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I)NIFORM Covetvnxrs. Borrower and Lender covenant and agree as follows:
<br />(. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest o:t 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 [his Mortgage.
<br />2. Ftmds for Tues and Ltauraoce. Subject to applicable law or [o 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 sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rests en 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 />time to time 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 agency (including Lender if t-ender is such an institution 1. 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. Borrower and Lender may agree in writing at the time of execution of this
<br />Dortgage chat interest on the Funds shat! he paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on [he Furds. Lender
<br />shall give to Borrower, without charge. an annual accouming of the Funds showing credits and debits io 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 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, shad 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 to Borrower on monthly installments of Funds. [f [he amount of the Funds
<br />held by Lender shall no[ 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 wichin 30 days from the date natice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by th+s :Mortgage. I ::odor shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereof the Property is sold or the Propern~ is otherwise acquired by Lender, Lender
<br />shalt apply, no later than immediately prior to the .ale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured bg this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by [.ender under the
<br />Note and paragraphs 1 and 2 hereof shall be appAed by Leader first in payment of amounts payable to Lender by Borzoa'er
<br />under paragraph 2 hereof, then to interest payable tin the Note, t~ten ur the principal of the Note. and then ro interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes- as5eicments and other charges. floe.. and imposition_< attributable to
<br />the Property which may attain a priorfn• over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or. rf net paid m such manner, h} Borrower making payment, when due. directly to the
<br />payee thereaf. Borrower shall promptly furnish to Lender all notices of amounts due render this paragraph, sad in the event
<br />Borrower shall make payment direcd}', Borrower shall promptly furnish to Lender mceipts evidencing such osyments.
<br />Borrower shall promptly discharge any lien •.vhich has pnonty over this Mortgage: provided, that Sorrewu ,halt not be
<br />required to discharge any such fien so long as $orrower shall agree i+~ wrung to the paymem of the obLgation ,e vred by
<br />such lien in a manner acceptable to Lender, or shall in good faith conies[ such fien hy. or defend enforcement at such lien in,
<br />legal proceedings which operate to prevent the enforcement of the hen or ferfeunre of [he Property or an} pa.*t ?hereof.
<br />5. Hazard losarartce. Borrower shad keep the improvements now ~-xisung or hereafter erected on the Property insured
<br />against less by fire, hazards incfuded within the term "extended euvcrage`, and Bach ether hazards as Lender map require
<br />and in such amounts and for such periods as Lenci~r may require; provided :hat Lender ;hall not reunite [hat the amount of
<br />such coverage exceed that amount of coverage required to pa}' the ,tint, ucured bt thu Jortgage.
<br />"Rte insurance carrier providing the insurance shall be chosen by Borrower sebject to upuravai by Lender: provided.
<br />that such approval shall not be tmreasonably withheld. All premiums on insurance poiiaes shall ! c raid !n the manner
<br />provided under paragraph 2 heron{ or, :i not paid in such manner, b} Burrower making payment. when Jar, directly to the
<br />insurance carrier.
<br />All irsurance policies and renewals thereof shall 6e in {peen acceptable to Lerner and shall mrlude .+ ~cmdard mortgage
<br />datue in favor of and in form aceeptable ro Lender. Lender shall have the right to hold the policies -inJ renev.ab therm(.
<br />and Borrower shaii promptly furnish to Lender ail renewal notices and ail receipts of paid premntms. !t. ;he event at kts,.
<br />Borrawer shall gne prompt notice to the insurance carrier and 1_ender. Lender ma} make prop[ of lass it not nuuic prorripti}
<br />by Borrower-
<br />Unless Lender and Borrower atherwise agree in tinting, irsurance proceeds shalt be apptted to restoration .,r repan tit
<br />the Property damaged, provided such restoration or repan ~s economir+lly feas:hle and the .ecunty of ths> Mongagc .,
<br />not thereby impaired. If such restoration or repan is not economically tea>ible or it the srcunn~ of thn Mortgage would
<br />bt; impaired, the itsurance pra:.eeds shall be applied to the sums secure) h} this Mortgage. wuh the excess, if an}, pat)
<br />i0 Harrower. If the Prapetty is ahandoned by Borrower. or i! Borrower tents to respond ?0 1_rndcr within iU Jay, :rum the
<br />date notice is rnaded by Lender to Borrower brat the :nsurance carrier .}tiers to sonic a .:!aim tar insurance henefits, Lender
<br />is authorized to collect and apply the insurance proceeds at !..ender-s option zither to restoration or repair of the Property
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree +n wr.ttng, any ±uch apphcaiion of precrzds ?o principal >ha31 not eu~°nd
<br />or postpone the due date of the monthly installments referred to ir. paragraphs i and- Iterao{ or change rile amount tit
<br />Birch instatFrneniz I# under paragraph 1F hereof the Propern~ a> acquired by Lender. ail right, tote and interest tit Borrower
<br />in and to any insurance policies and in and to the proczeds thereof resulting from dama_e ro the Property pour to she sale
<br />or aa:gttisition shall pass to Lender to the extent of the sums secured by tl;ts 11v'r[gage immediately pour to ,uch sake or
<br />acquisition.
<br />6. Preaerradon and lfaintenaace of Property: Leaseholds Condominiinns; Planned L`nit Devefapments. Borrower
<br />shall keep the Property in good repair end shall not commit waste or pumit impairment or deterioration of the Property
<br />and shall comply with the provisions of any !case it: this :Mortgage is tin a leasehold. ]f this 4fangage is one unit ir. a
<br />condominium or a planed unit devetopmust, Borrower shad perfarm all of Borrower`s .fihga[inns under the dezlarauon
<br />or covenants creating er governing the condominium or planned unit development, the by-laws and regulations of rho
<br />rnndomiaium or planned unit development, and constiirtent dacumzms. Ii a candontinium or pt<+nnzd :cent „evelopnizm
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements ui such odor
<br />shall be incorporated into sent shall amend and supplzmzm [hz covenants anti agreements tit this !siortgage us if the rider
<br />were. a part hereof_
<br />7. Prafedion of Center's Sectuily. If BertOwer fails la perform the covenants and agreements contained in this
<br />Mortgage,, or if any action or proceeding is commenced whica materially affens 1_xnder's interest in the Property.
<br />including, but not limited to, eminent domain, iasah•ency, code enforcement., or arrangements or prcceedings involving a
<br />bankrupt ar decedent, then Lender ai Lender's option, upon natice to Sormwer, may make :uch appearances, dahurse such
<br />sutra and take such action as is ttecessaty to protect L,ender's mrerzst. including. bur not hmtteJ to, disbursement of
<br />reawnable attorney's ftts and entry upon the Property to make rzpaas. It Lender enquired n[artgage insurance as a
<br />cottditioo of making the loan secured by this Mortgage, Bazrowzi shall pay the premiums rrgtiired to maintain such
<br />imurance in effect unit} such time as the requirement for such insurance terminates in accordance wnh Borrower's and
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