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<br />Uxt;=oaM Cavuxaxrs. Borrower and Lender covenant and agree as tolIows:
<br />2. PaymeaE of Ptiaeipal anti Interest Borrower shai7 promptly pay when due the principal of and interest en the
<br />indebtedness evidenced by the Note, prepayment and {ate charges as provided in the Note. and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Iramds for Taus and i¢curanee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Ncte, until the Note is paid in full,
<br />a sum (herein `Funds") equal to one-twelfth of [he yearly taxes and assessments which may a*.[aia priority over this
<br />Mortgage, and ground rents on the Ptoperry, 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. alt as reasonably estimated initially and from--
<br />time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The 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 />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />pettrits 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 he paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower without charge.:m 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 the sums secured
<br />6y 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 dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes,
<br />assessments, 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 oC the Funds
<br />held by Lender shall rot be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Harrower shall pay to Lender any amount necessar. to make up the deficiency within 30 dies [tom the date nofice is mailed
<br />by Leader in Borrower requesting payment thzrcof.
<br />Upon payment in full of all sums secured by this Mortgage, F..ender shall promptly rotund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereot the Property is said or [hc Property is otherwise acquired b}• C,ender, Lender
<br />sha!1 apply, no later than immediately .prior to the sale of thz Property ar its acquisiron by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable taw provides otherwise, all payments received 6y Lender under the
<br />Note andparagraphs !and 2 hereof shall be applied 6y Lender first in payment of amotmts payable to Lender by Borrower
<br />tinder pazagraph 2 hereof, then to interest payable on the Noce, then to the principal of the Notc, and then to interest and
<br />principal an arty Future Advances.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments and other charger,. fines rind 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 not paid in such manner. by Borrower making paymen4 when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to lender all ^ouces of amounts due under this paragraph, and in the event
<br />Harrower shall make payment directly, Borrower shall promptly furnish to lender receipts evidenrng such payments.
<br />Borrower shall promptly discharge any lien which has prionty over this 61origagz; prav+ded. that Borrower shall nett be
<br />required to discharge any such lien so long us Borrower shall agree in writing to the payment of dte obligation secured by
<br />such lien in a manner acceptable to Lender, or shalt in good faith rantest such lien hy. or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the 6zn or forfun¢e of the Property or any part tfiereof.
<br />5. IZaraed Itrsarance. Borrower sPtali keep the ~mprovenuatts now cxisung or hereafter erected an the Property insured
<br />against lass by fire. hazards included within the term "zx[ended coverage", and such other hazards as Lender may reyu+re
<br />and in such amounts and for such periods as Lender may require; presided, that Lender shall not require that the amount of
<br />sash coverage exceed that amount of coverage reywred to pay the uum ;ean'ed by this Mungage.
<br />T7te insurance carrier providing the insurrtt~.-~ shall 6e chasm by Borrower suhject to ;tpproval by Lender. pnrvidcd,
<br />[hat suet( approval shall no[ be unreasonably withheld. All prrmiurns <:ut instrrrtnce pr~ltnes shall he said in the manner
<br />provided under paragraph 2 hereot or. if net paid in such :Wanner, by Horrawel' makinst paymsrrft, when due, dsrectiy to the
<br />inSU[aII{.•a Ca(rieC. ~~ -
<br />Ail insurance policies and renew:ds thereof shall be in [orm acceptable to (_en_icr ;rod shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall hove the right to hold the poll: ies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premium,. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proot tit loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, inwrance proceed, shall tx: applied u? rzsroration or repair of
<br />[he Property damaged, provided such restoration or repau is ecunomicali} terrible and the securin~ of this !vlortgnge +.
<br />not (hereby impaired. 1f such rntoration or repatr is not economically irosihle or d the scorn n~ of th+s Mortgage would
<br />6e impaired, the insurance prxeeds shall be applied to the sums xtcurcJ by (tiro Mottgagr. wnh Utc eaccss, if any, paid
<br />Co Borrower. ]f the Propern• is ahandoned by Harrower, or it Borrower tads to rcspenul to Lcndzr within 3U da}s from the
<br />date notice is nruiled by Lender to Borrower that the insurance earner of€crs to sonic .: dawn Au uuurantt heoeiits, Lender
<br />is authorized to collect and apply the insurance proceeds :n Lcnder~s option entice to re>h,ruuon or repair of the Pn?perty
<br />ar to the sums secured by (tits Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such appli voce( ,d proceeds tit pnnctpal shall not e.etand
<br />ar postpone the due date of [he ntanthly installments referred to in panigrupM I anJ '_ hereof or itangz the amount of
<br />such installments. If under paragraph I Y hereof the I'ntperty ++ ^aluurJ h} Lzndcr. oil tight, utle and interest of Borrower
<br />iu and to any insurance policies unJ in and to the proceeds (hereot restrlung tnn^ dam:+ge to the Propmr.} poor to the sale
<br />ar acquisition shall pass to Lender to the extent of the sums secure) by this Mortgage unntediateiv prior to .uch cola ur
<br />acquisition.
<br />6. I'raservatian and Maintenance of Properly: Leaseholds; Condmniniums; Planucd Unit Developments. borrower
<br />shat! keep the Pn:perty is good repair and shwa nor commit xasre or Itrrmtt impau'rneut or Jetrrioratiun of the Property
<br />and shall comply with the provisions oC any tense it thn Mortgage +s an .t leasehold, if !hie Aiort„ago rs on ,+ unit m ,+
<br />condominium or a planned unit development, Borrower stud! perform all oC Hormu~rr'-, ohhgauous under the Jeclar:own
<br />or covenants creating or govenung the atoJominium or plannrJ unit developmznt, the by-law. and regu Colons of the
<br />eondaninium ur planaad unit devclopmznt, .utd constituent documents, If a condominium or plamtad unit Jrt elopmm~t
<br />rider is zxeculed by Borrower and recorded iogedxr wuh dos Mortgage, the an- y+:nus and agreement. ui su<F+ +iJCr
<br />shall be ineorpo[ated iota and shall amend anJ ,upplzmeut the covenants and agreements uC iha Mortgage as d the ndcr
<br />were u part hereof.
<br />7. Protection of Lender's security. tl Burrower fails to pert orm the coverants and agrzzntenls contamad m th+s
<br />Mortgage, or if any actual ar prtxeedmg +s commznced which materially :dfects i_enJer's interest in rho Patfx~nv,
<br />including, but not limned m, zminent domain. uxolvrnc}-. nrzfe enforccnnmt. nr arrangements rn ;,ruceWings urvolving ;r
<br />bankrupt or deceden6 then Lender at Laodzr's opunu, upon notice io Hermucr, ut,q make wch appzaretire,. Johu+oc ,u,:h
<br />sums and u:ka such action as +s :xces+ir} to pn,ieet Lender's mterert, mduamg. tint not hnutr.l +c. ,Lslnu sen+ew ,~I
<br />reasonable attorney's leas and entry upon the PrUlx',+ly k> make repair.. 11 Lender +cyni nr.l mortgage u. +.mrr .+.
<br />cundiuc,n crf making tho loan stinted by Rr+s Mortgage. Hornnscr shat! pay the prrmumts rcquuzd h, mmni.nn su
<br />insurance iu effect unto such ante as +hc rcyuirenram for ,uch mwrancr n•nnmatrs +n errcrdnuce •.v+ut Boi n,taa-..u i,±
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