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<br />I.1NIFareM t%ov~NMN-rs. Ban'Crwer and Lender covenariC and agreL' a5 ta110W'E:
<br />L Payment of il''rincipal and Interest. Barrawe:v shall promptly pay when d:re the principaY of and int~=eat on the
<br />iadebtedness evidenced by zhe Nate, prepayment and fate charges as provided in the Noze, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes amt Irrsaxanee» Subject 20 applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Ler.3er on the day monthly installments of principal and interest aze payable under the Note, until the Note is paid in full,
<br />a sum (herein "Fends") 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 at yearly premium installments for hvzrd insurance.
<br />plus oar-twelfth of yearly premium installments for mortgage insurance, if any, 311 as reasonably estimated initially and from
<br />time io time sy Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency tincluding Lender if Lender is such an institutiont. I-ender shall apply the Funds to pay said [axes, assessments,
<br />insurance premiums and ground rents. Lender may not charge far so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest an the Funds and applicable law
<br />petrrtits Under to make such a charge. Barrower and Lender may agree in writing at the time of execution of this
<br />Mortgage chat 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 />,shall 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 art; pledged as additional sec+!ntv 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, c~thtr
<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 taxes, assessments, insurance premiums and ground rests 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 Borrawer requesting payment thereof.
<br />Upon payment in fuA of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shalt 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 application as a credit against the sums secured by this Mortgage.
<br />3. Fipplieation of Payments. Unless applicable law provides otherwise, all payments received by Lendtr under the
<br />Naiie arsd paragraphs i and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then [o 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; Llerss. Borrower 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 or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to rho
<br />payee thereof. Borrower shall promptly furnish to Lender aEl 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 pnarity over this Mortgage; provided, that Borrower shall net 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 lien in a manner acceptable to Lender, or shall in gaud 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 or any part thereof.
<br />5. Hazard Insurance. Borrawer 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 such other hazards as Lender may require
<br />and in such amounu and for such periods as 1_ender may require; provided, that Lender shall not require that the amaunt of
<br />-such coverage exceed that amount of coverage required to pap the sums secured by this Mortgage.
<br />`I1te insurance carrier prnriding the insurance she!! bt chosen by Barrower subject zo approval by Lender; provided,
<br />.that such approval shall net be unreasonably wzthhtld. Alt premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the
<br />insuratce carrier.
<br />Ail insuran,:t palicits and renewals thereof shat! b4 in form acceptable to Lertdtr and shall include a standard mortgage
<br />clause in favor of and in forr.e acceptable to Ixnder, f.endcr shall have the right to held the policies and rtnewais therei,f,
<br />arsd Borrower s'.^.al; pran:utl}~ :orals:^. to Laa::tr aI r;.newal anti Gs an:3 al[ re~tipts :;f p<id pr~,;;ium~ : flit ti<at °` ;>s=,
<br />Rorra;ver sltalt give prantpt ^atiiz to the inatrrar ~ oar, ter sad Ltincter. Leadt3r may make praaf of lass it net m3dt pramptl:`
<br />by Borrawer.
<br />Unless i.ender and Borrower otherwtse agree in wrung, insurance proceeds shall be applied to restoration ar repair of
<br />the Property damaged, provided such restoration er repatr is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration ar repair is not ~:onomicatl} feasible or if the secuntp of this Mortgage would
<br />be impaired, the insurance prtxeeds shall be applied to the sums ser.ured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned b} Barrower, or if Borrawer fails to respond to Lender within 30 da}s from the
<br />date notice is mailed by Lender to Burrower that the insurance carrier otfen w senlt a claim for insurance txnefits, Ltnder
<br />is authorized to collect and apply the insurance proceeds at !.cadet's option either to rptoration ar repair of the Property
<br />or to the sums securet+ by this Mortgage.
<br />Unless !.fader and Borrower otherwise agree m writing, any such application of pa,cceds to nnncipal shall not extend
<br />ar postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hcreaf ar change the amount of
<br />such installments. It under paragraph lg hereof the Property is acqutred by Lender, all right, title and interest of Borrawer
<br />in and tv env insurance pokicits and in and !a the prOCex:ds thereof resul!ing tram damage: to the Property prior to the salt
<br />or acquisition shall pass to Lendtr to the extent of the sums secured by this hturtgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation sad Maintenance of Property; Lesscholds; Condominiums; Planned Unit lyevetopmeots. Barrower
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and sirali comply with [he previsions of any lease if flits Martgage is an a Ieasthald. if this Mortgage is on x unit in a
<br />condominium ar a planned unit development, Borrawer shall perfornr all of Borrower's abligatians under the dectaratiart
<br />or covenants creating at governing the condominium or planned unit development, the by-taws and regulations of the
<br />condominium or planned unit dove}opment, and cansutuent doeumems. It a condominium nr planned unit development
<br />rider is executed by Barrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and sha-1 amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Pmtectloo of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />..Mortgage, or if any action or proceeding is commenced which materisliy affects Lender's interest in the Propeny,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh'ing a
<br />bankrupt or decedent, then Lender at L.ender'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 interest, including, but net limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as s
<br />condition of making the loan secured by this Mortgage, Borrower 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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