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<br />IJ SiIFORM COVEN ANSS. Borrower and Lender covenant and agree as follows:
<br />7. Payment of Principal dad 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 principal of and interest
<br />on any Future Advances secured by [his Mortgage.
<br />2. Fonds for Taxes and Insueance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />[o Lender on the day monthly installments of principal and ineerest are payable under the Note, until the Note is paid in full, -
<br />a stun (herein "Funds"} 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 premit[m 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 m 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). Lender shall apply [he 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 pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Eorrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he 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 plzdged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Linder, 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 required [o pay said taxes,
<br />assessments. insurance premiums and ground rents as they fall due, such excess shat? be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of [he Funds
<br />held by Lender shalt not be sufficient to pay taxes, assessments, insurance premiums and ground rents as thzy fait due.
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}•s from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof. ~~~, ', ~,~I~
<br />Upon payment in full of all sums secured by this Mortgage. L,endershall promptly refund to Borrower any Funds
<br />held 6y Lender. if under paragraph IS hereof [he Property is sold or; the~.Properq• is otherwise acquired by Lender, Lender
<br />shall apply, no Later than immediately prior to the sale of the Property',or~ its acquisition Fly Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums securey by. this Mortgage. '.
<br />3. Application of Payments. Unless applicable law provides o[herwi;ie. all payments 'received by Lender under the
<br />Note and paragraphs I and Z hereof shall be applied by Lender first in payment of amounts payable to Lender b}' Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note. then ~~to they principal of [he Note, and then to interest and
<br />prrcipal on any Future Advances.
<br />d. Charges: Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Propert}' 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 Furnish m Lender receipts evidencing such payments.
<br />Borrower shall promptly dischargz any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required w discharge any such lien so 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 ,hall in good faith contest. si!ch lien 6y, or defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien br Eorfzimre of the Property or any part thereof.
<br />5. ffazard Insurance. Borrower shall keep the improvements now misting or hereafter erected on the Property insured
<br />against loss by fire. hazards included within the term "intended ceveruge'~.', and such other hazards ss ?.ender map reouirz
<br />and m such amounts and for such periods as Lender ma}• reyuire; pravidetl, that Lender shall na[ require that the amount of
<br />such roveragz exceed that amount of coverage regwred ro pay *.hz sums' tiecured by th!s Mortgage.
<br />The insurance carrier providing the insurance shall be chosen 6}• Hc~irrower subject to approval by Lender, provided.
<br />Lhai such approval stroll not bz unreasonably withheld. Ali prmiums:I~on insurance policies shalt he paid is the manner
<br />provided under paragraph 2 hereof ur, tf not paid in such manner, by Bi>rmwer making payment, when due, directly m the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptablz to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Linder. Lender shall have U[c right to hold the policies and reniwa(s [hereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts u( paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and 1_ender. Linder may make proof of loss it oat made pnm:ptty
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall bz applied to restnr.[tion or repair of
<br />the Property damaged, provided such restoration ur repair is economically Feasible and the securty of this Mortgage is
<br />not therzby impaired. If such restoratior. ur repair is not economically ieasihlz or tf [hz security of this \Sortgagc would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
<br />to Borrower. It the Property is abandoned h} Borrower, or rt Borrower tails to respond to Lender within i0 days Irom the
<br />date notice a mailed by Lender to Burrower that the insurance rurier oilers to settle a claim for insunnic henetits, i_ender
<br />is authorized w collect and apply the insurance proceeds at Lender's option zither to rtwtoration or repair of the Prnpeny
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds m pnnapal shall not cueod
<br />or postpone the due date of the monthly installments rcterred to in paragraphs I and 2 hircof or change the amoum of
<br />such installments. If under paragraph lR hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thzratl resulting iron damage to the Prnpert} prior to rho sale
<br />or acyuisition shall pass to Lender to the extent ul the sums secured h}' this Murtgagi imn!ediutely prior to such ,ale or
<br />acquisition.
<br />6. Preservation dad 6laintenance of Property; Leaseholds; Condominiums; Planned Unit Uevchrpments. Borrower
<br />shall keep the Property in good repair and shall nut commit waste ur permr[ unp:urmint ur detirioratio^ of the Property
<br />and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If !his Pf ortgage is on .! unit in a
<br />condominium or a plamred unit developmeN, Bon'ower shall perform all of Borrower`s ohbgavons under the declaration
<br />or covenants creating or governing the condominium nr planned unit devclupmcnt. the by-laws ;md regulations of the
<br />condominium or planned unit development, and constituent documems. If a condominium or planned unit Jzvclopnrent
<br />rider is executed by Borrower and recorded rogether with this Mortgage, the covenants and agreement. of such rider
<br />shall be incorporated into and shall amend and supplement the covcu;mts and agreements of this Mortgage as it the rider
<br />were a part hereof.
<br />7. Protecfion of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affezts tenders interest in the Property,
<br />ihcluding, but not limited to, eminent domain, insolvency, wtle enforcement. or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Burrower, may make such appearances, disburse such
<br />sums and take such action as is necessaq+ to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's tees and entry upon the Prnpeny to make repairs. It Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage. Borrower shall pny the premiums required to maintain such
<br />insurance in effect until such time as the requirement far such insurar!ee terminates in aecerdanee with Borrower's and
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