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<br />LfNtFoaM Coa•ENa:vTS. Harrower and LenrleT COVCnant and agree as follows:
<br />i. Payment of Prlncipal asd Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced 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. Ifinds for Taxes and losuraace. Subject to applicable law or to a written waiver by Lender, Bortower shall pay
<br />to Lender on the day momhly 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 razes and assessmrnts which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfh of year-y premium instalitnents for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estittrated initially and from
<br />time to time by Lender on the basis of assessments and hills and reasonabk estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accaunu of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shaft apply the Funds to pay said taxes, asseasttsents,
<br />insuratrce premiums and ground rents. Lender may nut 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 Fvnds 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 be required to pay Borrower any interest or earnings on the Funds. Leader
<br />shall give to Borrower, without charge; an annual accounting of the Funds showing credits and debiu [o the Funds and the
<br />purpose for which each debit to the Funds was made. l7re 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 and ground rents. shall exceed the amount required to pay said taxes,
<br />assetsments, insurance premiums and ground rents as-they fail due, such-excess shelf be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower nn monthly installments cf Funds. If the atttouni of ilia Funds
<br />held by Lzrtder shall not be sufficient to pay taxes, assessmenu, insurance premiums and ground :cots 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 [hereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held 6y Lender. If under paragraph i g hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, nn later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender a: the time of application as a credit against the sums secured by thts Mortgage.
<br />3. Application of Payments, Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and Z hereof shall be applied by Lender first in payment of amounts payable to Linder by Borrower
<br />under pazagraph 2 hereof, then to interest payable on the Note, [hen m the principal of the Nate. and then to interest and
<br />prinnpat on any Future Advances.
<br />4. Charges; Lkns. Borrower shall pay ail taxes.:ts'sessments and other chazges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if any, in the manner
<br />provided under paragraph ?hereot or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furntsh to Lender all notices of amounts dui 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 shall promptly discharge any Tien whtch has priority over thu Mortgage: provided, that Aorrower shall not be
<br />required to discharge any such lien so long :rs Borrower shall agree in writing to the payment tit the obligation secured by
<br />such lien in a manner acceptable to Lender, ar shall in good faith contest such lien hy, ur ilefenJ enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement u[ the hen or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the impnn'rments now r~isung or hereafter erected on the Property insured
<br />against toss by fire, hazards included within the term "es[endeJ coverage", and such other hazards as Lender mas~ rryuire
<br />and m such amounts and far such peritxls a, !.ender may require; provide), [hat LrnJer ;hell nut rtywre that the ;mwun[ of
<br />such cuvrrage exceed chat amount of coverage reywred «i pay the ,time accurrJ by thu Mortgage.
<br />The insurattee .:airier providing the insurance shall be .:hosert by Burn:wer ;object to approval by Lender. provided,
<br />that such approval shall not be unreasonably withheld. .411 prcmwm+ on imurance policies .hall he paid in the manner
<br />provided render paragraph 2 hereot or, if cwt paid i^ such manner, by Harrower making payment, when dui, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereol shall be in form .+ceeptable to Lrn,irr anJ shall include a ,tandm~J rnurtgage
<br />clause m favor of and m form acceptable ro Lender. Linder .hall have the right lu hold ilia policies .uiJ renew als thereol,
<br />and Borrower shall promptly fiunish to Lender all renewal noucra anJ .all receipts of paid prenuunn. In the Brent of loss,
<br />Borrower shall give prompt notice ro the insurance writer auJ Lender Linder may make pnuri of loss it not male pnnnptl}'
<br />by Borrower.
