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<br />LIxIFCRM Coy'~xnxrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest. &errower shall promptly oay when due the principal of and interest on the
<br />indebtedness evidenced by the No[e, prepar'ment and late charges as provided in the Note, and the principal of and interest
<br />on any' Future Advances secured by this Mortgage.
<br />2. Fonds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender Borrower shall pay
<br />m Lender on the dap monthly installmems of principal and interest ere payable under the Note. until the Note is paid in full.
<br />a sum (herein "Funds") equa3 to one twelfth of the yearly tales and assessmenu which may attain priority over [his
<br />Mongage. and ground rents on the Proper}', if any, plus one•twelfth of pearl}'.premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasanably_ estimated initially and from
<br />time to time by Lender on t6c basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall he held !~ an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Leader shall apply the Funds to pay said taxes, assessments.
<br />insurance premiums and ground rents. Lender map not charge for so holdine and applying the Funds. analyzing said account.
<br />or verifying and compiling said assessmenu and bills. unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Leader to make such a charge. Borrower and Lender map atree in wnnng 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 />requires such interest to he paid. Lender shall not he required to pay Borrower an7 inttrest or earnings nn the Funds. 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 ro the Funds was made. l7te Funds are pledged as additional securin• for the sums secured
<br />by this Mortgage.
<br />If the amour[ of the Funds held b7 Lender. together with the furore monthly installments of Funds payable prior to
<br />the due dates of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />asssasmm[s, insurance pret~+utas and ground rents as they fall due. such excess sha{I be, at Borrower's option, either
<br />promptly repaid to Borrower or credited [a Borrower on monthly installments of Funds. If the amount of the Funds
<br />head by Leader shall not be sufltcieat to pay taxes, assessmenu, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender an}' amount necessan• to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Horrower requesting payment thereof.
<br />Lipoa payment in toll of all sums secured by this Dortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph IS hereot the Propem is sold or the Property is otherwise acgwred by Lender, Lender
<br />shall apply, no later than rmmeiriateh' pnor to the sale of [he Property or its acquisition b} Lender. aoc Funds held by
<br />Lender at the ume of application as a credit against [he sums secured by this Mongage.
<br />3. Application of Payments. UNess applicable law provides otherwise, all payments received by Lender under the
<br />Nate and paragraphs 1 and 2 hereof shall be applied by Lender firs[ m paymem of amounts payable to Lender by Harrower
<br />under paragraph '_ hereof, then to interest payable c^ the Note, then to the principal at the Note, and then to interest and
<br />pnnctpal an any Futile Advances.
<br />3. Charges: liens. Borrower shall pay all eaxes. assessments and other charges. fares and imposinons annbu[able to
<br />the Propem~ which may attain a priority over this Mongage, and IeasehMd paymem or ground rents. if am', in the manner
<br />provided under pazagraph 2 hereof or, iC no[ paid in such manner, by Borrower making payment. when dot, dtrteth• m the
<br />payee thereof. Borrower shall promptly furnish to Lender all nouces of amounu due under this paragraph. and io the event
<br />Borrower shall make paymem dircetlc. Borrower shall promptly fumrsh to Lender receipts evidencing such paymem.
<br />Borrower shalt prompty dischazge any lien which. has pnant}' aver this Mortgage provided. that Borrower shall not be
<br />rsqutred to ciiseh-urge nay <uch lien sc ?eag as Barrawer shat: agree in w°rivng to the payment o; thz obligauon seciwred by
<br />sorb hen to a manner acceptable to Leader, or shat! m goad forth comes such lien by, ar dafend enforcement of su. :ea in,
<br />Icgal proceedings which operate ro prevent the enforeemcnt of the lien or forieiturr of the Property or arc pan thereof.
<br />5. Hazarat lnsaeaneo. Barrs:+er sha[I keep the ,mpravtments nox cxisttng or nerrafter erected on the Property insured
<br />aaatnst !ass by fors, hazards iocludsd wnhtn the term °txtended eaveragt'~. and such other F,azartis as Leader may yogurt
<br />"-_ ..,..-........,oats and tar sueir nc[rads a, Lender may regmre~ prov,dtd. that Lender shnL not requue xhat tat amount of
<br />such•awtragt exceed that amour[ of coverage regwred ro pay the sums soured by this Mongage-
<br />- sr,surancs earner pravidirg rite insurance shall t>@ chosen by $orrawer subtler to approval by itndcr; pravidsd,
<br />~:a< ~i apply=sai shalt act be unre3sosahiy :vithhsiii. .-Lfi premiums an insurance poirctts shnii he paid ,n the manner
<br />provrded under paragraph '_ horror or. d not paid in such manner, b} Borrower ma-tag payment, when due, dtrtctly to the
<br />rtuunocc rattier.
