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<br />L'*riFOxa-t CovsvnHrs. Borrower and Lender covenant and agree as follows;
<br />I. Payment of Ptirtelpal and Interest. Borrower shall promptly gay when due the principal of and inter-esi nn the
<br />indebtedness evidenced by the Noie, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future .4dvaaces sectred by this Morzgage.
<br />2. Fonds far'fi'azes and Instteaace. Subject to applicable law or to a written waiver by Lender, Boroower shalt pay
<br />to Lender on the day monthly installments of principal andsnterest are payable under the Note, tmlil the Note is paid ir. 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 hazard insuratrce,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially and fztrm
<br />Cme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shag be held in ar, institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (incltding Lender if Lender is such an institution). 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 verfying 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 i^ writing a: the time of executioo- 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 for the sums secured-
<br />`by this Mortgage.
<br />If the amount of the Funds held 6y Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums andground rents, shall exceed the amount eequired 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. If the amount of the Funds
<br />held by Lender shalt not be strfficient 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 within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereot.
<br />Upon payment in full of all sums secured by this Mortgage. 1_ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired oy Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of appticadon as a credit against the sums secured 6y this Mortgage.
<br />3. Application of Paymenfs. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first 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 of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lievs, Borrower shall pay all taxes. assessments and other olio: es. fines and impnsi[ions attributable to
<br />the Property which may attain a priority over this Mortgage. and leasehold payments or ground ants. if any, in the manner
<br />provided tinder paragraph Z hereof or, if not paid in such manner, by Borrower making parmen[, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under thts paragraph, and in the event
<br />Borrower shall make payment directh•, Borrower shall promptly furnish to Lender receipts evidennng such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />lequired to discharge any such lien so long as Borrower shall agree in writing to the payment of the abligaiio^ secuad by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfenure of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep [he improvements now existing ur hereafter erected on the Property insured
<br />aga!ast loss 6y fire, hazards included within the term "extended coverage", and such other hazards as Lender may reomre
<br />and is such amounts and for such periods as Lender may require. provided. chat Lender shall not esquire that the amount of
<br />such coverage exceed that amount of con^erage ;cyuired to pav the -;urns secnrE±d by th!s Mcrgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provtded.
<br />.,.ai such approval shall not be unreasonably withheld. ,ill pr;niums u. insurance policies shall be paid ~„ t;re r.anner
<br />provided under paragraph 2 hereof or, i f net paid in such manner, hr Borrower making paymen*., when due. dir~cily to the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mor[gace
<br />clause in favor of and in form acceptable to Lender. Lender shall hove the right to hold the policies and renewals thereot.
<br />and Borrower shall 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 earner and Lender. i_ender may make proof of loss !t nut made prompth
<br />by Borrower.
<br />Unless Lender and Borrower otherw!sc agree in wrinng, msurmce proceeds shall be applied to restoration or repair of
<br />[he Property damaged, provided such restoration or repast !s ecenom;cally fe:ut6le and the security of tha ~Sortgagc u
<br />no[ thereb}' impaved. If such restoration or repair is not cconumically icastble ur ii the secunty of th!s Mortgage wnwd
<br />be impaired, the insurance proceeds shall be applied !e the sums secured h.' this Morteage. wuh the excess, if am, paid
<br />to Borrower. If the Property is abandoned h} Borrower, or ii Borrower lolls to respond m Lender wuhm 3U da}~s ,tom the
<br />date notice is marled by Lender [o Borrower that the insurance earner sNTers to settle a .:loam for nuurancc henehts, Londe!
<br />is authorized to collect and apply the moo: ante preceeils ai Lender', option enher to restoraton or repau of the Przslxr!r
<br />or to the sums secured h}' this Mortgage.
<br />Unless Lender and Borrower odterw!se agree m wrong, am cucit upplieation of prucceds to pnnc;pal ,hall nut es tend
<br />or postpone the due dale tit the monthly Installments referred t,t m paragraphs I and 3 hereof ur change !hc anusum u!
<br />such installments. If under paragraph 18 hereof the Property a acyuned by Lender. all nght, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thearoi resulting from damage to the Proper} poor m the sale
<br />or acyuisiuon shall pass to Lender to the extent of the gums ,coated h} this bturtgage immediately poor to ,uch sate nr
<br />acquisition.
<br />6. Preservation and ;Ffaentenans:e of Property; Le:rxhulris; Condominiums; Piumted Unit i3er'clopntents. Horrors er
<br />shall keep the Property in good rep-sir and shall not commit caste or permit impatnnem or deterioration of the Proper}
<br />and shall comp3y with the provisions of any lease !t ih!s Mortgage !s on a leasehold. If thrs Mortgage is ou .i un;t m -s
<br />condominium or a planned amt development, Borrower shall pert arm all at Borrower's ohiigauons under the declarurnu
<br />or covenants creating or governing the rondommium or planned unrt development, the by-laws and regulation. of rho
<br />condominium or planned unit development, and constituent da:umenu. if a condominium or planned amt Development
<br />rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of .,uch odor
<br />shall be incorporated into and shall asend and supplement the covenants and agreements of thss ?sortgage as a the rider
<br />were a part hereof.
<br />7. Protecfian of Lender's Security. If Borrower fails to perform the covenants and agreements cantamed in this
<br />Mortgage, or iE any action ur proceeding is commenced wh!ch materially allects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code entorc;enten[, or arrangements or proceedings involv!ng a
<br />bankrupt or decedent, then Lendet at Lender's option, upon notice to Borrower, may make such appearances. d!shurse .,uch
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement of
<br />rearT;nable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required ;n mainrun such
<br />instuance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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