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<br />Ut.rirasM CaYENANT5. Bottower and Lznd~er covenant and agree as follows:
<br />1. PaymrBt of Pslnrlpai ~ Interest. Borrower shah promptly pay when due the principal of and interest on the
<br />iadebatdrtess evidanxd by the Note, prepayment and tat* charges as provid ~' !n zhe 2`4ate, a,"d the principal of and interest
<br />on airy Fusvre Advances soured by t_lsis Martgage-
<br />2. 1 fete Tazrs ~ I~astere. Sub}eet to applicable taw or io a written waiver by I,en3tr, Harrower s :~.' ..ay
<br />to Lrnder on the day monthly installments of principal and interest are payable under the Note, until the Mote 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 rrnts on the Property, if any, plus one-twelfth of yearly premium installmenU for hazard insurance,
<br />plus oar-twelfth of yearly premium installments for tttertgege insurance, if any, alt as reasonably estimated ittitiafly and from
<br />time to time by L.eade7 an the basis of assessments and bills and reasonable estimates shtreof.
<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 L.ettder if Lender is such an institution}. Lender shad apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may net charge for sa holding and applying the Funds, analyzing said aceoum,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Battawer interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower ~d Lender may agree in writing ai the time of eze.-utiou of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agrcemrnt 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 Futtds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits 'b rite Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums encored
<br />by this Mortgage.
<br />If the amount of the Funds Geld by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground ren[r, shall exceed the amount required to pay said taxes,
<br />aasesstitents, 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 eo Borrower on monthly installments of Funds. Lf the amotmt of the Futtda
<br />field tsy Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to [xnder any amount necessary 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 shall promptly refund to Borrower any Fonda
<br />held by Lender. If under paragraph 18 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 acgtsition by Lender, any Funds held 6y
<br />Lander at the time of application as a credit against the sums secured 6y this Mortgage.
<br />3. Applerapon of Paymetata. Unless applicable law provides otherwise, alt payments receive0 by Lender under else
<br />Note and paragraph; I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />tinder paragraph 2 hereof, than to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Futtue Advances.
<br />4. Cheeses; thin. Borrower shall pay all taxes, assessments and other charges, fines and impositions at[ribuiable 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 paymen4 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 furnish to Lender receipts evidencing such payments.
<br />Borrawet shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall ogres in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
<br />{egal proceedings which operaee to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. liesard Lnsntratsce. Borrower shalt keep the ,mprovements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />noel 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 />`$e iffiurance ca;ncr provid=.ng the instuanee shall be chosen by Borrower subject to approval by Lender; provided.
<br />that such appravat shall net be unreasonably withheld. All premiums on insurance po{icirs shall be paid in the manner
<br />provided user paragraph ~ hereof ar, if n4i paid in such manner; by Borrower making payment, wh?n doe; directly rn the
<br />lnStlrariCC Carrie[.
<br />A!r . _ :~ _ _ ___'_ _ ._ ~._._- _ ._ ~ J`. shalt ._. ,... „cceptab e to eud° ., :.tu :.. ..ua {:gage
<br />ciatstt in favor of and in form acceptable to Lender. I coder shall have the right whold the policies and renewals thereof.
<br />and iorrower shad promptly furnish to lender nit renewal notices and alt receipts of paid premiums. in tbe event of loss,
<br />;~~.~:° slsali ire rrompt notice to the insurance carrier and Lender. Lender may make prtx:f of lass if net made promori}'
<br />by Borrower.
<br />Unless Lender and Borrower otherw,se agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically 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 stuns secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. tf tht Property is abandoned by Borrowec, or if Borrower fails to respond to Lcoder within 30 days from the
<br />date notice is mailed by Leader 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 ae Lender's option either to restoration or repair of the Property
<br />or to tt~ sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to prncipal shall net extend
<br />or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof ar change the amount of
<br />such installments. If under paragraph IK hereof the Prope:ry is acywred by Lender, alt right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds therraf resulting {coin damage to She Property prier to the sale
<br />ar acquisition shall pass to Lender to the extent of the sums secured by this R7xxtgagr immediately prior to such sale or
<br />acquisition.
<br />5. Prpervatioe rind M:tiutrwnce of Property; Leaseholds; Condominiums; Planned Utut Uerelopments. Borrower
<br />shalt keep ehe Property in good repair and shaft not commit waste or permit impairment ar deterioration of the Property
<br />~a = - with L e pr4viiioa=- st any ta,.~: if this Mu?€gsge is can . .aascbald. `this 3ia;tgagc is on a :toil in -
<br />candantitsium or a ptannrd !snit develapnsent, Borrower shat{ perform all at Borrowec's obligations under the drl:larution
<br />or covenants creating or governing the condominium or planned unit development, the by-taws and regulations of the
<br />condominium or planned tmii development, and constittten[ documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />slush be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
<br />wore a part hereof.
<br />T. Pr32frst3aa of I.rnt9er'rf srrarity. tf Burrcwrr falls to perform the covenants and agreements contained ,n this
<br />Mortgage, ar if any action or proceeding s commenced which materially affects Lender's interest in the P~oprrty,
<br />including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings utvolving a
<br />bankrupt or decedent, then Lender at Lendei s option, upon notice to Borrower, may make such appearances, disburse such
<br />sutras and take such action as is necessary to protect l.rnder's interest. mcludmg, bur not limned to. disbursement of
<br />reasonable attorney`s fees and entry uptm the Proper!}' to make repairs. If Lender required mortgage insurance a, ,
<br />condition of making ttte lean secured fiy this Mortgage, 9orrewer shat! was' the premitmms requ,txd tc. n:ai::ta:n ...h
<br />irsiuaers•e in effe_.__t m~tl such tim.• t_ the ._~_ e_._~nt for ...._t! in.,,.. a..__ .............~., :r•...~.orda..,.. ~,ttt Barr ..~, .'sn:i
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