndgr t,y t3.,rnwsr
<br />under paragraph 2 hereof, then to interest payable on the Note, then [o the principal of the Note, and then tv interc~t and
<br />principal on any Future Advances.
<br />4. Charges; Leas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Froperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Borrower making payment, when due, dir>:ctly to the
<br />payee thereof. Borrower shall promptly furnish to Lender al! notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shat) promptly furnish to Lender receipts evidencing such payments.
<br />:''Borrower shall prampdy discharge any lien which has priority over this Mortgage: provided, that Borrower shall net 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 Tien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defend enforcement of such lien in,
<br />legal proceedings which operate tv prevent the enforcement of the lien or forfeiture of the Property yr any part thereof.
<br />5. Hazard Insurance. 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 xuch ether hazards as Lender racy require
<br />and in such amvunts and for such periods as Lender may require; provider!, that Lender shall nut require that the amount of
<br />such evvcrags exceed that amount of coverage reyuired to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen 6y Borrower st:bject to approval by Lender, provided,
<br />that such approval shall not bs unrcasanably withheld. All premiums un insurnce policies shall he paid in the manner
<br />provided under paragraph 2 hereof ar, if nut paid in such manner, by Burrower making payment, when-due, directly to the
<br />iasttrattce crvrier,
<br />All insurance p:,ticit=s and renewals thereof shall be in form acceptable tv Lander and shall include a stan~Jard mortgage
<br />~elausr.:: fa -ar - and to ..eprahfe ta, Leutl~t. Lcniler shat! hate ft-ie rgl"i[ io hold the pgiicie~ anal a.ncwal~: th~reaf,
<br />and Harrower shall promptly furnish tv Lender all renewal nvtises and a!I rt;~Pipts of pw:.t pff,.,,iuu,•, In e!u.• Roan: ~,F 4 Q.
<br />Borrower shall glue prompt notice to the insurance carrier and lender. Lender may make proof of lass if trot ntada promotly
<br />by Borrvwer. `
<br />Unless Lender and Borrower atherw•ise egret; in writing, insurance proceeds shall be applied to restoration yr repair of
<br />the Property damaged, pravidcd such restoration yr repair is ecanon»cally feasibtr and the security of this Mortgage is
<br />not thereby impaired. If su.•h restoration ur repair is not economically feasible or if the security of this hfvrigage would
<br />be impaired, the insurance proceeds shall be applied tv the sums sesueed by this Aortgage, with the extesc, [f any', paid
<br />to Burrower. If the Prvgerty is abandoned by Barn,wtr, or if Borrvwer fails tv respond to Lender within 3t} days frvm tits
<br />dots notice is mailed by Lender ut Burrower that the insurance carrier offers tv seals a claim for insurance ttcnefits, l,cndrr
<br />is authorized to collet: and apply the insurance proceeds ut Lenders option either tv restoration ar repair vt the Property
<br />or tv the sums secured by this Dortgage.
<br />Unless Lauder and Borrower otherwise ogres in wining. any such application of pro: reds to principal shin{ n,v extent!
<br />air postpone the dos date of the monthly installments referred to in paragraphs t and '_ heizof or change the amount of
<br />such instul•tntents. it under paragraph l15 hercvt the Prolx:rty is ucyuired by header, all right, title and interest of [turruwer
<br />in and tv any insurance policies call in and to the proceeds there<af resulting frvm dttntage to the Property prior tp the solo
<br />rr acquisition shall lass to Linder to the extant of the runts sscureci f,y this lturtgage immediately prior to sue,h safe oe
<br />acyuisitian.
<br />6. Preservation cad Malatrnance of Property; Letbsehulds; Cnndnminluma; Fleeced Utilt Urvelnpmeattt. Borrvwer
<br />stroll keep the Yrupsrty in good repair ,rod shall nut sarnmit roasts or permit impairment ar deterioration of she Prvpeny
<br />and shall comely with the pravisiaas of any !dead if this Mortgage is sn • leasehold, tf the Mortgage is en a ut:it in a
<br />condominium ~,r a planned unit devtlrspmettt, Borrvwer shall gerfarm all vi Bvrrowr~ s uNigauvns under the de~laeation
<br />or covenants creating ur governing the condominium or planned unit development, the by-laws and regulutivns of the
<br />condominium or planned unit developmem, and constiutent document<. if a condominium yr planned unit development
<br />ridez is execetted by Borrower and reseeded together with this Moortgage, the covenants and agreements of sash rider
<br />shat! be incorporated intro and shall amend and sugpiement the covenams and agreements of this Mortgage us if the rider
<br />were a part hereaf.
<br />T, Prntxctiaa oI I.cndet's SecarHy if Borrower fails to perform the covenants and agreements contained in this
<br />'Mortgage, or if any action or proceer.ing is rnmmenced which materially affects Lender's interest in the Propsny.
<br />including, but not limited to, eminent domain, insolvency, :ode enforcement, or atrangerncnts or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, ilisburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited tv, disbursement of
<br />reasonable attorney's fees and envy upon the Property ko males repairs. If Lender required mortgage insurance as a
<br />evnditlon of making the lean secured by this Mortgage, Barcaaer shat! pay the premiums required tv maintain such
<br />insurance. in eff:;ct until such time as the requirement far such insurance terminates in accordance with Bermwer's and
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