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<br />LirriFOaM Cav-t:tvav'rs. Borrower and Lender covenant aced agrce as folbws:
<br />2. 1°ayment of Princfpai ~d Inttreet. Borrower shall promptly pay when due the principal of and interest on the
<br />indeb±edness evidenced b7r the Note, prepaytaent and late charges as provided in the Note, and the princpal of and merest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fn>s~ for Toes and Iaerreance. Subject to applicable taw or to a written waiver by Larder, Borrower shsB pay
<br />to Leader on the day monthly irtstailments of principal and interest are payable under the Note, anti( the Noe is paid io full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly lazes and assessments which may attain priority corer this
<br />Mortgage, and ground rrnts on the Propery, if any, plus Otte-twelfth of yearly premium ittstallrrtents for hazard insurance,
<br />plas one-twelfth of yearly premium installments For mortgage imuraitce, if any, all az reasonably estimated ir»tiaily and from
<br />time in time by Leader on P.te basis of assessments and biih and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or giaraoteed by a Federal or
<br />state agency (including Lender if Lender is such an insNwtion). Lender shall apply the Fonda to pay said taxes, asaeammts,
<br />insurance premiums and ground rents. Lender may nM charge for so holding and applying the Funds, analyuing said account-
<br />or verifying and compiling >aid assessments and bills, unless Leader pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of exectrt[ov of this
<br />Mortgage [hat late: est on the Funds shall be paid to Bottower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on the Fins. Lender
<br />shalt give to Borcower, without charge, an annual accounting of the Funds showing credits and debits w~the Funds and the
<br />,purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the °unds held by Lender, together with the fuwre monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br />assessments, insurrance 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 of Funds. If the amount of the Furtds
<br />held by Lender shall not be sttfficien[ to pay taxes, assessments, insurance premiums and ground renu az 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 io Borrower requesting payment thereof.
<br />Upon payment ir. full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1R hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shell apply, no later than immediately prior to the sale of the Propeay or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBeation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 aced 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the N¢tc, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; I3eus. Borrower shall pay all razes, assessments and other charges, fines and impositions attributable to
<br />the Property 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 is the event
<br />Borrower shall make payment directly, B¢rcower shall promptly furnish to Linder 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 so tong as Borrower shall sgree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, ¢r shall in good faith contest such lien by, or defend enforcement ¢f such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or torfei[ure of [he Propeay or any part thereof.
<br />5. Ilaraarit Yusarance. Boaower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended c¢verage'~, and such office hazards as Ixnder maX require
<br />and ir, such :w-t¢urts and for such pericxfs as i.ender may requires provided, that Lender shad na require That the amour.[ of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />Tre insurance carrier providing the insurance shall be chosen by Borrower subjact to approval by Lender. provided,
<br />that such approval shall net be unre-awnably withheld. Atl premiums on insurance policies shat! he paid m 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 carrier.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender end shall include a standard m¢rtgage
<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 nouces and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and lender. Lender may make proof of loss if nut made promptly
<br />by Borrower.
<br />Udess Lender and Borrower otherwise agree in writing, insurance pnxeeds shall fie applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />no[ thereby impaired. If such restoration or repair is not economically feasible or iC the seeunty of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied t¢ the sums secured by this Mortgage. with [he excess, if any. paid
<br />to Borrower If the Property is abandoned by borrower, or it Burrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to scale a claim fur insurance benefits, fender
<br />is authorized to collect and apply the insurance proceeds at 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 in writing, any such application of proceeds to pnnctpal shall not extend
<br />or p¢stpone the due date of the monthly installments referred to in paragraphs I and 2 here( or change the amount of
<br />such installments. If under paragraph tg hereof the Propeay is acyuued by Lender, alt right, title and interest of Borrower
<br />in and to any insurance policies and in and to the prcx:eeds thereof resetting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately poor m such sale or
<br />acquitii*_ion.
<br />6. Preservation awl Maintenance of Property; Leaseholds; Cundontiniuirts; 1'lemred Unit Uevelopmm~[s, Borrower
<br />shalt keep the Property in good repair and shell not commit waste ¢r permit unpairmem or deterioration o[ the t'roprrty
<br />and shall comply with the provisions of any (ease if this Mortgage a un a leasehold. If this M1t¢rtgage is on a unit m a
<br />condominium or a planned unit development, Borrower shall perform all u[ Borrower's ubhgauons under the decluruuon
<br />or covenants creasing or governing the condominium or planned unit devcl¢pnient, the by-laws and regulations oC the
<br />condominium or planned unit development, and constituent documents. if n condominium or planned unit development
<br />rider is axecuted by Battower and recorded together with this Mortgage, the covenants and agreements of such ndrr
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage us it the rder
<br />were a part hereaf.
<br />7. Preleclion of herder's Security. It Borcuwer fails to perform the covenants and agreements contained in [hu
<br />Mortgage, or if any action or proceeding is commenced which materially ,tats Lender's interest in the Proprn }.
<br />including, but not fimited tu, eminent domain, inscilvency, code enforcerent, or arrangements or pnxecdings unvhing a
<br />bankrupt or decedent. [hen Lender at Lender's option, upon notice ut Borrower, may make such appearances, dubunr such
<br />sums and (aka such action as is necessary to protect Ixnder's uuerest, uuluding, but not limited to, disburscncem •n
<br />reasonable aaamey's C _s and entry upon the Fr¢peny t¢ make repairs. If Lender required mortgage in.surnu<r ., ,
<br />conditbn at making [he loan secured by this Mortgage, Boaower shall pav the premiums required N mainbun su:f:
<br />insurance in eBect until such time as the reyuiremen[ Cor such insurance rernrmetes m accordance wnh Bonatwer'> and
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