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<br />L'ntFOxrf Covi=xntirs. Borrower aad Leader covenant and agree as follows:
<br />I. Payment o£ Principal aad £merest. Borrower shop promptly coy when due [he principal of and interest on the
<br />Indebtedness evidenced b}' the Note, prepayment and late charges as provided in the Note. and the principal of and interest
<br />nn any Future ,advances secured bt• this A4ortgage.
<br />2. iruads for Taxes and Insurance- Subjecr to applicable law or tc a wrtten -waiver be Londe*. Burrower shalt pay
<br />to Lender on the day monthly-instalimeou of principal and interest are payabic under the Note. until the Note is paid in full.
<br />a. sum (herein "Funds"} equal mope-twelfth of the yearlp razes and assessmenu which may attain priority over this
<br />A4ongage. and g,-ound rents on the Property, if any, plus one-twelfth of pearly premum 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 en the basis of assessments and bills and reasonable estimates thereof.
<br />7ne Funds shall be held in an institution the deposits or accounts of which are insured or guazanteed be a Federal or
<br />late agency (including Lender iI L.ender is such an institution). Lender shall apph the Funds.to pay said taxes, assessments,
<br />;nwrance premiums and ground rents. Lender may no[ charge to: sn holdine and applying the Funds, anaiyzirg said account,
<br />>r verifyine and compiling said assessmenu and bills, unless Lender pays Borrower [merest on the Funds and applicable law
<br />petrrtiu Lender to make such a charge. Borrower and Lender map agree in wrong at the time of execution of this
<br />Monea¢e that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
<br />reouires such interest to be paid, Lender shall not be required to par Burrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Fonds shosvin¢ credits and debits to the Funds and the
<br />purpose Ier 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 monthh• installments of Funds payable prior to
<br />the due dates of taxes, assessmenu, insurance premiums and :round renu. shat; exceed the amount required to pay said taxes,
<br />2ssessmenu, insurance premiums and ground rents as the)' rail 'due, such ezeezs shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthh installments of Funds. If the amount of the Funds
<br />held by Leader shalt not be strmcient to pay taxes, assessmenu. insurance premiums and ground renu as they fall due.
<br />Borrower shall na}' to Lender any amount necessan~ to make up the deficiency within 3D days ftnm the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Uoon payment in full of all sums secured by this Motgage. Lender shal3 promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph I S hereof the Propeny a sold er the Propem• is otherwise acquired by Lender, Lender
<br />shall apply, re later than [mmediatel}• prier to the safe of the Propem• o: its acquisttior. by Lender, any Funds hcid by
<br />Lender a[ the time of application as a credit aeainst the sums secured by thts Mortgage.
<br />3. Application of Paymenu. Unless applicable law provides vtheru•ise, ail paymenu rectived br Lender under the
<br />Note and paragraphs 7 and 2 hereof shall be applied by Lender first m payment of amounu payable to Lender by Borrower
<br />under pazaeraph '_ hereof. then [o tt,:~rest payable on the No[e. [hen to the principal of [he Note. and then to interest and
<br />princtpal on am' Future Advances.
<br />4. Charges; Iaeas. Berrnwer shall pay all taxes. assessmenu and other charges. floes and impositions attnbvtable to
<br />the Propeny which may attain a pnoritp over thts Mongage. and leasehold payments nr ground rents, if any. in the manner
<br />provided under paragraph 2 hereof or.:i not Hard m such manner. b}' Burrower maktg payment. when due. directly tv the
<br />payee thereof. Borrower shalt promnti7 fumtsh to Lender all notices of amounu due under ihu paragraph. and in the event
<br />Borrower shall make payment dvec[Iv. Borrower shall promptly furnish to Lender receipu evidencing such payments.
<br />Borrower shalt promptly tiiscizarse am hen which has pnonp' over this A£ongage: provided, that Borrower shall not be
<br />reauired [o dtschargc app such hen so Tong as Borrower shall agree to wn[tng to the payment ni the ot:ltgazion secured b}•
<br />such lino in a mastncs a"w_ptable tr; Leader. or shall in good faith eontest such ]ten bv. yr defend enforcement of su ~ lieu in.
<br />legal proceedings which operate to prevent the enforcement of the ben yr larfeuure of the Propem' or an}• oan thereof.
