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<br />Uxtnoxt~.t Ccvtsxnxrs. Borrower and Lender covenant anti agree its fellows:
<br />I. Payment of Principal and Interest. BorruNer sha77 promptly pay wlaetr due the principal of and itnterest 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. Irnnds for 'f'axes and Insurance. 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, until the Note is paid in foil,
<br />a sun! (herein "Funds") equal to one-twelfth of the yearl}• taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the ProperCf, if any, plus one-twelfth of yearly premium instalments for hazard insurance,
<br />plus one_twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender cn the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall bz held in an institution the deposiu or accounts of whic:r are insured or guaranteed by a Federal or
<br />state agency finciuding Lender if Lander is such an irsrtution). Lender shat' 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 />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permiu 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 oaid 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 annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit Yo 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 due da*.es of taxes, assessments, insurance premiums and ground rents, shag 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 6y Lender shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents as they fall due.
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 daps from the dale notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender ,;' under paragraph lg hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall ;tpply, no icier than immediately prior to the sale of the Property or its acquisition. by Lender, any Funds held by
<br />Leader at the titn~ of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the
<br />Note and paragraphs I and 2 hereoi shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under gazagraph ?hereof, then tc interest payable on the Note. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lieos. Borrower shalt pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, 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 all notices of amounts due under this paragraph, cad 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 lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Froperty or any parr thereof.
<br />S. hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on 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 amourtt of coverage required to pay the sums secured by this Mortgage.
<br />Toe insuranec carrier providing rue insurance shall be chosen by Borrower scbject to approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payr^.ent, when due, directly to the
<br />insurance carrier.
<br />'~,' insurance pn.,Iici°a acd r6-aowal; ther2af shall l-~ in form acceptable to Lender and sun!! includz a standard mortgage
<br />clause in favor of and in form acceptable to Lender Lender shall have the right to hold the policies and renewals thereof,
<br />and Burrower sha'sl promptly furnish to Lender ail renewal notices and all receipts of paid premiums. In the event of loss,
<br />Burrower shah give trrompt notice to the insurance carrier and Lender. Lender may make proof of toss if no[ made promptly
<br />by Borrower.
<br />L`nless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reswrution or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />net thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured h}' this Mortgage, with the exc.:ss, if any, paid
<br />tc Borrower. If the Property is abandoned by Borrower, or il' Borrower fails to respond to Lender within 30 days from the
<br />dale notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either [o restoration or repair of the Aropetty
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of pmce•eds to prtttcipal she!! not extend
<br />or postpone the duo date of the momhly installments referred to in paragraphs t and 2 hereof or change the amount of
<br />such installments. If order paragraph 18 hereof the Property is acquired by Lender. all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />oe acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6, Preservation aml 11-faiattenance of Property; Leaseholds; Condominiums; PEanned Utrit llevelopments. Borrower
<br />shall kelp the Property in good repair and shall not commit waste ur permit impairment er deterieratien of the Property
<br />and shall comaly wish the provisions of any lease if this Mortgage is on a lensehnid. If this Mortgage is on a unit in a
<br />condominium or a planned unit devdopmen[, Borrower shall perform ail of Borrowers obligations under the declaration
<br />or wvenants 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 development
<br />rider is executed by Borrower and 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 />..were a part hereof.
<br />9. Protcetion of Leadtr's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or pruceeuing is commenced which materisit,~ 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 />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and rake such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable aitomty'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 Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance. in offer*. until such time as the requirement far such insurance terminates in accordance with Borrower's and
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