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<br />Utrr>=oaM Covts~;.+',•rs. Borrower and Lende: covenant and agree as follows:
<br />2. Payment of Principal and Interest. Borrower shall promptly pay when due ik:e principal o; and interese on the
<br />indebtedness evidenced by the Note. prepayment and late charges as provided in the Note. and the orncipal of and interes[
<br />oa any Future Advances secured b this Mottgage.
<br />2. Funds for Taxes and Insurance. Subjec[ to applicable law or to a written waiver by Lender. Borrower -shah pay
<br />to Lender on the day manthh• installments of principal and interest are payable under the Note, until the No[e is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the }•early taxes xnd assessments which may attain priority over this
<br />Mortgage, and ground ants on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br />plus one-[welfth of yearly premium installments fey mongaee insurance. if any, all as reasonably estimated initially and from
<br />time to time by Lender on [he basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br />gate agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessmenu,
<br />insurance premiums and ground rents. Lender ma}• not charge for so holding and applyin¢ the Funds. anaiyziag said account,
<br />or verifying and compiling said assessments and bills, unless. Lender pays Borcower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may aeree in writing at the time of execution of this
<br />Mottgage that interest on the Funds shall be paid to Borrower, and unless such agreemen[ is made or applicable law
<br />requira such interest to be paid, Lender shall not be required to pay Borrower am~ interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing crediu and debits to the Funds and the
<br />' purpgse for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />b}' 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 sates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assESments, 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 sufncient to pay taxes, assessments. insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount necessary tv make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Morteage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 1S hereof the Propeny is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no ia[er than immediately prior to the sale of the Propem• 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 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 Note, then [o the principal of the Note, and then to interest and
<br />prncipal ou any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other chances. fines and impositions attributable to
<br />the Fropem• 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 pa}•ment. when due. directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymenss.
<br />Borrower shall promptly discharge any lien which has priority' over this Mongage; provided, that Borrower shall not be
<br />requir:d to discharge any such lien so long as Borrower shall agree in wnteng to the payment of the obligation secured by
<br />such lien in a manner acceptable [0 1-ender, or shall ir. good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement o[ the hen or forfeiture of the Propeny or any pan thereof.
<br />3. II€azard Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
<br />and ir. such amounts and for such penads as Lender ma}• regwre: provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums snared bt• this Mart¢s¢e.
<br />Tnc insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Leader; provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such meaner, by Borrower making payment, when due. directty to the
<br />insurance carrier. -
<br />A1! insurance policies sad renewals thereof shall be in form acceptable to Lender and shall include a s[andard mortgage
<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 Bor-.over 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 [u the insurance carrier and Lender. Lender may make proof of loss it not made promptly
<br />b}' Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be 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 />not thereby impaired. If such rcstoraton or repair is oat economicalh~ feasible or if the securttv of [his Mortgage would
<br />be tmpwred. the insurance proceeds shall be applied to the sums secured by this Mottgage. with the excess, if any, paid
<br />m Bonawer. if the Propert} is abandoned by Borrower. or it Borrower faints to respond to Lender within 30 days from the
<br />dale notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of tht Property
<br />or w the stars secured by this Mortgage.
<br />Unless Lender and Botrowtr otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or poatpons the due dale of the monthly instalitixents referred to in paragraphs 1 and :hereof or change the amount of
<br />such inata0mea[s. If under paragraph I S hereof the Property is acquired by Lender, all nght, tide and interest of Borrower
<br />in and to aay insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />of acquisition shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acgtsition.
<br />E. Prt~rvatioa sad Maintenance of Propert}': Leaseholds: Condominiums; Planned Unit bevelopments. Borrower
<br />shall keep the Property m good repair and shall not commit wasm or permit impairment or deterioration of the Propeny
<br />and shall wmply with the provisions of any lease if this Mongage is on a leasehold. I[ this Mongage is on a unit in a
<br />condarainitim or a planned uni[ development. Borrower shall perform all of Borrower's obligations under the declaration
<br />or wvenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condoadnium or planned wait development. and constituent documents. If a condominium or planned unit development
<br />rider is executed 6y Borrower and recorded together with [his Mortgage, the covenants and agreements of such rider
<br />shall be inearporated into and shall amend and supplement the covenants and agreements of this Mottgage as if the rider
<br />were a par! hereof.
<br />7. Protxciion of Lertdet's Security. If Borrower fails to perform the covenants and agreements con[sined in this
<br />Mortgage,~or if any action or proceeding is commencW which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Ltndet's option, upon notice to Borrower, may make such appearances, disbrtse such
<br />sums sad tike sttcb action as is aecessan• to protect Lenders interest. including, bu[ not limited to, drsbutsement of
<br />reasonaby attamey'<. ftxs and entry upon the Property to make repairs. If Leader requited mortgage insurance as a
<br />condition of making the loan secured by this Mottgage. Borrower shall pay the premiums required to maintxm such
<br />iasurauue is effect until such time as the requirement for such insurance terminates in accordance with Bormwe.*'s and
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