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<br />ilxtaaawt {av>:taAt+'rs. Borrower and Lender covenant and agree as follows;
<br />I„ Payment of Prineipai and Interest. Harrower shall promptly pay when due the principal of astd interest an the
<br />indebtedness evidenced by the Note, prepayment and Sate charges as provided in zhe Note, and the principal of and interest
<br />an any Future Advances secured by this Mortgage.
<br />~. )Foods for Tunes and Iasoraace. Subjec. to applicable law or to a written waiver by Lender, Borrows shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Nete, until the Note is paid in full,
<br />a sum (herein "Funds"} equal to one-twelfth of the yearly taxes and assessmena 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, all as reasonably estimated initially and from
<br />time ra time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an instittrtion 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). Lender shalt 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 nn the Funds and applicable law
<br />permits Lender io make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mottgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to 6e paid, Lender shall not be required to pay Borrower any interest or earnings an the Funds. Lender
<br />shall give w 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 amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the rice 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 FaII due, such excess shall be, at Borrowei s option, either
<br />promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be suffieienf 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 Lendc: to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, 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 «f application as a credit against the sums secured by this Mortgage.
<br />3. Appt.ieatlan of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 3 and 2 hereof shaft 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 />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions aEtributa6le to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments ar ground rents. if any, in the msnner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower ,,^aking payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Harrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any ben which has priority over this MottgaGe: 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 3ien in ;. manner acceptable to Lender, or shall in goad 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 ar any part thereof.
<br />5. Lazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards 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 exceed that amount o2 caveragt [squired to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the irsuranc_ shall be chosen by Borrower subject to approval by Lender. provided.
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in tF° manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />IASttfanCe c'afltet.
<br />All ;^ .rangy palici~i and reneu~ts the_r ;,( shalt bE in forth acceptably to I-and~r and shat} include a standard tttartgage
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right to hold the policies and n;ntwats thereof,
<br />ansi ar~rauvrcr sztai. pruastptly `t.,,btsh to L~rtder ale rtnFwal notices and all r 4eipts of paid prtntiums. Ir. t~ evtn* of lest.
<br />err,-rw'~r short ~;sv~ pruts=Y• ° zsz;: to t3tg ::.sumac;: Tar=tar and f.e [odor. Leader inlay aTake pr.a;~i cat Boss tt not ntad~ promptly
<br />by Harrower. ~"•
<br />Unless !.ender and Borrower otherwise agree in writing, insurance prxeeds shat! be applied to res[aration or repair of
<br />[he Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration ar repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance pra:•etd, steal; be applied [o the sums secured by this Mottgage, w,th the excess, if any, paid
<br />to Borrower. If the propern is abandoned by Borrower, ur i[ Rorrawer fails to respond to Lender withut 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier oflets to settle a claim for insurance benefiu, Lendtr
<br />is authonicd to collect and apply the uuuranct proceeds at L.tnder's option either to restoration or repair of the Property
<br />ar ro the sums secured by this Mortgage.
<br />Unless 1_ender and Harrower otherwise agree in writing, any such application of proceeds to principal shrill nut extend
<br />ar pastpcme the due dace of the monthly installments relerred to in paragraphs I and hereof or ::hangs tlx amount of
<br />such inswllnttnts. if under paragraph !S hereof the Property rs acquired by Lender, all right, title and interest of Hon'ower
<br />in and to any insurauct policies and in and tit the prtneeds thereof rtsutting (rant damage to the Pruptny prior to rite sale
<br />ar acquisition shall pass fo Lender to the extant of the sums secured by this Mortgage inunediatrly pnot tee such salt. ar
<br />acquisition.
<br />6. Prescrvatian and Malattntmce of Properly; Ixuseholds; L'oadominiums; Planned Unit I)evelapmenis. earrower
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a ieastltttld. ii this ivlattgage is vn a unit in a
<br />condominium cr a planned unit devektptrtent, Borrower shall ptrtortn all of Borrower's ohGgauunx under the. declaration
<br />or covenants creating or governing the condominium ar planned unit development, the by-laws and rtgulatians of the
<br />eandominium ar planned unit deveiupluent, and constituent documents. !f a condominium ar planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the revenants and agrttmems of such rider
<br />shall rte 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. Pmfettion of Leader's Security. if Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any' action or proceedi^g is commenced which materially affects Lender's interest in the Propterty,
<br />including, but not limited to, etrtinant domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, than Linder at Lender's oprion, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's mreresL including, but not limited to, disbursement of
<br />reasonable attamey`s fees and entry upon the Property to make repairs. If Linder required mortgage insurance as a
<br />condition of making the loan secured by this Mottgage, 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 whit Borrower's and
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