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<br />I,.INYFaStT.[ E",owEtaarvts. Borrower and Lender covenant and agree as follows:
<br />f, Payment of 1'rlncipat and Interest. Barrawer shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, pcepaymerit and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />3. iP'nnds i`or 'I'aaes 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 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 an 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 />time to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of wfiich are insured or guaranteed by a Fedora! or
<br />state agency f including Lender if Lender is such an institution). bender 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 Horrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrawer 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 agreernent is rnade 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 io Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose far which each debit ro 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 bender, 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 fail due, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Barrawer nn monthly installments of Ft:nds. If the amount of the Funds
<br />held by Lender shall not 6c sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />fiorrawrr shat pay to bender any amount necessary to make up the deficiency within 30 days trom the date notice is mailed
<br />by Lendt;r to Borrower reyuest9ng payment thereof.
<br />Upon payment in full of all sums secured by this Mortgagr, Lender shall promptly refund to Barrawer any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by L.endtr. Lrnder
<br />shell apply, no later than immrdiatrly prior to the sate of the Property or its acquisition by Lender, any Funds held by
<br />Lender ut the time of application as a credit against the gums secured by this Mortgagr.
<br />3. Application of Payment. Unless applicable law provides otherwise, all payments received by Lrnder under !hr
<br />Nate a„d paragra°yhs ! ~-d 2 hereof s„ !! be applied by Lender first in payment of amounts payable to Lend€r by °err:~~::r
<br />under paragraph 2 hereof. then to interest payable on the Nate, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charge=_ Llraw Barrawer she!! pay a}t 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 />providrd under paragraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to [.ender all notices of amounts due under this paragraph, sled is the event
<br />Borrower shall make payment directly, Borrowrr shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower she!! promp8y discharge any lien which has priority over this Mortgage: providrd, 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 securrd 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 />3. Hazard Iruuranee. Borrower shall keep the improvements now existing or hereafter erected on the Froperty insured
<br />against loss by flee, hazards included within the term "extended coverage", and strch other hazards as Lettdrr may require
<br />and in such amounts and for such periods a5 Leader may require; provided, that Lender she!! not requiu that the amount of
<br />sash coverage exceed the[ amount of coverage rNqusred to pay the sums soured by this Mart}tage.
<br />The insurance carrier providing the insurance shall 6e chosen by Borrowrr subject to approval by Lrnder, provided.
<br />that such apprnval shall no[ 6e unreasonably withheld, AFI premiums an insurance policies shall be paid in the manner
<br />pravid€d under paragraph 2 heerczf or, if not paid in such manner, by Borrowrr making payment, when duo, directly to the
<br />In-7i"tE a114G car'flcr,
<br />Ali insurance puliues and rrrn:wals thereat shall lie itt farm r,c eptable to Lender and shat! include a standard incrtgage
<br />clause in favor =?f and in fora ttcceptablr t=_: I,rndrr. Lrnder shall have the right to hold the polii i~ sled rrnrwalt thereof.
<br />and Ltrrr~~wrr sell ;a~~~~[ix furr3i~n t- xrid€r all ern€wik! rrotic~ an d ~!! recEipt? s~f paid grcmi~_a-~s. Ire tti~ +<w~r t~ , ~ .
<br />_ _ _ _Bortow r h:eF_t_ vs c =r t~__ot ;s~~ri~a tz• tl~ ir~r~rai:cc ~rri4r ass d I.zncltr, i_rnds:r rn_:ty e_uakt proof ~,( lcb it nc~t mad~'.nrc?mptly'
<br />by Borrower.
<br />l;niess Lrnder and Borrowrr otherwise agree in writing, insurance prcxecds shall be applied to rraroration ar repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security aF this Portgage as
<br />hat thereby impaired. if stx:h restoration or repair is hat economically feasible or tf the security of this Mortgage would
<br />be impaired, the. insurance proceeds shall be applied to the some secured by this Mortgage, with the exerss, if any, pa[d
<br />to $orrower. [( the Prapertp is ubandaned by Borrower, or iC Borrower Iuiis ro respond to Lender within 3tl days tram the
<br />date native is mailed by Lender to Borrower shut the insurance carrier offers to stole a claim fc=r insurance benefits, Lender
<br />is autltorizecl to collect and apply the insurance proceeds at Lender's option either W resuxation or repair of the Property
<br />or to the stems scoured by this Mortgagr,
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds ui principal shall nut extend
<br />w• postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hrrcuf ur change the amount of
<br />such installments, if under paragraph F8 hereof she Prop:rty is acquired by Lrnder, all right, title and interest of Borrowrr
<br />in and to any insurance policies and itr and to the proceeds thrreot resulting From damage to the Property prior to the sale
<br />ar uetttrisitioti shall pas, to Lrnder to the extent of the sums secured F,v this h1ortgagr immediately pnor t„ Inch sale ar
<br />acquisition.
<br />&. Prearvatiaa and Malntrnance of Praporty; txasehalds; Candaminlutwr; Planned Unit Developments. Iorrower
<br />shall keep the Property in good repair and shall nut commit waste or permit impairment ur deterioration of the Pruprrty
<br />aria shall comply with left pravisiavs of any= lease if ibis Mortgage is uei a lrasrtiold, iF ibis Mortgagr is oa a anti 7r, a
<br />candoniinium nr a plamied unit drvrlapmrnt, Borrower shall perrarm all of Borrnsvrr's uhtigations under the dretaratiun
<br />or covenants creating or governing the condominium or planned unit dcvclopment. the by-laws and regulations of the
<br />condominium nr plumed unit drvelaprnent, and constituent doeumettts~ if a condominium ur planned unit devclopnient
<br />rider is rxrs:uied by Borrowrr and recorded together with this Mortgagr, the covenants and agrerntrnts of such rider
<br />shall be iucorporatrd into and shall amend and supplement the covenants and agreements of this Mortgagr as if the rider
<br />were a part hereof.
<br />7. Pratecttan of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or pracreding is cammrnced which materially afTects L.endrr's interest in the Property,
<br />ihchtding, but nut limited io, eminent domain, insolvency, eerie enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse. such
<br />s•,irns and take such action as is necessary to protect Lenders intrust, including. but not limited to, disbursement of
<br />reasonable attorney's Eees 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, Burrower shall pay the premiums required to maintain sudt
<br />ittsuranoe in eN'ot;i until such time as ti a requirement for such insurance terminates in accordance with Borrower's and
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