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Borrower and Lender covenant and agree as follows:
1. Payment of Principal arm Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, Prepayment and late charges as Provided in the Note. and the principal of and interest oa any P~tare Advances secured
by this Mortgage.
2 Plaids for Tares and Insurance. Subjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lenderoa the day
monthly installmenb of principal and interst are psyabk under the Note. until the Note is paid in full, a sum (herein "PLnds'7 eyaal to oar
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. itany. Plan one-
twelfth ofyearly premium inatalhnents for hazard insurance. Plus one•twelfth of yearly premium irtstallanents far mortgage insurance; if any.
all as r~easortably estimated initially and Trom tune to time by Lender on the basis of asaessma~ts and bills and reasonable estimates therst
The Fends shall be heW is an instiwtion the deposits or aeoounts of which are insured or guaranteed by a Federal or State agency
(including Lends if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and
ground rents. Lender may not charge for so holding and applying the Pltnds. analyzing said account. or verifying sad compiling said
assessments and biW. unless Lender pays Borrower interest on the Fends and applicable law permits Lender to make such a charge. Bar+ower
and Lender may agree in writing at We time of execution of this Mortgage that interest on We Fonds shall be paid Lo Borrower, and antes
such agreement is made or applicable law requires such interest to be paid. Lender shall rat be regcired to pay Borrower any interest or
earnings on the Ponds. Lends shall give to Borrower, without charge. an annual accounting of the Fends showing cndita and debits to the
Funds and the purpose for which each debit to the Flurds was made. The Funds are pledged as additional security for the soma se~vred by this
Dortgage.
If the amount of the Fends held by Lender, together with the future monthly installments o[Fhnds pa~yabk prior to the doe dates of tars,
assessments, insurance premiums and ground rents. shall exazed the amount required to pay said taus, assessments, irunrartoe premiums
and ground rents as Way faA due. such excise shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower as
monthly installment d Fends. If We amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance $
premiums and ground rents as Way fall due. Borrower shall pay to Lender any amount necessary to make uP thedefiaency-within 30dsys
from We date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full d all sums secured by Wier Mortgage. Lender shall promptly refund w Borrows any funds held by Lender. Uunder
paragraph 18 hereof the Property is sold or the Properly is oWerwise acquired by Lender, Lender shall apply. no later Wan immediatdy prior
to the sale of the Properly or its acquisition by Lender, any Funds held by Lender at the time of appUcatiar as a credit against the samssecared ~
by Wis Mortgage.
3. Applk~ation of Payments. Unless applicable law provides otherwise, all payments received by Lender Hader the Note a~
paragraphs 1 and 2 hexed shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof
then to interest payable on We Note, Wen to We principal of the Note, and Wen to interest and prinapal oa any Petore Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, tines and impositions attributable to the Property which
may attain a priority over Wis Mortgage, and leasehold payments or ground rents, if any, in the manner provided ender paragraph 2 hereolor,
if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly Tarnish to Linder
all notices of amounts due under Wia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be required to discharge any such lien so long 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 enforeementof such lien in, legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on We 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 rnverage exceed that amount of coverage
required to pay We sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that each approval
shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or. if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclausein favard
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 notice to the insurance carrier
and Lender. Linder may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrovvei-otherwise agree in welting, insurance proceeds shall be applied to restoration or repair d the Property
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such
f restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proccedsshall beapplied
to the soma secured by W is Mortgage, with the excess, if any, paid to Borrower. if the Property is abandoned by Borrower. or J Borrower fails to
respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that We insurance carrier offers to setae a claim for
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender
s option either to restoration or repair d the
Property or We sums secured by Wia Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred to in paragraphs i and 2 hereYrf or change the amount of such installments. Dander paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to the extent of the sums se~vred by this
Mortgage immediately prior to such sale or acquisition. .
6. Preservation and Maintenance of Property; Leaseholds; Condominnma; Planned Unit Developments. Borr~owerahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the enndominiam or planned
unit development, We by-laws and regulations of the condominium or planned unit development, and rnnstitnent docamenta. If a
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovensnb and
agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreernentaotWia Mortgageasifthe
rider were a part hereof.
s 7. Protection of Lender's $ecurity. If Borrower iaila to perform the covenants and agreemeata contained in this Mortgage, a if aqy
action or proceeding is commenced which materially affects Lender
a interest in the Property. including, bet not limited to, eminent domain.
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's optioraaPon
notice to Borrower may make such appearances. disburse such soma and take each action as is neoesary to protest Lenders interesR.
including, but not limited to, disbursement d reasonable attorney's fees and entry upon the Property to make repair. If Leader required
mortgage insurance as a condition of making the loan secured by Wia Mortgage, Borrower shall pay the premiums required to maintain
each insurance in effect until such time as We requirement for such insurance terminates in aooordanae with Barro.rer's and I.endds
~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
My amounts disbursed by Lender pennant to Wia paragraph 7, wiW interest thereon, shall become additiond indebtednew of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to Other terms of payment, arch amounts shaII be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law. in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shag
require Lender to incur any expense or take any action hereunder.
s ~ - a~n'x 315 PaGE 912 -