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<br />I:N[FOai1 COYET; A!r75. Borcower and Lender covenant and agree as follows:
<br />i. Payment of Prinripai and Imerest. Borrower sfiall promptly pay when due the principal of artd interest on the
<br />indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note. and the prircieai of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Tastes cad Iroxranee. Subject to applicable taw or to a written waiver by Lender. Borrower shall pay
<br />to Lender on Lhe day monthly installments of principal and interest are payable under fie Note, anti the Note is paid in full.
<br />z sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard inwrance.
<br />alas one-twelfth of yearly premium installments for mortgage insurance. if any, ail as reasonably estimated inhially and from
<br />Ume to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shat! be held in an institution the deposits or amounts of which are insured or gttaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution}. Lender ;hall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender ma}' not charge for so holding and applying the Funds, analyzing said account.
<br />or verifying and competing said assessments and bills, unless Lender pays Borrower interest on [hc 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 that interest on the Funds shall be paid to Borrower, a,~d unless such aereerttent is made or applicable law
<br />regtires such intettst to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrow=er, without charge, an annual accounting of the Funds showing credit= and debits to the Funds and the
<br />. purpose for which Hach 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 Frmds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, ine_itrance premiums and ground rents, shaft exceed the amount required to pay said taxes,
<br />cots, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />grompUy repaid to Harrower or credited to Borrower oa monthly ir,;taL'ment; of Funds. If the amoum of the Ftmds
<br />held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to 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 pazagraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition 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 law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied 6y Lender firs[ in payment of amounts payable to Lender by Borrower
<br />under pazagraph 2 hemof, [hen Ic interest payable nn the Nate. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Leens. Borrower shall pay all taxes. assessments and other charges. fines and impositions attributable to
<br />the Procetty which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph Z 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 ail notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borraw•er shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shag hat be
<br />required to discharge any such lien so long as Borrower shall agree in wnhng 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 the lien or torfeiture of the Property or any par[ thereof.
<br />5. klaz9rd Irssirrartce. Borrower shall kcep the tmprovemenis now existing ar hereafter erected nn the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and far such periods as Lendex map require; prm;ded. that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />"roe insurance carrier providing the iastuance shall t>v chosen 6y Borrow-er subject ro approval by lxnder, pravided-
<br />!hat such aggrova! shalt not t:e unreasonably withheld. .411 premiums an insurance policies shall be paid ir. 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgage
<br />clause in fzvor of and in form acceptable to Lender. Lender shall have the right [o hold the policies and renewals thersof,
<br />and Harrower shall promptly furnish to Lender ail 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 lass 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 economkally feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economicagy feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower. or ii Harrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option etcher to restoration or repair of the Property
<br />or to rite stems secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and Z hereof ar change the amount of
<br />such installments. If under paragraph 18 hereof the Prolxrty is acquired 6y Lender, all right, title artd interost of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Martragc immediately prior ro such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Plaorred Utrit i)evelopments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />artd shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
<br />or covenants creating or gove[ning the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or piaaned unit development, and constituent documents. 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 />shall Ue incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part her~f.
<br />7. Protection of bender's Securely. It Bortower fails ro perform the covenants and agreements contained in this
<br />Mortgage, or if any 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, rhea Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sutras and take such action as is necessazy to protect Lender's interest, including, bus not limited to, disbursement of
<br />reasonable attnmey's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
<br />era'tian of making t;,e ioatt secured by ehis Mortgage, Borrower shall pay the premiurs required- to maintain such
<br />irauraace its effect until such time as the requieement for such insurance terminakes in accordance with Borrower's and
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