<br />Al! insurance policies and renewals thereat shall be m form acceptable to Linder and shall mcludt a standard mortgage
<br />clonal m favor at and m (orm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furrtish to L.endar all renewal nouces and all recnp[s of paid premums. In the even at loss.
<br />Borrower shall grvc prompt Haute to the insurance earner and Lender. Lender ma} make proof of loss if not made prampth
<br />by $orrawet.
<br />Unlsu Lender and Borrower otherwise agree m wnnng. insurance proceeds shall be applied to restara[ion ar repair of
<br />the Pra~ny ttamaged, provided su^.h rsstorauon or repair is economically fcasi6ls and the security oz this Mortgage ,s
<br />apt therobs impairod. If such resmrauan or report is rat economically feasibls nr rt the setunt}' ot" this Martgagr would
<br />bt impaued, the msurswee procads shall bo applied to the sums secured by this Mortgage, wnh the excess, tf any paid
<br />to Barrawer. ff the Property is atrardaned by Barrawer. or if Barrawer fails to respond [a Lcndtr within 30 days tram thr
<br />dau nonce is mailed by Lander is Horrowez that the insurance carrier offers to senle a claim far msuraacc banehts. Lender
<br />is authorized to collet[ and appl} the insurance procrds at Ltndei s opuon other m ratorauon or report at the Propany
<br />or to ohs stems seeiusd by thu Mangtsge.
<br />Urileas Lender and Borrower otherwise agree m wmmg, any loth application of prtueeds w principal shall na[ extend
<br />ar paatpnnt the due date of the monthly instal[m.ntx reftrreti to in paragraphs and , hnrcaf or ehange the umoun[ vi
<br />such instaUincnts. tf under paragraph !g hereof the Propern is acgmred by Leader. all right, ut{e and tntsrnt of Borrower
<br />in sari w urn' insurance pohmes arrd m and to the protixds [hcreai resuluag tram damage [o the Property pnor to the sak
<br />or acquumaa shall pass to l.eodor ra the sxtent of the sums secured by this Mortgage ~mmsdiatch• prtnr to :uch =arc yr
<br />acquisititm.
<br />h. Pntsrral~ sad Md^~---_°e at Prtspectyt S.,eaFSho{dst Candomininr:: lMaaamd Unit t)e.eiupmeahi. Harrower
<br />shall keep [he Property in gad repair and shall not wrnmit wants or pcimit impairmcm or dstariarauaa of the Propsrty
<br />attd shall comply with the pmvistans of say lease if this Mangags rs an a Iaaacheid. It this Alangage is au, a ume m :+
<br />coodominiturr nr a plumed tmrt developtixri[. $arrawu shall psttorm aU a! Borrowsi s abligauans under the tistlatata±n
<br />or covenants creating or governing the condominium or planned unit devdapmsnL the by-laws and regulations of the
<br />condominium or planned wait development, and constituem ripcitmsnts. if a conddtninitrm ar planried ume development
<br />rider is executed by Bormwsr and recorded together with this Mangags, the cavsnanu and agreements of such rider
<br />skull ba inwrporated into and shall amend and supplement the covenants and agreements of this Mongage as it the rider
<br />were a part hemof.
<br />7. Protsaien d Leadsrk Sesnsity. If $orrouYr fails to perform the covenants and agreements containod in rhts
<br />Mongage, ar if aqy action ar proceeding is commenced which materially affects Lender's inursst m the Property.
<br />including, but not limited m, tmirrsnt dtxmairi, insolvency, code enforcement, ar arrangements o7 procoediags ,rwolvmg a
<br />bankrupt ar decsdont, rhea Lor[der ar Leader's optiaa, upon notice to Bamower, may make such appcaraaces. disburse such
<br />s~±s end tats =tt:d action as is t~ceasary to protect Leader's interest. including, but oat limited ta, distaursement ai
<br />retigea ta_htc ar<aa?+s}•'s fps and tai*;• upea the Propsny to make repairs. If Lender required mortgage insurance as .,
<br />condition of making rho loan seciued by this Mongaga Borrower shall pay the premiums regvired to maiataut such
<br />inatiranca in elleet until such tie as the roquvement for such insurantt terminates m accordantt with $ormwer's and
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