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Ut:tFaast Covex.st.°rs- Borrower arM f.tndcr cuvtnant and agree as follows:
<br />~ 1. 1Payr®rnt of Pr~gd set Iatereal, Bnrre?wtr shall promptly pay when due the principal of and interest on the
<br />intiebtedntss evidettced by the More, prtpayment and tats charrtes as provideA in the Note. and the principal of and interest
<br />~ on any Future Advancts secixed by this Mortgage.
<br />~~ 2. Ftt2ds for Tara a~ Iaz9rraeee. Subject to applicabk law or to a written waiver b}' Linder. Borrower shall pay
<br />~ to i.ertder on the day rrtonthiy ittsta)itttents of prituipa} and imerest are payable under the Anne, anti} the Note is paid in foil.
<br />^~„ a stmt Crxrcin "Funds"7 equal to olio-twelfth of the yearly taxes nerd assessmentx which may attain priority over this
<br />Mortgage, and ground rents on the Property. if any, plus one-twefth of yearly premium rnstallments for hazard insurance.
<br />plus one-twelfth of yearly premium insialitttents for mortgage tmurance. if any. all as reasonabl}' estimated initially and from
<br />time to time by Linder on the basis of assessmems and bilk acrd reasonable estimates thereof.
<br />~r The Funds shalt be held in an institution the deposits nr accounts of which are insured or guaranteed 6y a Federal or
<br />slate agency (including Lender if Lender is sac.`, an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />tnsumnce premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
<br />or verifying nerd compiling said assessments and bills, unless Lender pays Borrower in*.ereet on the Funds and applicable taw
<br />permits Lender in make such a charge. Borrower and Linder may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />regttires such interest to be paid, Ixnder shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual acwunting of the Fiends showing credits and debits to the Furtds and the
<br />propose for which each debit to the Funds was made. The Funds art pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amoune of the Funds held by Lender. together with the future monthly instaltmevis of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premitms 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 of the Funds
<br />held by Lender shad 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 3Q 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 by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior [o 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 [he sums secured by this Mortgage.
<br />3. Applicatiam of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and-paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Chan7es; Liens. Borrower shall pay all taxes. assessments and aher charges. fines and impositions attributable io
<br />the Property which may attain a priority over this bfortgage. 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 payment, when due. direeily to the
<br />' payee thereat. 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 />Borrower shall promptly dLSCharge any lien which has priority over this Mortgage: provided. that Borrower shall nut be
<br />required to discharge any such lien so long 5s Borrower shall agree in writing tv the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith conies[ such lien by. ur defend enforcement of such Tien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or fortenure of the Property or an}• putt thereof.
<br />3. }Lazard Insatartce. Borrower shah keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and Cor such periods as Lender may require; provided, that Lender shall not reyuire that the amount of
<br />such coverage exceed that amount of coverage required m pay the sums secured by this Aiongagi.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by bender: arovided,
<br />that such approval shalt not be unreasonably withheld. Alt premiums nn insurance policies shall he paid in [he manner
<br />provided under paragraph 2 hereof vr, tf not paid in such manner, by Borrower making payment, when due, directly to [he
<br />- insurance cazrier.
<br />- Ail insurance policies and renewals thereof shall he in fntan 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 held the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Linder 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. Linder stay make prov[ of loss if not made promptl}•
<br />by Borrower.
<br />Unless 1-ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ur repair of
<br />the Property damaged, provided such restoration or repair is economically feasible ;end tpe security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or i[ the security of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Burrower, or it Borrower fails to respond to Lender within 30 days from the
<br />data 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 az Lender's' option either to restoration or repair of the Property
<br />or to the sums secured by this ~ 4vrtgage.
<br />Utiless Lender and Borrower otherwise egret in. writing. any such application of proceeds to principal shall no[ extend
<br />or postpone the due dote of the monthly instatinunts referred to fn paragraphs I and 3 hereof or change chi amount of
<br />such installments. If under paragraph t8 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
<br />in acrd to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of [he sums secured by thin Mortgugi immediately prior so such sole or
<br />acgrisition.
<br />6. Preservation and Mtdntenattce of Property; Ixaseholds; Condominiums; Planted Unit ITerelopmeots. Bnrrowar
<br />- shah keep the Property in gaol repao and shall oat commit waste or permit impartment or deterioration of the Property
<br />-_ nttd shag cnmpfy wiFh the ptnvisrons of any lease if this Iv9ortgagc is un a Itaschold. If this 6lurtgagc is v^ a unit in a
<br />condominium or a planned unit devc-Ivpment, Borrower shall per[;>rm all of Borrowers obligations under the diylarativu
<br />or covenants creating ur governing [hi condominium or planned unit devclvpmcnt. the by-laws and tegulxtiotn of the
<br />i:vadominium ur planned unit development, and constituent docurncots. ]t a condominium or planned unit development
<br />rldtr is esuu[id by Borrower and recorded together with this Mortgagq the covenants and agreements of rich rider
<br />shalk be incorporated into and shall amend acrd supplement the covenants and agreements of this Mortgage as if the rider
<br />' were a paR hereof.
<br />7, Proteitioe of L.tttdeNs Sectuit}•. if Botxower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding- is eomtnerecea which ntuteriaily atfcets Lender ~ interost in the Property.
<br />including, but rd.H limited tn. eminent domain. mso)veney, code enforcement, ur arrangetttents ar proceedings invuh'mg a
<br />. bankrupt or diccdint, then Lender at t..ender's opiwn, upon ounce to Burrower, :na} make such apllx:arances, d sbu rse such
<br />sums and take such action as is necessary tv protect Lender`s mterest, m iud~ng, but not iirmtid to, dixburse nreut +tf
<br />rcasarta6lt afunney's teen and rutty upon the Property tc make repairs. li L.undir required mortgage insurance as a
<br />condition of u2akiug the 3uan sa:urtd by this Mortgage. Bvrruw;,r sha{I pay rite premiums n.ytnred tv maintant such
<br />ir~suranc;t in eHeet until such time as chi rcyuirenteni for such insu; ance irrniu+atts ~n .rca+rdance. with Borrower's and
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