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<br />UtuiFVxrt CoveveNrs. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Principal and Interest. Borrower shad promptly pay when due the principal of a,td interest on tht
<br />indebtedness evidenced by tht Note, prepayment and late charges as provided in the Nvte, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Funds for Taxes and Insurance. Subject to applicable law or io a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of prirrcipaE and interest are payable under the Note, u¢tii the Nott 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 yearly premium installments for hazard insurance,
<br />plus one twelfth of gently premium installments far mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Leader on the basis of assessments and bias and reasonable estimates thereof.
<br />The Funds steal{ be held in an instiution the dtposits or accou¢tt of which are ittsured or guaranteed by a Federal or
<br />start agency (including Leader if Lender is such an institution). Lender shall apply the 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 t}re Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing a[ the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give [o Borrower, without charge, an annual accounting of the Funds showing credits and debits [o the Fundt and the
<br />purpose for which each debit to the Funds was made. The Funas are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If [hc amount of the Funds held by Lender, together~witft the future monthly installments of Funds payable prior to
<br />the doe dates of taxes, assessments, instuance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br />assessments, insurance premiums add 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 Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender nay amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting pzyment thereof.
<br />Upon payme¢t in frill of all sums secured by this Mottgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. 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 acquisiton by Lender, any Funds held by
<br />Lender az the time of application as a credit against the sums secured by this N(ortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and Z hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />udder paragraph 2 hereof, then to interest payable on the Note, ther. [o 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 other charges, fines and impositions attributable to
<br />the Property which may attai¢ a priority over this ivfortgage, and leasehold payments or ground rents, if any, is the manner
<br />provided tinder 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 Linder all notices of amounts due udder this paragraph, and is the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />requirod to 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 Leader, or shall in good Faith contest such lien by, or defend en[orcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propery or an> p_^ thereof.
<br />5. hazard Insurance. Borrower shalt keep the improvements now existing or heron&er erecred on the rropery insured
<br />againse loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lander may require: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insur,nce comer providing the insurance shall be chosen by Borrower subject to approval 6y Lender, provided,
<br />that such approval shag not be unreasonably .withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by Burrower making payment, when dot, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lander and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Linder. Linder shalt have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices 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 not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othzrw~se agree in venting, insurance proceeds shall 6e applied to restoration or repair of
<br />the Property damaged, provided such restora¢on or report is economically feastble and the security of this S[orteage a
<br />not thrreby impaired. It such restoration or repair is not economically feastble or rf the security of thu Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secure) by this Mortgage, with the excess, iI any, patd
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender wuhrn 3U days from thu
<br />date ¢otice is mailed by Lender to Borrower the[ the insurance earner offers to seine a claim for msurnnce benefits, Lender
<br />is authorized to colket and apply the insurance proceeds at Lender's option either m restoration or repair of the Propert}
<br />or to the sums secured by ibis Mor;gage.
<br />Unless Lender and Borrower otherwise agree in venting, any such application of proceeds to pnncrpal ,hall not extend
<br />or postpone the due date of the monthly installments referred [a in paragraphs t and ?hereo[ or change the amount of
<br />such installments. If under paragraph l8 hereof the Propern~ is acqured by Lender, alt right, tide and interest of Burrower
<br />in and to any insurance policies and in and to [he proceeds [hereo[ resatlung from damage to the Prooem onor m the sale
<br />or acgtisition shall pass to Lender to the extent of the Bunn secured ny this Mortgage imrned~amly prior to such sale or
<br />acquisition.
<br />6. Preservation and hlainttnance of Propert}; Leaseholds; Condominiums; Planned Uuit Uevelopmrnts. Burro~~er
<br />shall keep the Property in good repair and shall not commit waste or permn impairment or deterioration e[ the Property
<br />and shall comply with [he provisions of any lease tE the Mortgage is ou a leasehold. If this Morgage is on a unit m a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obhgauons under the declaration
<br />or covenants creating or governing the condommmm or planned unit development. :he by-laws and regulation, of the
<br />condominium or planned unit development, and constituent documents. ff a condominium or planned ~.imt ,~~~. ~_lopment
<br />rider is executed by Borrower and recurdzd together with this Morgage, the covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protec4ion of Lender's Security. If Burrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced whtch materially affects Lender's interest in the Propery.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action ass necessary [o protect Lender's interest, including. but not limned to, d~sbu!-sement of
<br />eeasonable at[omey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition v[ making the loan secured by this Mortgage, Borrower shall pay the premiums requred to maintain such
<br />insurance in effect until such tune as the requiremem for such insurance terminates m accordance write Borro«er's and
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