<br />Unless, Lender :end Borrower utherwiae agree m tinting, nnuraucr pruere.h shall be applied to rcshvatiun ar repair of
<br />the Property Damaged, provided wch nstorauon ni rrpau a ca+numacally leusible .urd the secunty of this MMtGagr i,
<br />not thereby impaired. If such rrsmrauun or apart a nut rcononucally Ir.rsiMr or ri the secunty of this Mortgage would
<br />be unpaved, the insurance proceeds .hell be appheJ to the wens secure) M' tht+ Mortgage, with ihr excess, if .any, paid
<br />to Boriowei. H the Yropem o ahanJourJ h, Hon owe!. .rr rt Burrouer !ails to iesp+utd to lender w+thm ±U day. tram the
<br />)ate nonce is made) b} Lender w Burrower that the mwr.urcr :ar nci oiler, to .cult :+ daun for mxuance henrhh, i ender
<br />is aulhonzeJ to collect and apply the maurance pra>vrrJs at 1 cnJrr , option either N rr:aturuuon or repair of the Nni{xrty
<br />ur to the wine .acorn) by thin Mortgage
<br />Unless Lenuri and Harrower otherw ix: agree :n wnnng. an} wah ,:ppncauon of proceeds m pnnapul .halt not cxicnJ
<br />or postpone the due date -vt ihr nwnthi} uratallmcnta iclri red iu m paragraph, t and _' hereot ur change [he amount of
<br />such utstailmaua. 11 unJrr paragraph lit hereot the Proprrq ., aeyuvrJ h} IxnJer.:Jl right, ntle :urJ interest of Harrower
<br />in and to am mxuauer puhuea ,urJ m .mJ to nc~ pnrcrwls ihercot rcsultutg from Jamagn «r the Property prior to the a,uc
<br />Or aeywsttiai shall pass to Lander ro lire curet tit the ,un>.* ,reurrJ by thin llougage inuueJiatciy prior to ,uch ,ale +a
<br />acyuisrtum.
<br />6. Prescrvatitto asd ~taiWsnaacc nt' Property; txtt,ctwlds; t'oudamiaiumx; Piaunrd Uttit !level:+pntent,. H:,irow v[
<br />shall keep the Pu+prrty m good repair and +hall not comma waste ar prrmu impmnnent or Jelrrlaltaiwn of the 1'«gxrt}
<br />and shall wmply with die pruwsrons tit auy lease d thu Mortgage +, on u kascholil. II flu, '•tortgage i, ou .+ aunt ei .+
<br />eundatninium ur u plarmeJ amt .ferdupmrnt, Bw rower .hall pe;iurm :dl tit Borrower's ahhgations unJrr ihr draar.uinn
<br />a' covenants creating or guvermng the eondomimum or plflnncd uml Jevclopmcnt. the by~lawa and rcgulaUUih of the
<br />condominium or piansrd amt Jevrloprnent, ,end arnatiuient Jrxan[rnia. If a condominium or ptanneJ iarit deseiopnrcat
<br />oiler is execute) by Butruwr[ m;J recordrJ tugrthcr with tha, .Murtgagr, ihr cvs ruarw .urJ agrcrnrrute .+t ,uch iidci
<br />shall br incorporate) urtu and shall amen) anJ supplrmm~t the sit-enants anJ agrtrments of this Mortgage as ri ilia nJri
<br />were n part hereof.
<br />7. Proterfion of LeudePs Security. IE Burrower fails ,o pcrtorm the cuvenavts auJ agrcenrenu anuaurrd m thi.
<br />Mortgage, or if auy action or proceeding is curnmenerJ which materially atfecu Lender's m[rrest in the Propert},
<br />including, but not hooted to erturent domain, inxilvency, cote en lorcentcnt, ur arranganaus ur proceedings mvoh-urg a
<br />bankn[pt m dcudrnt, then Lender tit Leader: option, upon notice to Borrower, Wray make such appearances, disburse wch
<br />soma anti take such action a, is necessary W protect Lender's interest, including, but nut limited ro, disbursrmcni of
<br />reasonable attomey'a fees and entry upon the Proper ty to make repairs It Lender reyuircJ mortgage inwrurre .r, .+
<br />coadit;on iif making the loan secured by this Mortgage, Harrower ,hall pav ilia premiums reciuireJ to maintain such
<br />insurance in cttec: anti! such time as the reyuuement for ;uch insurance termmates iu aaurdancc with Bornrwer~., ;,rid
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