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<br />Urttt<oast Coverretvrs. Borrower an6 Lender covenant and agree as follows:
<br />1. 1?iyment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />irx~btedrtess evidenced by the Note, prepayment and late charges as provided in the Nete, and the principal of and interest
<br />on any Future Advances secured tsy this Mortgage.
<br />Z. Feeds tar Toes aad hsrer:ace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are psyable under the Note, until the Note is paid in full,
<br />a sL-4i (herein "Funds"; equal to one-twehth of the yearly taxes and assessttterts which may attain priority over this
<br />Martgstge, and ground rents on the Property, if any, plus o.~-twelfth of yearly premium installments for hazard itts[tratitx,
<br />plus its-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Letrder on the basis of assessments and bills and reasonable estimates thereof.
<br />The Frmds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (it[cluding Lender if Lender is such an institution!. Lender shall apply the Funds to pay said.tazes, assessments,
<br />itssut'anct premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said ast[esstnents 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 Ftmds shall be paid to Borrower, and unless such agreement is made ar applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />pttrpnse for which each debit to the Funds was made. -the Funds are pledged as additional security for the sums sxured
<br />by this Mortgage.
<br />If the arrtoun[ of the Funds held by Lender, together with tbe future monthly installments of Funds payable prior to
<br />the due dates of ?axes, assessments, insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br />asttestunertts, instuattce premiums and ground rents as they fall due, such excess shall be, at Boerower's option, either
<br />promptly repaid to Borrower or credited to Harrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall 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 30 days from the date notice is mailed
<br />by Leader is Borrower requesting payment thereci.
<br />Upon paymem is full of ail sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held try Leader. If under paragraph Ig hereof the Propert}• is said or rbe Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquist[ton by Lender, any Funds held by
<br />Leader at [he tune of application as a credit against the sums secured by [his Mortgage.
<br />3, iappBeatiria M Paymea~ Unless applicable taw provides otherwise, alt payments received by finder under the
<br />Note aad paragraphs 1 and 2 htrcof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />wader paragraph 2 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 />0. Liles. Borrower shall pay all taxes, assessments and ether charges, fines and tmposi[ions attributable to
<br />the Property which may attain a priority over ¢hfs Mortgage, 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, directly to the
<br />payee thereof. Borrower shall promptly f[_«rtish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directia, Borzower shall promndy furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnortty aver .his Mortgage; pravtded, that Borrower shall no[ be
<br />required to discharge any such lien so long as Borrower shaft agree in wrtung to she payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, ar shall in good faith +:ontest such lien by, or defend enforcement of such Tien ...,
<br />!ee~t pre=~[ne '~'!:ic!t aPerate to prevent the enfercetru_~nt at the !i•_n c+r far?ett~!re of the Yragerly ar any part thereof.
<br />S. Hazard lmuraaee. Borrower shalt keep the :mproveroents now swung or hereafter erected on the Property insured
<br />against loss 6y fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
<br />and en such amounts a[td fat such periods as Lender may reyuire; provided, that Lender shall not reyuire that the amount of
<br />such coverage ereced chat amount of coverage required to pay the sums secatred by this Mortgage.
<br />The iasurantt earner providing the insurance shall be chosen 6y Borrower subject ro approval by Lender; provided,
<br />that such approval shall net be unreasonably withheld. .411 premiums on insurance policies shall he paid in the manner
<br />provided under paragraph 2 trereof or, tf not paid in such meaner, by Borrower making payment, when due, directly [o the
<br />iasitrnitcs carrier.
<br />All insurance policies and renewals thereef snail Fx in fomt acceptable ro Lender and shalt include a standard mortgage
<br />clause in favor of and in form acceptable to Leader. Lender she!! tease the right to hold the policies and renewals thereof.
<br />aad 73arrower she!! promptly furnish to Lender all renewal nattces anti aft receipts of paid premiums. (n ;he event of loss,
<br />Harrower shall give prompt notice to the insurance rattler and Lender. Lender may make proof of loss it not made promptly
<br />by` HOrraWtf.
<br />Unless Lender and Borrower oetrerwtse agree in wrung, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such reswration or repay +s economically feasib]e and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repatr is no[ ecanamtcally feasible ar tf the security of this Mortgage would
<br />be impaired, the irssurauce 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 h} torrower, ar if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower [hat the insurance cauier offers to settle a claim for insurance benefits, Lender
<br />is authorizes to collect and apply the insurance proceeds at Lenders agtion either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender aad Borrower otherwise agree..n writing. any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments referred [o in paragraphs ! and 2 hereof or change the amount of
<br />such insta[imeats. If under' paragraph IS hL'reOl the Propert} +~ acquired b} Lender, all right, title and interest of Borrower
<br />in aad to say tnswance policies and in xnd to the pracceds thereof resulting from damage to the Property prior to the sale
<br />or acquisttion shall pass to Lender to the extent of the sums secured Sy this Mortgage imtnedia[edy poor to such sale ar
<br />acquisition.
<br />6. Pttarertiarbtta t®d >'Lamtcaaaee of Ptrapcfiy-, Leaseholds: Condotnioiaats: Ptaaned Unit IXveHaptaceats. Berrower
<br />shall keep the Property in goad repair and shall not commit waste ar permit impairment oe deterioration of the Property
<br />aad sbaB cainply with the provisions of any lease if this Mortgage is an a leasehold. It this tor[gage is on a unit in a
<br />eottdomiaium ar a planned unu devetaptneni, Harrower shat! perform ail of Borrower's abiigauans under the declaration
<br />or caveztaats creating ar gaverrong rite condominium ar planned tints develagmettt, the by-laws a„d regulafians of the
<br />w[t~mituum or pltuuted unu development, and constintent dtxumen[s. it a candatetinium ar planned t+nit development
<br />rids is executed by Burrower and recorded together w[th [fits Mofigage, the covenants and agreements of such nder
<br />abaft bt ittcorr^`trafed into aad snail amend and supplement the covenants and agreements at' this Mortgage as +f the rider
<br />wens a P~ .
<br />'.'_iisivi ~ Leaver's 3esarity. tf 13a;tawcr faits to perfcrm flaw ceveuarts and agreententa :amsined in this
<br />11/orlSaBo. of if say actiaa ix pra'eeding fs cammeaced which materially alfee;:s Lender's interest is the Property,
<br />irtcludiag, but eat limited to, etatiteat domain, insolvency, ct;.te enforcement, ar arrangements or proceedings invalvmg a
<br />letakrupk ar d~edtnt, then Lettdex at Leasies's aprion, upon neticn to Borrower, ma} make such appearances, disburse such
<br />strma aad tags allele a~ioa as t- rte:.sssaty to pratsct tinder's intetct, :n:hrding, f+ut rot howled ta, disbufsentent of
<br />tas~oaabk attatatyi flea and entry upuu the Prapcrty to make rcpain. If Lender required mortgage insurance as a
<br />caadirion of tnakiag the lean vtw:urtd by then Mortgage, Harrasser slrail pay tine premiums required to maintain such
<br />ittrsatanca iu eflact wolf! sash bete as the rr~;uironunt tot such itwwaoce terminates to accoreianec with Harrower s and
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