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<br />LlritFO$bS Covaxexrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest. Borrower shall promptly pay when due tae principal of and interest on the
<br />indebtedness evidenced 6y the Nate, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on acy Future Advances secued by this Mortgage.
<br />2. Funds for Ttases and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installment= of principal and interest are payable tinder the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twe'fth of the yearly taxes and assessments watch may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any. at] as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />"I-ee Funds shall be held in an institution the deposits or accounts of which are inst:red or guaranteed by a Federal 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 reins. Lender may not charge for so holding and applying the Funds, anal zing said accotmt,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />petmits Lender So make such a charge. Borrower and Lender may agree in writing at the time of execution of ffiis
<br />Mortgage that interest on tae 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 ae required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Horrawer, 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 stuns secured
<br />by this Mortgage.
<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 ragnired to pay said taxes,
<br />asseuments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />bald by Lender shall no[ be suf5cient to pay taxes, assessments, insurance premiums and ground rents as they fat: due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notite is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lersder shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />saall 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 application as a credit against the sums secured b}• this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under tae
<br />Note and oaraeranhs 1 and 2 hereof shall fie annlied 6y Lender first in oayment of amotmts payable to Lender by Borrower
<br />under paragraph 2 hereof, then m interest payable on the Notc, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />1. Charges; Liens. Borrower shall day all taxes. assessments and other charges. fines and impositions attributable to
<br />the Property which may auain a priorty over this Mortgage, and leasehold payments or ground rents, if any. in the manner
<br />provtded under paragraph ?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 any such lien sn long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender. or shall in good faith contest such lien bv, or defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the entorcemem of the lien or forfeiture of the Property or any part thereof.
<br />5. hazard Insurance. Borrower shall keep the improvements now existing or hercalter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
<br />and in such amounts and for such periods as Lender may rcyuire: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage reyttired in pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall bu chosen by Borrower subject to approval by Lender; provided,
<br />last such approval shall not he unreascnaaly evithheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof ot, if not paid in such manner, ay Borrower making payment, waen dt¢e, directly' ?a the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include x 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 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 carrier and Lender. fender ma}' make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower oehenvise agree in writing, insurance proceeds shall be applied to restoration ix repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. if such restoration or repair is not economically feasible or if the secunry of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied m the sums secured by this Mongage, with the excess, if any, patd
<br />to Borrower. If the Property is abandoned by 8ormwer, or it Borrower tails to respond to Lcrder within 30 days Prom the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers io settle a claim for insurance benefits, Lender
<br />is authorized to collect anti apply the insurance proceeds xt Lender's option either to restoration or repair of the Property
<br />or to the stuns secured by this Mortgage.
<br />Unless Lender and Horrawer otherwise agree m writing, any such application of proceeds m prncipal shall not extend
<br />or pos¢pone the due :late of the monthly installments referred to in paragraphs 1 and hereof ur change the amount of
<br />such installments. If under paragraph IS hereof tae Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to say insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisiton shall pass to Lender to the extern of the, sums secured by this klortgage immediately prior to such sale or
<br />acquisition.
<br />6. Presen~atlnn and piaintenance of Property; teasel:olds; Cotedomtuiums; Planned Unit Uevclopmrn¢s. }forro;vrr
<br />shall keep the Properly in good repair and shall not commit waste or perm[[ Impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage Is en a leasehold. If thts Mortgage is fin a unit in a
<br />condominium nr a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned untt development, the by-laws and mguiatiwrc of the
<br />condominium or planned unit development, and constintem documents. I(a condominium or planned unit development
<br />rider is executed by Borrower and recorded together wuh this Mortgage, the covenants and agreements of such rider
<br />shalt fie incorporated into and shalt amend and supplemem the covenants and agreements oC the Mortgage. as i( the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. I( Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if soy action or proceeding is commenced which materially :d?eels Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh~ing a
<br />bankrupt or deceden4 then Lender at Lender's uptioq upon notice to Borrower. may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lender's interest. including, but nut limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as
<br />conditiot, o[ making tae loan secured by this Mongage, Borrower shall pxy the premiums regwred to maintain such
<br />insurance in eff4et until such ti„-ie as the requirement for such insurance terminates in accordance with Borrower's and
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