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<br />L'titr:oaat Covrhevrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interes[ an the
<br />iadeb[edness evidenced by the Note, prepayment and fate charges as provided in the No[e, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. funds far Taaes and Ittwrancx. Subject to applicable law or to a written waiver by Lender, Harrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sum (herein "Foods') equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents oa the Property, if any, plus one-twelfth of yzariy premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium instalhnents ter mortgage insurance, if any, ail as reasonably estimated initially and from
<br />time to time by Lender on flee basis of assessmenu 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 the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rants. 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 interne on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writin¢ at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />regtrires such intermit 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, as annual accounting of the Funds showing credits and debits to the Funds and [he
<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 Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower s6a11 pay to Lendee any amount necessary to mane up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment is full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held 6y Lendee If under paragraph 18 hereof the Property is sold or the property is otherwise acquired by Lender, Lender
<br />shall 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 application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable on the Noe, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and ether charges, fines and impositions attributable to
<br />the Property which may attar a priority over [his 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, directiq to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and io the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidenetng such payments.
<br />Harrower shall p;ompdy discharge any lien which has priority over this Mv¢gage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in wriuog ro the payment of the obligation secured by
<br />s'ueh lien in a manner acceptable to Lender, or shall in good faith contest such Lien by, or detend enforcemene of such Tien in,
<br />legal proceedings which opzrate to prevent the enforcement of the ben or forfeiture of the Propery yr snq part thzreaf.
<br />a. Hazazd Insurance- Borrower shall kzep the Improvements now existing or hereafter ereued vn the Property insured
<br />against loss by 5re, hazards included within the term "extended coverage", and such other hazards as Linda may requtre
<br />and in such amounts and for such periods as Lender may require; provided, that Linder shall not require that the amount of
<br />such coverage exceed that amount ai coverage required to pay the sums secured by this Martgagz.
<br />The insurance car: er providing the insurance shall be choszn by Horrowxr subject tv approval by Lender, pravidzd,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be patd m the manner
<br />provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making paymen[, when due, drectly [o the
<br />insurance carrier.
<br />All insurance policies and renewals thereat shall be in form acceptable to Linder and shaft include a nandard : [ortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and rcnewxts rhzreof.
<br />and Borrower shalt promptly furnish to Linda all renewal notices and all receipts of paid premiums. In [he event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lendee Lender may make peon[ of loss tt net made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration yr repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this b[artgage is
<br />not thereby impaired. If such res~~ration or repair is not economically Izasihle or if thz szcunty of this Mor[gage would
<br />be impaired, the insurance pr~ezds sha}l be applied to the sums secured by this blottgage, wrh the excess, if any, paid
<br />to Borrower. !f the Property i; abandoned by Borrower, or it Borrower fails to respond to Lender within 3U days from the
<br />dale aodce is mailed by Lender to Borrower that the insurance carrier offers to settle a clutm [err insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lendu's option either to reswra[ion cr repatr of the Propany
<br />or to the sums secured by this Mortgage. -
<br />Unless Lendee and Borrower otherwise agree m writing, any such application of proceeds to pnncipul shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs t and ] hereof or change the amount o[
<br />such installments, if under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest n[ Borrower
<br />in and to nay insurance policies and in and to the proceeds thereoY resulting from damage rn the Property prior to the sale
<br />or acquisition shalt pass to Lender to the extent of the sumo secured by the Mortgage immediately prior to sudt sale oc
<br />acquisition.
<br />S. Preservation and biaiatenance of Property; Lewehalds; Caodominiums; Planned Unit Developments. Borrower
<br />shall keep the Properly in gaud repair and shall not commit was[e or permit impairment or deterioration of the Property
<br />and shalt comply with the provisions of any lease iF this Mortgage is on a leasehold. If this blottgage is on a trait in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's abhganons under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. ff a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage us if the rider
<br />were a part hereof.
<br />7. Protection of Lenders Security. If Borrower Coils to perform the covenants and agreements vn[amed m this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interes[ in the Propzrty.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pro:eedings invalvm3 a
<br />bankrupt or decedent, thin Lender at Lender's option, upon notice to Borrower, may make such appearances, disbunt such
<br />sums and take such action as is necessary to protect Lender's interest, including, but not limtred m, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. if Lender reyuired mortgage insurance as ~
<br />condition of mr3kirn„ the loan szcursd by this Mortgage, Br?rrower sYtaii pay the premiums required to maintain ;uch
<br />irsu-. once in tffa-t until such time as the rzquiremem far such insurance tzrrninates in accordance with Ban ewer's and
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