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liurruwer and l.ender covrnant and agrer as fuUuws: • L Payment ot Principal a~d Intereat. I3oRUwer sh.ill prompUy puy whrn due the~pnncipal uf and intrrest un thr ~ndrbtc~lnesa evide~ced by the Note, p~epayme~t and latecharges us pmvid~rl in th~• Nutr, und thr principui uf and interest ~~n any Futurr Ad~•unce~; securEd by thia Morlgage. 2. Funde tor Taxee and in~urunce. tiubjtrt G~ .~pplic.ibie I:-w ur tu u written wai~•er by I.a•ndt•r, fA~rr~~w•er shall pay to I.~•ndi•r un thr diiy munthly instaliments of principa) und inter~•st ure puyabte under the• Nute, unhl th~ Nut~• is pa~d in full, :~ swn 1 herrin "h undx"~ iv~ual to onN tK•rlfth of the yenrly liixes and ussc::.vmcnts which muy auuu~ priurit~• uvi•r -hi~ A1urt~;:~y~r, :~n~l Kruu~~d rents un the !'ruperty, if.iny, pluc u~c~ twelRh of yearly premium inst.~llments for hxzard insurancr, plu.un~-tw~•IRh uf~~r.-rh~ pr~•miu~n instalhn~•nts fu~ murt~;:~~;~• insur:incr, if.iny, .+11 as reuxunably rstimatEd initially .+nd from Ume to tin~r h~• 1w•ndrr un thi• batii~ ut.iss~•ssm~•tit.:ind h~ll~ and re;~KOn:ibli• t•stiu~utc~ thrnr~f. The Funds ehal) be held in an institution Ihr dr{wsits or acruunts ~~f whirh arr intiu~~d or Kuanntctid by a F'~-~Irr~il ur St.~tc .~~;~~nry ~~ncluding l.ender if I.ender is such n~S institution). I.ender shall a~pph• thr F'umis tu p.~y tiaid t:~xrs, utis~~sxmrnlti, insurunce premiu~ns :ind Kruund renta. l.ender muy not charge for eo holdinK ~nd applyinK the Funds, :~nutyain~; s:-id .u•cuunt, ur verifyinK :md cumpiling s~iid .. aseasments and bills, unlesa lxnder puys E3orruwer intrrt•st on the Funds.ind applic.~ble iuw• ~•rmitv t.~•nder tu m:ike such a charKe. fiurruwer und l.ender mny agree in writing at the time of executiun uf th~s A1~~rtKaKe that intenst ~~n thi• Funds rhaU tK• puid tu tiurruwe~, and unless ~uch agmrment ~s made or applicable law requires tiuch intere:~t tu t~e paid, IA•nde~ shall not }x• rt~yu~nd to pay Ii~~rruM•er .~ny int~•rest or rxrninga on the Funda. I.ender shal) give to tiorn,w•er, withnut ch.irge, an annu.~l a~•cuuntinK of thr Funds .huwin~; cn~clits and drbits tu the H'unda and the purpuse for which ei~ch debit G~ the h'und~ w•a~ made. '1'hr Fund~ ure~ ple~~i~;~~i as additiu~al sitivrity fur tht• surns srcun~cl by this 1lortgage. If the amount of thr Funds held by I,ender, tuKether with thr futurr muntl~l~• installnu•nt~ uf Funds puy;ible prenr to th~• ~i~t• ~iates of taxes, asseasmrnts, insurance premiums and ground rrnts, shall ex~•.