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<br />'If~rvri:vrttu C`ovnra.a:a~rs. Borrower and Lender ccr/enant and agree as fallrws:
<br />L<. Payment o€ Prlttclpa3 axed Interest. Borrower sllalE pxomfitiy pay when due tine principal of and interest' an the
<br />indebtedness evidenced 6y the Note, prepaytnent 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. Ftmds for Tsaes arsd Iawranee. Subject to applicable law or to a written waiver by Lender, Borrmver shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid ir, full,
<br />a stun (Herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may atiair. priority over this
<br />Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearly premium installments for hazard insurance,
<br />pies one-twelfth of yearly premium installments for mortgage insurance, if any< all as reasonably estimated initially and from
<br />*ime to lime by Lender on the 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 ar
<br />stare agency (including Lender if Lender is such an instituNon). Lender shall 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 />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 vn 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 live io Borrower, wi-,itout charge, an annual accounting of the Funds showing credits and debits to xhe 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 this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />xhe due dates of taxes, assessments, insurance premiums and ground rents, shat! 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 crr_dited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient xo pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from fhe date 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. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no :aeon 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 the sums secured by this Mortgage.
<br />3. .~orslicrxtinn of Paymen3c, Unless appliCahl_e law provides otherwise, alt 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 Borrower
<br />under paragrapH 2 hereof, then to 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. Clanger; Llens. Borrower shall pay all 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, iT not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promir@y furnish to Lender a!I eonces 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 tfiis Mortgage; provided, that Borrower shall not be
<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 goad 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. Ha2ard Insurance. Burrower sha31 keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and such ether 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 />T'he insurance carrier providing the insurance shat be chosen by Borrower subject to approver by Lender; provided.
<br />that such approval shall net be unreasonably witldreld. All premiums an insurance policies shall be paid in ,lee manner
<br />provided under paragrapH "s hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />- - in5nfan_s L'arrIel.
<br />A1I insurance policies and renewals thereof shall be in farm acceprabtc ro Lender and shall include a standard mortgage
<br />clause in favor of a^d in farm acceptable tv Lender. Le..^.der shall have the right to hold ±he p=olicies and Iwnawals thereof.
<br />- _ and Borrower shall promptl r furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Lass,
<br />Borrower shall give prompt notice €o the insurance carrier and Lender. Lender may make proof of loss if not made prampdy
<br />by Borrower.
<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 of repair is economically feasible and the security of this Aortgage i.
<br />not thereby impaired. If stech 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 retuned by this Mortgage, with the excess, if any, geld
<br />to Borrower. if Cho Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days tram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authori7rd tv collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property
<br />or to the sums secured Hy this Mortgage.
<br />Unless i.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the rile date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by I-ender, art 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 prier to the sale
<br />yr acquisition shall pass to Lender io the extent of the sums secured fly this Ivfortgage irnmediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Burrower
<br />shall ~p iH4 Property in goad repair and shall not eammit west:: cr permit impairment yr detet~.orativn of the Property
<br />and shall comply with the provisions of any lease if tHis hfartgnge is inn a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned tUtit development, Borrower shall perform a!1 of Borrower's obligations under the declaration
<br />or covenants creating yr governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and consdeuent documents. If a condominium or planned trait developntem
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />-shall Ise incarparated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />_ were a part hereof.
<br />7. Pmteetion of Leader's Secarfiy. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action. ur pracer,dIng is commenced which materially affects Lender's interest in the Property.
<br />including, but noL limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then 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 te, 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 loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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