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<br />Es[FOxx CocES.ttirs. 3orrower and Lender covenant and agree as folaws:
<br />h Payment of Principal and Interest Borrower shall promptl}' nag when cue the principal 0' and interest on the
<br />indebtedness evidenced by the Note. prena}'ment and late charees a: provided in the Note. and the arincipai of and interest
<br />or, any Future Advances secured by this Morteage.
<br />Funds for Taxes and Insurance. Subiect tv applicable tau' or to a written waiver by Lender. Borrower steal pay
<br />tv Lende: en the clay monthly installments of principal and interest ace payable under the No[e. until the Vo[e is paid in full.
<br />a sum (herein "Funds"' canal to one-twelfth of the' yearly taxes and azsessments which may attain priority over this
<br />Mortgage. and ground rents on the Froperty, if any, plus one-twelfth of }'catty premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium insta!Imen[s for mortgage instrance. if any. all as reasonably estimaced initia3ly and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates inereof.
<br />The Funds shall be held in as institution the deposit or accounts of which are insured or guaranteed by a Federal or
<br />stale agency f including Lender if Lender is such an institution I . Lender shall apply the Funds to pap said taxes. azsessmenu,
<br />insurance premiums and ground rents. Lender mac not charge for so holding and applying the Funds, analyzing said account
<br />or verifgine and compiling said assessmenu and bills. unless Lender pats Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in u•titing at [he time of execuron of this
<br />Mortgage that interest on the Funds shall be paid to Borrower. and unless such aereement s made or applicable law
<br />requires such interest m be paid. Lender shall not be revuired tv pay Bo; rower any interest or comings on the Funds. Lender
<br />shall give to Borrower. without charge. an annual accounting of the Funas showing credits and debits to the Funds and the
<br />purpose ter whtch each debit to the Funds was made. The Funds are oiedeed as additional securin• for the sums secured
<br />by this Mongage. -
<br />If the amount of the Funds held be Lender. toecther with the future monthly installments of Funds payable print to
<br />the due dates of taxes, assessments, insurance premiums and ground renss. shall exceed the amount reyuired to pay said taxes.
<br />assessments. insurance premiums and ground rents as they fall due. such excess shall be, a[ Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments et Funds. If the amount of the Funds
<br />Geld bg Lende: shall not be sufficient to pap [axes, assessmenu, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender am' amount necessary to make up the deficiency within 30 days from the date notice is mailed~~
<br />by Lender m Borrower requesting paytnen[ thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Eorrower~, an}' Funds
<br />held by Lender. If under paragraph I S hereof the Propem' is sold or the Propene- is otherwise acquired b}• Lender. Lender.
<br />shall apply'. no Iaier than immediately prior to the sale of the Propem' or its acquisition b}' Lender. any Funds held by~i
<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 bg Lender under the'i
<br />Vole and paragraphs I and 2 hereof shalt bE applitd by Lender firs[ in~~pavment of amounts payable !o Lender by Borrowed,
<br />under paragraph 1 hereof, then to interest payable on the Vote. then fo the principal of the Vote, and then [o interest and
<br />principal or. any Future Advances.
<br />3. Charges; LFens. Borrower shall pay ail rases. assessments and other charges, fines and impositions attributable to
<br />Ute Propem• which moo attain a priority aver this Mongaee. and leasehold payments or ground rents. if any, in the manner
<br />provided under paragraph Z hereof or. if not paid in such manner, by Borrower makine payment. when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
<br />Borrower shall make payment directly. Borrower shall promptly iumish to Lender receipts evidencing such payments.
<br />Borrower shat promptly discharge any lien which has priority over this Morzgage: provided. that Borrower shalt not be
<br />required to discharge nay such lien so long as Borrower shall agree in writing [n the payment of the obliea{ion secured by
<br />such lien in a manner acceptable to LendEr, or shall in good iai[h contest such lien by, or defend enforcement vi such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof.
<br />5. i-Iazard Insurance. Borrower shall keep the improvements eau existine ar hereafter erected an the Property insured
<br />against loss by fire, hazards ittcluded within the term 'extended coverage". and such other hazards as Lender may requtre
<br />and in such amounts and for such ptriods as LEnder ma}' require; provided. that Lender shall not require that the amaum of
<br />such coverage exceed that amoun! of covcraee required to pay the sums reeured hg ihs Morteage.
<br />'The insurance carrier providing the insurance shall be chosen by Borrower subject to approval h}' Lender: provtded.
<br />that such approval shall oat be enre~sonabiy withheld. Ail premiums or. insurance policies shalt be paid the manner
<br />provided under paragraph 2 hereo:` or, if not paid in such manner, by Borrawer making aaymeni, when due, directy ro the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in term 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 anti renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal ponces and all receipts of paid premmma. Ir. tht event of foss.
<br />Borrower shall en'e prompt nonce [o the insurance career and Lende:. Lender may make proof of loss a not made prompth
<br />by Borrower.
<br />Unless Lender and Borrower o[heru•ise agree in writing, insurance proceeds shall be applied to reswrauon er repair ni
<br />the Propem damaged. provided such restoration or repatr is economically feasible and the security of th:s Mortgage n
<br />not thereby impaued. if such restoration or repatr is not economically feasible or if the securty of this Mortgage u•auld
<br />be impaired. the insurance proceeds shall be applied to [he sums secured b}' this Mortgage. with the excess. if any-. paid
<br />to Borrawer If the Propem is abandoned tic Borrower. or if Borrower fails m respond tv Lender within 3U days from the
<br />date notice is mailed b;. Lender to Borrower that [fiE insurance carrier otters to settle a claim for insurance itenefi[s, Lender
<br />is authorized to collect and apple the msuranct proceeds at Lenders option etcher to restoration-or repay of the Propen}~
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such appiicatian of proceeds to prncipal shalt nut extend
<br />or postpone the due date of the monthly installments referred [o in paragraphs I and .hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Properly is acquired by Lender, all nght title and interest o! Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the. sale
<br />or acquisition shalt pass to Lender to the extent of the sums secured by this Mortgage nnmediately poor to such salt or
<br />acquisition.
<br />6. Presen~ation and Altrintenance of Property: Leaseholds; Condominiums: Planned Unit Developments. Borrower
<br />shall keep the Propem in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shalt comph• with the provisions of any lease if this Mortgage s on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development. Borrower shall pertorm all of Borrower's abliganons under the declaration
<br />or covenants creating or governing the condominium or planned note development, the by-laws and regulations of the
<br />condominium or planned unit development and rnnstituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements at 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 herwf.
<br />7. Protection of Lender's Securih•. It Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if aoy action or proceeding is commenced which materially affects Lender's interest in the Propem}'.
<br />including, but not limited to, eminent domain, insolvency. cods enforcement, or arrangements or proceedings imroh•ing a
<br />6attkrupt or decedent then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and tcke such action as is necessan~ to pmtec! Lendei s interest, including, but not limited to. disbursemept of
<br />reasonable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
<br />condition of making the loan sectued._b}• this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in e¢ect until such time as the requirement for such insurance terminates m accordance with Borrower's and
<br />C' G• n ~ ~l 1.1 -„'~'t i?5
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