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Uth iFORM COVENAN?S. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal--of and interest"on the
<br />indebtedness evidenced by the No[e, prepayment and late charges as provided in the Note, and the principal of and interest
<br />an any Future Advances secured by this Mongage.
<br />2. Funds for Taxes and Insurance. 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 Nole, until the No[e 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 rents on the Propert}•, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mongage insurance, if any, all as reasonably estimated initially and from
<br />time to time b}• 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 agenr;y (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 map not charge (or so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessnents 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 />Mongage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or-applicable law
<br />requires such interesT to be paid, Lender shall net be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting oC the Funds showing credits and debiu to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security far the sums secured
<br />by this Afortgage.
<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 taxes,
<br />assessmenu. 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 Barrower on monthly installments of Funds. If the amount of rho Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay m Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower reouesting payment thereof.
<br />Upon payment in full of al] sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Propeny is sold or the Propeny is otherwise acquired by Lender, Lender
<br />shalt apply, no later than immediately prior to the sale of the Propeny 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under The
<br />Nate and paragraphs I and 2 hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrowe-
<br />unde: paragraph 2 hereof, then to interest payable on the Note, then to the principal of 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 impositions attributable to
<br />the Prope :y which may attain a priority over this bfortgage, and leasehold payments or ground re,us, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whrn due, directly to the
<br />payee thereof. Borrower shall promptl}• furnish to Lender all notices of amounts due «nder this paragraph, and in the event
<br />Borrower shall make payment direc4y, Borrower shall prampdy furnish to Lender receipts tvideucing such payments.
<br />Borrower shall prompd}• discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
<br />required to discharge any such lien so lone ac Borrower shall agree in writing to the payment of the atzligatlun secured lay
<br />such lien in a manner acceptable to Lender, or shag in good [aith contest such lien by, ur defend enforcement of such lien in,
<br />legal prot:ecdings svhieh operate to prevent the enforcement of the lien nr forfenurc of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now e~:isting or hereafter rrrcted on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage'", and such other hazards as Lznr+_= c=lay require
<br />aad in such amounts and fur such periods as L¢ndtr may require; provided, that Lender shall not rcyuirc that the amount of
<br />such cav=ran'e ¢xc=_ed that amount of eaversee requred to pav the sums s¢cur;d <<• this ':Sorrgagz.
<br />7ne insurance carrier providing the insurance shall be ettasrn 6y Borrower subject io approval by Lender, provided,
<br />chat such approval shall oar tr unrtascna`ly ws;.",helsd. ,-',ll premiums or ;nsurancc policies shah I,e prid m the manna
<br />provided under paragraph s htrenf or,~° ns?t p+id in such manner, bp• 13arrewar snaking payment, when clue, d;r¢ctlyy to r#te
<br />inSnranet Carrt¢I.
<br />.All insurance policies and renewals thereof shall he in town acceptable to Lemicr and shall include a standard mortgage
<br />clause in tavnr tit and in form acceptable to Lendrr. Lender shall have the right to held the policies and renewals thtrrof.
<br />and Barrower >hall promptly Furnish to Lender all renewal sauces and afl receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance earner and Lender. Lender may make proof of toss it riot made ptomptl}
<br />by Borrower.
<br />Unless I-endnr and Borrower othrrvvise agree in w-riung, insurance proceeds shall be applied to rcstoratian ur repair of
<br />the Property dautaged, provided such zestorauon or repair is ceananucally feasible and the security of this Mortgage u
<br />not thereby impaired. If such rrstoratwn or repuu ss net ccunamically icasfhle or d the security of this 9lortgage would
<br />b¢ impaired, the insurance proceeds shall b¢ applied to the sums secured by this lvturtgage, ss'rth the excess, it :iny, paid
<br />to Borrower. If the Pruptrp• is abandoned h}. Burrower, ur it Borrower tails is respond to Lender within ,0 days tram the
<br />data notice is mailed by Lender to Barrower that the insurance carrier nfltrs to senk ,~ claim for insurance benefits, Lender
<br />is authorized m callrct and apply the insurance prucrtds at Lmtdtr's option ¢uhtr to restonrtwn or repair of die Propeny
<br />or to the sums secured by this Mortgage.
<br />Unless Linder and Borrower otherwise agree in wntiny;, any such application of proceeds to pnncrpat shall nut rxtend
<br />ar postpone rho due da[a of the monthly itrstailments telbrred to m paragraphs l and Z bocce[ or ciuu+gr the amount at
<br />such installments. If under paragraph 18 hcrcaf tl?e Prgp¢rty is acquircJ b}- I.under, rill right, title and interest c?t Boerow¢r
<br />in and to an}' insurance policies and in and to thr proceeds thereof rrsuluog (ram danrage m the Pruptrty prier to the sale
<br />or acquisition shalt pass to lender to thr cAtent of the sums secured by this hfortgagt immediately prier to such sale er
<br />digttisiti:F+e.
<br />6. Prrsttvallou and Mautrnancr of Pntp€rt r; I,eL.rha?ldc, f_'..ndnminiunts; Planned Uttit II¢s~rlupmrnis. dnriuw^.r
<br />shalt ktap the Propeny in good repair and shall not camntit esastr or pernnt mtprurmtnt or deteriotatiou of the Property-
<br />and shall comply with the previsions of any tease it this Mortgage is u^ a }easahold. It this Mortgage is tin a unit ii:.t
<br />n?ndominium cr x platmed unit development, Borruwtt shall p¢rtprnt all u[ 8arruwer•s ublsgauons under the declaeauon
<br />or covenants creating or govm•u+ng the condantintum or planned unit davrluprnrnt, the bylaws and regulutians of the
<br />cantiominium ar planned veil develupntent, and catstitu¢nt documents. It a cmtduminiuin or pl:enned unit dcvek+l?n+ent
<br />ride[ is elrecuted b}~ Borrower and ra.ordad teptaher x~ttt; this Alertgage, the covenants and agre~nteuts tit st+eil nder
<br />shall be incarpurated iota and shalt amend and suppltmtnt the covenants and agreements ut th+s Mortgage as it the rider
<br />warn a pan hereof.
<br />7. Proiaction of Lcodcr's Sectutity. If Borrower fails m perform the covenants and agreements nnnaiued in this
<br />Alongage, or iE an}• action or proceeding is catnmeneed which materially affects I.rnder's interest in the Property,
<br />including, but not limited to, ¢nTinani domain, insokvrncy, axle enforcetntnt or arrangements ar prcxcedings involving a
<br />bankrupt ar decedent then Lander ai Lender s option, upon nonce to Bonawer, muy stake such aplxarances, disburse such
<br />stems and take such action as is necessary to protect Lender's mterest, includin8, but oat limited ta, d+sburscmem of
<br />reasonable attorney's fees and entry upon the Prapany to make regain. If l.eadrr required mortgage insurance as
<br />ccnditi;=n at ma'iing ils¢ loan s¢curetl by this 34aneag¢, 3a t?.v,•cr -r,.-,_ ?a} she pr, eiurns requ+re.i to maintain such
<br />insnra:;ce in ¢Bect u:ttil such is nt as ihr: r¢qui;2m¢nt ;or s.tth ,n,urar`ee tern rnatc-s ~n accaruance nub Borrower's an.i
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