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<br />Uxtpoxtvr Co~ ~r~ Borrower and Lender covenant and agree as follows:
<br />1. Payment of Pclaclpal std Interest. Borrower shaft promptly pay when due the principal of and interest on the
<br />indebtedness evidenced 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 this Mortgage.
<br />2. 1Faads for Ttuea and Luaraaee. 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 payable under the Note, until the Note is paid in full,
<br />a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over [his
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus otte-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initially and from
<br />time to bore by bender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt 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 />insura~e premiums and ground rents. Lender may not charge for sc 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 dine of execution of this
<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 be required to pay Borrower any interest or earnings on the Funds. [tender
<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 ~,nonthly installments of Fiords payable prior to
<br />the due dates of [axes, assessments, ituutance 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 monthly installments of Funds. if tF.e 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 form 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 shat! promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the 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 6y this Mortgage.
<br />3. Applkation of Payments. Unless applicable law provides atherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment cf amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, [hen to interest payable on the Note, then to the principal cf the Note, and [hen to interest and
<br />principal on any Future Advances.
<br />4. Charges; Lkra, Borrower shall pay all taxes, assessments and other 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 not paid in such manner. by Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: provtded, that Borrower shall not be
<br />required to discharge any such lien so Tong as Borrower shall agree in writing to the payment of the obligation secured b'r
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which opP•a[e to prevent the enforcement of the Tien ar forfeiture of the Property or any part thereo..
<br />5. Biarud Ir~arance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of 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. Alt 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 making payment, when due, direct}y to the
<br />insuratxx carrier.
<br />All insurance policies and renewals thereof sha8 be in form acceptable to Lender and shall include a standard mor~gage
<br />clause in favor of and in form acceptable io Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender alt renewal notices 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 of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in wrung, insurance pn~ceeds shall be applied to restoration or repair of
<br />The Property damaged, provided such restorauon or repair a etcnomitally feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Riortgagc, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned 6y Borrower, or if Borrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender [o Sorrawer that the insurance carrier ot7ers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's optian either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m 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 amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by tender, elf right, title and interest of Borrower
<br />in and [o any insurance policies and in and to [he proceeds thereof resulting from damage to the Property prior to the sale
<br />or acgtusitian shall pass to Lendu to the extent of the sums secured by this Mortgage immediately prior to srrh sate or
<br />acquisition. `
<br />b. Presarvatlon and Ms6nteaaace of Property; Leasehatdst Cotidominiutas; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of rho Propery
<br />sad shall comply with [be provisions of any lease if this Mortgage is an a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shalt perform elf of Borrower's abhgasions under the declaration
<br />or covenants creating or governing the condominium or planned unit dn•elupment, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. if a condominium or planned unit development
<br />ride is executed by Borrower and retarded together with this Mortgage, the covenants and agreements of such rider
<br />shag 6e incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />wen a part hereof.
<br />7. PrWectba of Leader's Security. If Borrower fails to perfarm the covenants and agreements contained in this
<br />Mortgage, or it any action or proceeding is commenced whrch materially affects Lender's interest in the Property,
<br />intttiding, but not limited ta, eminent domain, insolvency, code enforcement, or arrangements or praceedings involving a
<br />bankrupt or daedent, then Cattier at Lender's option, upan notice tv Borrower, may make such appearances, disburse such
<br />stuns and take such action as is ttetessary to protect Ltndcr's interest, including, but not limfted to, disbursement eF
<br />rteasixtable attorney's fens arul entry upor. the Fropeny to make repairs. If Lender required mortgage insurance as a
<br />contLition of making the loan secured 6y this Mortgage, Borrower shat! pay the premiums regwred to maintain such
<br />inqusace in effect until such time as the roquirement for such instuance terrninaas m accordance with Burrowcr's and
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