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<br />LinmcraM CbveHnNTS. Bvrrvwer and .end=,r covenant and agree as °:alic~ws;
<br />I, Pnyuaeat tai Prinelpai and IMerasi, Borrower shall prvmptIy pa,y when due the principal caf aced 'dnte,rest an the
<br />indebtedttess evidenced by the Nole, prepayrnenk and late steal°ges as provided in tPae Nvte, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2, Funds for Tares and Itrsonnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note ~~. paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority aver this
<br />Mortgage, and ground ants an 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 to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be Geld in an institution the deposits or accounts of which are insured ar guaranteed by a Federal or
<br />state agency tincluding 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 />permiu Lender to make such a charge. Borrower and Lender map agree in writing at the time of execution of this
<br />Mortgage that 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 rot be required to pay Borrower any interest or earnings vn the Funds. Lender
<br />shall give to Burrower, 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 war made. 'fhe Funds are pledged as additional security fur the sums secured
<br />by this Mortgage.
<br />If the amount of the Frrnds held by Lender. tvgethcr 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 tall due, such evcess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly mstailments 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 shat! pay to Lender nn} amount necessan to make up the defaces} wuhin 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 b} thts Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by tender. If under paragraph IR hereof the Prvpcrty r. cold or rtes Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior tv the sale of the Propert}' or its acquisition b}' Lender, any Funds held by
<br />Lender at the time of application as a credit agatnst the soma secured b}' thrs Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs ]and 2 hereof shall be applied by l.cnder first in payment of amounts payable to Lender by Borrower
<br />under paragraph ~ hereof, then [o interest payable vn rtes Nate, then tv the principal of the Note, and then to interest and
<br />principal an any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all rases, asessments 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 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 />Rvrrower shall make payment duecUy, Borrower shall promptly furnish to :.ender receipts evidencing such payments.
<br />Borrower shall promptly discharge any' lien which has priority over this Mongage; provided, that Borrower shall net be
<br />required to discharge any such lien sv Ivng a; Borrower shall agree in writing to the payment of the obligation secured by
<br />such lieu in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal graceedings which operate tv prevent the enforcement of the lien yr forfeiture of the Property ur any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing yr hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such gther hazards as Lender map reyuire
<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 coverage required to pa}' the sums secured by this Dortgage.
<br />'The insurance carrier peaviding the insurance shalt be chosen by Aormwer subject ro approval by Lender, provided,
<br />tlrat such approval shall not be unreasonably withheld. All premiums on insurance policies sha[l be paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to 4be
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in farm acceptable ro Lender and shall include a standard rnartgage
<br />clar~se in fever of and is form acceptttb!e Iv Lender. Ixnder steal! have the right to livid than policies and renewal, Iherevf,
<br />and Borrawer shall promptly furnish to Lender ail renewal natives and ail receipts of paid premiums. fn the event of loss,
<br />Bc;aw:<r s„all give prapt n4tite fa the in"surance eaYricr and Lender. Linder may ertake proof of ivsS if n:.*i n3aaie prvmpti}-
<br />by f#orraw~r.
<br />Unless I,craier and Borrower vthersvise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Aroperty damaged, provuied such restoration or repair is economically feasible and the security of this Mortgage i,
<br />net thereby impaired. If such restoration or repair is net economically fcasihie or if the security of this Mortgage would
<br />be tmpaired, the insurance proceeds shall be applied to khe stints secured by this hlertgage, With the excess, if any, paid
<br />to Borrower It the Prvpertp is abandoned by Borrower, or if Borrower fails to respond to Lender wuhin 30 days from the
<br />date notice is mailed by Lender [o Evrrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authvnrxd to called and ctppip the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Rivrtgage.
<br />tJnicss i,ender and $orrower otherwise agree in writing, any such application of proceeds to principal shall net estentl
<br />yr postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. 1f under paragraph t8 hereof the Pmperq~ is acquired by Lender, all right, title and interest of Bvrr}wcr
<br />in and tv anp insurance policies and in and to the proceeds there<~~f resulting from damage to the Property prior tv the sale
<br />or acquisition shall f•ass tv Leader [o the extent of the sums secured by this hlortgagc immediately prior to such sale yr
<br />acquisition.
<br />d. PrtservaHau and Maintenance of Property; Leasehaids; Condamiaiums; Planned Unit I)erelupments. Borrower
<br />shall keep the Property in goad repair and shalt not commit waste ur permit impairment ar deteriarativn of the Property
<br />and shall comply with the provisions of any lease if this Mortguge is ar, a leasehold. If this Mortgage is on a unit in a
<br />c:a}nui+vninitrrn or a pianneel unit development, Bvrrvwer shall perform ail of Bvrrvwer's ottligativns under the dectarativn
<br />nr covenants creating or governing the condominium yr planned unit ds:velvpment, the by-laws and teguiations of the
<br />condominium yr planned unit development, and constituent dcxuments. U a condominium yr planned unit developmenk
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such nder
<br />she!! be incorporated into and shall amend and supplement the revenants and agreements of this Mortgage as if the rider
<br />were a putt hereof.
<br />?. Protection of Lender's Security. IF Borrawer fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commettced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements ar proceedings involving a
<br />bankrupt or decedent, then Lender at Lenter'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 not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Propeny is make repairs. If Lender required mortgage insurance as a
<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 Borrowet's and
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