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<br />Uxtt*oast Covexnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Ibytent of PAaclpal sad Interest. Borrower shall promptly pay when due the principal of and interest ~n 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. 1?aais for Tatty and Imamate. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lendu on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in fu6,
<br />a stun (herein "Funds") equal to prat-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 yeazly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to dine 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 agerxy (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 />pt:rmits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that intuest on [he Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits - a debits to the Funds and the
<br />` purpose for which each debit to the Funds was made. 'Rte Funds are pledged as additional security for the sums secured
<br />by this Mortgages
<br />If tltt 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 />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited [o Borrower on monthly installments of Funds. If the amount of the Fonds
<br />held by Lender shalt not be suf°;'snt to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay [o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower re,{ttesting payment thereof.
<br />Upon payment in full of all sums secured by this Mott¢age, Lender shall promptly rotund to Borrower any Funds
<br />held by Lender. if uader paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, 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 appiicaiion as a credit agair..i the sums seeutxd txy this Mortgage.
<br />:f. A~litatiaa of Paymeafs. Unless applicable taw provides otherwise, all payments received by Lender under the
<br />Nate wd paragraphs 1 and 2 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 Note. t4en to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; I3em. Bottow-er shall pay all taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Dortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 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 to Lender alt ponces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrowu shall promptly dischazge any lien which has priority over this Mortgage: provided, that Borrower shall nest be
<br />required [o discharge any such lien so long as Borrower shall agree is writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Ltnder, 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 Tien or forfeiture of the Property ar any part thereof.
<br />5. Ballad hwnace. Borrower shall keep the improvements now exispng or hereafter erected on the Property insured
<br />against]oss by 5re, hazards included wsithin the term "extended coveragt', and such other hazards as Lender may require
<br />a~ in such amounts and for such puiods as Lender may require; provided, that Lender shall not require that the amount of
<br />such wverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The iffiuratice carrier providing the Insurance shah be chosen 6y Borrower subject to approval by Lender; provided,
<br />that such approval shag not be uc[easonably withheld. Ali premiums on insurance policies shall t.: paid in the manner
<br />provided under paragraph 2 hereof ot, a not paid in such moaner, 6y Borrower making payment, when due, directly io the
<br />insttntte carrier.
<br />All insurance policies and renewals thereof shalt be in form acceptable to Ltnder and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Ltnder. Ltnder shall have the right to holed the policies and renewals thereof.
<br />and Porrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Bartowtr shat' give ptampi notice to the insurancx ::airier •a.•id Lender. Lender may make proof of toss if not r .ode promptly
<br />by Borrower.
<br />Unless Lerida and Borrower otherwise agru in u°ricng, insurance prac-etds shalt be applied to restoration or repair a(
<br />the Property damaged, provided such restarauen ar rrpa.er is economically feasible and the security of this Mongage ~.
<br />not thereby impaired, If such restorauon or rtpasr rs not economically teasible or if the security of this Mortgage would
<br />be Impaired, the insurance prorxecls shall be applitd to the sums secured b} this Mortgage, wi[t+ the excess, if any, paid
<br />to Borrower. !f the Proputy Is abandorted by Borrower, r:r [f Bortowar faits to respond to Lender within 30 days from the
<br />date notice is mailed by Lender ta Borrower that tilt insurance earner offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender s option either to restoration ar repair ut the Property
<br />ar to the sums stxured by this Mortgage.
<br />Unlesc Lender and Borrower otherwise agrxt rn writing, any such application of proceeds to principal shall not extend
<br />ar postpone [he due date of the monthly icsiailments rcfernd tc in paragraphs I and 2 hereot or change the anwunt of
<br />such installments. if undo paragraph 3$ hereof ilx Proptm• n acyuurd by Ltnder, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to rite prxr.-ixts thereof resulting [rpm damage to the Property prior to the sale
<br />or atquisition shag pass to Lender io the extent of the surm secured by this ~larigage immediately prior ro such salt ar
<br />acgttisitiott.
<br />6, trKer`aNaa sad MiWewce of Propert}: I.~t6olds; Candomiaiutns; Planned Unit Developments. 13errowsr
<br />shall Jeep the Property in good repair and shall cot eammit waste or permit impairment or deterioration of the Praprrty
<br />an.: shalt comply with the provisions of any lease ii this Marigagx: is ac a keasehoid. If this htongaga n on ~ amt in a
<br />candominitun or a planned trait development, Barrowtr sha;! ped'arm off of Borrower's abligatiarss under the drelarauon
<br />or covenants creating ar governing the condominium or pianced unit develapnmtnt, lire by-laws and regula[iuns of the
<br /><:ondominitun ar planned unit development, and cansxituem documents. If a condominium ar Manned unit devcloputent
<br />ride is executed 6y Borrower and retarded together a ith this Mongage, the covenants sled agruments of wch rider
<br />steal} be incorporated into attd shah amend and suppitmrnt the covenants and egreernents of thu ',turtgagr as if the rider
<br />woe a part hcroof,
<br />7. Ptaleetioa o[ I.ttlds Serarity. If $orrower #ails to perform the covenants and agrrrmrnts contained in this
<br />Mortgage, or if any aciim or proeetding n eommenu.d which maierialiy affects Lrr,dcr's interest in the P-~~peny.
<br />ittciuding, but not limited to, eminent domain. insolvency, code enforctmtnt, ., arrangements or prtxeedings involving a
<br />bankrupt of dc. adeni, then Lender at tsndtr's upiit>n, upon nonce t,; Borrower, may make such appraranccs. drshurse surtt
<br />starts and take such action as is necessary [o prortct Lender s interest. including. Gut rat limned to, disbursement of
<br />reaeoaablt attorney's #ees and entry e;wn the Praperr} to make repair,. It Lender required mortgage insurance as a
<br />condition of making the loan sectued by this M+rngagc, Bonowcr shall pay the premiums rcquned to maintain such
<br />irxsurattct in tifect until Bitch time as the requirtntenr for such .nsurance tsrmmates m accordance write Borrowers and
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