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<br />UrrtFaxxt Covar:nnTS. Harrower and l,snder covenant and agree as follows:
<br />I. Paymenf of Prtaclpal and Interest. Barrowet' shah promptly pay when due the principal of and interest on the
<br />indebtedness c^videnced by the Notc, 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. Ftmds far Tatter and Ifnsurance. Sub}act to applicable Saw ar to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installmems 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 ever this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium instal{meets for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance. if any, all as reasonably estimated in+_ti..lly and from
<br />time to time 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 or
<br />state agency (including Lender if Lender is such an institution). 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 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 shalt not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without ci,arge, an annual 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 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 :end ground rents, shall exceed the amount reyuired to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bnrrawer's option, either
<br />prnmpBy repaid to $orrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds
<br />held try Lender shall not be sufficient to pay rases, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make op the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower teyuesting payment thereof.
<br />Upon payment ut Full of all sums secured by this Mortgage, Lender she!! promptly refund to Borrower any Funds
<br />held by IAnder. If under garagraph 18 hereof the Property is said or the Property is otherwise aegwred by Lender, Lender
<br />shall apply, nv later than immediately prier to the sale n€ the Property or its acquisition by Lender, any Funds held by
<br />under rat the time of application as a credit against the sums setcured by this Mortgage,
<br />3. Application of Payments. Unless applicable law• provides otherwise, all payments received 6y Lender undo: the
<br />::'ate and paragrahs 1 ~-d ^ hereof s all tsa apptie d by Leader fret in payment of amaunts -yayab4e to Ls;l:ri=r by e- r ...
<br />undee paragraph: 2 hereaC, [hen to interest payable on the Note, then to the principal of the Note, and then to intars~t and
<br />principal on an) L~'untrc Advances.
<br />4. Charges, leans. Borrawer shall pay al! taxes, assessments and other charge, fi:us and impositions astritiutable to
<br />the Praperty wF.ich may attain a priority aver this Mortgage, and leasehold payments or ground rents, if auy, in the manner
<br />provided under paragraph 2 hereof vr, if not paid in such manna-, by Borrower making payment, wheat due, directly to the:
<br />payce thereof. Borrower shall promptly furnish to Lender all nvtices of umaunts due under this paragraph, and in the event
<br />Borrower shalt make payment directly, Borrower shall promptly famish tv Lender receipts evidettrmg such payments.
<br />Borrower shall promptly discharge an}• lien which has priority over this Mortgage; provided, that Borrower shalt not fx
<br />required tv discharge any such lien sv long as Borrower shall agree in writiug '•~ the payment of the obltgatian secured 6y
<br />such lien in a manner acceptable to Lender. or shalt m good faith contest such lien by. ar 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 pan thereof.
<br />5. Hazard Insurance. Harrower shall keep the improvements now existing or hereafter erecttd on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and stkh other hazards as Lender may reyutre
<br />and in rude amounts and for such periods as Lender may require; provided, that Lender shall eat require that the amount i+f
<br />such ,:overage exceed the? amount of cs:verage reyuired to pay the sums s~:ured by this Mortgage.
<br />The insurance carrier provideng the insurance shall fee chosen by Bttrrawnr sub}eat to approval by L~ndgr pmvid+•d,
<br />that such approval shall not he unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />pravided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />IlallydiIIGC l~arFter.
<br />Ali insurance po}ieics aitii renewals the-rent shall t?x in farm accepiabic to Lender and shah inciatde a standard utartgagc
<br />clause ir, laver of and in form acceptable tv Lender. Lender shalt have the right 2.: bald the policies and tstte~•'als ttterevf.
<br />;fed n~.raw€r -+_ _, ptly =_ rnish =o _rndes a'sR renrswal ttati.~s and ail receipts of paid prYn:ium. ;t; t:~ avtttt cf loss,
<br />l~tarra~rer shall Vtsle. ;~rCn,pt ~attr~ tv the~i~ruartc-~ ;arr±~P ;fed i_~rts3er. t_~nd~r mvy make g-r~4caf of ~ ., not rtad~ p-rawptt~,
<br />by Borrower.
<br />finless Lender and Borrower otherwtse agree in writing, insurance pra:eeds shall be applied to restvratian or repair of
<br />the Property damaged, pravided such teswrativn or repair is ecunatnicaily feasible and the security of this 1lortgage is
<br />not thereby impaired. !f such resWration or repair is eat cconomlCally feasible or it the security of this Mortgage would
<br />be unpaired, the insurance proceeds shalt be applied to the sums secured by this Mortgage, with the excess, if an}•, paid
<br />ut Borrower. If the Property is abandoned h}• Borrower, or if Borrower fails ro respond ht Lender within 30 da}•s from the
<br />date native is Irrtiled by I-under to Borrower that the insurance Carrier offers to settle a claim fur insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at I_ander's oguon eulser to restoration or repair of the Prctpere}•
<br />or to the sums secured by this Mortgage.
<br />Unless tender and Borrower otherwise agcec in writing, any such application of proce~ls m prmctpa! shall not extend
<br />or pastpane the due date of the nt.tnthly installments referred to iu paragraphs 1 and ?hereof yr Change the amount of
<br />such installments. !f under paragraph t8 hereof the Property is acquired by Lender, al( right, utle and interc~t of Borrower
<br />in and t:+ any insm•cnct: policies and iu and tv the proceeds ihereol resulting from damage tv the Property pr+.ar tv the sale
<br />nr acquisition shall pass ro 1_ender to the extent of the sutras secured h} this hlortgagc immediately Itrior to such sole or
<br />acquisition.
<br />6. 1'reaen~atioo and Maintenance of Prnprrty; Ixasehalds; Condominiums; Planned Uult Ueveluptnents. ttarrowcr
<br />shall keep the I'rvperty in goad repair and shall not commit waste or 1>rt•mn impairment ur deterioration of the Property
<br />ttnd snail eontpl}• with fire provisions a[ any lease it this Mortgage is an a leasehold. It this Mortgage is an a unit in <[
<br />condominium .r a planned unit devctopment, Barrvwer shall pertixitt al! ttf 6vrrawer's ohl;gatians under the det:laratiolt
<br />or cvvenaats creating ur governing the condominium or planned unit development, the by-laws and regutatians of the
<br />condominium tx planned unit development, and Constituent documents. If a condominium ar planned unit development
<br />rider is executed by Borrower and rezorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated iota and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Ixeder's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any action or proceeding is Commenced 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 />bankr!tpt or decedent, then Lender at Lender's option, upnn notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, inchtding, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. [f Lender reyuired mortgage insurance as a
<br />condition of making the loan secured try this Mortgage, Borrower steal: pay the premiums rcgtured to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Bormwet s and
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