~cd tht• am~~unt nY~uir~ri to pay .a~d tax~•s, a.srs~n,en~~, insur.ince prrmiums :~nd Kr~und rents as they fall due, such exrecs sh3II I~f`, .l~ I{(ATbK'Pr'. uptiun, c~ithrr prumptl~~ rrpaid to Rurruw•er ur ~•~~•dit~•d t~~ liorruwer on munthly inetallments of Funds. If the amuunt of the Funds hc~ld by I.~•nd~~r shall nut tH• sufficient tu pay taxrK, assessment~c, insurance premiums and ground rents as ~hey fall due, Kl1n'ON'f~r sh,~U p:iy tu Iw•nder .~ny :um~unt nir•~:csury tu m:~ke up tht•d~•fi~•iencr• «•ilhin:3Udays irum the date notice is mailed b~ IAndrr G~ Rurruwer n•yu~•sUnK pay~m•nt thc•nti~f. Upun payment in fult of nU sums secureci b~ this \turt~;aKc~, IA~ndrr sh:~ll prompth• rafu~d tu Hurn~w•i~r any funds hrld by 1~•nder. lf under paragraph 18 hereof the Property is sold or the Pruprrty is utheraa•~se acyuin•d b~• 1.~•na~~~. ~.•~,a,•r shall :~ppl~~, nu I:~trr than immr~liately priur t~ ~ the sale of the 1'roperty or its xcquis~tiu~ by I.ender, an~• h'unds h~•Id hy 1 A•nd~•r at tht• timr ~~f :ip~~~i~•:~tiun :-c a~-redit ;~Kainst tht• sums scrured b~• thia Mortgvge_ :i. Application of Payments. llnlesc appl~i;~hlr law pruvidc•s ~dhF•nv~u•, a11 pa~•mt-nts nti•ei~•~v1 by I~•nder wider the \iute and p.iragraphs I and 2 hemof shall be applicrl h~ I.e•ndt•r fir.t ~n ~r.~~•mi•nt ~~f am~~unt~ pa>•at,lc• t~~ i.~•nd~•r b}• tiorruti~c~r under paragraph `l hercr,f. thrn to interest payuble on the A'ote, then tu the• pnneip:il uf thr ti~~t~•. anii tht•n t~~ inti•m.t :u~d pnncip.-1 un any Future Ad~ancrs. •f. ('harRes; l.iens. I{orruw•i~r sh.~ll p:~y ull tax~•s, :~..~•..m~~nt.:~n~! ~~th~•r ~~har~;~•.. fin~•.:~nd imp~~.itiun,:~ttrihut:ihlr b~ tht• 1'ruEx•rty H•hich ma~• attain a priorit>• u~•~rthi. J1~~rt~;ay~r.:uid t~:~s~•lu~ld p:i~~rn~•nt. ~~r~;n~um1 n•~et., if:~n~. ~n th~•m:~nn~•r pr~~~ id~til undi~r p.~raKr.~ph'~herr~~Cor, if nut p:-id in such m:~nnFr. b~• Rurruw~•r ~n:~kin~; p:~~ ~n~•nt. H~h~•n du~•. ~lir~•~ th• t~~ th~• p:~~ ~:• tht•n.~C fi~~rn~w~~r.h:~l! pru~nptly furnitih tu I.~~nd~•r .~II nuticesof amuunt~ du~~ unde•r thi. p:~r:~~;r:~ph..~n~1 in thr ~•~•rnt It~~mncrr .h:~ll rn:~kr p:~>•u~rnt ~1~rri~tly. 1{~~rn~ti+~•r shall {~rumpth• furni~h tu f.