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UritPOttt,a CovaNniars. Borrower and Lender covenant and agree as fe~flaws:
<br />I. Payanenf of Principal and Intsrest. Barr«wer shall promptl}~ pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any suture Advances secured by this Mortgage.
<br />~ 2. )Fonds for ?'saes and Insuraoee. Subject to applica"vle 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 un;ier the Note, until the Note is paid in full,
<br />~' a sum Cnerein "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 one-twelfth of yearly premium installments for mortgage insurance, if any, alt 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 Iteld in an institution the deposits or accounts of which are insured er guaranteed by a Federal or
<br />1 state agency {including Lender ii Lender is such an institution ). i.ender 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 />~ ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fends and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of exe:.ution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, and ualcss such agreement is made or applicable taw
<br />requires ssch interest to be 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 credos and debits to the Funds and the
<br />`purpose for 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 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 tents 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. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay tastes, 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 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no !titer than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the r,'me 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 />Ncte and paragraphs I and ~ hereof shall be applied by Lender first in payment of amounts payable to Lender by Harrower
<br />under paragraph' 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 />•3. Charges; Liens. Borrower shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payr..~nts or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee tiSercof. Borrower shall promptly furnish [o Lender alt 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 dixharge any lien which has priority aver 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 hen 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 to prevent the enforcement of the lien ar forfeiture of the Property c+r any part thereof.
<br />5. Hlazard Insuratrre. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by fire, hazazds included within the term °extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage excud that amount ei coverage required to pay the sums secured by this bfortgage.
<br />insurance earr'i,:r pravidiug the insurance shah be chosen by Horrawer subject to approval by Lender provided,
<br />that such approval shelf not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making payment, when dire, directly to the
<br />inSntanCe carrier,
<br />All insurance ~liciea and renewals thertaf shall t-e in four acceptable to L:ndcr and shall inciu:;e : standard ma :gag::
<br />clause in favor of and in Form acceptable to Lender. Lender shall have dte riIIht to hold the twlicies and renewals thereoL
<br />anti Psorrower sha1C promptly furnish to Lender alt renewal natives and alt receipt, of paid premiums. in the event of lass,
<br />SorTewt:r shalE give prompt police to the insurance carrier and Lender. Lender may make proof of lass i! not made prampil}°
<br />by Borrower.
<br />Unless Lender and Hora,wer nthersvise agree in writing, insurance proceets shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security' of thrs Mortgage is
<br />not thereby impaired. If such restoration or repair is eat economically frisible or if the sact;rty of thts Mortgage would
<br />be impatred, the insurance proceeds shall be applied to the sums secured by this Mortgage, w:th the excess, if any, paid
<br />ro Borrower. It the Property is abandoned by Borrower, or if Borrower fails to respond to Lender with,n 3t) days fmm the
<br />date notice is mailed by Lender to Harrower that the insurance carrier offers to settle a claim for insurance henrrts, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of pr>ti:eeds to prmc+pai shah n,~i extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 3 hereof or change the amount of
<br />such installments. li' under paragraph I8 hereof the Property is acquired by Lender, all right, title and interest of Bormwcr
<br />in grid to any insurance galicios and in and to the proreetis thereof resulting from damage to the Property prier to the sale
<br />or acquisition shall pass to Lender to the extern of the sums secured by this Mortgage intntediately pear to such sale or
<br />acquisition.
<br />6. Pressrvalion and Maiutenantt of Properly; Leaseholds; Condominiums; Planned Unit i;kveWpments. Borrower
<br />shall keep the Property in eood repair ant! shall tie[ commit waste ar permit impairment or deterioration cif the Property
<br />and shat! comply with the provisions of any lease if this h4ortgagc !s on a leasehold. If this Mortgage is on a unit in a
<br />candoitxiriiuni ar a planned unit development, Borrower shalt perform all of Borrower's obligations utidtr the declaration
<br />or covenants creating or governing the condominium ar planned unit development, the bylaws and rcgulatians of the
<br />condominium ar planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement [he covenant< and agreements of [his Mortgage as if the rider
<br />were a part hereof.
<br />7. Pmtsction of Lendsr's Security, If Borrower fails to perform th.: covenaots and agreements contained in this
<br />Mortgage, ar if any action ar proceeuing is commenced which materially affects Lendera interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />brakrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's imerest, including, but not limited to, disbursement of
<br />reasanal±le attorney's f: ^.s and entr upon the Property to make repairs. if Lender required mortgage insurance as a
<br />canditian of making the loan, secured by this Mortgage, Banower shall pay the premiums required to maintain such
<br />irisuranc~ in effect until such time as the requirement far such insurance terminates in accordance with Bortx,wet s and
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