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<br />Uxit=atta~t Cov~xnxas. Harrower and Lender covenam and agree as follows: -
<br />i. Payment o° Prirrcfpa! a~ 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 print=.pa1 of and interest
<br />an arty Future Advances secured by this Mortgage.
<br />2. Fonds for Tales atni Ir~urance. Su67ect to applicable law or to a written waiver by Lender, Borrower shat! 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") equal to one-twelfth of the yearly taxes and assessmenu which may atkain priority aver this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yeazly premium installments for hazard insurance,
<br />plus one-twelfth of yeazly premium installments for mortgage insurance. if nay, nit a-> reasonably estimated initially and from
<br />time to time by 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 agency !including Lender if Lender is such an institution)" i_ender 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 verifying and compiling said assessments and bills, unless Lender pans Borrower interest on the Futids 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, Londe[' shall not be required to pay Borrower an}' interest or comings nn 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 />6y this Aortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installments of Fttnds 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 />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 Leader shall no[ be sufficient to pay taxes, assessments, insurance premiums and ground rents as they Fall due,
<br />ycra:.•2r shall pay to Lender env amount necessary to make up the deficiency within 36 daps from the dale notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall prompt!}' refund [o Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immedia[eIy prior to [he sale of the Property or ill acyuisition by Lender, any Funds held by
<br />Lender at the lime of application as a credit against [he 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 1 and 2 hereof shall be applied by Lender first in payment of amoums 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, Dens. Borrower shall pay all taxes. assessments and otber 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 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 notices of amounts due under this paragraph. and in the event
<br />Borrower shall make payment directly, Borrower shall promptly [umish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge a+:y lien which has priority over this Morgage: provided, that Borrower shat) not be
<br />reyuired to discharge any such lien so long as Borrower shall agree in u~riung to the pa}•ment of the obligation secured by
<br />such lien in a manner acceptable [o 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 enforcemem of the hen or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements nau~ existing or hereafter erected an the Property insured
<br />against foss by hre, hazazds included within the term "extended coverage". and such other hazards as Lender may require
<br />and ie such amounts and for such perioda as Lender may reyuire; provided, that Lender shall net require that the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums secured by this hinrgage..
<br />The i nsurance car er providing the insurance shah be chosen. try Borrower subject [a atppraval by Lander: provded,
<br />that such approval shall no[ be unreasonably withheld. All premmnrs on insurance policies shall ire paid m the manner
<br />provided under paragraph i heraaf or, tf rat paid in such manner, by Borrower making papmcnt, when due, dirrctl}~ to the
<br />insurance carrier.
<br />All insurance policies and renewals thereot shall be in form acceptable to Lender and shall include ^ xandani mortgage
<br />clause in favgr of and in form acceptable [o Lender. Lender shall have the right m hold the policies and reneuals thereat.
<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 proof of loss it not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to resmratian or repair of
<br />the Propertn• damaged, provided such restoration or repair is economically feasible and the securit}' of thts ~SOrtgage u
<br />not thereb}' impaired. 1f such restoration or repair is oat economically leasible or i( the securit}- of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Morgage, a-rth the excess, if :my. patd
<br />to Borrower if the Property is abandoned by Borrower, or if Harrower litils to respond to Lender wrthm 3H davs from the
<br />dart notice is mailed 6y Lender to Borrower that the insurance carrier offers to settle a claun for insurance benelits, Lender
<br />is auiharized to collect and apply the insurance proceeds at Lender's option euher to res[ormuin or repair of the Property
<br />ar to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m venting, any such application of proceeds to pnnapal ,hall not extend
<br />or postpone the due date of the monthly installments re-(erred to in paragraphs I and 'hereof or change the amount of
<br />such installments. If under paragraph Ig hereof the Property is acgmred h} Lender all ngh[. title and interest of Hornnver
<br />in and to atry insurutee policies and in and to the proceeds thereol resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately poor to such sale or
<br />acquisition.
<br />~. PrR~te~=llntt and 4~9ait3teaaac=. oaf Ptopert}; l,rassholds; C'ondami^hrms; Plsnred Uttil I)rvr}apsnrnis. Horro•-rr
<br />she!! keep the Property th good repair and shall not commit +vaste or permit umpaumert ar deteriarattwr of the Property
<br />and shall comply with the ptovistoas at" anp lease if this Mortgage is o^ ^ leauhoid. it [his Mortgage r, on .t amt m a
<br />condominium ar a planned lino development, Borrower shall perform all of Borrower`s ohhgauons under the declaration
<br />or covenants creating or governing the c+.)ndommium ar planned unit development, the 6y-Vow's and regulation ai the
<br />condominium or planned unit development, and constituent documents. If n condominium or planned unit Jeveh?pnrent
<br />rider is executed by Borrower and recorded rogether with ihts Mortgage, the covenants and agreements ai such nder
<br />shat! fro incorporated into end shat! atnend and supplement the covenants and agreements of this Mortgage as it the nder
<br />were a pan hereof.
<br />7. Protection of Lende2a Security. If Borrower fails to perform the covenants and agreements mntatned m this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />including, but oat limited to, eminem domain, insolvency, code enforcement, or arrangements or proceedings ~nvoh mg a
<br />bankmpi or decedent, then Lender ai Lender's option, upon notice to Borrower, may rnake such appearances, disburse such
<br />stuns and take such action as is necessary to protect Lender's interest, including, but not limned ;o. Jubursement of
<br />reasonable a[tomey's fees and entry upon the Property to make repairs. if Lender regaireei mortgage insurance as a
<br />cohdition of making the loan secured 6y this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates m accordance .e"i[h Borrower's and
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