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<br />UNteoant COt'ENAN7S. Borrower and Lender covenant and agree as follows:
<br />I. Payment of i!'rincipat and Wetesf- Borrower 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 />Faa~ tar Tales stud Irtsuraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on tht day monthly installments of principal and.interest are payable under the Note, until the Note is paid in foil,
<br />a stun (herein "Funds") equal [o one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents nn the Property, if any, plus one-twelfth of }•early premium installments for hazard instuance,
<br />plus orte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />dine to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured ar guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an instimtion). Lender shall apply the Funds to pay said taxes, asse~ments,
<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 />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time- of execution of this
<br />Mortgage Utat interest on the Ftmds shall be paid to Borrower, and unless such agreement fs made or applicable law
<br />requires sttch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Harrower, 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 the sums secured
<br />by this Mortgage.
<br />If the amount of the Fends head 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 premitms 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 of the Funds
<br />heia' by Leader sitaii riot be stUBtaent to pay taxes, a;sessments, insurance premiums and ground xtnts as they fall due,
<br />Borrower sha.il pay to I°ender any amoemt necessary tq makeup the deficiency within 30 days from rho date notice is mailed
<br />by Leader to Harrower regtlrsting payment thereof.
<br />Upon payment in full n6 alt some secured by this Morgage. i_ender shall prompU,y refund tv Harrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Properi}' is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, na lace than immediately prior to the sale of the Property or its acquisition by G*,nder, any Funds head by
<br />Leader at the time of application as a credit against the sums secured by this Isfortgage.
<br />:I. A'pplicat€asr of Paymarrts. Untess applicable law provides otherwise, al] payments ceceived. 6y Lender under the
<br />Note and y:rarutgraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts pnya6le l:a Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Noce, then to the principal of the Note, and thee. to interest and
<br />principal on any Future Advances.
<br />4. C-'barges; Liens. Borrower shall pay nit taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which tnay attain a pronty over this Mortgage, and leasehold payments or ground rants, if any, 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 />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borraever shall make payment directly, Borrower shall promptly Furnish to tender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
<br />requited n-r discharge any such lien so long as Borrower shall agree in writing to the payment of the nbtigation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien L>y, ar defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the kien or terfeiture of the Property ar any part thereof.
<br />5. Hazard Inaursnca, Btxrower shall keep the irnpmvements now existing ar hereutter erected an the Prorxnv insured
<br />against loss by fate, haxartix included within the term "e.sre~ndecl cuvaeage", and such other haxat'ds as Lender rnuY require
<br />anr# in such antt;ants and for such periotis us ]_ender may rcyufre: provided, that Lender shalE rot regtrietr tht rho amvurt of
<br />such coverage excecci that. +amount of cerverarge required to pay the sums second b}' this Mortgage„.
<br />T9re iusuran~ carrier prcvidirg fir„ inswaeee shall t,is t:hasata by Bnrruwsr 'sub;ect t:> approval t:y bender; provided.
<br />that such appravaE shall not 6e unreasonably withheld. .All premiums on insurance policies shall be paid in the manner
<br />provided under 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 form acceptable to LenJer and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender, lender shall have the right tv hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to [.ender all renewal notices and ail receipts of paid premiums. in the event of lass,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. LenJer may make proof of loss if avt made promptly
<br />by Harrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied tv restoration yr repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage i>
<br />rwt gtereby impaired. !f such restoratron or repair is nut economix:aily feasible or d the security of this Mortgage would
<br />be imparted, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrcnver. If the Property is abanJaoed by Borrower, or it Borrower fails to respcntd tv Lender wuhin st) days from the
<br />date tar"~rtlce is mailed by Lender w Borrower that the insurance carrier oHars ti, settle a claim for unucancz benefits, Lender
<br />is aulltutrrixed to collect artd apply the insurance proceeds at Lender's option either to restorauon or repair of the Property
<br />ar to.ti~re sofas secured 6y this Mortgage.
<br />t,l~nJass t..ender -sttd Borrower otherwise ugr~ in wtifing, any such appEicia ticrn of pco~reds to is+rmapal shall not rateod
<br />or pos~~tpvttz thi; doe date of the ntonthiy installments referred to in paragraphs 1 anJ ~ hereof yr change the amount of
<br />such itastsdlments. If under paragraph Ill hereof the Property is acquired by Lender, all right, title and interest .v Borrower
<br />in and to any insurance palicits and in and m the proceeds thereof resulting from damage n? the Prupeny prior to the sale
<br />or acquisition shalt pass to Lender to the extent of the sums secured by this 4fvrteagc imu,w+ia:e!v ^- - ,- -u,l, -ale ~,;
<br />acgtrisitlon. - _..
<br />~. Pt~ssatirat aad :Mtroatxaance of Frogeriyt L:rsehaids; (:andominiums; t~'7laasaQ !_irtlt 13e.~riopacents. Borrower
<br />shalt ltecl> ilse; Property in good repair and shall net commit waste or petmn rmpaunreut or deterioruuon of the 2'ropeny
<br />and shalt comply with the provisions of any lease rl thrs Mortgage ~s on a ;easehvld, it this Aivngage is on .. unit in a
<br />condauuinium ar a planned unit development, Borrower shall perform all oC Borrawa~.rs obhgauons under the declarnnon
<br />or wveoants creating yr governing the condominium or planned unit dcvelopmeo6 the by-laws and regulatiors of the
<br />crondasttlnium ar planttrd writ developsaeru, sad .rnstituent Jve:untents- if :. cunJominium yr planned nmt .ic velopmont
<br />rider _ n.t t.t~ w,...~.,.e.. _
<br />a -"-==" -- ~.,.. r ""' "-'°°''°~' tsgcihr:r `++tih this .`vfottgage, the covenants and agreements of such rider
<br />shal3 be ineorpvrated ituo actd~shall amend anJ supplement the covenants anJ agreements of thrs Mveyagc us it the rider
<br />ware s part hereof.
<br />7. Prrotectioa of LetuJer`s $ecrtrity. If 8orsoaer Caas tv pertarm the covenants anJ agreamcuts conwmed rn ekes
<br />Aortgage, or if any as:sivn ar proceedzng rs commence) whack materially atluti is lender's ineerest in the Pr openy,
<br />including, but rot limned to, eminent dasnain. insoivcnc}, code rn;orceancnt, or arrangements or prvicecdings utvvivmg a
<br />bankrupt or decedent, then I. itder at I-tinder's optiota, upon nouie to 8arroxer, inn} make such appearances, Jisbura~ w~h
<br />sutras attd take such aUian as is txccssai'y to protcet ixndeis interest, ~n;.luding- but nut linuted ±n, drsbutscmcat ~,
<br />reasoaahie attartsey's fees and entry upon tbe Pragscrty to make rcpaus. It Lender require) mortgage insurance as a
<br />r"~='?rt~t;~,^ _- ,r:stien~ slt~ l^~.t scent. F.v tltu - - - ° - - .
<br />- ~cr-~~-g - - ~iaar: f>a} the F atiunu aaquireJ r. mututau, s~~ch
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