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<br />UMIFUaM CoxEr.:xxss. Borrower and Lender covenant and ogee as foliow•s:
<br />1. Payttxat of Prfacipal am[ [nftre#. Borrower shah promptly pav wben due the principal of and inurest an the
<br />ittdtbiedneu evidenced by the Note, prrpaytnsnt and tau charges as provided in the Nou. ared the principal of and interest
<br />an any Future Advances secured by this Mortgage.
<br />2. Fttads for Taus asd [thee, Subject ko applicable taw or to a written waiver by Lender. Boroower shall pay
<br />to Lender an the day monthly itisia!lments of principal and interest are payable under Lhe Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to ot[e-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 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 bills and reasonable estimates thereof.
<br />The Ftmds shalt he held in an institution the deposits ar accounss of which are insured or guaranteed by a Federal or
<br />stau agency (including Lender if Lender is such an institu:ion). 1_ender shall apply the Funds to pay said rases, 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 />permits Lender to make such a oharge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />rsgtares such interest [o 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, an annual accounting of the Fords showing credits and debits to the Funds and the
<br />_ purpose for which each debit to the Funds was made. "Cho Funds are pledged as additional security. for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held 6y Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes; assessments, insurance premiums and eround rents. shall exceed the amount reyuired io pay said taxes,
<br />assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Bozrowers option, either
<br />promptly repaid to Borrower or credited to Borrower-an monthly installments of Funds. If the amount of the Funds
<br />head by Lender shag not be sufficient to pay razes, assessments, insurance premiums and ground rents as they faB due,
<br />Baro:ver shall pay to Leader anv amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender 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 Iry Lender If under pazagraph 1 g hereof the Property is sold or the Property is otherwise ucqu;red 6y Lender, Lendez
<br />shalt 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 !sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, [hen to interest payable on the Nate. then to the principal of the Note, and then to interest and
<br />principal on any Futtue Advances.
<br />4. Clsarges; Liens. Borrower shall pay all rases. 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 any, in the manner
<br />provided ~rzdPr 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 />Borrower shall make payment directly, Borrower shalt promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priorit}• aver this Mortgage; provided. that Borrower shall not be
<br />required to discharge any such lien so long es Borrower shall agree in writing to [he payment of the obligannn secured by
<br />such lies in a manner acceptable fo Lender, or shall in good faith consist such lien by, ar defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any Dart thereof.
<br />5. Hazard [ttsvrance. Bottower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against 3oss by fire, hazards included within the term "extended coverage'", and such other hazards as Lerner may require
<br />and in such amounts and for such periods as Lender may require; provided, 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 Mortgaet.
<br />The insurance carrier providing the insurance shat! be chosen by Borrower subject to approval by Lender; pravided-
<br />ihat such approval shall not be unreasonably withheld. Ail premiums on insurance polities shall be paid in the manner
<br />- provided tinder paragraph 2 hereof ar, 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 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 alt receipts of paid premiums. ]n the event of toss.
<br />Borrower steal) give Prompt notice to the insurance cattier 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 er repair is economically feasible and the security of [his Mortgage is
<br />not thereby impaired. If such restoration or repair is ao[ aconomically feasible or if the security of thts 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 i! Borrower tails to respond to Lender within 3(J 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 an[horized io coltett and apply the insurance proceeds tit Lenders option either [o restoration or repair of the Propert}•
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower o[henvise agree in writing, any such application of proceeds to principal .hall not extend
<br />of postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof' or change the amount of
<br />such instalments. If under paragraph i8 hereof the Property is acquired by Lender, aV1 right, title and imerest of Borrower
<br />in and to any insurance policies utd in and to the proceeds thereof resulting from damage to [he Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and 'FSainEenancs of Property; Leaseholds; Cundomirtium~; Planned Unit Developments. Borrower
<br />shall keep the Property is good repair a»d shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease it this Mortgage is on s leaxhold. if this Mortgage is nn a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of $orrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development. and constituent documents. If a zondominium ar planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />chalk be irteorParated into and shat! amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />- were a pari heteuf. -
<br />- 7. Protection o£ Lender's Security. Tf Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materiall}' afFects Lender', interest in the Property,
<br />including, but not limited ta, eminent domain, insalverscy, code enforcement- or arrangements ar proceedings involving a
<br />- bankrupt or decedent, then Lender at Lender's option, upon notice m Borrower, may make such appearance, disburse such
<br />_ sums and take such action as is necessary to protect Lender's interest, including. but not Iimired to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
<br />canditiou of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers anti
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