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<br />IJN[I+ORM Covt?rrAxts. Bon'nwer and bender oovenam and agree of follows'
<br />1. Prat o[ !rYaptl sad leueeat. Bwrower shall Promptly pay wheer tine the principal of and intberru on lire
<br />iadebtednas evidenced by tht Note, prepayment and late cdtarges u provided in the Nok, ana the princpa3 of sad iataeK
<br />on any Ftau« Advances secured by this Mortgage.
<br />1. Ftsdc fa Taxes ®d imtaaate. Sttbjea to applicable law w to a wtittm waiver try Larder, Borrower shalt pry
<br />to Leads an the day monthly instaltmeab of pri~ipal and imeres[ arc lnyabfe trader the Nary, trmil tht Nom is paid in ttdt,
<br />a stun {herein "Furda'~ egt[al to one-twelfth of the ytarly taxes and aeaaunprb which maY arrant priority ovtt Bea
<br />Mortgage, and grotutd renb on the Property. if any, plus cetetwelffh of yeatfy premium in3gllmnats for hazard instaaace,
<br />plus anbtwdith of Y~Y Prrmi»m ittatallaxrtb for mortgage iowrattce, if airy, sB as reasonably eatimatM initially sad frota
<br />time to tirtx by Leader on the heals of asseBernenb and bilfa and rtasoaable aRimatea ttrer+rof_
<br />Tire Funds shall bs hdd in an institution the dtposib or accottab of which arc i[taared w guaranteed Iry a Fedaal or
<br />state agency [including Lender if Lender is such an itsstittrtioa). Lender shall apply the Ftrnda to pay said tams, aauawteaa,
<br />irutirance prert»tuns a~ ground rears. [.ender may oar charge fw so holding and apptving the Fonds, analydag said aecaant,
<br />or verifying and compiling said asaesstrmrb and bilb, uoksa Lender pays Borravtt interest tw the Ftmds a~ applicable law
<br />parttits Lender to make such a chargt. Borrower and Lender may agree in writing at the [late of execrrtion of this
<br />Mortgage that intemt on the Funds shall be paid to Borrower, and colas such agreement is [node or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest w earainga oa ttte Ftrode. Leader
<br />shag give to Borrower, withotu charge, an annual axotrming of the Funds showing credib std tftdrib to the Ftmds and the
<br />purpose for which each debit to the Fins was made. The Fonds are pledged as additioml security Fw the stmu secured
<br />by this Mortgage.
<br />If the amount of tlu Funds bold by Leader, together with the ftrtu« monthly instalhaeob of Ftrods payatrk prior m
<br />the due dates of taxes, assessments, inwrance prernitrms anti gourd rents, shall ezcxd the amount required to pay said taxes,
<br />asse~tenb, insurance premiums and ground rents as they fal( due, such excess shall be, a[ Horrower's option, either
<br />promptly rrpa~ to Borrower or credited to 'Borrower on monthly inuallatertb of Funds. If the amotmt of tle Ftrada
<br />held try t~„d>•r ah~u na: ~ ~t to pay taxes, aaessmettts, iratrrance prea7ums and ground rents as they fail ate.
<br />lEOrsower shall pay to Lender any amount necessary to make up the dehciency within 30 days from the date notice is mailed
<br />try Deader fo Borrower regtrating payment thereof.
<br />Upon paytnetu in foil of al] stems secured by this Mortgage, Lender shall promptly rcfuad to 13orrowtt any Furls
<br />Geld by Leader. If under pazagraph 18 he«of the Property is wtd or the Property is otherwise acquired by Lender, Leader
<br />shall apply, no later thaw immediately prior to the sale of the Property ar its acquisition by Lender, any Funds held by
<br />leader at the time of ¢pplicatlon as a crecli[ against the sums secured by this Mongege.
<br />3. AppBcatMn of Pay®mrla, Unless applicable law provides otherwise. all payments received by Lender umter tM
<br />Nate and paragraphs 1 and 2 hereof shall tie applied by tender first in payment of amounts payable to Ixrtder by Borsower
<br />tmdtr paragraph 2 hereof, then to interest payable an the None, then to the principal of the Note, and then to in[ereft and
<br />principal on any Future Advances.
<br />4. Charges; bites, Borrower shall pay ail taxes. assessmenb and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold paymenb w ground rcnb, if any, in the «tnner
<br />provided under paragraph Z hereof or, if ntn paid m such manner, by Borrowec making payment, when due. directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such paymenb.
<br />Borrower shall prornpdy dixhazge any lkn which has priority over this Mortgage: provided, that Borrower shall no[ 6e
<br />required to discharge any such lien so long :+s Borrower shall agree in wring to the payment of the obligation secured by
<br />std.: lien in a manataz acigptit[dt ro Lender. w shall in good faith contest such lien 6y, or defend enforcement of such lien in,
<br />tefal proceedings which operate to prt:veat the cnforcoment of the Iicr, or forfeiture of the Property or any pan thereof.
<br />5. Elattard Iaanraace. Borrowtt shat) keep the improvemenb now existing or hereafter erected on the Property insured
<br />against loss by ftte, hazards inslutkd within [he «rm "extended coverage", and such otfter hazards as Lender may require
<br />artd '^ y~,:h a'-'t^"n:~ =red f-Vr st~'h ~S-earls as Lender may rcyufre; provided, that Lender sh¢i! net require that ttu amount of
<br />such coverage exaxd that amount of =overage r?gwrM to pay the sums secured by this Mortgage.
