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U:.It'uktit Covt ~~~ls. R~~rrow•cr :~mt L~n.1~r c~~v~:i~nt an~1 :~~;~ce (~~I!<~w~:
1. i'a~u~ent uf i'rincipai ~ud intcra,t. 8~~truart ~h.~lt pr~~?j~~~tly p:.y t?hen .it~~: 1l~c j2s:t;r:~~! uf ~.~t! int•.sc:! :~e i4:L`
in~ichtcd»rss c~•idcn.c.1 by Ih~ Nut~. prrp:rynicnt ~nd lat~ ch:~rb~, .~s provi~l~d in th~ \otc, and il~r, p~incip~l of and intcrc~t
~~n any l~uturr :1d~•.mrct sccurcJ by ihic Murtgagc.
x. Funds for 'C:ixes and lnsurunce. Subject to aFrli~ahl~ law or to a written waivc~ by I.endcr, I3oROwe~ shali f~a~~ ~
to I.rn~cr un ihc Jay ~nonthly imtaltmrn~s of p~in:ipul and ~ntcrr+t arc p:~)•able undcr thc Notc, u~til thc ~otc is paid in fizll, `
:i sum (hcrcin "Fun~l.") ~qual tu unr•iw~lfth of Uie yc~rly ta~cc and :~.srtsmci~tt whicli may alt:~in priority o~cr ~h~c
~tottgage, an.l gruund rents on thc Propcrty, if any, plus «nc-t~~~~lfth oi y~rarly prrmium installmcnts for hazard inwr:~nrc,
plus onc-twclflh of ~carly prcmi~~m ii;stallnicnts for mo~tbagr insur.~ncc, if any, all ac rcasonabiy c~timxtrd initially anJ trum
tini~ to timc by f.cndcr un thc hasis of a»cs~mcnts anJ t~ilh and reas~~n:iblc r~timatc~s thcrcof.
"l~he I~unds shaU tx: hrld in an iu~titution the dep.uits ur accounts o( which are insured or guaranteai by a F=ederal or
~tatc agc~cy (incluJing l.cndcr i( 1_~n~lcr is such an imtiliuiun). 1_cndcr ~hall apply thc Pundt to pay s.iid Iaxcs~ asicssn~cnt~,
insurancc prcuiiums and ground re~tt~. l.cndcr may not charge Iur so holding and applying thc 1=unds, analyzing said acrount,
ur ~•criCying and cornpilirig said aescscmcnts and bills. unt~xe I_ce~Jcr p.~ys l3orroK~cr intcrest on thc I=unJs and applicahlc law
pcrmils Lcndrr ta makc such a ch~rga 13orrow~r aucl I.cnJ~r may agrec in writing at ~hc timc of cxccution o[ thia
'~fortg:~gc that intcrest un Ihc l~unds sh~ifl hc psid to i3~~rrow•cr, ;~nd wiless such aErcement is made or applicable law
requires such intere5l to h~: raid~ Lender shall not lx: r~yuircd tu pa~~ B~rrow~r any interest or earningc on the Funds. !_ende~
shall give to 8orrow~cr, u~ithout charbe, ~n annual accounti~ig of thc ?'unds shuwing credils and debits to th~ Funds and th~
purpose for which cach debit ta th~ I=unds w•as ma~le. "I"ne i•Lnds ar~ pl~-~lged as additional security f~~r ~he sums secured
by this rto[tgagc.
If the amount of the Funds hclJ by i_enJe~, tugethe~ ~si~h the future monthfy installmcnts o[ FunJs psyable prior to
the due dates of taxes, assc~ssn~_nts, insurance prrn~iums and ground rents, shall exceed thc amount rcquircd to pay said taxes,
assessments, insurance premiumc and ground rents ;?s they fall due, ,uch excess shall be, at l3arro«~er s option, cither
promptly reQ~~d to Borrower or crediteJ to Borrowcr on mon~hly installments uf Fu~ds. If thc amount of the Hunds
held by Lendcr shall not be su(iicient to pay tares, u~.cessments, insurance premiums and ground renu as they fall due.
Borrvwer shal! pay to I_ender any an~ount i~ere~sai~• to roake up Ihe deficicncy within 30 day~s from the date notice is mailed
by Lender to Borrov?•er requesting paymcnt thcreof.
