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<br />UxteoaM CovexnxTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment oG PtMnclptrl and Interest. Borrower shall promptly pay when dtu the principal of and interest on the
<br />indebtaMeas evid'enced' by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by [his Mortgage.
<br />Z. P®ds (or Ta~ees and Insunwae. Subject to applicable law or to a written waiver by Lender, Boaowtr shall pay
<br />to Lender on the day monthly installments of principal and. interest are payable ands: the Note, until the Nats is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over thin
<br />Mortgage, and ground rents on the Property. if any, plus ono-twelfth of yearly premium iostaltmenzs for hazard insura[rce,
<br />plus one-twelft." of yearly premium instailments for mortgage insurance, if any, all as reasonably estimated tattle{ly and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />T7re Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />i.^surance premiums and ground rants. 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 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 Bottower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lewder
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds attd the
<br />purpose for which each debit to the Funds was made. 1"he Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />Yf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessmenzs, insurance premiums and ground rents. shall exceed the amount required to pay said razes,
<br />aaseaamenzs, insurance premiums and ground rents as they fall due, such excess shall be, ai Borrower's option, either
<br />promptly repaid to Borrower of credited to Borrower on monthly instailments of Funds. If the amount of the Funds
<br />heM by Leer shall sat ba sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amatmt necessary to make up the deficiency within 30 days from the date native is [Waited
<br />by Leer to Borrowee requesting payment thereof.
<br />Upon payment in frill of all sums secured by this Mortgage. Lender shall promptly refund to Borrower say Funds
<br />held by Lender If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shill apply, tco later than itatttediately prier to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at iltt time of application as a credit against the sums secured by [his Mortgage.
<br />3. Ammon of Payments. Unless applicable law provides otherwise. ail payments received by Lender under the
<br />Nara oral paragraphs 1 and 2 hereof shall bt applied by Lender first in payment of amounts payable to Lender by Borrower
<br />trader pu'agraph 2 hereof, then to interest payable on the Note, than to the principal of the Note, and then to interest and
<br />principal oW any Future Advances.
<br />4. CirZer, Liens. Borrower shall pay all taxes, azsessmen[s and other charges, fines and impositions attributable to
<br />the property wfiich may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if rsot paid in such manner, by Borrower making payment, when due, directly to the
<br />payee th~treof. Borrower shall promptly furnish to Lender all notices of amounts dve under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such gayments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />requited to discharge any wch lien so long az Borrower shall agree in writing to the payment of the obligation secured by
<br />~....M teen is a n,?ntwr acceptable to Lender. or shat! in goad 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 part thereof.
<br />S. Hazard Inwra®s_•e. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards iWCludtd within the term "extended coverage'. and such other hazards as Lender may require
<br />and in such amounts sad for such periods as Lender may require: provided, that Lender shall not require the[ the amount of
<br />such coverage exited that amount of coverage required to pay the sums secured by this Mortgage.
<br />'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinE payment, when due, directly to the
<br />insurance carrier.
<br />AB insurance policies and renewals thereo[ shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender Linder shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give promo[ notice [o the insurance carrier and Lender. Lender may make proof of loss if got made promptly
<br />by Borr~er.
<br />Ualem Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair of
<br />the property damaged, provided such restoration or repair is economically feasible and the security o[ this Mortgage is
<br />not thereby impaired. If such restoraUOn or repair is not economically feasible or if :he security of the Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the stuns 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 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at I ender's option either to restoration or repair of the Property
<br />or to the sutw secured by this Mortgage.
<br />Unless Lender sad Borrower otherwise agree m writing. any such application of proceeds to principal shall not extend
<br />or postpone the due data of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If trodet paragraph I3 hereof the Property' is acquired by Lender, ail right, title and interest of Borrower
<br />in and to any insurance policies and in and io t}rt proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to [he extent of the suers secured by this 'vfor[gage immediately prior to such s>•le or
<br />acquisition.
<br />(, Peeaervation and Mainkenpace of Property, Geasei~,olds; Coadomioiums; Planned Unit Developments. Borrower
<br />shall keep the property in good repair and shall not commit waste or permit impairment or deteriora[ioa of the Property
<br />and shall comply with the provisions of any Rase if this Mortgage is an a leasehold. If this Mortgage is on a emit in a
<br />condominium or a planned emit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or soveaants creating of governing the condominium or planned trait development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Bottowat and recorded together with this Mortgage, the covenants and agreements cf such ruder
<br />shag ba incorporated into and shall amend and supgieroert the covenants and agreements of this Mortgage as if the rider
<br />ware a part hereof.
<br />1. ProtecUoo oI Loader's Security. If Borrower faits io 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 Wok limited to, eminent domain, insolvency, code enforcement, or arrangements o'r proceedings involving a
<br />batiltrupt of decedent, than Linder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />strma earl take atxh action as is accessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reataaablo auorn4X ~ fees and entry upon the Property to make repairs. If Lender requira..d mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />'tnawsiaCa in effect until such lima as the requirement for such insurance terminates m accordance with Borrower's and
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