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<br />U'; [FOaM Cover:evTS. $orrower and Lender covenant and agree as foIIows:
<br />I. Payment of Principal and Interest Borrower shall promptly par when due the pnncipa] of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and *.he pnncipa] of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Insurance. Subject to applicable taw 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 Note, until the Note is paid in foil,
<br />a sum (herein "Funds") equal [o one-twelfth of the }•early' taxes and assessments which may attain ptioriry over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of year3}' premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as 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 a¢ institution the deposits or accounts cf which are insured or guaranteed by a Fedezal or
<br />state agency (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 may not charge for so holding and applying the Funds, anal}•zing said account,
<br />or verifying and compiling said assessments and bi]Is, unless Lender pays Borrower interest o¢ the Funds and applicable law
<br />permits Lt:nder 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 ar applicable law
<br />requires such interest to be paid, Lender shall not be required to pa}' Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds sheaving credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additions! security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthl}• 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 />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowei 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 shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as i hey fell 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 Bor,-paver requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender 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 by Lender, Lender
<br />shall apply, no later than immediately prior to the sate of the Property or its acouisition 6y Lender, arty 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 first in payment of amounts payable to Lender by Borrower
<br />- er paragraph 2 iercof, Thee io interest payable on the Note, then m the principal cf the No*.e. and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pap all [axes, assessments and other charges. fines and impositions attributable to
<br />the Property which may attain a priority over this Dtortgage, and leasehold payments or ground rents, if nay, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manna,-, by Borrower making payment. when due, directly to the
<br />payee thereof. Borrower shall promptly fur¢ish to Lender all notices of amounts due under this pazagraph. and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payrrer,is.
<br />Borrower shall promptly discharge any lien which has priorin• over this Mor[aage: provided, that Borrower shall not be
<br />required io discharge any such lien so Jong as Borrower shat! agree in writing ro [he payment of the obligation secured 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 proceeding< which operate to prevent the enforcement of the lien or forierture of the Property or am part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against less by fire, hazards included within [he term "extended coverage", and such other hazards as Lender may require
<br />and m such amounts and for such periods as Lender may require; provided, that Lender shall not require chat the amount of
<br />such cnverage exceed that amount of coverage required to pa} the runts secured by this Motgage.
<br />The insurance carrier providing [he insurance shat[ be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall net be unreasonably withheld. Atl premiums on insurance policies shall be paid in the manner
<br />¢rnvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<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 notces and all receipts of paid premiums. In the event of loss.
<br />Borrower shall ¢ive prompt notice to the insurance carrier and Lender. Lender may make proof of toss if not 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 Property damaged, provided such restoration or repair is economicall}• feasible and the security of this Mortgage is
<br />¢ot thereby impaired. If such restoration or repair is not economical]}' feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the starts secured by this Mortgage, with the excess, if an}•, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender wIIhm i0 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds a[ Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, an7~ such application of prncceds [o pnndpal shall no[ extend
<br />or postpone the due date of the monthly installments referred to in paragraphs i and 2 hereof or change the amount of
<br />such installments. If under pazagraph 18 hereof the Propert}• is acquired by Lender, all right, title and interest of Borrower
<br />in and to a¢V insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acgtisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquistinn.
<br />6. Pteserr•ation and Maintenance of Property; L.caceholds; Condominiums; Planned Unit llevelapments. borrower
<br />shall keep the Property i¢ good repair and shat] not commit waste or permit impairment or deterioration of the Property
<br />a¢d shall comply with the provisions of any lease it this Mortgage is o¢ a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planed unit development, and constituent documents. If a condominium or planned unit development
<br />rider i; executed by Borrower and recorded together with this Mortgage, the covenants acrd agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borrower fails to perform [he covenants and agreements contained in this
<br />Mortgage, or if any actio¢ or proceeding is commenced which materially affects Lender's imerest in the Property,
<br />including, but no[ limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessar}• to protect Lender's interest, including. but not limited to, disbursement of
<br />reason atilt atiomey's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a
<br />condition of making the loan secured 6y this Mortgage, Borrower shall pay [he premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates i¢ accordance with Bormw•cr's and
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