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UNIFOAM COVENANTS. Botiowe~ and Len~lef Coveoant and agreC as follOwS:
I. Pa~cat of Prluclp~l aod Iaterat. Borrowe~ shall promptly pay when due the principal of and intercst on the ?
iadebtednesa evidenced by the Note, prepaymeot and latc charges as provided in thc Note, and the principal of and interest
on say Future Advances secuc~ed by this Mortgage. •
2. F~ads tor Tua and Inw~aace. Subject to applKable law or to a written waiver by Ix~der, Borrower shall pay
ta Lender on the day monthiy instaliments of principal and interest are payabk under the Note. until the Note is paid in tull.
a:um (hecein "Fuads") cqual to onatwelfth of the yearly taxea and assasmeots which may attain priority ovcr this
Mo~tgage. ar~d ground n~ts on the Propeny. if any. plus one-twelfth of yearly premium installmenta for hazard insurance.
plus onc-twelfth of yearly prcmium installments for mortgage insurance, if aay. ail as reasonably estimated initia!!y and from
time to time by Leader oa the basis of assessments and bilis and reasonable estimates ihereof.
'I~e Funds sha11 be held in an institution the deposits or accounts of which are insured or guarant~ed by a Federal or
state ageocy (including Lender if Lender is such an institutio~). Lender shall apply the Funds to pay said taxa, asses~menu.
i~surance premiums and grouad rents. [_ender may not charge for so holding and applying the Funds. analyzing said accou~~
or verifying and rnmpiling said assessments artd bills. unless Lender pays Borrower interest on the Fu~ds a~d applicable !aw
permits Lender to make such a charge. Borrowe~ and Lender may agree in writing at the time of execution of this
Mortgage ihat i~terest on the Funds shall be paid to Borrower. and unless such agreement a made or applicabk law
requires such interest to be paid, Lender shall not i~e required to pay Borrower any interest or earnings on thc Funds. Lender
shall give to 8orrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpcue for which each debit ta the Funds was made. "Ihe Funds are plodged as additional security for the sums secured
by this Mortgage. .
If the amount of the Fuads heid by Lender, together with the future monthly instaUments of Funds payable prior to
the deie dates of tazes~ assessments, insurance premiums and ground rents. shall exceod the amount required to pay said tazes.
assGSSments. insurance premiums and ground rents as they fall due`, such excess shall be, at Borrower's option. either
promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by L.endet shatl not bt sufficient to pay taxes. assessments, insurance premiums and ground rent§ ~s they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting paymeM thereof.
Upon payment in full of all swns secured by this Mortgage, l.ender shall prompily refued to Borrower any Funds
hetd by l.encter. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply. no later than immediately prior ta the sale of thc Property or its acquisition by Lcnder, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mongage.
3. Applicatioa of Payments. Unless applicable law provi~irs otherwise, aH payments rere:ved by Lender under the
Note and paragraphs 1 aad 2 hereof shall be applied by I_cnder 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, assess~nents and other charges, fines and imposilions attributable to
the Property which may attain a prioriry over this Mongage, and leasehold payments or ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, dirocdy to the
payee thereof. Borrower sball prompdy furnish to Lender all notices of amouats dae under this paragraph, and in the e~eat
Borrower shal) make payment directly, Borrower shall promptly fumish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prioriiy over this Mortgage; proviJed, that Borrower shall ~ot 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 [.ender, or shall in good faith contest such lien by. or defend enfoccement of such tien in, ~
Iegal proceedings which operate to prevent t6e enforcement of the i~en or forfeiture of ihe Property or any part thereof.
S. Hazard [as~ttance. 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 ha7atds 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 iasurance carrier providing the insurance s?tail be chosen by Bonower subject to approval by Lender. provided,
that such approv~ 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 t6e
insurance carrier.
Ali insurance poticies and reoewais thereof shaN be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to I,ender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender ali renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance canier and Lender. Leader may make proof of loss if not made promptly
by Borrowcr. -
Unless Lender and Bonower othcrv~~ise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provicled such restoration or repair is economically feasible anJ the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the securily of this Mortgage would
be impaired, t~e insurance procxeds shall bc 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 Bor~ower fails to respond to Lender within 30 days from the
? date notice is mailed by I.ender to Bonower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is authorized to cotlect and appiy the insurance proceecls at I.ender's option either to restoration or repair of the Prop~rty
or to the sums secured by this Morigage.
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 installments referred to in paragraphs t and 2 htreof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, aU right, tide and interest of Borrower
in and to any insurance policies ~and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisidon shall pass to Lender to the extent of t`.e sums secured by this Mortgage immediately prior to such sale or -
acquisitian.
6. Preser.~~tion sind lltaintenance of Prope~ty; Lease6olds; Condo~uiniuros; Planned Unit Derebpments. Borrower
shall 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, BorroKer shall perform a11 of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit developroent, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
ricier is executed by Bonower and recorded t~gether with ~his Mortgage, ihe covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if ihe rider
were a part hereof.
7. Profectioo of I.e~er's Secarity. If Borrower fails to perform_ the covenants and agreements contained in this
Mortgage, or if any. actio~ or proceeding is commenced_ which materially aHecis 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 notice eo Borrower, may make such appearances. disburse such
sums and take such action as is aeressary to protect Lender s interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. ]f 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 eftect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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