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~5~- riXf=+-''- X15
<br />Ltvtrotent Covt>4±vTS. Borrower and Ixndw covenant artd agr« as follows:
<br />1. Payment of Priwcfprd std Irsterest. Borrower shall prompth ~y when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment artd late charges as providod in the Note, and the principal of attd interest
<br />on any Future Advances secured by this Mortgage.
<br />2. FuodS for Ttnta trtn! laaart'aee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day rtwtrthly irstallments of principal wd interest are payable under the Note, until [he Nate is paid in full,
<br />a stem (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 instrrance,
<br />plus one-twelfth of yearly premium installments for mortga~ insunttce. if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and hills and reasunabte estimates thereof.
<br />The Funds shall he field in an institution the deposiu or accounts of which are insured or gttaraateed ItY a Federal or
<br />state agency (including Linder if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessmenzs,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said aceonnt,
<br />_ __ t)r vtnfying and compiling said assessments and hills, unless Lender pays Borrower interest on [he Ftmds and applicable law -
<br />permits Lender to makt such a charge. Borrower and Lender may agirx in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt be paid to Borrower, and unless such agrcement is made or applicable law
<br />reouires ctrCh ;nrerest ro h...~id, l.~nder she?! net ~ required tv pay Bcrcc~er a-y intermit of ea w.'ngs tin the Fu:.ds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits fo 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 serarred
<br />by this Mortgage.
<br />if the amcvn: 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 and ground rents, shall exceed [he amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be. at Borcawer's option, either
<br />pranptly repaid to Borrower or credited to Borrower on monthly instailrrtents of Funds. If the amount of the Funds
<br />hdd by Lender shall not he sufficient to pay taxes, assessmenzs, insurance premiums and ground rents as they fail due,
<br />Borcowec shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower regtresting payment thereof.
<br />L'pon payment in full of al) sums secured 6y this Mortgage. [,ender shall promptly refund to Borrower any Funds
<br />he}d by Lender. If under paragraph 18 hereof the Property is sold or the Prupeny is otherwise acgmred ny Lender Lender
<br />shall apply, no later than itnmediatelV prior to the sale of the Property or its acquisition by Lender, any Funds held ty
<br />Lender at the time of application as a credit against the stuns secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law .provides otherwise, ail payments received by Lender under the
<br />Note and paragraphs t and 2 hereof shat( be applied by Lender fits[ in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note. and then to interest and
<br />principal tin any Future Advances.
<br />A. Charges; Liens. Borrower ;hall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a pnority over this Mortgage, and leasehold payments or ground rents,- if any, in the manner
<br />provided under paragraph Z hereof oc ~f nor paid in such manner. by Borrower making payment, when due, directly to the
<br />payce 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 Lender receipts evidencing such payments.
<br />Borrower shalt 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 wasting to the payment of the ob{igation secured by
<br />such lien in a manner acceptable to Lender er 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 />5. Hazard Itreuranee. Borrower shall keep the improvements now existing ur hereafter erected on [he Property insured
<br />against ions by ore, hazards included within the term °extended coverage'", and such other hazards as 1-ender may require
<br />and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of
<br />such average exceed that amount of coverage reywred to pay the wms secured by this Mortgage.
<br />The insurance earner providing the insurance shall be chosen by Borrower subject ro approval by Lender; provided,
<br />xhat such apptnval shall nv*, be unreasonaHv withhold. AB premiums on insurance policies shall he paid in the manner
<br />provided under paragraph 2 hereof ur, it not paid in such manner, by Borrower making payment, when due, directly to the
<br />insuratcee carrier.
<br />.4i) irsurancc pvluies and renewals ;hereof ,halt Be us form acceptable to Lender ,end shall include n standard mortgage
<br />clause =n favor of .end in form acceptable to Lender. Lender ,hall have the right to hold the policies and renewals thereof.
<br />and Bvrntwer .half promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Ivss,
<br />Burrower shall give prompt notice to the insurance carrier and I_endnr. Leader may make pn>ut of loss if-nut made; promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied [o restoration or repair of
<br />the Praperiy damaged, provided such restorauvn or repair s economically feasible and the security of this Dturtgagr i,
<br />not thereby imp~u'ed. If such restoration or repair is nut ~°conomicall~~ tzasible or it the securny of thu Murtguge would
<br />be impaued, the insurance proceeds shall be applied to the sums secured by this Mortgage, vote the excess, if' any, paid
<br />to Borrower. if the Property is ahandmted by Burrower. or rf Borrower (ails to rospond to Lender withm 3U days from the
<br />date notice iS marled h} Linder to Borrower that the insurance earner offers to ,caste a claim for imurance henetits, Lender
<br />is authorized to collect and apply the iruurance proceeds tit Lenderb option either w restoration ur repau of the Propery
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m wasting, any such application of proceeds to prncipal ,hall not extend
<br />or postpone ;he due date of the monthly installments referred to in paragraphs and :hereof or change the antuunt of
<br />strch irtstallmenu. 1( under paragraph IS hereof the Property is acgwred he Lender, ail nght, title and interest of Borrower
<br />in and to any insurance policies and in and iv the proceeds thereo) resulting Irom damage to the Property poor to the sale
<br />or acyuisinon shalt pass tc bender to the extern of the sums secured by this Mortgage immediately poor h, such sale or
<br />acyuisition.
<br />6. Prtservalion acrd Maiatenartce of Property; Leaseholds; Condominiums; Planned Unit Devrhtpmrats. Nnrrower
<br />steal) keep the Property in goad rrpur and .shat) not commit waste or permit impairment or deterioration of the Propcny
<br />and shall comply with the provisions of any (ease if this Mortgage is on a leasehold. ff [his Mortgage is tin .i unit in a
<br />condonuniurn or a planned unit detelupmtnt, Burrower shall perform al! vl Born+wcr s <>64gations under the dc~iarauon
<br />or covenanzs creating ar governing the cundormmum ur planned unit developmem. the by-laws and reguta[iuns of the
<br />nmdommmm of planned unit development, end constituent documents. If .. condonuuium ur planned unit Jetrlopment
<br />rider s executed by BorfJw'er and reearded together with this Mortgage, the awritents and agreement. of such ndcr
<br />shall be incarpurated Into and shall amend and supplement the covenants and agreements of this Mortgage as if the nJer
<br />were a part hertxtf.
<br />7. Prol;ectien oI Lettdet's Security. If Burrower fails to perform the covenants and agreemems centauted m this
<br />Mortgage, or if :uiy action ur prttceed:ng is cumtrrenced wht::h matetially aHes:ts t,ender's uuerest in the Pnipeny.
<br />- including, bu3 not limited tv, i'titinent domain, insuivency. nxie anforcemenL or arrangemmtts or proceedings urvolvmg a
<br />bauktttpt i>t ~..<dent, thin l.ettdar at l.eadei s option, upon notice to $otrnwer, mat make :ucla appearances. disburse such
<br />stuns and take ;v::h acuvn as ;s rt~essar} to protect Leitder~. ,ntercst, including, but not limited t.+, disbursement ~,,
<br />raasvaab)e a:Lgrttzy'= fees sad entry upots the I'rap;irty tq make repasts. if Lender reytrire,i mixrtgaKC tnsurancr :,
<br />cc~dttiun c. tnakirsg its.: loan scctrre_d hu this Mortgake, Bk+-rruwer she!! pay the prrmiunt5 :equu'ed to tnatnta,tr ~uci?
<br />insura_~s in ^ffxt until such tittle _ss the requirrutent for such st:suranc:e tertninatue ;r. accordance •.e,t;t Burr.rwe.r', and
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