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<br />t.1!~tr•oant Covt:ra~xT:s. $orrower and Lander covenant and agree as fa~lIvws:
<br />t, Payment of Principal and interest. Born°~;awer shall promptly pay when due the prineip~al of and inrcerest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the ;`tote, and the principal of and interest
<br />on any Future .Advances secured by this Mortgage.
<br />2. Funds For Taws and insurance. Subject to applicable taw or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stun (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-twelfth of yearly premium instalments far hazard insurance,
<br />plus one-txveifth of yearly premium installments far 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 br 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). 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 />yr verifying and compiling said assessments and bills, unless Lender pays Borrower interest vas the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at :he time if execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made ar applicaMe law
<br />requires such interest to be paid, Lender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give [o Borrower, without charge, an annual accounting of the Funds showing credits and debits to [he Funds and the
<br />purpose foe which each debit to the Funds was made. The Funds are pledged as additional security fur the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments vE Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and grvurd rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Burrower an 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 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 in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1S hereof the Propcrtc is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no !;ter than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the ume of application as a credit against the sum< secured by this Rlartgagc-
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by 1-ender under the
<br />Note and paragraphs i and 2 hereof shall be applied by Lender first in payment of amounts payabte 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 tv interest and
<br />principal on ary Future Advances.
<br />4. Chargt~s; Liens. Borrower shall pay all taxes, assess.^tents and other charges. fines and impositions attributable to
<br />the Property which may attain a priority aver this Mortgage, and leasehold payments 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 thereof. Borrower shall promptly furnish to Lender all 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 ptnmptly discharge any lien which has priority veer 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 abligativn secured by
<br />such lien in a manner acceptable tv Lender, or shall in good faith contest such lien by, ar defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property it any part thereof.
<br />5. Hazard Laurance. Borrower shall keep the improvements now existing or hereafter erected on the Property irsured
<br />agninstloss by fire, hazards included within the term "extended coverage". and such other hazards as Lender ma}' 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 of cvverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shalt be chosen by Barrawcr subject tv approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. All premiums an insurance policies shalt be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making naymeM, when due, directly to the
<br />insurance carrier.
<br />All itrsurance paiieita sad renewals theeenf -shall be in farm acceptable to L.tndee and shall iaeiiide a stands€.~ mortgage
<br />clause in favor of and in farm arceptahlc to Lender. Lrndcr shall have the right to hold the policies and renewals thereof,
<br />and $arraw,•r shall prernptl~` furnish to Lander alt renewal ttvtirea one alt roceip[s of pant premiums. In the event ai toss,
<br />Borrvwer' shall clue nrampt entire tv the insurance carrier and Lender. Lertder ntav make prvn_f ut Lvss if nut tttade prvntptly
<br />by Burrower.
<br />Unless Lender and Borrvwer otherwise agree in writing, insurancr pr.xceds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is nut economically feasible or if the security of this Mortgage would
<br />t+e impaired, the insurance proceeds shall be applied to the sums secured by this hortgage, with the excess. if any. paid
<br />to Borrower If the Property is abandnned M Borrower, or it Borrower fats to respond to Lender within aft days from the
<br />date notice is mailed by I.endcr u+ Borrvwer that the insurance carrier vtTrn at settle a claim for insurance tu:aeiits, !.ender
<br />is authorized to collect and apply the iusurance proceeds at Lenders option either to restoration or repair of the Property
<br />yr to the sums secured by this Martgage-
<br />I_hiless Linder and Borrower otherwise agree in wasting, any such application of pas+rceds to principal shall not cxrend
<br />or postpone the. due daft of the nuxuhly installments referred to ut paragraphs t and 'herein or change the amount ut
<br />such installments. It under paragraph IS hereof the Yraperty is acquired by Lender all right, tide and interest of Borrower
<br />in and to easy insuntuce ~lirics and in and to the proceeds thereat resulting fri+m damage to the. Property prior to the sale
<br />yr acquisition shall pass to Lander u+ the extent vt the sums secured by this Mortgage unmediatcly prior ti such sale or
<br />arquisitic+a.
<br />6. PreservaUan end Mafntrnancr of PropeAy; Leaseholds; CondomiNunts; Planned Uttit I~vrlopments. Borrower
<br />shall keep the Property in good repair and shall eat commit waste or permit tmpairmt:nt or deterioration of the Property
<br />and shall e~= s;ply with the provisions csf any ler~ it this 4t:trigage is its a leaszhvid. If this Mortgage is on a unit in z:
<br />eontiantinium yr a planned unit development, Borrower shall perform all vE Borrower`s ihhgations under the dcclaratiin
<br />or coveuants creating yr governing the candanunium ar planned unit devrlapmrnt, the. bylaws and regulatiins if the
<br />cundaminium or planned unit development, and constituent documents. lE a cindominium or planned unit ticvetopntrnt
<br />rider is .;xecuted by Borrower and recorded together with this Mortgage, the covenants and agreements ut such ride-r
<br />shall br incorporated into and shall amend and supplenten: the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Leaders Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceed,,ig is commenced which materially affects Lender ~ interest itt the Property,
<br />including, but not limited to, eminent dotnain, insolvency, code enforcement, it arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice ro Barrawcr, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited ta, disbursement of
<br />reasonable attomry'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 Martgagt:, Borrower short pay the premiums required to maintain such
<br />insurance in effect anti( such time as the requirement for such insurance terminates ir. accordance with Bormwer's and
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