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<br />Urtir©ttrt Covexntaas. Borrower and Lender covenant and agree as follows:
<br />3, Payment of Prinelpa! and dateresG Borrower shall promptly pay when due the principal of and interest as the
<br />indebtedness evidenced by the Note, prepayment and tare. charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured b}' this Mortgage.
<br />2. Funds for Torras oral insannce. Subject to applicable law or to a written waiver by Let>sler, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under tine Note, until ehe 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 oa the Property, if any, plus ottt-twelfth of yearly premium ittstailmenb for hazard insurance,
<br />plus one-twelfth of yeazly premitun installments far mortgagt insueartce. if aoy, all as reasonably estimated inifially and from
<br />Ume to time by Letuler on the basis of assessments and bills and reasonable estimates thereof.
<br />T'be Fttnds shall be held in an institution the deposiu cr accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Leader 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 Louder pays Boroower interest on the Funds era appticaWe law
<br />permits Lender to make such a charge. Boarowec a_nd Lender may agree in writing at the time of exeattUon of this
<br />Mortgage that interest on the Funds shall be paid to Harrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings cu the Funds. Lender
<br />shag give to Borrower, wiUiout charge, an annual accounting of the Funds showing credits and debits io the Funds sad 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 Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />.he der dot, ~ of ta"w .,,;, 6-,suranse premiums and ground rents, sha31 exceed the amount required to pay ?aid taxes,
<br />assessments, ins~uranee premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower car credited to Borrower on monthly installments of Funds. If the amount of-the Funds
<br />held by Lender shall not be sufftclent to pay taxes, assessments, insurance premiums and ground rents as they fall duo,
<br />Harrower shall pay io Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader 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 paragraph 18 hereof the Property is sold or the Property is otherwise usquired 6y Lender„ Lender
<br />shall apply, no later Utan immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the, time of applicaUan as a credit against the sums secured by this Mortgage.
<br />3. Applicmion of Payments. Urless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall lx 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 in[eresi and
<br />princioai on any Future Advances.
<br />4. Charges; [dens. Borrower shalt 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 trader pazagraph 2 hereof ar. if net paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish ro Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrovrcr shall p.*amptly s`;:mish to f..ti:nder re;ripts evidencing such payments.
<br />Borrower shall promptly disshazge any lien which has priority aver this Mortgage; provided, that Harrower shall not be
<br />required to discharge any such 1ten so Fong as Boerowcr shall agree in writing to thi°~ payment. of the obligation secured by
<br />such lien itt a n_!anrrer acceptable *.a Leader, or shat( in good faith contest such lien by, ar defend cnfon;,ament of such Tien in,
<br />legal proceedings which operate to prevent the enforcement of the Eien ar forfeiture at the Draper[}' or any putt thereof-
<br />S. EIDazard ;asnrance, Borrower shall keep the improvements now existing ar hzreafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and sue?: other hazards as Lender trtay require
<br />and in such amounts .u*rt for such periods as t_cnder may reyuire; provided. that Linder ~chall not regnire that the amount of
<br />such caveraee exceed that amaune of coverage required to pay [he sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. Ail premiums on insurance policies shall be paid in the manner
<br />provided trader paragraph 2 hereof or, if not paid in such manneq 6y Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals 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 to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if oat matte promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratiat or repair of
<br />the Property damaged, provided such restoration or repair is econotnicaily E'easiblc and the security of this ;4fortgage is
<br />got thereby impaired. if such restoration or repair is oat economically :easible or it the security of this Afar[gage would
<br />be impg.gred, the insurance proceeds shah be applied to the sums secure) by this Mortgage, wuh the excess, it' any, paid
<br />to Harrower. If the :Property is abandoned by Borrower, or ii Borrower fads to respond ro Lender within 3t7 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to souk a claim for insurance benefits, I-ender
<br />is authorized to colte~ci and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Hoaower otherwise agree m writing, any such application of proceeds to principal shall not extend
<br />or posflwne the due dace of the monthly installments referred to bt paragraphs t and 2 hereof ar change the anmum of
<br />sttcYa installments. Ii under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and ur any insurance palici?s and is and ro the proceeds thereof resulting from damage to the Property prior n-, the sale
<br />or acgttsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately poor o., such sole or
<br />acquisition.
<br />6. PreservalLem and Mttintetsaetce of Property; Leaseholds; Condominiums; Planned Unit Uevefapments. Harrower
<br />ahaH keep the Property in gaol repair and shall not commit waste or permit impairment or deteriaratian of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is art a leasehold. tt this bortgage is an a unit in :+
<br />.,ar: „tom ~.,,s , ,~.:
<br />-_----•-•.••'^- ~- ••,,.... ..,. tap= z.•t, H~, r,;. t perform ai of Harrowers abiigae.ats under the deciarauon
<br />or eovenants~ereatiag or governing ehe condominium or, planned unit development, the by-laws and regtdatiats of the
<br />condominium or planned unit development., and constituent da:uments. If s condominium or planned unit development
<br />rider is executed by Borrower and recorded together wnh this Mortgage, the covenants and agreements of such rider
<br />shall be incarparated iota and shall amend and supplerix:nt the ca~enanis and agreements of this Mortgage as tf the rider
<br />were a pars hereof.
<br />"`, FrMeetiotr of Leatkr'e Security. 1f Borrower fads to pcrtornt the covenants and agreements contained in this
<br />iYlertgagc, ar if any action or proceeding is commenced which materially affects Lender's interest in the Property.
<br />ins'suding, but trot limited to, entirx'.n4 domain, insolvency, code enfonement, or arrangements or prcxeulings ~molving a
<br />its;>, . •a-~.da.~t, th_~: !R.a.~'-.€ at L:rnifr', „ptian, ,rprr;t n._,trsz i . t3irr„wer. rt<ay make such appea.-sores, drsbursr. lush
<br />riR^-as at~~•°~= ~.:;;ke a.'.i.: rM s : °~.ssary io p; a:e;-t l.endvr'.s ~n;icresi, irciuuing, bur n,at iisnned tr>. ,l+sburxment ,~I
<br />xaasoaubie uttoruey's Eees and entrynupan the Droperty to make repass. rlf (zndci regatrrcd ntortgaga insurance n +
<br />saruht[cn of tttakm} the loan secaucd 6y this ,t4artgage, Haao+:~er shad pay Bre premunns iegarttd m maintain such
<br />in~uraz;=~ in ~7fesi until ss:th time e~ tt;e t:.~4ir~'t>.:nt for at:_h rus::antic t_rm;r~tes ,n .x_a::d;tnor. w,th Horr~w ors ,nd
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