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UrttFOaM Covexnars. Borsower and Lender covenant and agree as follows:
<br />I. Payment of Principal anti Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by [he 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 />Z. Fonds for Taxes and Insurance. Subject [o 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 stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground tents 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, alt as reasonably estimated initially and from
<br />time to time by Lender on [he 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 imtitution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground tents. 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 interese on the Funds and applicable law
<br />pemtits Lender [o make such a charge. Borrower and Lendtr 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 pav Borrower any interest or earnings on [he Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fv^as and the
<br />purpose for which each debit to [he Funds was made. The Funds are pledged as additional security for the sortie secured
<br />6y 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 data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said tares,
<br />assessments, insurance premiums and ground rents as they Fall dot, such excess shall 6e, at Borrower's eption, 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 da}'s 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 Jortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 13 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shah apply, ito later than immediately pnoe to the sale of fhe Prepeny or its acquisition by Lender, any Funds held by
<br />Lendtr at the time of application as a credit against the sums secured by this ~lor[gagt.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lendtr under the
<br />Note anti garagcaphs 1 and 2 hereof shalt be applied by Lender fetal in payment of amounts payable to Lender by Borrower
<br />under puagraph 2 hereof, then to interest payable an the Note, then to the principal of the Note. and then to interest and
<br />ptiaeipal on any Future Advances.
<br />4. Char; Liens. Borrower shalt pay ail taxes. assessments and other charges, floes and impositions attributable to
<br />the Property which may attain a priority over this Mottgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof- Borrower shall promptly furnish [o Lender ail notices cT amounu due under this paragraph. and in the event
<br />Borrower shag make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall gtompdy discharge any lien whtch has pnorit_v over r..s 'iiartgage; provtded, 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 />sorb Lien in a manner ameptable 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 [he teen or forfeiture of the Prooery or any part thereof.
<br />5. Hazed Insunnce. Borrower shall keep the :mprocements now existing or hereafter crested on the Property insured
<br />against loss by fire, hazards included within the terns "extended coverage", and such other hazards as Lender may reyuire
<br />and in such amounts and for such periods as Lender !-ay require; provided, that Linder shat! tie[ require that the amount of
<br />wch coverage +G[cted tsar amount of coverage required to pay the sums secured by this ~tor*,ea~e-
<br />The insurance career providing [he insurance shall be chosen by Borrower subject to approve( by Lender; provided,
<br />that such approval shalt not ;,c unreasenabty withheld. :1t1 premiums on insurance policies shall he paid :n [he maser
<br />provided under gaugraph 2 hereof or, rf oat paid in such manner, by Borrower making payment, when due, ,L redly to the
<br />iruurantt earlier.
<br />Ali insurance polirei and renewals thereof shall br in fornt acceptable to Lender and snail Include a standard mertsage
<br />douse in favor of and is form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and $orravrer shall ptoaptty furarslt to Lendtr all renewal retit:es ar.+.i a!I receipts of paid premiers. In the event of loss,
<br />$otinwet shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if rot made promptly
<br />by Bortowtr.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prxecds shall be applied to restoration er repots oI
<br />the Property damaged, provided such restoration or repair :s tconomicaiiy feasible and the security of th,s Mortgage is
<br />not thereby unpaired. If such restotuton or rzpatr is oat economically feasible ar tt the securty of this ;kfor[gage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this 4lottgage. ~~ith the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, ar ii Borrower fails to respond tee Lender within 30 da}'s from the
<br />due notice is tnaiied by L°nder to Borrower that the insurance carrier otters to acute a claim for insurance benents, Lender
<br />is authorized tp co1l~-t and apply the insurance prxeeds at Lender's eption either to restoration or repair of the Pro}k.rty
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise. agree in writing, any such application of proceeds to prncipal wall no[ extend
<br />or postpone the due daft of the monthly iosiallmen:s referred to in paragraphs anJ 3 hereof or chance the amount of
<br />such instailtMnis. If under paragraph 18 hereof the Properi•J is acquired by Lander. all right, title anJ mzerest of Barru,+'er
<br />in acid to nay insurance polices and is and .^ >he prai.eeds thereof resulting f; em damage zo the Progect} prior ro the save
<br />art acquisition shall piss io Lender to the extent of the sums secured by chic '~tartgagc ten medta[tiy poor to such sale or
<br />a~ytaisitioa,
<br />6. Prnersauon and ~iaiotenwce o[ Property; Leaseholds, Condominiums; Planned Unit llesriopmens. Borrower
<br />shag Iteep-the Property in good repair and shall not commit waste or pcrmtt impairment or daterioratien of [hr Propeay
<br />and shall comply w'itlt the provisions of any 3ease if this Mortgage s tin a leasehold. if thrs Mortgage is on a unit rn a
<br />condominium or a planned tsnii de:°elapment, Borrower shall perform sIl of >3orrower's obhtauons under the dccl:uatton
<br />or covenanu cleating nr governing the condomiaturn or planned unit develeomrnt, the by-laws ar,J regulations of the
<br />condominium or planned trait titvelopmtat, and constituent documents. It a condominium or planned unit .:a~rl.+pmen[
<br />rider is executed by Bazmwer and recorded together with this 'sf artgage, the covenants and agrertncnts of alien r,Jer
<br />shill be incorporated into and shall amend and suppirmrnt the ca~enants and agreements o[ this ~4ortgage as ;t the nder
<br />were apart- heieof.
<br />7, Protection of Lender's $ieeurify. !f Bu:rozvzr fails to perform the covenants and -rgrremena port[.,;read in this
<br />;iortga;e, of if any action or proceeding is commence;! which matcriaily atiacts k.enJer's snterest in the Proprrt}.
<br />iaclt+ding, but not limited to, eminnni domain, insolvency, code enforcement, ar ar rangrrncntx oe pr-,ceedings utvoie ing a
<br />bankrupt of dettdent, then Lender at Leedtr's option, upi>n notiu is Borrsrw; r, may make such zpix'a:,ancrs, J;shurse sti, h
<br />iutni and take such action as is necessary to protect Lenders ,ntucst, ,ncluJ:tie, but nx iuni:ed to, cirsbtirsement of
<br />reasonable attermty's fees and entry upon the Propri[} zc nrakr rn^^fa.r;. It Ler:Jer rcyvi.eJ m,•ctgagr tn,ut:,nte .+, .a
<br />coaditian tf tnakinyl rho loan ;leered by this Mortgage, Borlowcr sh.il; pe} the piemn:ms :rqu:reJ t.~ mamtt~r. ~u.h
<br />insurance in effect lentil such, time as the requirrrneut fez sw_Ft insuran,e. tc:r~,snalt,, n ,-nerd;arr,.r wet: A.+tr,•,+.r'-, ..;.,,
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