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<br />U;~tz:oans Covtntxr~rs. Borrower and Lender covenant and agrce as follows:
<br />2. Paymesal of Prleeipal atad lmetrst. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and latt charges as provided in the Nae, and the principal of and interest
<br />on any Future Advances sectued by this Mortgage.
<br />1. IFuods far Taxse t~tl Isssaranca Subject to appliable law or to a written waiver by Lender. Borrower shall pay
<br />io Lender on the day moattily installments of principal and interest are payable under the Note, umii the Noss is paid in full.
<br />a attm (herein "Funds") equal to one-twelfth of the yearly taxes and assessments whicY. may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium iasta!]ments for hatar'd ins ~ .
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if nay, all as reasonably estimated initieily and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Tate Ftmds shall be held in an institution the deposits or accounts of which are instued or guaranteed by a Federal or
<br />state agency (including Zender if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and grotmd 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 chuge. Borrower and Lender may agree in writing ai the time of execution of thin
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not tx regtrired to pay Borrower any interest or earnings on the Funds. Leader
<br />shall give tc Borrower, without charge, an annual accounting of the Funds showing credits znd 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 />ff the amount of the Funds held by Lender, together with the future monthly instatlrrtents 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 saxes,
<br />asaeaairienis, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amotmt of the Funds
<br />held ha Lcr~der shrdi nv2 be su$efeni to pay taxes, assessments, insurance premiums and ground renu as they fail 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 Lender io $ortower requeseing payment thereof.
<br />Upon payment in full of all sums secured by [his Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held lay Lender. If under paragraph 18 heron! the Property is sold or the Property is otherwise acquired by Lender. Lender
<br />sbatl apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hdd by
<br />Leader at the time of application as a credit against the sums sectued by this Mortgage.
<br />3. ;4ppiiratioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereot shall he applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />U'~° 6~:; I~eev. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which cosy attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or. if nut paid in such manner, by Borrower making pa}rnent, when due, directly to the
<br />payee thereof. Borrower shalt promptly fur:.ish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shag promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over [his Mortgage: provided, that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shat{ agree ir. writing to the payment ei the obligation secured by
<br />such lien in a manner acceptable to Lender, or shag in good faith contest such Tien by, ar defend enforcement of such Tien in,
<br />Itgaf proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Irsuranm. Borrower shall keep the improvements now existing yr hereafter erected on the Property insured
<br />agai-~<t loss by fire, ha~rds included within the tern[ "extended :average", and such other hazard; rs Lender may reyuire
<br />and in such amounts and for such periods as Lender may require; orevided, that Lender shall not reeuire that the amount of
<br />such --overage exceed that amount of eoverage rcgatred is pay iF:e sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />tstaf such approval shall nut be -uareasvaabiy wtthhetd. tali premiums on insurance policies shalt be paid in ehe manner
<br />provit_+~? u^Hder paragraph Z hereof or, if not paid is such maatter, by Borrower making payment, when due. directly is the
<br />insurance carrier.
<br />All insurance policies and renewals cheroot shall be in form acceptable to Lender and shall include a standard mongage
<br />clause in favor of and in form acceptable to Lender. [xnder shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall ptomp[ty furnish to Lender alt rentwal notices and all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to the insurance corner and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othe.~+vise agree in writing, insurance proceeds shall be applied to restoration yr repair of
<br />the Property damaged, provided such restoration ar repair is ewnomically feasible and the security of this Mortgage s
<br />not [heresy impaired. df such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be appleed tv the stuns segued by this Mortgage. •.vith the excess, if any, paid
<br />[o Borrower. if the Properly is abandoned by Borrower, or if Borrower fails to respond to Leader within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim fur insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either tv restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Leader and $orrower otherwise agree in writing, any such application of proceeds to principal shall no[ extend
<br />or postpone the due date of the monthly installments referred to in paragraphs i and 2 hereof or change the amount of
<br />such installments. If under paragraph l8 hereof the Property is acyuired by Lender, ail right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting Irom damage to the Property prior to the sale
<br />of acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />actluisitiva.
<br />6. Preservation and Maintenance of Property; S.eaaeholds; Condominiums; Planned Urtit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shalt comply wifh the provisions of any lease if this Mortgage is on a leasehold. tf 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 governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and comti[uent documents. I(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 />shah be incorporated into and shall amend and supptemenk the covenants and agreements of this Mortgage as if the rider
<br />were a pars hereof,
<br />7. Protection of Leader's Security. If Borrower fails to 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 Properly.
<br />including, but no[ limited to, eminent domain, insolvency, code enforcement, yr arrangements or proceedings involving a
<br />bankrupt or decedent, ther, Lender at Lendei s option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is nuessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Properly to make repairs. If Leader required mortgage insurance as a
<br />candiiion of making the loan secured by this Mortgage, Borrower shalt pay the premiums required to maiMam such
<br />iasurarr_°e in efea.-t until sttaa iin~ as the requirement for such insurance terminates in accordancz wuh Borrower's and
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