<br />5. Hazard Inmrance. Borrower shall keen the :morovemenu no;, extsung or hereafter crcaed on the Proven}• insured
<br />against loss by hie, h~,.±Yrds inclvcled w•tthin the term '~eitended coverage". and such Other hazards as Lettder may require
<br />and in such amounts and for such pennds a< Lender ma_v reautre; rmvtded. that Lender shah net reautre that the amount of
<br />such coverage exceed [hat amount of coverage required to pay [he sums secured h}' tbts Mertgag_ •
<br />The in.,... a. - e .,., .,~ - -- shay -,asea t n---er suh~ect -- =--i?val h. L-cnd~r nrovid~d<
<br />that such approval shall notjbe unreasonably withheld. alt vpremtunts on rinsurance golictes -~ha11 be paid m [he manner
<br />provided under paragraph 2 hereof or, if net paid in such moaner, h}' Borrower making payment. when due, directly to the
<br />insurance carrier.
<br />Ali insurance policies and renewals thereui shall be in form acceptable to Lender and shalt mchide a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right w hold the pehcte_ and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and ail receipts of paid prrmmms. In the event Of loss,
<br />Borrower shall g[ve prompt notice to the insurance earner and Lender. Lender may make proof Of loss tt not made prompth•
<br />by Borrower.
<br />Unless Lender and Borrower otherNase agree in venting. insurance proceeds shall be applied to restoration or repair of
<br />the Prvpt:np damaged, provided such restoration or reputr is ecvnomicalh• teastble ecd the security o£ flits Mortgage n
<br />not thereby unpaired. If such restoration or reputr Is not economically feasible or tt the security of the Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Motgage. wnh the excess, it any, paid
<br />to Burrower. if u`,e Prapcric is abandoned b} Bvrrawcr. or rt Borrower fads to respond [v Lender wuh;ns0 days from the
<br />dote notice is mailed by Lender m Borrower that the insurance earner offers to settle a clartn for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option etcher tc restoration Or repay of the Propeny
<br />or to the sums secured try this Mortgage.
<br />Unless Lender and Borrower otherwise agree tit venting, any such application of prceeeds to pnncipai shall not extend
<br />or postpone the due dace of the monthh' installments referred to m paragraphs I and 2 hereof or change the amoum Ot
<br />such installments. If under paragraph IS hereof the Propene is acgwred by (.ender. alt right, title and interest of Borrower
<br />in aad [o any insurance policies and in and to the proceeds thereof resultme from damage to the Propeny prier ro the sale
<br />_. t=pan zha!1 paa'a fir t~yde7 tC Lh: eaLent 4f ti~:ee snn4 ~,;;<i `SCi', ~+! I~i:i f~f 4~iLgag~ eiltii'scillaLCl1 pn~i tO SnCh Sa12 C'r
<br />asgvisiLinn.
<br />6. Preservation and ?vTaintentmce of Property: Leaselioids; Condominiums; Planned Unit Developments. Barrowur
<br />shall keep the Property in good repair and shall not commit wuste or permit impalement or deterioration of the Propen}
<br />and shall comply with the provisions of any lease if this htortga¢e s on a leasehold. !f this Mortgage is on a unu m a
<br />condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or coveaanu creaurt,g or governing [he condommmm or planned unu development the by-laws and regulauous of the
<br />condominium or planned unit development, and constituent documents. if a condominium Or planned unit development
<br />rider is executed by Borrower and recorded together with this Mongege, the covenants and agreements of such nder
<br />shall be inaorparated into and shall amend and supplement the covenants and agreements of this Mortgage as :i the nder
<br />were a pan hereof.
<br />7. Protection of T.e»der's Security. li borrower fails ro perform the covenants and agreements contained In this
<br />Mottr~age, or if nay action Or proceeding is commenced which materially affects Lender's :merest to th€ Propeny,
<br />including, but not limited to, eminent domain, insolvency, cads enforcement er arrangemenu or proceedings nrvoivmg a
<br />bankrupt or deazdert, G4e<, Leader at Leader's option, upon nonce tc Borrower, ma} make such appearances, disburse such
<br />su-„s a„ ouch a - ~ -- essan to protect Lender's ,aterest. ;ncluding- but not Itnutcd an. disbursement of
<br />reasanalrle attorney's feesfand entryvupoa the Propeny to make regains, li 1 ender rem sired men;,•age ;osurzrce as
<br />condition pf making the loan secured h} flits Mongage, Borrower shalt nay the premiums requtscd !;~ mat..^,ta;n stir it
<br />insurance in effect umil such time as the requirement for such insurance tcrmmates ;n accordance won Borrower s anJ
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