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<br />Uxrror~r~r Covev.awas,. Borrower and Linder wvenant and agree as foll'o'ws:
<br />I. Payment of Principal and Interest. :1'tornower shall promptly pay when due th,, prirxcigral of and interest on t}ee;
<br />indebtedness evidenced by 'the Noti, prepayme'n't ;end date charges as provided in the Noti, and the princ!ipad o1' anvil interest
<br />on any Future Advances secured by this Mongage.
<br />2. Funds €or Tazes aad Inatrranee. Subject to applicable }aw or to a written waiver by Leader, BOlTOWer shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, unlit the Note is paid in fold,
<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 rims 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, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and hilts 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 />state agency (including Lender if Lender is such an ins±itution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground reris. Lender may not charge for so holding and applying the Funds, anatyzing said account,
<br />or verifying attd compiling said assessments and bills, unless Louder pays Borrower interest on the Funds 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 be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an amtual accounting of the Funds showing credits and debits to the Funds 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 ?his :vlortgage.
<br />If the amount of the Funds held by Lender, together 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 fall uue, such excess steal! be, ai 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 fail due,
<br />Borrower sha[I pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payn;ent in full of alt sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later thee, immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at [he time of application as a credit against the sums secured by this Mortgage.
<br />3. Applicstion of Payments. Unless applicable law provides otherwise, alt payments received by Lender under [he
<br />Note and oaragraphc t a_nd ?hereof shhall lie 2npliid by 1 ender first in payment of ama!nts payable to Linder by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and tfien to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay ail taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mongage, 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 alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrawer shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, chat Borrower shat! no*. lie
<br />required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien 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. Iitrzard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss 6y fire, hazards included within the term "extended coverage'", and such other hazards as Lender may require
<br />and in such amounts and fee such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coversge exceed that amount of coeerage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providtd,
<br />that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be paid in tlt< manner
<br />provided under paragraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due, directly to ten:
<br />insurance carrier.
<br />A!1 insurance poi"tries and renewals theren+, shall be in t`orm at,.-eptsble to E.erder and shall include a stan;3ard. mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals gl•ertef.
<br />and Bo.. .. r steal! pra^tptly fu dsh ^ L°ndi. a!! ., nev a! es ..^•v all opts t;f °i~ ;,re.^. ^..s. 1.^. ti:v e._.., of It~.s,
<br />$orrower shall clue prompt notice to the insurance carrier and Lender. Lender map make proof of loss if not made promptly
<br />by Borrawer.
<br />Unless Lender and Borrower otherwise 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. Ei such restoration or repair is not economically feasible or if the security of this bortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured Gy this Mortgage, with the excess. if any, paid
<br />to Borrower Ef the Property is abandoned by Borrower, or if Borrower fails to respond to lender within 30 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 to collect and apply the insurance proceeds at Lendei s option either to restoration or repair of the Property
<br />or to the Bunts secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and Z hereof or change the amount or`
<br />such inatallmetigs. If under paragraph I8 hereof the Property is acquired by Linder, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thircof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sole or
<br />acquisition.
<br />6. Preservation and Maintenance o€ Property; Leaseholds; Condominiums; Planned Unit llevelopments. Borrower
<br />shalt keep the Property in good repute and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall corttpty with the provisions of any 1,=asi if £his Mortgage is on a feasahold. If this Mortgage is on a unit in a
<br />condomiuium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit develnpntent
<br />rider is executed by Borrnwir sod recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />wire a part hired€.
<br />7, Protection o€ Leader's Seeue3ty. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is coma ~nced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement. or arrangements or proceedings involving a
<br />btmttrupt or decedent, thin Lender at Lender'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 oT
<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 loan secured by this Mongage, Borrower shall pay the premiums required to maintain such
<br />nsurance in etteet until such time as the requirement t'or such insurance terminates in accordance with Borrvwer's and
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