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<br />UNtroaM CoveN~tvrs. Borrower and Lender covenant and agree as follows:
<br />[. ta'meet of PrNel}d tad [detest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by tbe Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on my Future Advances secured by this Mortgage.
<br />2. Feeds for Tt:tt sad lake. Subject tp 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 payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds'^ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one twelfth of yearly premium installments tpr mortgage insurance, if any. all as reasonably estimated initially and from
<br />time to time by Lender on the bases of assessments and bills and reasonable estimates thereof.
<br />The 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 />insurance premiums atx! ground renu. Lender may not charge Cor so holding and applying the Funds, analyzing said account,
<br />or verifying and comgling 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 t-.ender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to [he 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 />Tf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of razes, assessments, insurance premiums 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 m~-rhly installments of Funds. If the amount of the Funds
<br />held by Lender shat! not be sufficient to pay lazes, assessmeo.>, insurance premiums and ground rents as they fall due.
<br />Borrower shall pay to Lender any amount neces:..rry to make up the deficiency within 30 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 shalt promptly refund to Borrower any Funds
<br />held by Lender If under paragraph ig hereof the Progeny is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior io ehe sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applia~atioo of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then eo interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. 8anower shall pay ail taxes, assessments and oche: charges, fines and impositions attributable to
<br />the Property which 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 no[ paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all noUCes of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly (urntsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Sorrawer shall oat be
<br />required to discharge any such lien so long as Borrower shall agree in wnnng to the payment of the obligation secured by
<br />such hen in a manner acceptable to Lender, or shalt in good faith cantest such lien hy, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent +he en[orcement of the hen or forfeiture of the Property or any part thereof.
<br />5. Huard Ioetrrance. Borrower shall keep the improvements new existing or hereafter erected on the Property insured
<br />against loss 6y Sts, hazards included within the term "extended roverage". and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; nrovided, that Lender shall not require that the amount of
<br />such coverage exceed that amount o[ coverage required to pay the sums Secured by this Mortgage.
<br />The 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 pr, if not paid in such manner, by Harrower making payment, when due, Jirec[I}• to the
<br />insurance carrier.
<br />A!l insurance policies and renewals ihueof shall be in form a-ceptable to Lender and shat{ include a standard mongage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal nateces and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof o[ loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 6e applied to restoration or repair of
<br />the Property damaged, provided such restoration ar repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is no[ economically (easible or if the security of this Mortgage would
<br />he impaired, the insurance proceeds shall be applied co the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If ehe Property is abandoned by Borrower, or it Borrower !ails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim far insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender ~ option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amoan[ of
<br />such installments. If under paragraph !8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prier to the sale
<br />or acquisition shall pass to Lender [o [he extent of the sums secured by this btortgage immediately prior to such sale or
<br />acquisition.
<br />6. Peraervatbn and Mtsinteoaace of Properly; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shat! not commit waste oc permit impairment or deteripratidn of Ute Progeny
<br />and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this )vlorlgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium ar planned unit development, the by-laws and regtdatians oC the
<br />coadpmerdtun or planned unit development, and constituent dtxuments. if a condominium or planned unit development
<br />rider is ex~uted by Borrower and recorded together with this Mortgage, the wvenants and agreements of such rider
<br />shag be incorporated enFO and shall amend and supplement the covenants and agreements of thts Mortgage as it the rider
<br />were a part hereof.
<br />7. Preteclbn of Lender's Stcnrity. It Borrower fails ro perform the covenants and agreements contained in this
<br />Mor[gagt, or of any action or proceeding is commenced whtch materially affects Lender's interest in tM_ Property,
<br />iw.lttdeng, but opt limited to, emtnem domain, insolvency, code enforcement, or arrangrments or nnxeedings involving a
<br />btwkrupi or de::edent, then Lender at Lendei s option, uppn notice to F3arruwer, may snake such appearances, disburse such
<br />sums and take such action as is trecessary to protect Ixnder's interest, utcludtng, but not limited to, d[sbursement of
<br />reaapaabte aitorrteyi fses and entry upon the Prppeny tp make repatn. It t-ender required mortgage inwrance as a
<br />c.rridition of mtrkrttg the loan sceureee by ti[rx Mongage, Borrower snarl pay the premums required in mamtaut such
<br />easuratice en sBecl unW such time as [l>p reuuiremnn; tnr such tr!suratrce ?_..--tnatrs ;n :.~~~c•rdsnce wuh Battttwcr'v and
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