U~n pa~ment in full of all sunts sccured by this ~tortgagc, Lcndcr shall promptly re[unJ to Borrowcr any Funds
held by [.endcr, If under paragraph 18 h~reo[ the Prop~:rt}• is sold or the Propcrty is otherwise acquircd by I_ender, I_ender
shall apply. no later ih~n immediately prior to the sale of thc Property or its acquisition by Lendcr. any I'unds heW by
Lender at the time of application as a credit against the sums secured by this ~iortgage.
3. Application of Payments. Ut~lecs appticable law~ proviJes othenvise, all paym~nts received by I.ender under the
\ote and paragraphs 1 and 2 hereof shall bc apptied bp i_cnder first in psyment of amounts payable to Lender by Borrower
under parag~aph 2 hereof, then to enterest ~+:eyablc on tlie tiute. thcn to the principal of the Nute, and then to interest and
principal on any Future Ad~~ances.
4. Charges; Liens. Borrowcr shal! pay all taxcc, as~cssmcnts and oth~r chargcs, fines and impositions attributable to
the Property which may attain a priority over this Mortgabe, ~nd Icaschold payments or ground rents. if any. in the manner
provided undcr paragraph 2 hereof or, if ~ut paid in such manner, by Borrewer making payment. when due. directly to the
payec thercof. Borrow•er shall promptly fUrnish to Lender all notices of amoiints due under this paragraph, and in the e~~ent
Borrower shall make payment direcUy, Borrou~cr ,hall proinptly fumish tu Lender rereipts evidencing such payments.
Borrowet shall promptly dischargc any licn ~~hich has priority over tf~is Mottgage; provided, that Borrowcr shali noi tx
reyuired to discharge any su~h lien ~o long as 8orrou~cr ~hatl agree in µreting to the payment of the obligation secured by
such lien in a manner acceptable to I_cnder, or ~hall in go~xi faith contrst such lien by~ or defend en[orcement of such lien in,
Icgal proceedings which opcrate to prc~•cnt thc enfurcement of thc lien or furfeiturc of thc Propcrty or any part thcreof.
5. Hazard Insurance. Borru«•er shall kecp thc impro.cmerus nou• cxisting or liercafter ctccted on tBc Propcrty insured
against loss by fire, hazards included within the term "extcnded cuverage", and such other hazards as 1_ender may rrquire
and in such amounu and for such pcriocls as 1_cndcr may rcquirc- provideJ, thal Lcndcr shall not require that thc amount of
such coverage esceed that amount of co~crage required to pay the yums secured by this ~llortgage.
'Ihe insurance carrier providin~ the insurance shall hr, chosen by i3urrow•er s?:bject to approvat by I_ender. provided,
that such approvai s6a11 not be unreasonably w•iihhetd_ Alt premiums on insurance policies shall be paid in the mar.ner
provided under paragraph 2 hereof or, if not paid in such manner, hy Borrower making payment, when di~e, directly to the
insurance carrier.
Ail insurance policies and rene~+als thereof shall b~: in fotm acceptable to Lender and shal) inciude a standard mortga~,e
clause in favor of and in f~~rm acccptal;te to Lender. tcndcr ;halt lia~•e the ri~ht to hold the po)icies anJ renewals thereef,
and Borroaer sha!! promptiy fe+rnish to I_er,dcr all rcrzc~sal notic~s and all rcreipts nf paid prcmiums. In thc c~-cnt of 1o;s,
Borrower shall gi~~c prompt noticc to the ir.sura:ice carrier ;inc! Lezdcr. I_rn.lcr may makc proof of loss if not made prompti~~
by Borrower.
Llnless [_endec and Borrower other«ise agrec in ..riting, insurance pr~keeds shall be a~plied to restoration or repair of
the Ptaperty ~ania~ed, provided such re,suration or re}+:iir is economic311y frasible and ihe security of this Mortgaa~ is
not thereby impaired_ I[ such rc~taration or rcpair is n~~t c~onomically fcasihlc or if the security of this ti3ortgage wou1J
be impaired, the insurance proceeds shall be applie~i to the Sums ~ecured by this !~tortgage, with the excess, if any, paid
to Borrower. 1[ tF~c Propcrty is ab:~ndoned by t?vrro~~c;, or it RorroK~cr fails to respond to [_ender within 30 da}~ ftom the
date notice is mailed by Lender to i3orrower that Ihe in~ur,~nce carrier of~ers to setNe a claim for insurance bencfits, Lender
is au:horized to collect and apply tne iiisuranc~ prax~ds st Lender's option either to restoration or repair of the Propeny
or to the suris sccurcd by this ~tortgage.
