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Urrreontt Covartnrt2s. Harrower and Lender covenant and agree as follows:
<br />1. Payment of Psirsclpal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. )Farads lot Taz<a rind Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder on the day monthly installments of principal and interest are payable under the Note, unlit the Nate is paid in full,
<br />~q a stun (herein "Funds") equal io one-fwetfth of the yearly [aces 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 premitmt installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />~ time to time by Lender on Idle basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the depasizs or accounts of which are insured or guaranteed by a Federal or
<br />s vte agency (incieadin$ Lender if Lender is such an irtitutian;. I_endzr 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 />;y or verifying and compiling said assessmenzs and bills, unless Lender pays Borrower interest oo the Funds and applicable lacy
<br />r permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Martga$e that interest on the Funds shall be paid to Bo: rower, and unless such agreement is made or applicable taw
<br />requites such interest to be paid, Lender shall not be required to pa}' 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 [o the Funds and the
<br />purpose for which each debit to We 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 instalments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay sai:~! *axes,
<br />assessments, insurantt premiums and ground rents as the}' fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Horrawer or credited to Harrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shell not be sttHicien[ to pay taxes, assessments, insurance premiums and ground rents as they' fact due,
<br />Borrower shall pay to Lender any amount necessar}• to make up the deficiency within 30 day; from the date notice is mailed
<br />by Ix>Ider to Borrower requesting payment thereof.
<br />Upon payment in full of ail sutras secured by this bitrrigage, Lender shall prompt]}' refund to Borrower arty Funds
<br />held by Leader. If under paragraph IS hereof the Property is sold or the Property rs otherwise acquired 6y Lender, Lender
<br />shall apply, no later War. immediately prig to 6'te sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at We time of application as a credit against We sums secured by this Mortgage.
<br />3. ~Lpplicsdioa of Payments. Unless applicable taw provides otherwise, all payments received by Lender under We
<br />Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />tinder paragraph 2 hereof, then [o interest pa}'a61e on the Note, then to the principal of the Note, and then to interest and
<br />priucipal on any Future Advances.
<br />4. C§$grs; I3ems. Borrower shall pay alt taxes. assessments and tither charges, fines and impositions attributable to
<br />[hc Pmperty which Lnay errata a priority over this 3iottgsge, and leasehold payments o[ ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or. if net paid in cueh manner, b}_ Bo__rrower making payment, when due. directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under Wis paragraph, and in the event
<br />Borrower s.iaU make payment directly, Borrower shall prompt]}' famish to Lander receipts evidencing such payments.
<br />Borrower shall prampdy discharge any tier, which has priority over [his Mortgagor provided, that Borrower shall not be
<br />required to discharge any such lien so long as @orrower shall agree in writing to the payment of the abligatior, secured by
<br />such lien in a tnannec acceptable fo Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal gmceedin$s which operate to prevent the enforcement of the lien ar forfeiture of the Propeny or any part Wereof.
<br />5. Biarnrd Insr~snee. Borrower shall keep the improvements new existing or hereafter erected on the Propeny insured
<br />against lass by fire, hazards included wiWin the term "extended coverage", and such other hazards as Lender may require
<br />aMl m such amounts and far such periods as Lentter may require; provided, that Lender shall no[ require that the amount of
<br />such coverage exceed Wat amount of coverage ree•~i;ed to pay the sums secured by this Mortgage.
<br />The i~ttrance carrier providing the insurance shalt be chosen by Borrower subject Lo approval by Lender, provided,
<br />Wat such approval shall net be unreasonabh' wiWheld. All prentittms oa insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, what due, directly [o the
<br />carrier.
<br />~'• All insurance policies and renewals Wcreof shall !>e in form acceptable to Lender and shall include a standard mortgage
<br />clause in #avor of and in form acceptable io Lender. Lender shall have the right io hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all rettwal notices and all receipts ofr paid premiums. In the event of loss,
<br />Bormtster shall eive prompt notice io the insurance carrier and Lender. Lender may make t„-oaf of lass if nai rude promptly
<br />by Borrower.
<br />Udess Lem'er and Bortowcr oWerwrse agree in writing. insurance proceeds shall be applied to restoration ar repair of
<br />the property damaged., provided such restoration or repair is economical?}' feasible and the security of this Mortgage is
<br />trot thereby impaired. If such restoration or reparr is not ecanomicaliy feasible or if the seturiq• of this Aiortgage would
<br />be unpaved. the irsura~e proceeds shall be applied to the sums secured by this Rortgage, with the excess, if an}', paid
<br />to Bot'rower. Lf the Property' is abandoned 6y B.'umwer, orsf Borrower fauEs to respond to Lender within 30 da}•s from the
<br />date notice is mailed by Lender to Borrower that the insurance carruer often to seine a claim for insurance benefits, Lender
<br />us authorized to col}ecr and agph' the insurance proceeds at Lendei s option either to restoration oc repair of the Propetty
<br />o€ w the sunvs six-ured by this ktortgage.
<br />Unless Leader and Borrower aihenvise agree in writing, any such application of proceeds to princrpai shall not extend
<br />or postpone the due date of the monthly' installmenzs reft;red to in parag[aphs 1 and ?hereof or change the amount of
<br />such instalittttnts. If under paragraph 18 hereof the Property is acquired by Lender, alt right, title and interest cf Barrow•er
<br />in and ro any insurance politic and in and to We proceed: thereof resulting from damage io the Propeny prior to the safe
<br />or acquisutian shall pass to Lender La the extent of the sums secured by this !vortgage immediately prior to such sale or
<br />acgmuvan-
<br />6, Pxarratioa sate 4lar$tenaacc of Property; Leaseholds: Comlamininms; Planned L'a'st Developments. Borrower
<br />shall keep the property is good repay and shall not commit waste or permit impairment ar deterioration of the Property'
<br />attd shall Comply with the pmvisioas of any Rase if this Mortgage is on a leasehold. if this Mortgage is on a unu in a
<br />con~minium or a piaztntd unit development. Bortawer shall perform all of Borrower's obligations under the declaration
<br />or roveaatits treating or ~roverning the condamunitun or planned unit development, the by-laws and regulations of the
<br />candaminitsm ar plantsed unit dc.*i'lop-sent, anti canstitt[znt ~utnents- if a condominium or planned unit development
<br />rider is exettt~d by Borrower and ra:otded together with this Mortgage, [he covenants and agreements of such rider
<br />shalt be incorporated unto and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part heato#.
<br />~. Prolortlea of I,eider's Secs>rHy. if Borrower faits to perform the covenants and agreements contained in this
<br />Mortgage, or if any action ox proceedatg is commenced which materially agecis Lender's interest in the Property.
<br />g> bra ram limited to, eminent domain, insolvency, code enforcement, or azrangemenzs or proceedings mvoiving a
<br />haakrnpt or decedent, rhea Lender at Leader's option, upon notice to Borrower, may make such appearances. disburse such
<br />s.sms and take catch action as is necessary to protect Lender's interest, including, but no[ limited to, disbursement of
<br />tttas~abk attorney's tees utd entry u~-n the Property to make repairs. if Lender required mortgage insurance as a
<br />ipaditioa of making the loan secured by this Mortgage, Harrower shall pay the premiums required to maintain such
<br />insurance in aged until such time as the requirement for such insurance terminates in accordance with Horrowei s and
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