~~nder rc~•eipts t•~•idrncin~; su~•h p:~~ m~•nt: Iturn~w~•r .h:~li pr~~inpth~ ~li.~•h:~r~;~ :u~} lu•n w~h~~•h h:~, ~~n~~nt} ~~~~~r thi; \1~~rt~;a~;e•. pru~•idFti1. that {i~~rruw~f•r shall nnt lK•nY~uim~~ c„~i~.~~r,ar~;r:~nc:u~~h In•n :~~ l~~n~; :~. !{~~rr~~~s~•r.h:ili :~~;rr~• ~n wn.ink t~~th~• Er.~} mrnt,~t th~~~~hl~~;:~hun,~~-ured bt• ~u~~h ht•n in :~ m.~nnf•i acc~•pt:~t~lr tu Le~nd~•r. ~~r.h:~ll ~n R~~~H1 f.~ith ~„nt~~:t :urh lirn hc. ~~r~l~•f~~n~1 ~•nf~~rrrm~•nt c; .u~ h!i~•n ~n. I~•~;.~I E;rn~•r~~1inK• K hich uper:~t~• tu prf•~~t~nt the• ~•nG~rrt•~nrnt ~~f th~• tu•n ~~r t~~rt~•itun• uf tiu• !'r~~{~~•rt~~ ~~r :int p:irt thrr~~~C. S. Hazard lnsurHnc~•. K~~rr~~~~~r .h:~ll k~~•p thr impr~~c~•~n~~nt. n~~~e ~•~:.tin~; ~~r hrr.•aft~•r ~•n•~ te•d ~~n th~• Pr~:p~•rt>• insar.~l:~Kainst lus. b~• tir~•, hazard~ includc~l K•ithin thc• t~•rm "rxt~•nd~~! ~~~~~ rr.~~;~•.' :~n~! .u~ h~~th~•r huc.~r~i~ :~. L~•nr1~•r ma}• mqu~rr:~nd in ~uc~h :unuunt~ and fr~rsuch ~~e•ri~K1s as 1.~•nder ma~• reyuirr; pn~~ i~1~•d, th:~~ I.~•nd~~r .h;~il n~~t rryu~n• th:~t thr ;un~~unl ~~f .ui~h ~•~~~•e•r.~~~• t•x~•wti! that am~~unt nf ~•~~veraKr r.~~uirr~l t:~ pay th~~ ~ums .~•~-ur~~l Lv thi• ~turt~;a~r ~I'h~~ insur.~n~•r ~;vnrr prv~~ id~n~ th~• ~n~~:r.~m ~• .h.ill h~• ~ h,,.~•n h~ l:~~rn,w.•r .uh~rrt t~~ :~{~~~n~e:~l !e~ I.~•tut~•r. pn~e~ilr~l. th:~t .w h appr~~~:~1 ,tu~ll nut tK• unn•a.,jn:~hh~ w~tfih~•Id :111 ~~r~•~n~un~• ~~i~ in~ur.,rn .• p.:U~ ~~~. .h,~ll i,~• ~~:u~i ~n tt~~• n~,~nm•r E~r~~vi~i~-~i un~frr p:~r.i~;r:~ph _' he~r~y~f~~r. if n~~t paid in such tnann~~r. t~~• f{~~rn~~+rr rnnkin~; p.~t ~r.~•nt. ~ah~ r: ~1u~•. ~tin ~ tl~ t~: tt~~~ ~n-ur.uu r~:~rn~•r All insurancr polirie. ~nd re•ne•w~.~k th~•rtv~f ~hnll kw• ~n furm :~~ ~~•E~t:~hl~• t.~ 1 ~•n~irr an~~ ~h:~ll ~n~~lud~•:~ ,t.u~d.~rd m~~rt~;:~~;e•clau~~• tn f:~c~~rof .~ndinfurmacceptahlt~tnl,~•nd~•r (e•n<t~•r.h:+llha~rtht•n~;htt~~h~~l~ith~•p~~lun•~an~ir~•n~•~~:~1.the•re•~~f.:~ndlt~~rn~~~~r~hallpn~mptlyfurni.htu ~r•nder.-li rent•wul n~~ticr~ a~xi a!I nr~•~pt. nf p:~i~! pn•in~urn. In th~•~•c~~nt~~(-~~... ft,~~r~~~•rxl~:~ll R~~.•prr~rnpt m~tt~-~~t~~th~~in~uran:•e~arrie•r .~nd I.ender. I,c•ndrr ma~~ mak~~ pnN~f ~~f I~~.. ~f nnt m:id~• pr~~~nptl~- h~ I{um~wrr Unletis I.endf•r and it~~rn~Kf•r ~~~h~•rwi.~• :~y;re•r in ~+nt~n~:. in.ur:uir.• pn~~ ~•r~l. >t~:~ll h~• :~ppl~,~d t~~ rt•.ti~r:~h~~n ~~r rrp;~ir uf thr I'ru{x~rt~• ~1amaKed. procid~d su~•h re•.t~~rats„n ~~r re•pair ~~ i•~ ~m~~nur.