Unless Lender and Borrow•er otherw~isr agree in ~riting, any such application of proceeds to principal sha11 not extend
or posiFone the due d;etc of thc monthly instaflnirnts ~rfcrrcd tu in paragraphs 1 and 2 hcreof or changc thc amour.t uf
such installments. If iin~lcr paragrap;~ 18 hercof thc Pr.,pcrt~• is acquircd by Lcndcr, all right, title a~d intcrest of Rorroti.er.
in and to any insurance poGcies and in ai~d the (~fOCI'~:~1 S}1Lfl'Of re,ulting ftom dam:~ge to ihe Propcrty prior to the ~:,'e
or acqui~i:ion shall pass to I_enJcr to ihe e~tcczt ~f the ~~nT~~ .~cured by this ~}ortgabc immeJiatcly prior t~~ such salc ..r
acquisition.
6. Prescnation aud 1lainirnance of Propcrty; Lca~chulds; Cundominiums; Planncd Unit De~•clupn~cnfs. Borro~cer
shall kecp th~ Property in good repair :,nd shail not crmmit :?astc or pcrmit impairment or deterioration of the Property
arid shall c~~mply ~:ith the ~fOY'iStOAS OI any ?e:ue iF ti;~s ~t~~rtg:~~~ i~ un lrasehold. If this ~tortga~;c is on a unit ir~ a
condominiuni or a planned u~~it dr~•el~p~iient. Bnrro:+cr ~h.~ll ~~erfa:m a!1 of I3orruw~er's ~~hligatinns undcr the dcclarats~+n
ur cove,~ants creating or gu~~etnir.g thr c~udc~mmi~~m ~~r }~l:~~ned i~ni[ de~•etopm~nt, the by-la~~s and regulationt of the
con~ominium ur planncd unit dr:•c,opmcnt. a;~d cu~tititit~i~nt .focurnc~is`. I( a crn~luminiam or plarncd unit dc~•elupmrnt
rider is ezecut~d b~• Borruv:er a~~d re;ordcd ;~~r~ther :~:ith thi~ ~fort,a~c, th.- cov~nants and ag~eenzer~ts of sueh ti~lcr
ShaU be incorp~ratecl ir:!o and sh:~ii .:mrn~ :~nd ,~prtrment the co~rnants and agrcem~nts of this ~lortgage as if the ri.ler
~+erc a rart hercof.
7. Frotecti~ni of Lenders Security. If [3~~rr±•wcr f,:~h t~~ p~rf~~rm the covenants and a~reements rontained in this
;1Sortgab~, or if any act~~~ rr p~o;eeJiny ~ti comrucrccJ ~+hi.:h m;:t~rial{y :~tCects Leneter's intrrcst in the Prop~rr~~,
induding, but nnt Lmitcd tu, rminent dvuiain. in,nl~cn,y, c~+dt cnf~~rcrment, or terr.uibemcr~ls or prcxeedings im~.ih~in~• a
bankn~pt ur ~!cccdrrlt, st?cn Lcndcr at 1_cndcr's opii~r~, uEx~n i:~,ticc t~~ }i~rruucr, may makc such appearanccs, di~bur~e 5~~=h
sums aisd t;yke si~ch a~ti.>n :~i is nccc~>ary t~~ pn,tc.t Lend~r's ~ntcrc~t, inrfu~ling, but not limited to, dithursemcr~t ~~f
rcasonahle :,ttomcy's fccs a~1d cn;ry ur~~~i thc Pr.~rcrtt• tn in,~lc rcr:tirs. [f LcnJrr requircJ mortg~gc inwrance a. 3
condilion of ma:;isig t1~c toan sLcurr~l hy :hit \tc~r~e,:,~~, R,~rruurr ~hall r:,J• thc ~remiuius rcquirccf to maintain sc:ifi
inturance in elTcci ~;ntil ~~ich time ~s thc rcyitirrment for ~uch ;nzur:~n;r t~ra~in:?trs in ;~rcvrdanec with Burrower's a::d
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