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<br />IIP:IFORM Ccvea~tnirrs. Borrower anti Lender covenant and agree as follows:
<br />I. Payt.^,eat of I'rncipst a;td Interest. Bcrrawer shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment 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. Pearls for Tales and Imsmance. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />tc Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a star. {herein "Funds") equal to one-twetfrh of the yearly taxes and assesments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, p#us one-tweLth of yearly premium installments for hazard inwranct:.
<br />plus one-twetfrh of yearly premium instalFments for mortgage insurance- if any, all as reasonab]y estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tfte Funds shall be held .n an institution the deposits or accwn[s of which arc insured or guaranteed by a Federal oc
<br />sta£e agency (including Lender if Leader 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 aad compiling said assessments and bills, artless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall ix paid to Borrower, and unless such agreement is-made or applicable law
<br />retlnires such interest to'he paid, Lender shall not be required to pay Borrower any interest ar earnings on the Fends. 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 pledged as additional security for [he sums secured
<br />by this Mortgage.
<br />If the amotmt of the Funds held by Lender, together with the 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 />assessments; insaance premiums and graund rents as they fail due, such excess shall be, at Harrowers 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 no[ be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Barrower shall pay !o Leader any amount necessary to make uo zhe deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of sit sums secured by this Martgage. I-ender shall prampdy refund to Borrower any Funds
<br />held by Lender If under paragraph 18 hereof the Property es 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 Sy Lender, an}' Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Appticatioo of Paymeors. Unless applicable law provides otherwise, aLI payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shat) 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 to the principal of the Note. and then to interest and
<br />principal on any Funare Advances.
<br />4, Clsarges, Idecs. Barrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Proparty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if an}', in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower staking payment, when due, directly to the
<br />payce thereof. Barrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Barrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any flop which has priority over this Mortgage; provided, that Borrower shaft rot ix
<br />.=-;itair~ to dis"^=a:g4 any sash lien v~ sang as florrawer shat! agree in writing to tha payment e£ the cbtigaticn sa'w-tired Fy
<br />such lien in a manner acceptable to Lender, ar shall in good faith contest such lien 6y, or defend en[orcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any pact thereof.
<br />-`-visaed Iestiranee. Barrower shah kc~p the impravemenis now esisting or hereafter erected oa ihr, Property insured
<br />against loss by f< e, ha'tards iuc!udxd within the term ,.exrende.l ;:overage'. aad such :l:er hazards :rs Le..^.de: :nay regnire
<br />and ire such atTrennts and fa[ sueh pcriotfs as Lender miry require: provided. that f-ender shah not myuin that the .m tine o~
<br />such coverage exceed that amount of coverage required to pay the sums secured by thts htorteaee.
<br />=hS i~uranet: carrier providing the insurance shall Sir chosen by Burrower suhjec't 20 approval try Lender; provided,
<br />i.ai sueh apYreval chaff net he uarea.~nahly .riihhaid. Ali ptzmiums pre invrance paiictes shalt '.ye paid to flte rnanner
<br />provided under paragraph 2 hereof or, if no[ paid ir, such manner, by Barrower making payment, when due, directly to the
<br />insurance carrier.
<br />All inswance paheies and renewals [hereof shall be in form acceptable to Lcndcr :rod shall include a standard mortgage
<br />classse in favor of and in form acceptable to Sender. Lender shut! have the right to hold the policies and renewals thereof.
<br />and Borrower chalk promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />13crrrawer shall give prampf notice to She insurance carrier and 1_ender. Lender may make proof of lass if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othenvist agree in writing, insurance proceeds shall be applied to restoration cr 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 resforation or repair is not econamicaHy feasible or if the recurity of this Mortgage would
<br />M: impaired, the insurance proceeds shall ba applied to the sums secured by this Mortgage, with the excess, if any, patd
<br />to Borrower. i! the Property is abandoned by Borrower, or i£ Borrower fails to respond to Lender within 30 days Erom the
<br />date notice is mailed by Lender to }Iorrower that the insurance carrier oHcts to scale a claim fur insurance benefits, Lender
<br />is authorized to collect and apply the insurance proeet:ds at Lenders option either to restoration or repair of the Property
<br />ar to the sums secured by this Mortgage.
<br />UNess Lender and Borrawer otherwise agree m writing, any such application of proceeds to principal shall eat extend
<br />or postpone the due dat» of the monthly installments referred to in paragraphs I and 2 hereaf or change the amount of
<br />such instailn!ettts. If under paragraph I S hereaf the Property is acquired by Lender, all right, title and interest of Borrower
<br />in attd io any insurance policies aad in and to the proceeds thereof resulting from damage to the Property prise to the sale
<br />ar ac=~atsisit+on sL±all :,~+s m t under to the extent of the suns secured by !his Mottaagc immediately pt'Eor to such sale or
<br />aealllSltraa.
<br />~. -._szcvatm:t aad M21~cuanee of Propetari Lea~itatd5; Condamininns_s, Planned Usti I3evetopmeats. Fsorrowcr
<br />shat! keep the Property in good repair and shall eat commit waste or permit impairment or deterioratian of the Property
<br />anti shall caraply wlih the provisions of any lease if this Mortgage is on a leasehold. !f this Atartgag~ is on a unit to a
<br />eondomistum or a planned unit development, Borrower sha}{ p<'.rfarm alt of Borrower's o6ligaiions under the declaration
<br />or covenants creating or governing [Fie condominium or planned unit deve{opment, rho Sy-laws and n:gulations of the
<br />cordomi~utu ar planned snit develnpntt:nt, and constituent dacuntents. Sf a cendotttinium or planned unit devchtpmenE
<br />rider is exec:rtetl by Bo=rower and recorded tag~ther with this Mcrtgage, the covenants a¢:d agraements of such rdxr
<br />shall t+e ineorparated into aad shah amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />9. 17roteelz0a ak il.eadea'tt Security. I£ Bnrrower fails to perform the covenants and agreements contained to this
<br />Mor£gage, ar if :sty action ar pseceeding rs commenced which materially allects Lender's interest in the Pmpeny.
<br />isicluttir,g, but rent #ir.,itcrf to, eminent domain, insalvency. Cade enforcement, tr arrangaments nr proceedings ;revolving a
<br />hank:ttpt nr dcsedt:rt, then Lender a; Ixader's option, apse notice to Barrower, may make such appearances, drstaatsc such
<br />s.ims at:d take aucit sciicn as is necessary to protect Lender's interest, mctuding,. Sur not iimued to, distsutatment of
<br />rr°-a~rnacse a€fetc~y"x eecs and entry ttprrn the Prap~rfy Ea make repair,- it l.endi;r required marigagc insurance ac a
<br />".,a,iit_~ni ~+ mntiFnR t lAan se€:s±*e~l Sp his Mnt?eage, Bnrrower _shaq nary the eremitlats !'equtrert to maintain su.h
<br />inn wan~N in ePcct until vch tinu~ as tlee tvu:eir~trtenE for sut:h insurance tertuirat - .a acct,-rdance with Botruwzr's nevi
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