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<br />Utvtr='ox*.r Ca:rvlr~,wty;7.t, Borrower and Lrndier revenant and agree as ft,liows:
<br />l'.. Payment of Pr`rncipai and Interest,. Borrower shall promptly pay when due tine principal of and interest an the
<br />indebtedness evidenced by ?lee Note, prepayrnent and Rage charger as provided in ttte i+ute. and the principal of and interest
<br />an any Future Advaetcas secured by this Mortgage.
<br />~, Funds far Tazes and irss[rrance. 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, unlit the Note is paid in foil,
<br />a sutra (herein "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-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 />rime to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Ttse Funds shall 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 net charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower ineerest on the Fund; 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 he paid to Borrower, and unless such agreement is made or applicable law
<br />requires ;uch interest to be paid, Lender shall not be required to pay Barrower any interest or earnings oo the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and drhit> io the Funds and the
<br />purpose for which each debit to the Funds was made. "Ile Funds are pledged as additional security for [he sutras secured
<br />by 4his Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />[he due tia[es 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 fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments 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 />$orrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is nt,,ded
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in foil of alt sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later that[ immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the trine of application as a credit against the sums secured by this Mortgage.
<br />3. Appfkatioa of Payments. Unless applicable law• provides otherwise, alt payments received by Leader under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph ~ hereof, then to interest payable an the Note, then [o the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />d. Charges; Lkns. Borrower shall pay ail taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payt::ents ar ground rents, if any, in the manor
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender alt 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 shall promptly discharge any lien which has priority over this Mortgage; provided, that 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 aea in a manner acceptable to Lender, or shall 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 or forfeiture of the Property or any part thereof.
<br />5. Har~[•d Insarance. Borrower shall keep the improvements now existing or hereafter erected o ~ 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 shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall ix chosen by Borrower subject to approval by Lender; provided,
<br />that s•.rc;h approval shall nut ~ ttnreasanabty° withheld. All premiums on insurancti policies shall 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 the
<br />insurance carrier.
<br />All insurarsre policies and renewals thereof shah to in form acct:p[abie to Lender and shalt include a standard morgage
<br />CIaL'v:' t"* fab< <s and in f::.,n ~~:'@ptghly rte t~° L4,"'aa.t..r ~ tF - _ - x
<br />.^~ .-, ~n r. _ ~h_Il lsay_ ~ right ttia 1-jld t:`,e policies ,+ ~d rei`:t...r1c eheE~f,
<br />and Borrower shah prompilyjfarnish to Lender ail renewal notices and ail receipts of paid premiums. In the event of loss,
<br />Barrower shat: give prompt notice to the insurance carrier and Lender. Lender mat make proof of lass i( net made promptly
<br />ay Sor_u~er.
<br />Unless Lender and Barrower o?herutse agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not eccmomically feasible or if the security of this Mortgage would
<br />6e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower If the Property is abandoned by Borrower, m it Borrower fails to respand to Lender within 3(J days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized fo collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />err to the sums secured by this Mortgage.
<br />Unless Lender and Barrower otherwise agree in writing. any such application of proceeds to prncipal shat( rata extend
<br />ar pastpune the due da?e of the monthly installments referred to in paragraphs i and '? hereof or change the amount of
<br />such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />ir. and to any insurance policies and in and to the proceeds thereot resulting Irom damage to the Property prior to the sale
<br />o~ acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acyuisitien.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is an a leasehold. If this Mert¢age is on a unit in a
<br />condominium or a planned unit development, Borrower shall perfomt all of Borrower's obhgatians under [he declaration
<br />ar covenants creating or governing the condominium or planned unit development, the by-laws and regulations aE the
<br />condominium or planned unit development, and constiatent dtxuments. if a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall by incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection oI I,endeds Security if Borrower 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 Properq•,
<br />'including, but not Limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, neon 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 Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the lean secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insutanc~ in eh"ect until sash t.mo as the reyui;enceat for such i,~surance terminates ;n arxordance with Borrower's and
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