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<br />iJxt~ot;na CovExnxrs. Borrower and Lender covenant and agree as foloxvs:
<br />H. Payment of Princ3pai and Interest. Borrower shall prampity pay when due tine principal of and interest on tlae
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in The Nate, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for 'flazes 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 on the Property, if any, plus one-twelfth of yeazly premium installments for hazard insurance.
<br />plus one-tu•eifth of yearly premium installments for mortgage insurance, if any. ail 2s reasonably estimated initially 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 3eposits or accounts of which are insured or guaranteed 6y a Federal or
<br />state agency (including Lender if Lender is such an institution). 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 />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of [his
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such imerest to be paid, Lender shall no[ be required to pay Borrower any interest o; earnings on the Funds. Lender
<br />shall give to Harrower, without charge, as annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpo:;e far which each debt[ to the Funds was made. The Funds are pledged as additional security far She sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with (he 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 ro pay said taxes,
<br />assessments, insurance premiums and ground rents as [hey 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 shall pay to Lender any amount necessary to make up the deficiency within 3t3 days from the date notice is mailed
<br />by Lender to Rorrower requesting payment [hereof.
<br />Upon payment in full oi' all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Fw.'s
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is ethervix acgwred by Lender, Lencic~
<br />shall app{y, no ! Ater than immediately pror to the sale of the Property or its acquisition by Lender. env Funds held .--
<br />Lender at the time of application as a credit against the sums secured by this Mortgage
<br />3. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and naragraphs f and ~ hereof shall he anolied by L Winder first in paym€nt of artteunts pa}'abl€ (o L€nder by Borrower
<br />under paragraph 2 hemaf, then to interest payable or. the Note. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and ether 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 no[ paid in such manner, by Borrower -Waking payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Rorrower shall make payment directly, Borrower shat! promptly furnish [o Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Bartower 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 s manner acceptable to Lender, or shall in good faith contest such Tien hy, ar defend enforcement of such lien in,
<br />legal proceedings which operate (v prevent the enforcement of the li€n c+r forfeiture of the Property or any part thereof.
<br />5. Hazard insurance. Borrower shall keep the improvements now existing ar hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "€xtended coverage", and such other hazards as Lender may require
<br />and in such amouns and for such penods as Lender may reyuire; provided, that Louder shall nut require that the amount of
<br />such coverage exceed that amount of cooeragc required to pay the sums secured 6y this Mortgsg€.
<br />'I7te insuranc© carrier providing the insurance shall l~ chosen by Borrower subject to approval by Lender; provided.
<br />that such approval shall War be unreasonably withheld. All premiums on insurance policies shall be paid in ti,e manner
<br />provided under paragraph 2 herrof or, rf not paid in such manner, by Borrower making payment, when due, dirt-qtly to the
<br />ensuranc. carrier.
<br />All insurance policies and renewals thereof chat! L~ in Farm acceptable to Lander and shall irtcltrdt ~ standsrd m[?rtgage
<br />clause in favor of and in term acseprahle to Lenaer. Lender shalt have the right to hold the puli4ies snd rtnewais then€of:
<br />.nd Hama.. . ~l;all promp(lvv furnrsh "" L~i.vt°ar ail re.:ewal not:ee-s and all rece:pts e=f pa d p::.~mum., lr. (tom e. .~ t:f I.~s
<br />Borrower shall give prompt !cutlet to the insurance canter and Lender. Lender may mak€ proof of lass if not made promptly
<br />by Horcawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resturatian ur repair of
<br />the Property damaged, provided such restoration or r€pair is economically feasible and the security of this Mortgage i;
<br />not thereby impaired. if such restoration or repair is not rconomicaily feasible or i[ the security of rhis Martgag€ wautd
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, w:th the excess, if ^ny, paid
<br />tv Borrower. 1t the Propeny is abandoned by Borrower, or if Rorrower fails to respond to fender within 3U days from the
<br />date notice is Wattled by Lender to Borrower that the insurance carrier otl'ers to scale a clans for insurance Ixnefits. Lender
<br />is authorized tv collect and apply the insurance proceeeds at Leader's option e[th€r to r€stora(iou or ropair of ttre Prop€rty
<br />ur io the sums secured by this Mortgage.
<br />Unless Lender and Borruwer otherwise agree m writing, any such application of proceeds to pnne:pat shat[ nut extend
<br />ar postpone the due date of the monthly insudlmcnts referred to in paragraphs i :end 2 h~xeof or chang€ the amount tit
<br />such installments. Il [ender paragraph 18 hereof the Prvp€rty is ucq[[ired by Lender, aq nght, title and interest of Borrower
<br />in and [o any instaanca policies and iu tied to the proceeds thereat resulting tram damage [o the Property pear to the sale
<br />yr acquisition shall psis tv Lender to the extent of the au[Yks secured by this Mortgage linen€diat€iy prior tt+ su€h sale or
<br />acquisition.
<br />6. YrerrervaNon and Maintenance of Property; Leaseholds; Condominiums; Planned l.lnit [hvebpments. Borrower
<br />shall keep the Property in good repair and shall not commit waste yr permit impairm€nt yr deterioration of iha Prvpe,rty
<br />and sh;:31 cvmf:(y svitli ihz pravisians :,f say Ie~.;e if this MorigagF is ..rn :r Ifasehold. if this '«ft=rtgage i. trrt a unit in a
<br />wndvtriiniurm ar a plane€d wait devclvpmeai, Bvrrc~wet slap p€rfvrm a1I u[ B6rtswer`s oliiLtativns (md~r the dne}ar:[uw+n
<br />or covenants creating or governing the cvnduminiurtS or panned unit development, the by-laws and regulations of the
<br />condominium or planned urtit developm€nt, and canstitu€nt do[ umrnts. if a condominium ar planned [mil devetopnrent
<br />rider is executed by Borrower and recorded rogether wish this Mortgage, (he covenants and agreements of such rider
<br />shalt be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />w'erC a par( tfer@Of.
<br />7. Protection of Leader's Security. If Borruwer fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Pn3perty,
<br />including, but not limited ta, eminetrt domain, insolvency, code enforcement, or arrangements ar proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Harrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, taut not limited to, disbu[sement of
<br />reasonable attortrey'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, Harrower shall pay the premiums required [o 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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