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<br />Urt[FOaNt Covexnti ['s. Borrower need lender covenant end agree as follows:
<br />I. Payment of Prlnclpal aad Interes?. Borrower shall promptly pay when due the principal of and interest on the
<br />inde.ieciness evidensetf by the Natc, prepaymenC and is?e charges as provided in [he Note, and the principal of and interest
<br />on any Future Advances secured by rtes Mongage.
<br />2, tFaads for'<'aaes sml Imurarrce. Subject to applicable law or to a wriuen waiver by Lender, Borrower sPsall pay
<br />to Lender on the day monthly installments of principal and interest are payabte 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 />i+rlortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium ins:al'.,-rents 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 nr guaranteed by a Federal or
<br />state agency (including Lender if Lender s such an institution). Lcnder shat) 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 pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage tltae interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />ushall give to Borrower, without charge, an annual accounting 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 additional security for the sums secured
<br />by this Mortgage.
<br />If the antaunt of the Funds held by Lender. together with the future monthly installments of Funds payabte prior to
<br />the due dates of taxes, assessrents, 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 sha!1 be, a[ 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 eat be 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 the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment m full of all sums Boca;ed by this b;ortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If tinder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, Lender
<br />shall apply, no 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 applicaGOn as a credit against the Burns secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />lento and paragraphs i ana' i hereof shall be applied by Lender first in payment of amounts payable to Lender by BotAnwe[
<br />under pazagraph 2 hereof, then to interest payabte nn the Nate, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Leas. Aorrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments ar 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 thereof. Borrower steal} promptly furnish io Lender all 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 payments.
<br />Barrow•er shall promptly discharge any lien which has priority over this Mortgage; provided, the[ Borrower shall not be
<br />required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien 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 Gen ar forfeiture of the Property ar any pari thereof.
<br />g. Hazard Insurance. Borrower shall keep the improvements now existing ar hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amvunts and for such periods as Lender may require; provided, that Lcnder shall not require that the amount of
<br />such :.average exceed [hat amount of coverage required to pay the sums s~:ured by this Mortgage.
<br />The insurance art•icr providing the insurance shat! be Biter,?Ben 6y Borrawrr subject tc approval by Londe[-; provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid 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 />~inSUraAGe Carrier.
<br />All mEtlranCe nahCICS and rCneWa1S thereat shall be m I'ornY aCCep[abll` LO L@ndcY and shall include a sCandard ntorigalte
<br />clause in favor of and in fora: acce:ptabie to Lender. lender sha(I have the right io hold the pviicies and renewals thereof,
<br />xnd star.-. ' sh prampLl.• ~;h to Lender ..., .enewal notices and all receipts „" p;ii~ premiu.^ts. In rite event of lass,
<br />I3errawer~sha!! give prompt na[iCy to the insurance carrier and Lender. Lender rn~y make prcx;f of loss if not made prt~mpily
<br />by Borrower.
<br />Unless Lender and Borrower otherwke agree in writing, insurance proceeds shall be applied tv restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage i
<br />nut thereby impaired. If such restoration or repair is not ecvnomically feasihle car if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall 6e applied to the sums secured 6}• this hlottgagr. with [he excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle. a claim for insurance benefits. Lender
<br />is authorzed to collect and apply the insurance proceeds at Lender's option either to restoranon or repair of the Ptopertp
<br />or to the suns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of pna:eeds to principal shalt no[ extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 anti 2 hereof or change the amount of
<br />such installments. If under paragraph lg hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in and to any insurance pahcies and in and to the proceeds therert resulting from damage to the Propcrt} prior is [he sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prier to such sate or
<br />acquisition.
<br />6. Prer.,ervstion and Maintenance of Property; Leaseholds, Condominiums; Planned Unit Aeveloprnents. Borrower
<br />shall keep the Property in good repair and shall eat commit waste or permit impairmem or deterioration of the Property
<br />and shall campiy with the provisions of any tease if this Mortgage iS vn a leasehold. IF this Mortgage is on a emit in a
<br />ct*ndominiunt yr a planned unit development Borrower steal! perform a!I of Borrvwer's vbligativns under the dcclaratiar.
<br />or coveuants creating or governing the condominium ar planned unit deveiapment the by-laws and regulations of the
<br />condominium ur planted unit development, and constituent dvrumrnts, (f a cvndominium cr planned [init dev°rlopment
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />steal! 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 Lenders Security. rf Borrower fails to perform the covenants and agreements contained in this
<br />141origage, or 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 enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Burrower, may make such appearances, disburse st[ch
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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