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Urrt>;oaat Coveanrrrs. Borrower and Lender covenant and agree as follows:
<br />1. Payvient of Principal and interest. Boerower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by [he Note, prepayment and late charges as provided in the Nofe, and the principal of and interest
<br />~ on any Future Advances secured by this Mortgage.
<br />Z. Yfinds for Tares a~ Irisuraace. Subject W applicable law ar to a written waiver by Lender, Harrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Noie is paid in full,
<br />a stun (harem "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-iwelfth of yearly premium installments for hazard insurance,
<br />plus one-iwelfth of yearly premium instatlmeMs for mortgage insurance, if any, alt as reasonably estimated ioitiaily and from
<br />tirne to lime by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />'Rte Funds shall be held in an institution the deposits or accounts rf which are insured or guaranteed by a Federal or
<br />~, ~Yate agency iincluding L ender if Lender is such an institution). I~nder shall apply the Funds to pa}' said takes, assessments,
<br />~_ insurance premiums and ground rents. Lender may not chsrge for so holding and applying the Funds, analyzing said account.
<br />or verifying and compiling said asse_ECments and bills, unless Lender pays Borrower interest on [he Funds and applicable law
<br />permits Leader to make such a charge. Harrower and Lender may agree in writing ai the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless sucF. agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be requite! to pay Borrower any interest nr earnings on the Funds. Lender
<br />shall 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 io 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 dtte dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />asessatents, insurance premiums and ground rents as they fall due, such excess shalt be, at Borower's option, either
<br />promptly repaid to Borrower or credited to $orrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be strt6cieat to pay taxes, assessments, insurance premiums and ground rents as they fa71 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 Leger to Borrower requesting payment thereaf.
<br />Upon payment is full of all sums secured by this Mar*.gage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereaf the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against [he sums secured by this ivtortgage.
<br />3. .application of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrawu
<br />udder paragraph 2 hereof, ther, to interest pa}'abie on the Note, then to the principal of the Note, and then to interest and
<br />gtircipat on any Future Advance:.
<br />4. ChSUgrs; I3eas. Borrower shall pay all tares, assessments and other charges, fines and impasitians attributable to
<br />the Property which tnay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Barrower making payment, when due, directly to the
<br />payce thereof. Barrower shall promptly furnish to Lander ail 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 shah prampdy discharge any lien which has priority ever this Mortgage; provided, that Borrower shalt not be
<br />tequezed to discharge any such Tien so Jong as Borrower shall agree in w; iting to the payment of the o63igation secured by
<br />such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the entorcement of tlse lien or forfeiture of the Property' or any part [hereof.
<br />3. Hasard iasntanee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the team "extended [average", and such other hazards az Lender may require
<br />and is such amounts and for such periods as Lender may require: provided, that Lender shall not require that iha amount at
<br />such wverage exceed that amount of coverage required to pay the sums secured by this Atottgage.
<br />'Rte itutrtance comer provh3ing the itutuance shall be chosen by Borrower subject to approval by Lender, provided,
<br />chat su.h appmrat shall not be unreasonably wiihiteld. All premiums on insurance policies shall be paid in the manner
<br />provided uatkr paragraph 2 hereaf or, if not paid in such manrxr, by Borrower making payment. whw due. directly to the
<br />insurance carrier.
<br />AB insurance policies and renewals thereof shall 1>r in form acceptable to Lender and shalt includz a standard mortgage
<br />clause in favor of and n firm acceptable to Lender. Lender shad have the right to hold the policies and renewals thereaf.
<br />and 8orrewrer shall promptly ftunish to Lender all renewal notices and all receipts of paid premiums. In the even of lass.
<br />Sarra'wer shall eve lr ,rnpi tiatice to the insurance carrier and Lender. Loader may make proof of less if rat mad>_ promptly
<br />by Borrawu.
<br />Ualesa Lender and Borrower otherwise agree in writing, insurance prxeeds shall 6e app?led to restoration or repair of
<br />the Property damaged, provided su.:h restoration or repair is economically feasible and the sectrity of this Mortgage is
<br />not thereby impaired. If such restoration ar repair s not ecanemicalfy feasible ar if the securiq' of this Mortgage would
<br />be impaired, the insurance proceeds shat be applied to the sums secured by thrs Mortgage, with the excess, if any, paid
<br />to Borrawu. If tbe Property i abandoned by Borrawu, or if Borrower fails to respond to Lender within 30 day's from the
<br />dace notice is mailed by Lender fo Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is autlrorized to collect and apply tbe insurance proceeds ai Lender's option either to restoration or repair of the Property'
<br />er to the sums secured by this Mortgage.
<br />Unless Linder and Borrower otherwise agree in u-ruing, any such application of proceeds to principal shall not extend
<br />ar postpone tl~ due daze of the monthly instalimenis referred to in paragraphs i and .hereaf or change the amount of
<br />such instaHnxnts. If under paragraph 1~ hereaf the Property is acquired by Lender, all right, title and interest of Borrower
<br />is and to any iastirance policies and in and to the proceeds thereof resulting from damage to the Propery prior to the sake
<br />ar acquisidoa shall pass to Landes to the extent of the sums secured h} this Rortgage immediately' prior to such sale or
<br />acquisition.
<br />6. Praservatiau ae~ 33aiateaaacc of PropeYC}; Leaselsottis; Caadomininms, Plarea~d Unit Dereiopmcnts Borrower
<br />shall kap the Property in good repair and shall not commit wazte ar permit impairment or deterioration of the Properiy
<br />a~ shall [amply uith the provisions of any loose if this Martgaga is on a lessehaid. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or gmraing the coodamiaium or planned unit development, the by-laws and regulations of the
<br />candaminitmi or planned utdt development, and constituent documents. If a condominium or planned unit development
<br />ridu is eaocuied by Borrovrer and recorded together with ibis Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement rho covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7, Psotectloa of I.eader§ 5ecarity. If Barrower folk to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially arlects Lendei s interest in the Propem~,
<br />inchuling, but riot limited to, emi>mnt domain, insolvency', code enforcement, or arrangements or proceedings invotving a
<br />bankrupt or doceddrt, ihon Lendu at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />satins and take Stich action az is necusary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasonably attorney's foes and entry upn+i [he Property to 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 tmtil lurch time as the requirement for such insurance terminates in accordance with Borrowers and
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