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Bon*ower and Lender covenant and age as follows:
1. Payment of Principal and 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 on any Future Advances secured
by this Mortgage.
2. Funds forTa:eaand Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Funds")equal to one,
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one
twelfth of yearly premium installments for hazard insurance, plus one•twelfth otyearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to tine by bender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accourta of X1::;1: a.., izss?ed or guaranteed by a Federal or State agency
(including Lender if Lender is such an institution). Lender shall apply the F ands to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless 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 is made or applicable law requires 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 annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
Itthe amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at Bo+Tnwer's option, either promptly repaid to Borrower or credited b Borrower on
monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all soma 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 [.ender, l.end~r shall apply, no later than immediately prior
to the sale 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 and
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 to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
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 gn,und rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Burrower shall promptly furnish to [.ender
all notices of amounts due nnder this paragraph, and in the event Borrower shall make payment directly, Kormwer shall promptly furnish to
(.ender receipts evidencing such payments. &,rrower shall promptly discharKe any lien which has priority o~•er this Mortgage; provided, that
Borrower shall not be required to discharge any such lien su lunK as I;r,rn,wer shall aKree in writinK to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shall in K,w,d faith cont+•st such lien by urdefend enfon-+•ment of such lien in, legal prott-edings
which operate to prevent the enforcement of the lien or forfeiture of the, 1'rulxrty ur any part thenr,f.
5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereafter erected on the Property insured against loss by
fire, hazards included within the term "ex/ended coverage," and such other hazards as Lender may require and in such amounts and forsuch
lx•riods as (.ender may require; provided, that Ixnder shall not rc•aluire that the amount of such cueerage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insuranm carrier pro~•idinK the insuranca• shall {x• chosen by Kum,wer sutryaY•t to apprv,cal b.• Lender, provided, that such approval
shall not be unreasonably withheld. All pn•miurns on insurance lwlicies .hall I,epaid in the manner pnn•ided under paragraph 'L hereof or, if
nut paid in such manner, by l;„rrower makinK payment, when dua•. din•ctly to the insurance carrier.
All insurance policies and renewals thereof shall be in firm acceptable w I ~c•nder and shall include a standard mortgage clause in favor of
and in form acceptabletu Lender. Lendershall base the right G, hold the (,alleles and renewals thereof, and Bnrrowershall promptly furnish to
'j ,.ender all renewal notices and all rc•c•eipts of paid premiums. In th+• event of loss. Born,wer shall Kive prompt notice to the insurance carrier
and [.ender. (.ender may make proof of loss if not made promptly by Borrower.
Onless Lender and Borrower otherwise agree in writinK, insurance proceeds shall lx• applied to restoration or repair of the Property
! damaged, provided such resG,ration 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 MortKage, with the excess, if am•, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within days from the date notice is mailed by Lender to Korrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized to cullea•t and apply the insurance proceeds at Lender's option either to restoration or repair of the
E'ruperty or the sums secured by this MortgaKe.
Unless Lender and Borrower otherwise agree in writinK, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred to in paragraphs 1 and'L hereof ur change the amount of such insl<•allments. If under paragraph 18
hereof the Property is acquired by (.ender, 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
~lurtgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep
the Property in gpod repair and shall not commit wa,te ur p+•nnit impairment nr deterioration of the Property and shall pimply with the
provisions of any lease i(this MortKage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants cn•atingor KovcrninK 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 covenants and
aKrarments of such rider shall t,e incurl>„rated into and .hall amend and supplernent the covenants and agreements of this MortKage as if the
rider were a part hereof.
7. 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's 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 upon
I notice to Borrower may make such appearances, disburse such sums and take such action as is necessary La pratert Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowei s and Lender's
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 disbursed by [.ender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and fender aKree to other terms of payment, each amounts Bhall be payable upon
notice from [.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstandinK principal under the 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, shall
require Lender to incur any expense or take any action hereunder.
al»K321 Pa~E2361