~llt• f~•.+~ihl~• :~nd th~• .~•~ unta• ~~f th~. ~1urt~;:~~;~• is m~t th~~n•bt~ imp:urc~d. If ,u~•h r~•tiG~fation ur repair ~s n~~t e'Clillni7111'.i11~• f~•:es~t,lr ~~: ii th«• .~ ~•unt}• ~~f thi. \t~~rt+;a~;~• u~,~utd i~e• ~:n{~:ur~•d. tht• in.uran~•r pr~K-t~<1s ~hall t~•applic~l !~~thrsumssec-urt~h~•th~~~1~~rt~::~~;~•.wtthth~•rs~~•...~f:~n~~.p:udt~~Knrr~~w'e•r Ifth~•1'n~~N•rt} ~s~h:~ndnn<Y16}•li~~rn~w~~•r.urifli~~rr~:vrerfailst~~ rr~;Ewnd t~~ I.c-ndc~r w ithin :tu d:~~~s fr~~m :h~• ~1:~t~• n~~ti~ ~• i. rr.:11IfY~ I~\' ~A'f1~1~~r t~~ fi~~rn~~~~r th,rt thr ~n.ur.~nc~t~ ~:IfTiPf uffl•f~ LU ~Y((IP a cl:um fur incur.tnce ~~nefits. Iw•nder ~s :~utt~~~ni~•d tn ~~~Ilr~ t:~n~l r.~,;,1~ th~• in.ur:~n~ ~• F~r,N ~•~•~i. :~t 1~•n~1rr'~ ~~~rh~~n r•~thrr t~~ rr.t~~r:+t~~~n ~~r mp,~ir ~~f th~• 4'n,perty or the tiu~n~ sf~•un•d i~y th~. ~lnrt~;:+~;~• Unless i.ender :ind fi~~m~w~•r ~~th~~ncisr :~~n•e• ~n w nt ink, anc ~u~ h appls~ :+h~~n ~~1 pn~~~~•t•~i. t~~ prin~•ipal .h:~ll nirt e•xtrnd ~~r Ew ~stpnnr thi~due ~l:ue of the monthl>• installm~•nts n~frrr~~d G~ ~n p;~r.~~;r.~~,h. i and L tu•r~•~~f ~~r ~~han~:.~ th~• :~rn~~unt ~~f su~ h~n.t:~llnu~nt. If undcr par.~kraph l++ he•reuf the Pn~perty ic acqwrcK! h~ 1.~•u~f~•r. :~II nk6t. Utl~ :~nd ~nte•re•st ~~f ft~~rr~~ti~e~r ~n :~nd t~~ :~n~ fn.ur.u~~•~~ FM~lii ir~ :~nd ~n :ind t~~ th~• pn~~-redc ~hereof revultinK fr~~m dar-ia~;P U~ {'r~~~N•rt} prn~r t~~ the• .:~1~~ ~~r :~~~yui.~u~~n .h:ill ~~:~s. t~~ 1~•n~1rr tu th~• ~•xG•nt uf the sum~ strurtd b~• this \turtKaKe immediatP!}' priur tu ~urh sal~• ~~r :~~ yu~~it~on -i. f'reservation Hnd Naint~~nxnceof Pro{x•rty; I.ri~~~~huld.: ('nnd~rminumy; 1'It~nn~•d l'nit 1)t~~•i~lopmc~nts. l{~~rrow~•rshall kt~~p tt;E• Yr~~{x~rty in KrN~d r~•pa~r :~nd ~hall nnt ~~~rnrnit ~+:~:t~• ~~r p~•rrnrt ~~np.urru•nt ~~r ~1~•t~•n~~r.it~~~n ~~f thr 1'n~~~rrlc :~ud .h:~ll i•~rmpiy w~ith the pn~~ isinn~ ~rf any I~asi• tf rh~~ ~1uri~;a~;~• ~. ~~n :~ i~•a~~•huld if tiux Jt~~rt;::+t;•• ~• ,~~~ :~ u~ut in :~ ~~~nduminium ~~r :~ planned unit d~•~•~•lupment, f4~~rn~w•er shall pe~rlurm :~11 r,f Fir.nu~~~•r~. uhl~~;:iti~~ns un~i~•r th~• ~i~•~ l:~s,~t~~m,~r ~~~~~rr~,~nts ~ n•.~t~n~;nrK~~crrn~n~; thri•~~nd~~minium nr plunned un~t de•~•rlupmf•nt, the bt~ l:iti~ and rt•~;ul.~hnn. ~~f thr ~~~n~l~~rn~nnun ~~r p1.