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<br />UHtaoaxt Covezwnxrs. Borrower and Lzndzr covenant and agree as follows:
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<br />I. Payment of Prindpsi and Interest. Borrower shall promptly pay whet, 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 [his Mortgage. - -
<br />1. Funds for Taxes and ias[saoce. Subject to applicable taw or to a written waiver by Lendeq Borrower shall pay. -
<br />[o 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 "Futtds") 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 horned irrsurartce, _ -
<br />plus one-twelfth of yearly premium installments fer._rr[nrtgage insurance, i[ any, all as reasonably estimated initially and from -
<br />time to time by Lender on Ute basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an ins[itutian the deposits or accounts of which are insured or guaranteed 6t'- a -Federal or -
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Fonds to pay said taxes, assessments; - -
<br />insurance premiums and ground rents. Lender map not charge for so holding and applying [he Funds, analyzing said account,
<br />or var.#ying and compiling said assessments and bills, unless Lender pays Bottower 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 ofexecution of this -. -
<br />Mortgage [hat interest an the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to lie paid, Lender shall not tie 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-and debits io ilia Funds:andahe: - --
<br />purpose for which each debit to the Funds was made. The Funds are pledged as addrtional 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 [axes, -
<br />assessments, insurance premiums and ground rents as,they fall due, such excess shall be, at Borrower's option; either - -
<br />prompNy repaid to Borrower or credited to Borrower on monthly installments of Funds. if-the amountrof the--Funds -
<br />--held by Lender shall not 6e st:fFcient Eo pay Eax:s, assrssntents, insuFance premiums and ground rents- as fhey-fall-due,- - - -- --
<br />Bottower 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 i7 foil of al! sums secured by this Mortgage. I_cnder shat) promptly refund to Borrower any Funds-
<br />held by Leader. If under paragraph IR hereof [he Property is sold ar the Property is otherwise acquired by Lendeq Lender
<br />shall apply, no later than immediately prior to the sale of [he Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. App6cafian of Payments. Unless applicable law provides otherwise. all payments received by Lcttder under the
<br />Note and paragraphs I and 2 hereof shalt be applied by Lender firs[ in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal at the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and itnpositioes attributable to -
<br />the Property which may attain a priority over this Mortgage, and leasehold paymems 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 all nouces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lcndnr receipts evidencing such payments.
<br />Borrower shad promptly discharge any lien which has pnority over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shat) agree in :arinng to the payment of the nbligatioa secured by
<br />such hen m a manner acceptable to lender, or shall in good faith contest such Gen by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent [he znCoreemcnt ai the tier nr facfeiturr of the Property or any pan thereof.
<br />5. Hazard Inauraace. Borrower shall keep nc~ impt.,ventents now esisting or hereafter zrezted an ilia Property insured
<br />against loss by fire, hazards included within the term "evtcnded coverage", and such other hazards as Lender may require
<br />and m such amount and for such periods as Lender neat' rzgwrc; provided, that 1_ender shalt no[ require [hat the amount of
<br />such vzrskr cx-coed that amount :,C ceveragr reyu=red to pay the ,cams ,ez.rrzd by this A~for[gsge.
<br />The msurancc earner providing the insurance shall be chosort by Berrowzr subject to approval by Lender: provided,
<br />that such ar.pravai shag not be unressartably withheld. At1 prenvuma on insurance policies shag be paid in the manner
<br />provided ender paragraph s hereof or, sf not pard iii such manner, by Borrower making pavrrrent, when dreg, dnctly to the
<br />insurantt earner.
<br />All insurance poheres and renewals thereof shall Esc in form .izczptablz to Lender and shall include a unndard :nortgago
<br />clause m favor ,+C and m form acceptable to 1.cnder. Lcudcr shall hove the right n, hold the policies :ued renewals thereof.
<br />and Borrower shah promptly [urmsh to Lender all renewal nouces nml all receipts of paid premiums. In the event of loss.
<br />Borrower shall gtae prompt nmree to the insurance earner :rod Lender. Lender may make proof of loss i[ nut made pront)stl}
<br />by Borrower.
