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Unttwaes OovaHarns. BotTOwer earl Leader covenant and agree ss follows:
1. Fgtttwot e! Ilsiae4al ttttni lolwwl. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedaea evidenced by the Note. prepayment and late charges as provided in the Note, •and the principal of and interest
oa soy Future Advatnoes ttttcured by this Mortgage.
)!<ltatis ter Tsttes anti laeara¦c~e. Subject to applicable law or to a written waiver by Lender, Hortower shall Wy
to Leader on the day tmonthtY installments of principal and interest ~rc payable under the Note. until the Note is paid in full,
a sum (her'ein "Fuads'q equal to one-twdhh of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground tenb oa the PrepertY. it any, plus one-twelfth of yearly premium installments Eor hazard insurance.
plus one-twdtth of yearly premium installments for tnortgaie insurance. it any, all u reasonably estimated initially and from
time to time by Lender on the bssis of assessments and hills and reasonable estimates thereof.
The Ftitrtds shall be.beld in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state ageary (including Leader if Lender k such an institution). Lender shall apply the Funds to pay said taxes. assessments,
• insurance premiums and ground rents. !.ender may not charge for sa holding and applying the Frrnds, analyzing said account,
or verifying-sad eompiling:aid assessments and bills, unku Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a made or applicable law
require such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpae for which eatdt debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
Tf the amount of the Funds held by Lender, together with the future monthly .installments of Funds payable prior to
the due data of taxes, assessments, irtwrantx premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, iawrattca premiums sad ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the l:urtds
bead by Lender shall not be wfficieat to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Letader to Borrower requesting payment thereof.
Upon payment is-fuU of aU sums ttecured by this Mortgage, Lender shall promptly refund to Borrower any Fund:
held by Leader. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
:hall apply, rto later Wan immediately prior to the sale of tht: Proparty~;or its acquisition by Lender, any Funds held by
bender at the time of application as a credit against the :urns sect 4y this Mortgage:
3. A~iicatloa of >raytents. Unless applicable hw..~r ~~fivise, all payments received by Lender under the .
Note sad paragraphs 1 sad 2 hereof shall be applied,by' ]~~d~eru ~ihtn4of amounts payable to Lender by Borrower
under paragraph 2 hereof. rhea to interest payable on tKe ItM~! tL~Qp rncipal of tFk Note. and then to interest and
principal on any Future Advance. "'~"t'wq ~ --~+•.w„~,~,~ - • .
4. Charges; Liens. Borrower shall pay all taxes, assessments and otber'~ilatgea,• fines a~ impositions attributable to
the Property which taay attain a priority over this Mortgage, and leasehold payments or ground tents, if any, in the mantxr
pttovidod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such .payments.
Borrower shall promptly dachuge any lien which has priority over this Mortgage; provided. that Borrower shall rat be
required to discharge any such lien so brag as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard lnwrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
West such approval shall rat be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if rat paid in such manner, by Borrower making payment, when due. directly to the
irutrrance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt ratice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
' to Borrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is autboriud to collect and apply the insurance protxeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
t or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in sad to any Rrsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
heservatloa sad Maintenance of Property; Leaseholds; Condominiums; Planrred Uait Developments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. !f a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Leader's Security. If Borrower (ails to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially affects lender's interest in the Property,
including, but not limited to. eminent domain, insolvency, code cnfurcement. or arrangements or proceedings involving a
t bankrupt or decedent. then Lender at lender's option, upon nonce to Borrower, ma} make such appearances, disburse such
g sums and take such action as is necessary to protect Lender's interest. including. but not limited to. disburxment of
reasonable attorney's Ices and emry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. B~.rruwcr shall pa}• the premiums required to maintain such
3 insurance in rBect until such time as the reyuircment for wch insurance terminates m accordance with Borrowers and
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