<br />The it='~ ~-~_ .=„'ac= rsr=vying t'.~ ;n.tsran.:e sha13 be chosen by Borrower sables[ ro approval by Lender, provded.
<br />Brat such approval shall not be unreasonably wnhtrld. All prcmituna on insurance Wolictea sls~ll F_ pa_;d in tare- !Wanner
<br />prn::ded under i.-r..~aph 2 hetxa~t tit. if not paid is sash manner. by Harrower tnakm-g paytmeat. when due.:iirectly to the
<br />insuratrse. carrier.
<br />Ail insurance policies and renewals thercot shall be in form acceptable to Lender sad shall include a standard mortgage
<br />etause in favor of and is form acceptable to Lender. tinder shall have [rte right to had ;he pnlicres and renewals thereof,
<br />aorl Borrower shall promptly furresh to Lender all «mwa! nartces aril ail receipts of pad premiums. In the event of loss,
<br />Borrower shalt give prompt rtotiez to the imurance carrier and ltrtder. Lender may make pttxit ci loss tf nut made promptly
<br />by Ban~ower.
<br />Unless Linder attd Borrowec otherwise agrce in writing, insurance proceeds shall ar applied to restoration or « pan of
<br />the Froperty damaged, provided such «storatian of reparr is economxally fe :sible and ttce security of this Mortgage iz
<br />riot thereby impaired. It stash restoration or repair is not ecanamicatiy feastbk or ii the securay of [iris Mortgage would
<br />be impaired, the insurance proceeds shall be applkd to the scams secured by this Mortgage, wuh the excess, if any, paid
<br />to Borrower. If the Property is auandotted by Borrower, or r! Borrower fails w respond ro Lender wrthtn 3U days Crone the
<br />date n<.>tr~: is mailed by Lender to $orrawer that the irrwrance carrier offers to stale a claim for insurance ixnefits, Lender
<br />is authori~ud to collect and apply fie imuran:e proceeds ai Lz.'dzr's option eiBter to restwation or repair of the Properly
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m venting, any such application of proceeds to pnnnpal shall ra e.atend
<br />of pastpoae the due date of the monthly iostalttaents «ferrtd to in paragraphs I and ? hereof or change the amount of
<br />wsh iosial)nteats. It ardor paragraph ! 8 hereof tire. Property is nsquirec! by tinder, art nght, title amt interest of C3orrnwer
<br />in and *.a any urwranee polices and in aa1 to the proceeds thereat resulnng f[am damage [o the Property prior to the sale
<br />m' acgttisitioa shalt pass to Larder to Bit extent of the was secured by this Mortgage immediately prior to such sale or
<br />acquisititm.
<br />6• Prattvatiaa and Maipeearyee of Propesty; l.eaet+elils: Cttademiaiuac Planed Uieit Devekrpaseats. Borrower
<br />sresl= P the Propertp in goad repair std shall riot commit waste ar permit impairtoenf or deterioration of tlx Property
<br />aril shalt caatpiy with the provisions of any {cast of this Mortgage ~s an a lzasehatd. !f this Mortgage is cr, a unn ir, a
<br />candominitem ar a ptantted unit development, Harrower shall perform all of Borrower's obltgauons under the deciaratian
<br />or covenants creatitsg ar gnvuning the condominrum or ptavtred «nit development, the by-laws and regulations of the
<br />eondominiuat w planned uaii devetopmen[, and cortstituent dastunents. It a condominium or planned unit developmem
<br />tilt[ is execu[W hY Borrower and recocdixt tageetter wi4h rhea Mortgage, the covcaanb and agreements of such ritkr
<br />YtaB he utcorpwattd iota and shall amend and suppkmeni the wvenanb oral agreemenb of rhea Mortgage as :t the rider
<br />weer a pats hextot.
<br />7. gttwlutMse d I.tadae'a !iecaeity. If Borrower fads to perform the covenants amt agreements cantaiixd in this
<br />Mor[gagt, w if any astioa ur proceeding ra conutteitctei which matecia}ly stlzcts I.inders :merest in the Propertq.
<br />ittclttdirtg, but rzot. lututed to: emincrtt ttomain, irectrlvency, axle cn lorszmznt, ar artangernents ar proceedings invni.ing a
<br />boakrupt ox ttectdmu, then Lender ai 1_eader's aptisrn, upon rxNise !c 3arrower, may make such appesrarv~es. dtsburxe xuc:h
<br />attd take crib astioa as to rtt+:raaary to protect lznder's :ntertst. ~ncltiding. trot oat tiro+izd to, disbursement .tf
<br />raason:,bk attorney's fees amt entry upon ttse f'ropeny to make repaers- If Leitder regwrcd mortgage insurance as a
<br />a+xsdit+t?o nC mrJcitrg the loan sc: uted by this Mortgage, liorruwzr shalt pay tbz premeurrta regtured to rasa [stn <.uch
<br />imstt~t in tda:i [milt welt tune as Cis requirement for suv:b rttwrare:e urmtrtates is acwcdanee wash I3arnawsr < xod
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