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<br />Ux;aarx Cas•r ,.rrrs. Harrower and Lender covrnant and agree x. follows:
<br />1. Paytueat of PrfnrtgaF and lnleresf. Harrower shall pro[nptiy pay whrn due the prinapa3 of and interest an the
<br />indebtedness evidett~xd by the Noee, prepayme¢t and late charges as provided sa the Nnte. and the principal of and intern[
<br />oa any Future Advancss secured by this Mortgage.
<br />~. Fends for Tarn and Ineartace. subject to applicable law ar to a writter, waiver by Lender, Borrower shall pay
<br />to Lrnder on tlt~ day matthly installments of principal and-interest are payable under xhc Note, until the Nate is paid in full,
<br />a st:~t (herein "Funds' equal to ono-iwelfth of the yearly taxes and asseasmenis which may attain priority over this
<br />Mortgage, and ground renu on the Property, if any, plus otre-twelhh of yearly premium installmems for hazard insurance,
<br />pies one-twelfth of yearly premium instailmrnts For mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time tTY Letutcr on ~ basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall iX held i¢ as instit¢tion the deposits or accotmts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an imtitudon i. Lender shall apply tbe Funds to pay said taxes, assessmrnts,
<br />insurance premiums and grotmd rents. Lender may not charge for so holding and applying t(u Funds, analyring said account,
<br />or verifying and wmpiiing said assessrneats and bills, unless Lender pays Borrower interai on the Funds and applicable law
<br />ptrrnits Lender to make stn:h a chazge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest oa the Funds shalt he paid to Borrower, and unless such agrcement is made or appli~bte law
<br />requires such interest to ce paid, Lender shall not be required to pay Borrower any interest or earttings on the Funds, Lrnder
<br />, shall give to Borrower, without charge. an annual accounting of the Funds showing credits aad debits to the Funds and the
<br />ptarpose for which each debit to the Funds was made. The Funds are pledged as additio¢at security for the sums secured
<br />by thu 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 dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessmerts, insurance premiums and ground rrnts 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 />;d by I,~vdcr shall not be sumcient to pay [axes, assessments, insurance premiums and ground rents as they fall due,
<br />Horrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting paymrnt thereof.
<br />Upon payment in full of ail sums secured by this Mongage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Leader, Lender
<br />shall apply, no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by
<br />Lender ai the time of applicaion as a credit against the sums secured by this Mortgage.
<br />3. Application of $aymenis. U¢Jess applicable law provides otfierwi:,e, ai{ payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lander first in payment of ar.- punts payable to Lender by Borrower
<br />wader pazagraph 2 hereof, then to interest payable on the Note, they. to the principal of the No[e, and then to interest and
<br />principal on any Future Advances.
<br />4. Charge; Liens, Borrower shall 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 ar ground rents, if ary, 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 />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due wader this paragraph, and is the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over [his Mortgage: provided, that Borrower shall not be
<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 shall in good faith contest such lien by. or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of [he lien or forfeiture of the Property or any part thereof.
<br />5. Aererd Insurance. Borrower shall keep the improvements no:r~existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and =_uch other ::^.az.rds as Lander may require
<br />aad is such amounts and for such periods as Lender may require; provided, that Lender shall rot require that the amour.[ of
<br />such coverage exce_d chat amount of coverage required to pay tl;e sums secured by [his Mortgage.
<br />i3te insurance cazrier providing the insurance shalt be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval sh3l not be unr^~roaabiy withheld. Ail premiums on insurance pohcics shall be paid in the manner
<br />provided under paragraph 2 hereof or, if nos paid in such mancer, 6y Borrower making payment, when due, directly to the
<br />insura~e carrier.
<br />Ali insurance policies and re¢ewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right [o hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and nit receipts of paid premiums. In the event of loss,
<br />Borrower shzll give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by 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 econemicxliy feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of ibis Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, it any, paid
<br />to Borrower If [he Property is abandoned by Borrower, ar it Borrower faits to respond to Lender within 30 days from the
<br />date notice is mailed by Lander to Borrower that the insurance carrier aYlers [a Bettie 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 the Properly
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, ary such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installmenu referred m in paragraphs i and Z hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property [s acqured by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the prod,-eds thereof resulting from damage to the Property prior to the sale
<br />or aegtnsioon shalt pass to Leader to the extent of the runts secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Ptan¢ed Unit Developments. Borrower
<br />sha!i keep fhe Property is goed repair and shall not commit waste ar per[n;t impairment or deterioration of the Property
<br />and shall comyiy with the previsions of any lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
<br />coadamittium or a planned unit development, Borrower shall perform all of Borrower's obligations under the deciazanon
<br />or covenants creating or governing the condominium ar planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent doctunents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shat! be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as [i the rider
<br />wire a part hereof.
<br />7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if nay action or proceeding is commenced 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 Leader at t,rndei s option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take Bath action as is necessary to protect Lender's interest, including, but no[ limited to, disbursement of
<br />reasonable a::amey's fees aad enttry upon the Progeny to make repairs. It f-ender required mortgage insurance as a
<br />coadiiia n a :[a.:ing the loot. sa::ured by [fits Mongage, Borrower shah pay the premiums requrred to maintain such
<br />tnsurance in effect until such time as the requirement Ior sash i€isnratrce terminates is accordance with Barr.,n~cr's Rod
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