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Borrower apd lender oovearant and agrss u follows:
1: Pspreseat of Principal and Iateresl. Borrower shall promptly pay when due the principal of sad iatered on the iadebtedaea
evidenosd by the Note. prepayment and late charges as provided in the Note. and the principal of and interest on any I~ture Advaaoes sxured
by thin hioetgaga - '
S. Ptinds for Tiarta and InsWraaos. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the davy
monthly installments of principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds'? equal to ores
twelfth of the yearly taxes sad assessments which may attain priority over this Mortgage. and ground rents on the Property. if any, Plus one•
twelfth of yearly premium instslhnab for hasard insursnce. Plus onttwelfth of yearly premium imstallments for mortgage insurance. if any.
all a. reasonably estimated initially and from time to time by lender on the basis of assessments and bills and reasonabk estimates thereof.
'1Le Faads shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency i
(including Lender U lender is such an institntioa). Leader shall apply the Dads to pay said taxes. asseaaments. insurance premiums and
ground rants. Lender may not charge for so hokling sad applying the Funds. analyzing acid account. or verifying sad compiling said
assessments and bills, w?lew Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge.. Borrower-
sad Lsnder.may agree in-writing at the lino of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unlear
such agreeaaent is made or applicable law requires such uaterest to be paid, Lender shall not be required to pry Borrower any intered or
earnings on the Ptimds. Leader shall give to Borrower. without charge, an annual aooounting of the Funds showing credits and debits to We
Fonds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this '
Mortgage. 1
If the amount of the FnucL held by Lender. together with the future monthly installments of Funds payable prior to°the due dates of taxes, `
assessasenta, insurance premiums and ground rents. shall e:ezed the amount required to pay said lazes. aasesamemts, insurance premiums
and ground rents as Way fall due, suci~ezoess shall be, at Bonowda option, either promptly repaid to Borrows: or credited b Borrower on
monthly installments of Funds. U the amount of the Funds held by Lender shall not be sufficient to pay tares, assessments. insurance ;
pnminms and ground rents ao Way fall due, Borrower shall pay to bender any amount necessary to make up the deficiency within 30 days
form the date notice is mailed by Lender b Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no later than immediaWy prior
to the sak of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note sad
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then b interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advaneea.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided 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 Holies of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender reeceipts 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 enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by
fire, hazar+da included within the tens "extended coverage," and such other hazards as Lender may require and in such amounts and far 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 subjeM to approval by Lender, provided, that such approval
shall not be unreasonably withheld. All 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 mortgage clause in favorof
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly famish 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. Lender may make proof of loss if not made promptly by Borrower.
j Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided arch resbtation 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 J Borrower fails to
~ respond to Lender within 30 days form the date notice is mailed by Lender to Bon
over that the insurance carrier otfers to settle a claim for
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due
date of the monthly instaUmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender 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 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.
6. Preservation sad Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowershall 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 Boroewerb obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a
condominium'or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and
agreements of such rider shall be incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the
rider were a part hereof.
Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender
a interest in the Property. including, but not limited to, eminent domain,
insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon
notice to Borrower may make such appearances, disburse arch sums and take such action as is necessary to protect Lendds interest.
including, but not limited to, disbursement of reasonable attorney's foes and entry upon the Property to make repairs. If Lender regnired
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regnired to maintain
such insurance_ in effect until such time as the requirement [or such insurance terminates in accordance with Borrower's and Leadds
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbnraed by Lender pennant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable floor
time to time on outstanding principal under the Note unless payment of interest at such rate world 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 shall
require Lender to incur any expense or take any action hereunder.
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