<br />Unless Lender and Borrower othersv r+c ogee in wmmg, insurance proceeds shall Ise applied to restoration or repair at
<br />the Property Damaged, omv+ded mzh restorunun or repair is ecanomicail}• izasdslz and ilia szcurit}• of this Mangagz ~>
<br />not thereby impaurd. It such res[or¢uon or repau is not economically Ie:+sible or it the aecunty ni tlns ~tortgagc would
<br />be rmpaired, the insurance proceeds .hall be applied to the cams secured by [his Mortgage, with the c.scess, if an5', pard _
<br />to Borrower. If the Propertq is ahandoned b+ Borrower, or it Borrosvzr tails to respond to Lcudcr wuhtn 3U days from the
<br />+iatc nonce a nuuled isy i.ender u, Borrower chat ilia msurancc Carrier oilers m same ,. chr;m tar utsurance hznefits, f.endzr
<br />is authonzed to collect and apply the insurance proceeds at I_cnder's opton zither w resu,reuun or relsair of the Pn+pen}
<br />car to the sums secured by thrs Mortgage.
<br />Unless I-ender and Borrower othen,isz agree m canting, nn} such applicaton of proceeds r pnnalsat shall not etiteod
<br />or postpeme the duo date of the nnauhl} installments referred to in paragraphs I ,rod '_ hmrot ar ,: hange the amount ..t
<br />such insustlneents. IC under paragraph i K hereof the Property n acgtured he Lv'ndcr, all nght, ode and mizrest of [iorrower
<br />in and ro any iusurance policies and in and to the proceeds thereof resulting roan damage to the Protxrty prior t+? the sale
<br />or acquisition shall pass to L.onder to the event of the .wits securezf h} th+s Murtgtrge unmedratzly ;a for n, ,uch note ++~
<br />acquisitio?,
<br />G. Ptraen¢Ilan and Maintenance of Property; t.easrholds; l'ondoroiuiunts; 1'lanaed t'ait !)evrloptterat~. !fi?r rover
<br />shat! keep the Property in gaud repair and shall nut cemrnit waste car ix.rmtt rmpa~rment er dete[mrauon of the Propzrt}
<br />and shall comply with the provisions of any lease it Chu !stongage s5 .m .+ is+a,ehtdd. It the ~furigagc n nu .+ ;mn in .+
<br />condominium or a planned unit dz veivpment, Borrower sh;dl perform ,,h of Borrowers atehgaut,as +a:drr the deelamuen
<br />or covenants creating ar gnverning [he condominium or plsunzd unit dzvzWpment. the h+--taw. .,nd regul:unu, of the
<br />condominium or planned unit development, and constitucn[ dexutnerrs. It ,a iondnnuniwn or planned unit Drs rlopmznt
<br />ridge is zxeauicd by Borrower and rezo[ded together wuh this M1fortgage, the .ovcnants :card agreentcnn r•t such edge
<br />shalt he incorporated into and shell amend and supplement the cotenants and agreements of ih~r ~t++rtgagW~ a. ~f the ri.4~r
<br />wore a part hereof.
<br />7. Prmtecfion of 'Lender's Security. If Borrower fails w perform the covenants and agreements :ontamai m the
<br />Mortgage, or if anY action or proceeding is commenced whrch materially affects Isudzr's uiterest rn the Proper t~.
<br />including, but nut limited to, eminent domain, insolvency, code enlorcentcnl, or arrangements ar prrxesdings involving a
<br />bspkrupt or decedent, then Lender at Leader's option, upon notice to Borrower, may make soli appzaranzes, disburse such
<br />sums uad take such action as is necessary to protect Lenders +merest, niciudusg- but ,xu htnncd to. d„hursrnreet .a
<br />re:.~?nahle. attartle}''s fees and entry npmt the Property to make repairs. If Lcndcr reouired nsortgare insurance a
<br />condition of making the loan secured 6t' this Mortgage, Harrower shall pay the premiums required w mainrun such
<br />insurance in etfezt until such time as the requiremeoi lot such insurance tnrrttinatcs m accordance aitR Borrower', and
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