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UNrnoamt COVENANTS. Borrower and Lender covenant and agree as tollows:
<br />1. Payment of Principal and Inkerest. Barrower 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 Mordgage.
<br />2. Funds for Tara and Iasursnce. Subject to applicable taw 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 Vote is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents ov the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for martgage insurance, if any. all as reasonably estimated initially and from
<br />time to time by Lander on ?he basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />a sate agency {including Lender if Lender is such an institutian). Lender shalt apply the Funds to pay said taxes, assessments,
<br />Q 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 assessmems and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />1 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 Fords shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall nM be required to pay Barrower 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 to the Fund. 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 du dates of taxes, assessments, insurance premiums and ground rents, shad exceed the amount requited to pay said taxes,
<br />assessments, insurance pretuitrms and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. 1f the amount of the Funds
<br />held by Leader shall no[ be sufficient to pay taxes, assessments, insurance premiums ^.nd 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 Leader to Borrower requesting payment thereof.
<br />Upon payment is full of all sums secured by this Mortgage. Lender shah promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph I S hereot the Property is sold ar the Property is otherwise acquired by Lender, Lender
<br />choir wily, na later than immediately' prior to the sale of the Property or its acquisitirn by Lender, an}' Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Appliefdloo of Payments Unless applicable law pravides otherwise, alt payments received by Lander under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender firs[ in payment of amounts payable to Lender by Borrawer
<br />under paragraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />priatipat on any Future Advances.
<br />4. Chalets, Bens Borrower shall pay ail taxes. assessments and ether charges, fines and impositions attributable to
<br />the property which may attain a priority over this Martgage, and leasehold pa}'menis or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Barrower making paytnent, when due, directly to the
<br />payer thereof. Borrower shall promptly €-umish to Lender atI notices of amounu due under this pazagraph, and in Lhe event
<br />Borrower shall matte pavment directly. Borrower shag promptly furnish to Lender receipts evidencing such payments.
<br />Borrowez shall promptly dischazge env lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />[squired to discharge any such Hen sa long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner a~ptabte to Lender, or shall in good faith contest such lien by, or defend enfarcement at such Lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part thereof.
<br />5. Sazatd Iaseance. Borrower shall keep the improvements now existing o: hereafter erected nn the Property insured
<br />against loss by lira harar'ds included within the term "extended coverage', and such other hazards as Lender may require
<br />and in stub amounts and for such periods as Lander may require; provided, that Lender shall oat require that the amount of
<br />such coverage exceed that amount of coverage req~•~red To pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval oy Lender, provided,
<br />thu such approval shall not be unreasonabl}' w~thheid_ All premiums on insurance gohcies shall be paid in the manner
<br />provided trier paragrtrplt 2 hereof or, if not paid in such manner, by Borrower making payment, when dve, directly to the
<br />ivsnrarct carrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard martgage
<br />cause in favor of and ir. form acceptable to Lender. Lender shall have the right to held the policies and renewals thereaf,
<br />and Borrower shall promptly furnish to Lender all renewal noti.~s and ail receipts of paid premiums. In the event of lass,
<br />Barrowea shall give prompt notice to the insurance carrier and Lender. Lender may make praaf of loss if na[ made pramptiy
<br />by Boxrivwer.
<br />Unless Lender and Barrower tuhirw'ise agree in writing, insurance proceeds shall be applied to restoration or repair ai
<br />The Property damaged, provided such restoration or repair is ecanamically feasible and the stcurin' oI this biartgage rs
<br />not thereby impaired. If stxh restoration or repair is not ecanomicatlr feasible or if tbe security of this biettgage wauld
<br />be impairtd, the insurance proceeds shall be applied ie [he sums secured by [his Mortgage, with the excess, if any, paid
<br />To Borrower. If the Prapem• s abandaned by Borrower, ar ii Barrowe_ falls to respond to Lender within 30 des}s from the
<br />date aeries is mailed by Linder to Borrawet that iht insurance ;tamer otTers to settle a claim for insurance benefits, Lender
<br />u attthorimd to colltet and apply the insurance proceeds a[ Ltndei s aption tidier to restoration or repair of the Property
<br />or so tlx sums sectu~ by thss lsRortgage.
<br />Unkxs Leadt: and Borrower otherwise agrtt in writing, any such application of praceeds to principal shalt rot extend
<br />tx pmtpom the dtu dart of thx monthly installments sefer[td to in paragraphs I and ?hereof or change the amount of
<br />stub installments. if under paragraph is hertaf the Proptm' is acquired 6} Linder, all right, title and in?erect of Borrower
<br />is amt To any iasuratt;.e poticzes and in and to the proceeds thereof resulting from damage to the Property prior to the salt
<br />or acquisition shalt pass to Leader to the exttn[ of the soots secured h} this ~longage immediately prior to such sale or
<br />atx;utsirron.
<br />4. Preatrvatioa :nd 14fsicc of Property; I,easehott~: Condominiums: Planned Unit Bes~elopmen?s. Barrower
<br />shall krsp the Property is good repair and shall not commit waste or permit impairment or deteraration of the Property
<br />and shall comply with the provisions of env least it this Mortgage is on a leasehold. If this Alortgage is an a unit in a
<br />condominium or a planned trait deve}opitrtnt, Borrawer shall perform all of Borrawer's abligatiens under the declaratipn
<br />or emtoan~ creasing or gcvetrtiag the condominium or planned unit development, tht by-laws and regulations of the
<br />condomiaittm or pianntd unit devektrptntnt, and cansiittrtnt doctrmen;s. If a condaminium ar planned uni? devetapmtm
<br />rider is etcec;ned by Borrower and te~rorded together wrtls this Mortgage, the covenants and agreements of such rider
<br />shall he ia~rporrOtd late and shall amend arrd supplement the covenants and agreements of this Mortgage as if the rider
<br />went a part het+eof.
<br />7. PtaPoefiea at I.esdsr's Seersity. If Borrower #ails To perfarm the covenants and agreements contained in this
<br />MOrt,Ea$G, m' iY app anion or ptnexding is commenced which materially affects Lender's interest in the PropetyS,
<br />ineltaling, but rim Hmtted To, tntitrcttt domain, ittsoivevcy, code enforcement, or arrangements or proceedings involving a
<br />burkrapt or des;edeat, then Lendu at Leader's x~ption, upon notice w Barrower, may make such appearances, disburse such
<br />sums asd take such action as is necessary to prated Lenders interest, including, but oat limited to, disbursement of
<br />reit~able attorney's ftts and entry ups-- the Property to make repairs. if Lender required mortgage insurance as a
<br />txatlition of making the Loan secured by This Mcrtgag0. Borrower shall pay the premiums required to maintain such
<br />iastrcatice in eSts's tmtil stub time as tbe requittment for such insurance terminates in accordance with Borrower's and
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