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<br />UxrnoaM CovExxxts. Borrower and Lender covenant and agrce as follows:
<br />I. Payment of Priaellmt sad Imetrest. Borrower shalt promptly pay when due the principal of and interest on the
<br />indebteaneas evidenced Fry the Note, prepayment and ;ate charges as provided in the Note, and the principal of and interest
<br />on nay Future Advances secured by this Mortgage.
<br />2. I+torda for Tara and Ias~aaee. Subject to apglicable law or to a writrm waiver by Lends, Borrower shag pay
<br />to Lender en the day monthly instalFmenu of principal and interest aze payable under the Note, until the-Note is paid in fort,
<br />a sum (herein "Funds") equal to one-twelfth of the yearty taxes and assessments which ntay attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insursrtce,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estitcated initially and from
<br />time to tune by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the dtposiu or accounts of which are insured or guaranteed by a Federal or
<br />state agency t including Lender if Lender is such an institution). Lender shalt 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 wmpiling said assessments and bills, unless Lender pays Borrower interest on the Fttnds and applicable Iaw-
<br />petmits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that inttrest on [he Funds shalt be paid to Borrower, and unless such agrcernent is made or applicable law
<br />requires such inttrest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Futtds. 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 pledgci as additiorsai security fot the sums secured
<br />by this Mortgage.
<br />2aa ar:raunY of the Funds held by L,;nder, together with rite 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 to pay said taxes,
<br />assessmenu, 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 b}' Lender shall out be st>focient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold ur the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property ar its acquisition by Lander, any Funds held by
<br />Lender 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 I and 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 No[e, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shah pay all taxes, 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 />pa}•ee thereof. Borrower shag promptly furnish to Lender x71 notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall aromptly fumrsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not bt
<br />required 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 Lender, or shrill in good faith contest such lien by, or defend enforcement of such lien io,
<br />legal proceedings which operate to prevent the enfwcemrm ai the hen or Corfevure of the Properly or any pan thereof.
<br />5. Ilsz~d Er~sra.~ce. Borrower shall keep the improvements now exrstrng or hertatter erected nn the Property insured
<br />against loss by fire, hazards included within the term `extended coverage", and such other hazards as i.ender may require
<br />;gnu in such amounts and far such periods .v Le-nritr !nay rryurre: provided, that !.,ender shall net reyuise that tl,e amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Burrower subject to approval by Ltndtr; provided.
<br />that such approval shall not be unreasonably withheld. .AII premums on insurance pulic+es shall he paid m the manner
<br />provided under paragraph Z hereof or, d not pard m such manner, by Borrower making payment, when due. Juectly to the
<br />insurance caztier.
<br />All insurance policies and renewals thereof shalt tx: m torm acceptable to Lender :md shall include a standard ntangage
<br />clause in favor of and in form acceptable to 1-ender. Lender shat) hove the right to hold the policies and renewals thereat.
<br />and Borrower shall promptly furnish to Lender all renewal natces anJ uli rrcetpts of paid premiums. In the even o[ Ions.
<br />Borrower shall give prompt notice to the insurance earner :md [.ender. Lcndcr may make pnuN of loss it not nude promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwuc agree m wnung, mmranc~ prcKreds shtdl he applied to restoration or repair of
<br />the Property damaged, provided such restoration or rrparr rs ecunomts:ally feasible and the security o[ this Mortgage a
<br />not thereby impaired, if such reatarauon ur repine is not c.:unonuwlly frasrble or d the sacunty of this Mortgage would
<br />be impaired, the insurance proceew< shall be applred n? the sums secured uy this Mortgage, wrth the exuess, if nny, pard
<br />to Borrower. IF the Property is abandoned by Borrower, or rt Borrower tads to respond to Lender wuhm 30 days loon the
<br />date notice is maileJ by lxnder to Horn,wer that the msuraner earner mien m ovule a chum h?r ntsuraner benefits, Lender
<br />is authutrized to collect and apply the mwcance pmcceds at Lender's option etthtr to reswraumt nr rrparr of the Property
<br />or to the Bunts secured by this Mortgage.
<br />U mesa Lender and Borrower ulherwisc agree m wnung, any such applicativn of pnx:eeds to prnxrpal shall not cnttnJ
<br />or postpone the due dart of the monthly installments referred to in paragraphs I and ?hereof ur change the anwunt .+t
<br />such installments. 1[ wtJet paragraph l8 hereof the Property to aeywrcd by la:nder, all right, title auJ interest of Itorruw rr
<br />in and to any imwance policies and in and to :he proceeds thtreuY resWUng fmm damage to rue Properly prior to the sale
<br />or acquisition shall pus to Lender to the extent of the runts aceureJ by rhea .'v1ortguge uumeJtatelp prior t,+ such sale of
<br />algt)!StSlan.
<br />b. PrestrvatGou ttnrl Mainlraavre of Prugerty; laasthuids; Condominiums; Planned unit Ihveloputrn[s. R.n rower
<br />shall kelp the Property iq good repair and shall not summit tvwte ur pennrt impuvment ar deteriortuun of the Property
<br />attd shall roroply with the provisions of any lease it thin Mortgage a tin a IeasehulJ. tf rhea Mortgage ..nut m .
<br />condominium or a planned unit development, Borrower shall perlonn all of Borrower's obhguuons uuJrr the Jcclatuuou
<br />yr covtuauts creating or governing the condominium or planned unn etevelopnrt rib the by-laws anJ regulutious of the
<br />condominium or clamed unit development, and constituent Jocontrnt.c. It a :on.k+minium ur planned unn Jr~clopment
<br />rider is execuced by Borrower and recorded together wuh rhea Mortgage, the covenants and agreeanents nl ,uch rider
<br />shall be ineorporxted into and shall amend and supplement the covenants anJ agreenttu65 0l tlua Mortgage as rt the rider
<br />Wert a pan hereof.
<br />7, Ptotettlon of i,emters Security. It Boaowcr tarts to perform the covenants anJ agrcentents eonuuncd in rhea
<br />Mongage, ur if :+ny action ur prceeeding is cummencrd which materialty nlfcas I cnder's overeat m the Property,
<br />including, but not limited ta, eminent domain, iasulveney, code entorcentrnt, or at rangements or pn+e:eedmgs incoh~mg x
<br />bankrupt or decedent, thin Lender at 1_ende[ s option, upon nonce to Bmnower, pray make such appearances disburse such
<br />sums and test such action as is necessary w protett Lender's interest, including, bat noF limned to, .hsbursemem .~I
<br />reasunablt attorney"s tees and entry upon the Properly ro make rnparrs. li !_ender rcquireJ nwrtgage insurance a
<br />etndition af-marSng tly: loan ~ farad by ibis MatYgage--. Beremcr .ehaii p.;y thv aremnuns rcywred iv ntatnuun v.
<br />wsutanzz m ztLat w~id such umz as the reyuuemznt for ,uch insurance termm:uex ..r ,recordaucc wuh Bonvwer\ .uw
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