~nn~Y1 unit ~l~~~•~~I~~pmt•nt. :~nd c~~nstituc•nt d~x°uments. If a ~~~nduminium or planned umt de~~~~lupm~•nt- riri~•r i. .•«•~•ur~~d h~~ ft~~rn~~c~ r,~n~l re•~ ~~r.le~~i t~~~:~•thrr with this ~1r~rtK;~Kf~, the rn~•enanL~ and ~~;rrrrnt•n[, nfsui~h ri~lF•r.h:iU he• in~ „rp~~r.~t~•~i ~nt~~.ui~i ~h.~i1 :~~n~•n~i.in~! .up{~I~•tn~•nt th~•~ ~~~~•n:ints:~n~l:~~;n•~•mt~nlvufthi~ \1~~rt~;:~~;t•:~tiifthe~ ndt•r w~•n• a 4r.irt her~•uf. 7 i'rotection of I,ender'y Security. (f }i~~rr~,w~~•r f~iil~ tn prrfnrm tht• cti~vt•nant~ :~nd aKrerments cunt:iined in thie blortKage, or if any ai~tiun nr pn,ceedir.g ie commenced w•hi~h matrnall~- ,~ffe~•Gv I,e~nder's ~nti•rF•~t ~n th~• f'ropert}•, ~ncludinK, but not l~mited t~i eminent domain, ~n[u~lvencY, rnde enforcement, or arrnnRementA nr pr~K•eedinK~ imv~l~•inK a bankrupt or dty~lent, then l.ender at I.Pnder's option,upon n~~tice to Rorruwer may make euch appear,incee, diaburye• Nuc~h ~um~ and take BUCfI achnn ae is nPCeasarti• to protec~t [.ender's intereet, ~ncludinK, but not limited to, disbureement r~f rea9un.+trlt• .itt~~rney's fre•:~ an~3 c~ntry u{wn thr Pruperty tu make repaire. If I.ender required mortKaqe inAUrance aA a conditinn uf makinK th~~ I~~an vrcunrl hy~ thi~ ~turtK:l~(P, I311ffnK'f•r shall pa>• thr premiume reyuired to maintain euch ineurance in effe.~t until euch time as thN rf•ywrt•ment fnr yu~-h ~naur:~nce trrminatr~ in acc~~rci:~n~•t• with R~~rruwer'q and I.ender's w-ritten aRreement or applicable law~. Rurnru~t~r ~h~+il pa~~ thr a~m~unt ~~f :~11 :nuriK:~K~• ~n~ura~~~•r premtumv in the m.~nner pro~•ided under paraKraph Y herenf. Any am~~un~y diebursed by I,ender prrsuant tn th~s par:iKr:~ph ~. w~~th intrm,t th~•r~•~m, ~hall ixti•omr add~hunal ~ndebtrdnez+s of ft~~rrower securrd by th~s MurtKaKe Unleys 13~~rruwer and Iw•ndrr :~~;re•f- t~~ uth~•r ternia uf ~~uymrnt. ~uch amuunte ahall be payahle upon n~dice frr~m I.ender to Borruv~er rNyuNStinK pa}•mrnt therE.,f, and shall 1~•ar intrrrat fr~~m the date of ditibursemrnt at the rate Nayable from dme t~r time on outxtand~nK principal under the tiot~ unlr:~s pa}•mrnt ~~( inte~mst at cu~•h rate N•uuld tx• ~mtran• tn applicaMe law, in which rvcnt euch .imuunts shall tx~a~ intcrrvt at the hiKhc•tit rate permi~sihle• un~lrr .~ppli~•:~h1N i:~w~. \uth~nK cont:~inc~d in thia paraRraph 7. ahall reyuirP I.endrr G~ ~ncur any expc•nsr or take any actinn hereunder. ~c~X 351 sdct 1z$3 ~_~. . - -_ . - _ . _ . . ~__