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<br />Utv[r~r#tera ~CovsN,tr+i•s. Borrower and Leatdtr covenant and agree as follows:
<br />H. Paynvtnt of Principal 'and Fntertst. Burrower shall promptly pay when due lire principal of and interest on the
<br />indebtedness evidenced try the Note, prepayment and late charges as pravidea in the Note, an3 the prncipai of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Texts and Insnrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on [he day monthly in::..itiments 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 texts 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, ii any, all as reasonably estimated initially and from
<br />time to time by Lender on Ste basis of assessments and bills and reasonable estimates thereof.
<br />The Funds sha71 be 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 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 />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 that interest on the Funds shall be paid to Burrower, and unless such agreemen# is made or applicable taw
<br />requites such interest to 6t paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shaft 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 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 Dremiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, inswance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
<br />promptiy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shalt not be stafl3cient to pay taxis, 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 3i) days from the dart halite is mailed
<br />by Linder to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shad promptly refund to Borrower any Funds
<br />held by t.tnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no Loer than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the timt• of application as a credo against the sums secured by this hortgage.
<br />3, Applicatiaa of Prtyments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and thin to interest and
<br />principal on any Future Advances.
<br />a. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and imp+~sitions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if ar.}•, in the manner
<br />provided trader 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 Linder alt notices of amounts mat under this paragraph, and in the event
<br />Borrower shall make paymem directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrowee shall promptly discharge any lien which has priority over this Mortgage: provided. [hat 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 lien in a manner acceptable to Lender, or shalt in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part ihareaf.
<br />5. Aezard Insurance. Borrower shall kelp 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 amounts and for such periods as Lender may require: provided, that Lender shalt not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />foe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lena'tr; pravi$td,
<br />that such appravat shall not tae uareasanably withheld. All premiums on insurance policies shalt be paid in ttre manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due. dirtc+i}• to the
<br />insu#~nct car#ier.
<br />ell insurarce ~ li4i~ at,d renewals thereof shall bs in farm aceeptabli to Lends=r and steal! inelcrdt a stantlard ;nurtgafyt
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies ;utd renewals theceaf,
<br />and 1sorrawer shad promptiy furnish #a Lender alt renewal notices and alt receipts of paid premiums. in the event of lass,
<br />Bar; ever shall E;;ve prompt nc~#icr to the insurance carrier and i.ender. Ltndrr m:+v make pn~of of lass if no# made prompti}°
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasibir and the security of [his Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />br impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if sn}', paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Leader widtin 30 da}'s from the
<br />date notice is malted by Lender to Borrower that the iruurance carrier otters to settle a claim fur insuranet benefits, Lender
<br />is autttoriud to collect and apply the insurance proceeds at Lender's option tither to restoration or repair of the Properly
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise egret m writing, any such application of prt~trdc to prmccpat shall not extend
<br />or postpone the due date of the monthly installments referred u, in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acyuned by Lrndtr, alt nght, tide and interest of Ilcirmwer
<br />in and #o any insuranet politics and in and to the proceeds thereo[ resulting from damage [o the P-roptrty pricer ip the 5aie
<br />or acetuisiuan shalt pass to Lender to the extent of the sums secured by th6 Mortgage` istuntdiatrly prior to such sale or
<br />ncquisitian.
<br />b. Preservation end tllaintenanre of Property; I.easrholdst Condominiums; Planned Unit 1hvelopments, Borrawrr
<br />shall kelp the Property in good repair and shall not commit waste or ptrmt[ irnpuirrntnt ur dtttriaration of ihr Property
<br />and shalt c;otnpty with the provisions of any Rase it this Mortgage is uct a leasehold. If this Mortgage is on a unit in a
<br />condominium or :t planned unit development, Borrower -shall perform all of Borrower's obligations under the dtshtration
<br />or covenants cmating or governing the condominium or planned unit drvelapmtnt, the byInws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condaminiunt or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the wvenants and agreements of such rider
<br />shall 6e incorporated into and shall amend and supplement the covenants and agreements of thu Mortgage as rf the rider
<br />-wire a part hereof.
<br />9, Pr[rtectlon of Le~et's Security. If Burrower fails to perform the covenants and agreements contained in this
<br />Mortgage, 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, ar arrangements or proceedings involving a
<br />battkrupt or decedent, thin Lrndtr ar Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is uecessary to protect Lenders interest. including, but oat limited ta, disbursement of
<br />reasonable attorney $ fits and entry upon the Property to make repairs. If Lender requited mortgage insurance as a
<br />condition of making the lean secured by thus Mortgage, Barrawer 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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