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<br />Utvrrotant Covartnra•rs. Borrower and Lender covenant aacl agree is follows:
<br />I. Paymratk of Principal aqd Interest, Borrower shall promptly pay wlten due the principal of and interest an the
<br />indebtedness cvidenc:ed by the Note, 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. Fonds for 'razes and Insgrancc. Subjeet to applicable law or to a written waiver by Lender, Borrower shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, umil 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 yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially -.nd 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 shall not lie required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charg.:, 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 Afortgage.
<br />If the amaunt of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due darts of rtxrs, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said texts,
<br />assessments. insurance premiums and ground rents as they fall due. such excess shall he, 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 30 days from the date notice is mailed
<br />by Lender to Borrower reyucsting payment thereof.
<br />Upon payment m full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fonda
<br />held by Lender. If under paragraph IR hereof the Property is sold or the Property is otherwise acquired by Lendrr, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application us a credit against the sums secured by this Mortgage.
<br />3. Applicatioq of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraph, t and 2 hereof shall be applied by Lender fin[ in payment of amounts payable to Lendrr by Borrower
<br />under paragraph w hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any F ;cure Advances.
<br />A. Charges; Liens. 8orrowrr shall pay all taxes, assessments and other charges, fine: 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 not paid in such manner, bw Borrower making payment, when dun, 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 />Borrower shall make payment directly, Borrower shall promptly furnish to 1-ender receipts evidencing such payments.
<br />Borrower 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 •4e payment of the gb6gation secured by
<br />such lien in a manner aeceptable 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 thrrrof.
<br />5. Hazard Insurance Burrower shall keep the improvements now existing or hereafter erected on the Property 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 for such periods as Lender may require; provided, that Lender sha4 not require that the amaunt of
<br />such coverage exceed that amount of coverage required to pay the sums secured t>y th+s A4ortgagt.
<br />T'Ire insurance carder providing the insurance shaft be chosen by Borrower subject to approval by Lender; provided.
<br />that such approval shall oat be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
<br />provided under paragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when dtte, dfr~tly to the
<br />insurance carrier.
<br />1 ir_uranc°e poliei~ ar,d rerrrwais tr-,eerof ;hail [>r in farm aceeptu:le to Lender and shall ;;[cltrde a skandard marigagc
<br />clause in favor of and in form accegtahlr to Lender, Lrnder shall have the right to hold the perticies and rrnewat= thrrrof.
<br />and Borrower shall promptly furnish to Lrnder alt rertewai notices and all receipts of paid premiums. in the event of lees,
<br />-Borrower shalt give prompt ntztice to the insurance carrier and Lender. Lender may mukr pu~t~f of lars i! not merit prompt[y
<br />by Burrower.
<br />Unless Lendrr and Borrower otherwise agree in writing, insurance proceeds shall br applied to resturatian or repair of
<br />the Property dumagrd, provided such restoration or repair is economically feasible and the ,ecurity of fhts Mortgage rs
<br />nut thereby imparted. If stxrh restoration or repair is not economically feasihle ur tf the ,runty of this hfortgagr would
<br />br impaired, the insurance prtxeeds shall be applied ro the sums secured by this Mortgage. wuh the ex~3esx, if an}°, paid
<br />to Borntwrr. If the Property rs abandoned by Bi+rrower, or if Borrower C;tih to resitrmd to lender within 30 days from the
<br />date notice is mailed by Lender to Borruwrr that the insurancr carrier otters to settle a ctaim for insurance ttenefifs, Lender
<br />is authorized to collect and appl}` the insurance prna'eds ai Lender's option either to restoration or rrpatr of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless !.ender and Borrower othrrwtsr agree m wntinb, any such application of priu:eeds ro pnncrpal shah not cxtrnd
<br />or postpone the dun dart of the monthly installments referred to in parageaphs 1 and 2 hrreot ur change the antuunt of
<br />such iusutllmrnts. If under paragraph lit hereof the Pntprrt} is aequfrrd by Lrnder, till right, title and rntrrrst et Borrowes
<br />in and to tuty ~nsuran;:r policies and tit and to the prurrrds thereof resulting Tram dantagr to the t'ropcrky prior ro the salt
<br />or ac<luisttion shat! pass to Lzttdrr t.+ the extritt of Ehr soots secured h}~ this Mortg3gr immtdiatrty pricer to .ueh .ate or
<br />aayuisition.
<br />ti. Ptvaervatltnk aqd Alaigtrnagce trf Prapr~ty; Le~rcholds; tundomtglugta; Plagncd Unit 1)evelupmcgts. Borrower
<br />slut!! krra rho Property i~ g=_xtd repair and shall not cc*rttnti! wtC c=r ps=rmit httpai_rtttcnt or ttteri~zrt£ti:tt of the Propel':y'
<br />and shall comply wfQt the provissons of any lease tf thi Mortgage is on a Iraeehold. It this Mortgage ib on a unit in a
<br />condomintutu or a plannrel unit developmau, Borrower shalt perform all of Bormwer's obligations under the declaration
<br />ur covenants creating or governing the condominium or planned unit drvrlopment, the bylaws and rrgulatiom of the
<br />condominium or planned unit develupmeut, and corvstintent dt+cugtents, if a c<utdontintunt or plangrd nett drvclopment
<br />rider is executed by Borrower and recorded together wuh this Mortgage. the ew'rnants and agrermrnts of such rider
<br />shall br incorporated into and shall amend and supplcmrnt the covenants and agressttrnts o! Phis Mortgage as it the rider
<br />were a park hereof.
<br />7. PrMection of Lender's Security. If Borrower Calls to perform the crnenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects [-ender's interest in the P*olsen}'.
<br />.including, but not limited to, eminent domain, insolvency, code rnfoecement, or arrangements or prtxredings iovotving a
<br />bankrupt ar decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, cfishurse such
<br />sums and take such action as is necessary ko protect Lender's interest, including, but not limited to, dishursernrnt of
<br />rrasr~nabic attorrtry's ft~es and entry upon the Property to make repairs. If Lrnder required mortgage insurancr as a
<br />condition ot` making the loan secured by this Mortgage, 8orrowrr shall pay the premiums requirod to maintain such
<br />insurance in cff;=t:t until such iiae as the r~:.luiremrnt for snob insuratxc; terminates is accordance with Borrower's and
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