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<br />i)NIFat2M Cav£rrr,ra~-~~s. Borrower and Lsndsr' covenant ~aatd .tgres a;s l'urPo+a~:s:
<br />I. Payment of Pri.nctpai and Interest. Borntwer shalt prom~~,p[1y pay whr:rt due, the princfp:d of and interest on the
<br />indebtedness aviderced by the Note, prepayment and late charges as provided ir. the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fbnds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to i.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in foil.
<br />a sum Cnertin "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 yearly premium installments for hazard insurance,
<br />plus acs-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />Lime to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shah 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 1. fender shall apply the Funds to pay said fazes, assessments,
<br />insurance premiums and ground rents. Leader may not charge for so herding and applying the Funds, analyzing said account,
<br />ar verifying and competing 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 shalt 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 gi+e to Borrower, without charge, an annual accounting of the Funds showing credits and deEits .o 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 fhis Mortgage.
<br />If the amount of the Funds held by lxnder, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and grand rents, shall exceed the amount required [o 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. [f 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 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, I-ender shall promptly refund to Borrower any Funds
<br />held by lender. 1= under paragraph It; hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition 6y Lender, any Funds held by
<br />Lander at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Urless applicable law provides otherwise, all payments received by Lender under the
<br />No4e and paragraphs 1 and Z hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph ?hereof, then to interest payable on the Note, [hen to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay alt taxes, assessments and ether charges, fines and impositions attributable to
<br />the Property which may aetatn a priority over this Mortgage, and leasehold payments 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, directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender ail 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 />Burrower shall promptly discharge any Tien 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 or any part thtreaf.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may requite; 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 />i'n insurance carrier providing the insurance shah be chosen by Borrower subject to approval by Lsndsr. provided.
<br />that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance tarrisr.
<br />All insurance pahCi;~ to=d .€newals the-reef shall be in feint atceptabls to Len:ier and shalt tnCluds a standard mart$ags
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and ronewals thereof.
<br />and Borrower shah prarnptiy furnish to Lsnacr ate renewal notices and nit receipts of paid premiums. in the cvsnt of `suss.
<br />Burrower shall give ;,ramp[ notice to the insurance carrier and Lender. Lsndsr tray make pixel of las3 iF net tirade pr~ttttniy
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat! be applied to restoration or repair of
<br />the Prvperty damaged, provided such restoration or repair is economically feasibis and the security oC this Mortgage is
<br />not thereby unpaired. if srtch restoration or repair is not economically feasible or if the security of this Mortgage would
<br />tae impaired, the insurance proceeds shalt bs applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from the
<br />date notice es mailed b} Lender to Borrower that the insurance carrier otters to settle a claim far insurance benefits, Lender
<br />is authorized co Ce[!ea and apply the insurance proceeds at I-ender's option either to restoration or repair of the Property
<br />or to the sums secursd by this Mortgage.
<br />Unless Lander and Borrower otherwise agree m wasting, any such application at onxstds ro principal shall not trtend
<br />or postpone the due riots of the monthly instalhhents referred to in paragraphs I and _' hereof or change the amount of
<br />such installments. It under paragraph i g hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to an}~ insurance policies and in and to the proceeds thereof resulting from damage Eo the Property prior to the stele
<br />or a<_•quisition shall pass to Lender to the extent of the sums secured by this ~tortgags iuturediatsly prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; l,easrholdx Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall no[ commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the pravisians of any !sass if this Mortgage is on a leasettotd. tf this titartgagc is un a trait in a
<br />condominium or a gfattned unit development, Borrower shall perfor:n ail of Bartawsr's vbirgations under the declaration
<br />or covenants creating or governing the condominium or planned trait development, the by-laws and rogulatinns of the
<br />condominium or planned unit develapmen4 and constiuren[ dtx:uments. t(a cwtdominium or planned unit development
<br />rider is executed by Borrower and retarded together with this Mortgage, the cat~nants and agreements of such rider
<br />shalt be incorporated into and shat! amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7, Protsctson of Lender's Security. if Borrower fails to perform the Covenants and agreements contained m this
<br />Mortgage, or if any action or proceeding is commenced which materially affects L.ender's interest in the Property'.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />Sams and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonable at[omey's fees and entry upon the .Property to make repairs. It 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 offset until such time as the requirement for such insurance terminates in accordance with Borrower's and
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