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<br />L7tvLFORM Covexetvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Princlpd and 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. [heads for Tares amt Itrsuraace. Subject to 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 Nate, until the Note is paid in full,
<br />a sum (herein "fiunds") 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, all as reasonably estimated initially and from
<br />tithe to time by Lender on the basis of assessments and bills and reasonable estimates [hereof.
<br />The Funds shall be held in an institution the deposits or accounts o[ which are insured of 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. $orrower 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 app` .ble law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Linder
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits [o the Funds and the
<br />•~ purpose for which each debit to the Funds was made. T1te Funds are pledged as additional security for the sums secured
<br />by [his Mortgage.
<br />If the amount of the Foods 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, shat! exceed the amount required to pay said taxes,
<br />asseuments, insurance premiums and ground rents as they fall due, such excess shall he, a[ Borrowers option, either
<br />Qromptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />t[eld by Lender shall not be sutScient to pay taxes assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Linder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereat.
<br />Upon payment in full of aft sums secured by thts Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereof the Propert}• is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the• sate of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a crtdit against the sums secured by this Mortgage.
<br />3. Application of Payments- Unless applicable law provides otherwise, alt 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 Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the No[e, then to the Qrincipal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />Z. CYarges; Bens. Borrower shall pay nit [axis, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if aey, in the manner
<br />provided under paragraph 2 hereof or, if not yard in such manner, by Borrower making payment, when due, directly to the
<br />pays thereof. Borrower shall promptly furnish to I ender 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 shall promptly discharge any lien which bas prionty over this Mortgage; provided, that Harrower shall net be
<br />teq»ired to dischazge any such lien so long as Borrower shall agree in writing to the payment of [he obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, 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 />S. ]flaard lasataott. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against toss b}' Sre, hazards included within the term "extended coverage". and such other hazards as Lender may reyaire
<br />and in such amounts and for such periods as Lender may require; provided, th:~t Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to nay the sums secured by this Mortgage.
<br />The insurance carrier providine the insurance shall 1>z chosen by Borrower subject to apprevat by Lender; provided,
<br />[hat such approval shall not be unreasonably withheld. All premiums an insurance policies shall be paid m the manner
<br />provided under paragraph 2 hereof or, if not paid fn such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and sha',1 include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and mnewals thereof,
<br />and Borrower shall promptly furnish to Lender ail renewal notices and aft receiats of paid premiums. In [he event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Linder. Lender may make proof Ut loss if not made promptly
<br />by Borrower.
<br />Uttlesc L~ttder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of thts Mortgage is
<br />trot thereby impaired If such restoration or repair is nut economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance groceeds shall be applied Io the stuns secured by [his Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property' is abandoned by Borrower, or it Barmwer tails [o respond to Lender within 30 days tram the
<br />date notice is mailed by Lender io Borrower that the insurance carrier otters io settle a claim for insurance benefits, Lender
<br />is authorized to colla'.t and apply the insurance proceeds at Lender's option wither to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless lender and Borrower otherwise agree in writing, any such application of proceeds to pnnctpal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and ?hereof or change the amount of
<br />such installments. !f udder paragraph 1 B hereof the Property is acyu[red by Lender, all nght, utle and interest et Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propen} prior to the sa{e
<br />or ar:gttisition shalt pass to Lender is the extent of the sums secured by t;tts 'Mortgage immxdiately prior to such ,ale or
<br />acquisition.
<br />L Prnervadon and Maintenance of Property: Lcasehulds; Condominiutas; Planned Utut Developments. Borrower
<br />shall keep the Property in goal repair and shall not commie waste or permrt impairmem or deterioration of the Property
<br />and shall comply with the provisions of any 3ease if this Mortgage as on a iexsehaid. if thu iiortgage is an a unit in a
<br />condominium or a planned unit development, $orrower shall perform all of Borrower's obhgauons under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent dacumems. li a condominium or planned unit developmem
<br />rider is executed by BorroweF and recorded together with thts Mortgage, the covenants and agreem.:nts of such nder
<br />shag be incorporated into and shall amend and supplement the rnvenants and agreements of this lvfortgagc as tt the rider
<br />were a par[ hereof.
<br />7. Profecfiots of Leader's Security. ]f Borrower tails to perform the covenants and agreements contained m this
<br />Mortgage, or if any action or proceeding is commenced which materially a±Iects Lender's tnterest in the Property.
<br />including, but no[ limited to, eminent domain, insolvency, code enforcement, or arrangements ar proceedings involving a
<br />bankrupt or decedent, then tinder a[ tinder', option, upon nano; to $orr,twer, mat make such appearances, disburse such
<br />stems and take suds action as is necessary to pnxect Lender's interest, uuludmg. but not limned to, disbursement nt
<br />reasonable attorney's fees and envy upon the Property tit make repairs. It Lender required mortgage insurance as .t
<br />condition of making the loan severed by this Marigaee, Borrower shah p;t} the premituns required to maim;uu such
<br />ittaurance in eIIect until such time as the requirement for such msurante tcrmu;ates m accordanx wrth Borrower's and
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