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<br />Y,Ir[Lr+'attmt Cnvarcn~rrs. Borrower and Lender covenant sod agree as fellows:
<br />S. Payment of Pa'incipal and Interest. Borrawver shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. hands €or Tries 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 ender the Note, until tfie Note is paid in full,
<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 rents on the Property, if any, plus one-twelhh of yearly premium installments for hazard insurance,
<br />plus one-tsveifth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender an Lhe basis of assessments and bills and reasonable estimates .hereof.
<br />The Funds shall be held in an institution the deposits or accounu of which are insured or guaranteed by a Federal or
<br />stale agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said [axes, assessments,
<br />insurance premiums and ground mots. 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 on the Funds shat! be paid to Borrower, and unless such agrcement is made or applicable law
<br />requires such interest to be paid, Lender shall oat 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 cr~;dits and debits to the Funds and the
<br />purpose for which each debit w 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 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 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 />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Rorrawer requesting payment thereof.
<br />Upon payment in full of all sums secured by [his Mortgage, Lender shall promptly refund to Borrower any funds
<br />held by Lender. ]f antler paragraph 18 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender
<br />shall apply, n+~ later than immediately prior to fire 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. ApnL;catlon o€ Payment. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and ?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 an any Future Advances.
<br />4. Charges; Lieus, 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 pavments 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. ditecUy to the
<br />payee thereof. Borrower shall promptly furnish to Lender all 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 />Borrawer 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 in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ar any part thereof.
<br />5. Hazard lusurance. Borrower shall keep the improvements now existing or hereafter erected on the Properly 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 fur such periods as Lender may require; provided, that Lender shall not require that the amoum 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 be chosen by Bortowe: subject to approval by Lender; provided,
<br />that such apprava! shalt oat be unreasonably withheld. Alf premiums on insurance policies shall be paid in the manner
<br />preuidec under paragraph Z hereof or, if not pain in such manner, by Borrower making payment, when due, directly to the
<br />tnsttrancc carf3@:'.
<br />Aii insurance policies and renewals thereof shall be in font acceptable to E.endir and shall include a standard mortgage
<br />el_V,~ ;;, favor of and i^ fonts acre tab14 to Lender. Ler,d~r shall iaav • ~ + t•
<br />.. •~ p '- t the right tv held *.he pviictts one. r new'a.s titer~f,
<br />and Borrower shall uromptly furnish to Lander all renewal natl.,°es and aLl receipts sf paid premiums. Ia the ovens €rf lass,
<br />Borrt~xer shall give prompt native to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied :n restoration or repair of
<br />the Property damaged, provided such restoration v: repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible er if the security of this Mortgage would
<br />be 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 ahaudoned by Borrower, ar i[ Borrower foils to respond to Lender within 30 days from the
<br />daft notice is mailed by Lender to Borrower that the insurance carrier alters to settle a claim far insurance benefits, t_endzr
<br />is authorized to caller[ and apply the insurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender :tad Borrower otherwise agree m writing, any such application of pn>ceeds to principal ,hall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and _' Itercof of change the amount of
<br />such installments. If under paragraph IS hereof the Property is acyuircd by Lender, all right, title and interest tit I3arrawcr
<br />in and [a any insurance policies and in and to the proceeds thereat resulting from damage to the Prvptrty prior to the sale
<br />nr acquisition shall pass to Lender [v the extent of the runts secured by this Mortgage immediately prior to such sale ar
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit llevelopments. Harrower
<br />shat. -~xep fl.e °roxrty in svi+it rzgtair and shall not commit waste or permie impairman[ ar deteriaratian of titz Properly
<br />and shall campiy with the ptavisions vf' any lease if [his R9artgagc is an a leasehold. It this Mortgage is a+t a unit in a
<br />condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating ar governing the condominium ar 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 6e incotpnratecl into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
<br />were R part hereof.
<br />7. Protectioh of Lemler's Security. If Borrower fails to perform the covenants tied agreements contained in this
<br />Mortgage, ar if any action or prttcending is commenced which materially affects Lender's interest in the Prapeny.
<br />'including, but not limited to, eminent domain, insolvency, Cade enforcement, or arrangements ar 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 take such action as is necessary to protect Ixnder,: interest, including, but oat 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 Loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />insitranee ir. eei~tt until suds firm as the requirement for such insurance terminates in aeeordanec with Borrower's and
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