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<br />Ut.~oast Covetravrs. Borrower and Lender ctrvenam and aa-te as iottows:
<br />i- c aymeat of Principal need Lsterest- Borrower shalt promptly pay when due the principal of and interest cn the
<br />indebtedttess evidenced by the Note, ptepaymeni and Saxe charges as provided in the Note, and iht prnxipal of and toreros€--
<br />on nay Ftuure Advances secured by this Mongage.
<br />a. Funds far Taxes and lassrance. Subject to applicable law or to a written waives by under, Borrower shall pay
<br />to Lendu en the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a s,tm f3+erein "Fends") equal to one-twelfth of the yearly taxes and assessraems which may attain priority -over this
<br />Mortgage, and ground rents on the Property, ff any, plus one-twelfth of yearly premium iasullments for hazard insurmee.
<br />phu oleo-twelfth of yearly premium ittstaliments for mortgage insurance, if any, aB as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates tlxreof.
<br />The Funds shall be held in an institution the deposits or accotmts of which are insured or guaran[eed by a Federator
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay sa"sd razes, assessments,
<br />insurance premiums and grotmd rents. Lender may not charge for so holding and applyin¢ the Funds, analyzing said account,
<br />or verifying and cotsigiling said assessments and bills, unless Lender pays Borrower interest on the Fvnds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agrr in writing ai the time of execuiian of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requirss such interest la be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without chazge- an annual accounting of the Foods showing credits and debits xo the Funds and the
<br />,. purpose for which each debit to the Funds was made. The Funds are pledged as additional secnrty for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lr;ader, together with the feture monthly installments of Funds payable prior to
<br />the due dates of taxes; assess;aents, ir•snrance premiums and ground rents, shall exceed the amount required to gay said taxes.
<br />assessments, insurance premiums and ground rents as they fall due, sue}: 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 />held by ixnder shall not be sudcient to pay taxes, assessments, insurance premiums and ground rents as they fall 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 Borrower requesting payment thereof.
<br />Upon payment is full of all sums secured by [his Mortgage. Lender shall promptly refund to $orrower any Funds
<br />held by Leader. If under pazagraph 18 hereof the Property is sold or the Propetty is otherwise acquired by Lender, Lender
<br />steal! apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of app&cation as a credit against the sums secured by this Mongage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in paymen[ of amounts payable to Lender by Borrower
<br />under paragraph 3 hereof, rhea to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advaaces-
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this btottgage. 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 rue, directly to the
<br />payee thereof. Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borro zr shall make paymem directly, Borrower shall promptly famish re Ixnder receipts evidencing such payments.
<br />Borrower shall promptly disebazge any lien which has priority over this bfortgage: provided, that Borrower shaft no[ be
<br />required to dischazge any such Tien so tong as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien is a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedengs which operate to prevent the enforcement of the lier or torteiture of the Property or nay part thereof.
<br />5. Hazard Insurance. Borrower shag keep the improvements now existing or hereafter erected on the Property insured
<br />agafrst ions by fire, hazards included withtn the term "extended ,overact". and such odor hazards as Leader may require
<br />and ir. such amounts and for such periods as Lender may require; provided, that Lender shalt no[ require that the amount of
<br />such c exceed t. a.;,nunt o coverage required to nay the sums scented by this Mortgvge.
<br />i`he~iasuraace carrier providing rho insurance shall he chosen 6y Borrower subject m aoprova! by Lender: provided,
<br />that such approval shall ntx 6e tmteasonably withheld. .Alt premiums on insurance policies shall be paid 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 />insurance cazrinr.
<br />All insurance policies and reuewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause io 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 no[ices and aH receipts of paid premiums. In the event of loss.
<br />Sonawer steal! give prompt notice to the insurance carrier and lender. Lender may make pcooF of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othemist agree in writing, insurance prxeeds shall be applied to restoration or repair of
<br />the Property damaged, provided Boob restoration or repair is economically feastble and the srurity of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if [he security of this Mortgage would
<br />be impaired, the insurance proceeds shat! be applied to [he sums secured by this Mortgage, with the excess, iE any, paid
<br />to Borrower. If the Property is abandoned by Rorrower, or i[ Borrower fails to respond to Lender within 3U days from the
<br />dale notice is malted by Lender to Borrower [hat the insurance carrier otTers to Beale a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to rzstoration or repair of the Property
<br />or to tree sutra seettred by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of pnx:eeds to prncipal shall not emend
<br />or postpone the due daEa of the monthly Installments referred to in paragraphs 1 and ? herwf or chance the amoum of
<br />such installments. If under paaagraph l8 hereot the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any iasurattce policies and in and to the proceed. thereo[ resulting [rum damage to the Property pror to the sale
<br />er acquisition shalt pass to Lender ro the extent of the Burns secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />$. Prtsen•atior, and Msintananre of Property: Leaseholds; Condominiums; Planned Unit lleveiupmeatts. iorrower
<br />shall keep the Property in good repair and shag nut commit was[e or permit impairment or deterioration, of the Property
<br />and steal! comply with the grovisions of any lease if this Mortgage is on a leasehold. 1f this Mortgage is on a unit in a
<br />coadomiui'rnr or a planned unit development, Borrower shall per€orm all of Borrower's obligations under the dedarauen
<br />or covenants creating or governing [he condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development,. and constituent documents. If a condominium or planned amt devclepment
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such nJrr
<br />shag be incorporated into and shat amend and supplement the covenants and agreements of this Mortgage as if the riiler
<br />were a gars hereof.
<br />7. Protection of Lender's Security. I[ Borrower Coils to perform the covenants and agreements wntained in this
<br />hfottgage, or if any action or proceeding is commenced which materially affects Lender's interes[ in the Property.
<br />including, teat not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings imoiving a
<br />bankrupt tit decedent, then Lender at Landera option, upon notice to Borrower, may make such appearances, disburse such
<br />Burns and take ouch action as is necessary to protest Lender's interest, incit~!ine. but not limned to, disbttrs.:ntent . f
<br />rtasonab!a attomevs fees and entry anon the Property to make repair, If Lender reyuired ttx.rtgagt imurance as .r
<br />condition of making the loan secured by this Mortgage, borrower shall pay U:e premiums required ro maintain such
<br />irsuran.-z in etfeEt until Snwia ~fb370 as iht regniremaa[ ft3r such insurance terminates in accoedan.:c with Borrower's end
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