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<br />IINtFOAM Cavt=s[ettrs. Borrower and Lender covenant and agree as folicrvs:
<br />I. Pevmear of Ptiacipal and fatetest. Borrower shall promptly pay when due the principal of and interest on the
<br />irzdebtetitt~s evidenced by the Note, prepapaseat and tale charges as provided in the Note, and the principal of aad interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for 'Fazes nod Iasaraace. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lender an the day monthly installments of principal and interest are payable under the Note, unti€ the Note is paid in full,
<br />a sum (herein "Fonda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Pmperty, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tltt Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insittaace premiums and ground rents. Lender may Hat charge for so holding and applying the Funds, analyzing said account,
<br />or verifying artd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shat) be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest tgbe paid, Lender shall not be required to pay Borrower any interest or earnings on Uze 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 to the Funds was made. T72e Funds aze pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the atrrount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dare dates of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fail due, such excess shat! be, at Borrower's option, either
<br />promptly repaid to Harrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall nor be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary [o make up the deficiency within 30 days from the date notice is mailed
<br />b}' Lender 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 pazagraph 18 hetoof the Property is sold ar the Property s otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its aceraisition by Lender, any Funds held by
<br />Lender at the time of application as a coedit against the sums secured by this bfongage.
<br />3. Application of Payments. Unless applicable law provides otherwise. aIi payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />a. Charges; Gtns. Borrower shall pay alt 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 no[ paid in such manner. by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promntty furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borcower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Lien which has prion[y over this Mortgage: provided, that Borrower shall not be
<br />required to discharse any such lien sa Inng as Borrower shall agree in ,wiung !n the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, ar defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the Gen or farfenure of the Property or any part thereof.
<br />4= ~~~ lr.;.ara~ct. BarreW~er shsft keep the improvements now exrsung ar hereafter erected on the Property insured
<br />against loss by Sre, hazards included within else term "extended coverage". and such ether hazards as Lender ma}' regwre
<br />:mod is h art *.tnts and for such pereds as Lender may require: pravidecE, that Lender shall not require that the amount u;
<br />such coverage exceed that amount of coverage required to pay the sum; secured by [his Mortgage.
<br />": h6 insLaarro cariiar providing fire insurance shad 6e chosen by Borrower subject [;5 approval by Lender, provided,
<br />:!+at such approval s>=ai! naE be urrsasonably withheld. Ail premiums an nsirranee piro;icies ?tsall be paid in the manner
<br />provided Hader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly m the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in (arm acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall hove the right to hold the policies and renewals thereof.
<br />and Borrower sha{I promptly furnish to Lender alt renewal notices and all receipts of paid premiums. fn the event of lass,
<br />Botxawet shall give prompt notice to the insurance carrier and Lender. Lender may make prool of loss if not made promptly
<br />by Borrower.
<br />Unless C_ender and Borcower otherwise agree is writing, insurance proceeds shall 6e applied to restoration or repair of
<br />the Property dsmsged, provided such restoration or repair rs ecouamicaliy feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not rcvnomicnlly tensible oz d the security of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to the sums secured by this Mortgage, with the excess, if any. pad
<br />io Barro•.ver. If the Property is abandoned by Harrower, or if Borrower Isiis to respond to Lender within 3C :rays from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a clam for insurance bcnefiu, Lender
<br />is au[horiud to colltct and apply the insuranuc proceeds at Lender's option either to restoration or repair of the Property
<br />or [a the sums secr:red by this Mortgage.
<br />Unless Lender and Harrower otherwise agree in writing, soy such application of proceeds to pnncrp:+I shalt not extend
<br />ar pastpcme the due date oC she monthly installmenu referred to in paragraphs I and Z hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by isnder, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisiUOn shall vasx to 1-ctaier to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />t;. arastt•va art n.sdattrtaai-t ut Pnptriy; Leaseiroiac: L'ondominiums; Planned Uaii t7tvtiopments. [3arroWer
<br />shall keep the Properly in gaol repair and shall not commit waste or permrt rmpaument or deterioration of the Property
<br />attd shell comply with the provisions of any lease if this Mortgage is un a leasehold. if this ;v9artgage is on a unit u[ u
<br />caadominwm or a planrred unit development, Borrower shall perform all of Borrower's obligations under the dcciaat+on
<br />ar covenants creating or governing the condominium or planned unit development, Ihr by-laws and regulations of the
<br />caadominittm oe ptanne~t unit development, and constituent documents. If a axtdaminiunt or planned amt develuparent
<br />rider is exec>_~t~ by Harrower and re;torded together wuh thrs Mortgage, the .aveuanis and agreements o such nder
<br />sktall be incotporntrd into and shall amend and supplement the covenants and agreements of thrs Mertgagc as rt the rider
<br />WC[e .i part lleraraf.
<br />7. protection of leeader's 8eeurity. IC Barmwar tails to perform the covenurus and agreements contau[ed m thu
<br />Martgaga, er i[ nay action or pracxieding is coninteneeal Wheeh materially of-zcts Lender's interest in the Propcrn~.
<br />inc!t.~d[.^.g, bu! Hat limited ta, eminent domain, insolvency, rode entorcemtinL or ;ueangenrrnt.+ ur pn>Lredinga in~,uiving a
<br />bankrupt or det:edeat, then Lender at Lender', option, upon Warier iu Borrower, may makL such .+.ppearenee>, d~sbunn ,urh
<br />::~- ens': sake sucri action a> i3 ncce5sar}• to protecr. Lender's interest, vnciudiug, but nu[ irmited to, disbursensent +,i
<br />r~,:aatne - eta-tt:y's fps artd entrg rsp:rn the Prnpcriy Yn make. ever r s l: 1 rnd:+ reyurre+i m+,rigase rs+ enure a, .e
<br />cntuiuian of maktttg the lawn stcured Fly this Monaasc, Bvr.rr,ssr --i?11 ?as the pr^_^a+au-:, •Nq:.,rC•J .,, ..+...:t!;.^. ,:+.,.h
<br />insw ante in effect ur.[ii such time ss the requiteragni Ear -+- ~;, insu.ans - r nine at s _L_. ds t_e w. h tt.,r„ws• :.:r:d
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