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<br />Ur+[uoart COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when 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 this Mortgage.
<br />Z, rands for Taxes and Insnratsee. Sub}ect to applicable law or to a written waiver 6y Lender, Borecwer 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") equat to one-twelfth of the yearly taxes and assessments which may axtain priority over *.his
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearty premium instatlments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, aH as reasonably estimated initially and from
<br />time to time 6y Lander on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or acccunts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shag apply the Funds to pay said taxes, assessments,
<br />insurance preminms 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 />Mortgage 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 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 and debits 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 Mortgage.
<br />If the antount of the Funds held by Lender, togeifierwith 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 razes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />helr3 by r ender shall not be stt9'icient to pay taxes, assessments, insurance premiums and ground renu as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender io Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, i.ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph ] g hereof the Propetty is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Propetty 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 />Note and paragraphs c and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph 2 hereof, then to interest payable on the Note. then to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />~. Charges; Liens. Borrower shall pay ail taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the manner
<br />provided tinder 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 notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge env such lien so long as Borrower shall agree in writing to the payment of the obligation secured 6y
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such Tien by, or defend enfora:ment uE such fien in,
<br />legal proceedings which operate to prevent [he enforcement of the Tien ur tortetmre of the Property or any part thereof.
<br />5. Hazard Insnraace. Borrower shall keep the :mprovernents now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included :vithir, the term "extended caverag2'", and such other hazards as Leader may reGtrre
<br />and m such amounts and for such periods as Lender may reeuire; provided, that Lender shall not require that :~ amount of
<br />sue;; caverace;;cGed that amoum of cave: age requtt'ed tb pay the snots secured cry th:s hlur[gagc.
<br />The insurance carrier providing the insurance shall be chosen by Burrower subject to approval by Lender. provided.
<br />that sue ; approval shall rot be uureawnably withheld. Ali premiums on insurance policies shalt be paid :n the manner
<br />grovided !!-uder par3greph 2 l;erecf er. tf nut paid in such manner. by B;trrawer making payment, when duo diraetfy to thz
<br />insurance carrier.
<br />RIl insurance policies and renewals thereof shall be in farm acceptable to Lender and shall include a standard nu,rtgsge
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shalt promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prom of loss it oat made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Properly damaged, provided such restoration or repair is cconomicxlly feasible and the security of the Mortgage u
<br />not thereby impaieed. if such restoration ar repair is not economically (easible ar if the security of this Mortgage would
<br />be impaved, the insurance proceeds shall be applied to the runts secured 6y this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Born wet, ur d Borrower [ails m respond to Lender wtthm 3U days tram the
<br />date nonce is mailed by Lender to Borrower that the insurance carrier otters to scale a clams for insurance benefits, Lender
<br />is auihurizcd to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender artd Borrower otherwise agree m writing, any such application tit proceeds to prmc:pal shall nut extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and ? hercoi ur change the amount u(
<br />such installments. if under pazagraph 18 hereof the Property is acywred by Lender, all right, tide and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereat resulting from damage to the Progeny print to the sale
<br />or acyttisition shall pass [o Lender to the extent of the runts secured by this Alunguge unntediately pour to such ode ur
<br />~. Pte&ervation cad Maiatrnanre of Property; Leasettoids; Uondominiutus: Planned Unit i)evrlopmrntx. Borrower
<br />shall keep [he Property in gaud repair and shall not commit waste or Ixrmu unpaoment or detenorauoe of the Property
<br />and shall comply with the provisions of any tease it the Mungage :s on a leasehold. It this RSungagc is uu ,: uuu to a
<br />condominium or a planned unit development, Borrower shall ;terfurm all of Hormwer's obhgauons under the dcclsrauuu
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulation of the
<br />condominium or planned unit development and constituent documents. If a condominium or planned unit drvelopntent
<br />rider is executed by Borrower and recorded together with th:a Mortgage, the coveuanC; and agreentrnt~ of ,urh rider
<br />shalt be incorporated iota and shall amend and supplement the covenants anJ agreements of dos Mortgage us .I' the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. ]f Horrawer fails to perform the covenants and agreements eontauted m :h:,
<br />Mortgage, or if nay action ur proceeding a commenced which materially infects Lender's uuarest in the Properly.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings imolvmg
<br />6autsrupi or decedent, then iznder at Lender's option, upon notice to Borrower. may make such appearances. dsburse .urh
<br />sums and take such action as is recesssn to protect Lender's interest. uuluding, 6w not limned to, dsbuttentent of
<br />. asanghte vreptney r~s and entry apon the Property make repa;rs. ;t Lender ~eyuired nx;rtgagz incur:utu- .
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums reau:red :u mainuun v:.h
<br />insurance in effect until such time as the requirement for such insurance terminates rn asatrdance wuh Borrtwe:\ mid
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