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Urt~~oant CoveN~tvTS. Botrower anJ Lender cave~ant and agrre as tollows:
1. P~yA1tDI OI P~IIItI~I aOII IAItftS~. Horrower shall promptly pay when due the principal ot and interest on the
indebtedneu evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and intercst
on any Futurc Advances secured by this Mortgage.
2. Fbods tor Tua ~nd lawrasce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on Ihe day monthly installments of principal and interest are payable under the Note, untii the Note is paid in tull.
a sum (hercio "Fu~ds") equal to one-twelfth of ~he yearly ~axes and assessments which m~y attain priority over this
Mortgagc. and ground rents on tha Property. if any. plus one-tweltth ot yearly prcmium inatallments• for hazard insurance.
plus one-twelfth of yearly premium installme~ts tor mort~age insurance, if any, all as reaw~ably estimated initiaily and trom
time to time by Lender oa the basis of asscssments and bills and reasonable es~imates thercof.
71~e Funds shall be held in an iestitution the depasits or accounts of which are insured o~ guaranteed by a Fedenl or
state agency (including Leader if I.ende~ is such an institution). Lender shall apply the Funds to pay said taxes. asussmeats.
insurance prcmiums and grouad reats. Lender may not charge (or so holding and applying the Funds, analyzing uid account.
or verityi~g and compiling said assessments and bills. unless Le~der pays Borcower i~terest 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
Mongage that i~terat on the Funds sball be paid to Borrower. and unless such agnxment is made or applicable law
requires such interat to be paid. l.ender shall not be roquired to pay Borrower any interest or eamings on the Funds. l.ender
shall give to Borrower. without charge. an annual acrnunting of the Funds showing credits and debits to the Funds and the
purpose for which wch debit to the Funds was made. The Funds arc pledged as additional security for the sums securcd
by this Mortgage. ~
If the amount of the Fuads held by Lender, together with ~he future monthly installments of Funcis payable prior to
the due dates of taxes~ assessments. insura~ce premiums and grou~d rcnts, shall exceed the amount roquired to pay said taxes.
assessments, insurance premiums and ground rcnts as they fall due. such excess shall be, at Borrower s option. either
pranptly rcpaid to Borivwer or crodited to Borrowec on monthly installments of Funds. 1[ the amouni of ihe Funds
held by Lender shall not be sutficieat to pay taxes. assessments. i~surance premiums and ground rents as ~hey fall due.
Borrower shall pay to Lender any amount nocessary to make up the deficiency within 30 days trom the date notice is mailod
by Lender to Borrower requating payment thereof.
Upon payment in full of dl tums tecurcd by this Mortgage, 1_ender shall promptly refund to Borrower any Funds
heW by l.eader. If under paragraph 18 hereof the Propeny is sold or the Praperty is oti~enivise acquired by Lender. Lender
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 teme of application as a creclit against the sums securcd by this Mortgage.
3. ApplicsNon of P~meeb. Unless applicable law provicks otherwise, all payments received by Lender under the
Note at~d paragcaphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. t6en to interest payable on the Note, then to the principal of the Note, and then to interest and
principal o~ any Future Advances.
4. Cbar=es; I.kas. 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 maaner
provided under paragraph 2 hereof or, if nat paid in such manner. by Borrower making payment. when due. dirocdy to the
payee thereof. Bonower s6a11 promptly fumish to Lender all notices of amounts due under this paragraph, and in the eveat ~
Borrower shall malce payment directly. Borrower shall promptly fumish to L.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided. that Borrower shall not be
rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of ihe obligation secured by
suc6lien in a manner acceptable to Lender, or shall in good faith contest such lien by. or defend enforcement of such lien in.
legal proccedings which operate to preveot the enforcement of the lien or forfeiture of the Property or any part therwf.
S. Hasard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
againtt loss by fire. hazards included within the term "extended coverage and such other hazards 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 eaceed that amount of coverage required to pay the sums securcd by this Mortgage.
The insurance carrier providing the insuraace shall be chosen by Borrower subject to approval by Lender, providod.
t6at such approval shall not be unreasonably withheld. All premiums on insurance policia shall be paid in the manner
providcd under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due. directly to ihe
~ insurance carrier.
j All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptable to l.ender. Lender shall have the right to hold the policies and renewals thereof.
~ and Borrower shall promptly fumish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
~ Borrower shall give ptompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrawer.
` Unless Lender and Borrower otherwise agree in writing, insurance proceedc shall bc applied to ratoration or repair of
~ the Property damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaircd. If such rcstoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance procecds shall be applied to the sums secured by this Mortgage, with the eacess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
is authorized to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of thc Property
or to the sums securod by this Mortgage.
Unless L.ender 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 1 and 2 hereof or change the amount of
such installments. if under patagrap6 18 hereof th~ Property is acquired by L,ender. all right. tiUe and interest of Borrower
in and to aay insurance policies and in and to the proceeds thereof resulting from damage to the 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 sak or
acquisition.
6. PreservaUon and Maintenance of Property; Leaseholds; Condominiums; Planned Uait Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
1 and shall comply with the provisions oE 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 Borrower s obligations under the declaration
~ or covenants creating or governing the condominium or planned unit development, the by-Iaws and regulations of the
condominium or planned unit development, and constituent documents. !f a condominium or planned unit development
rider is executed by Borrower and recorded together w~th this Mortgage, the covenants and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of ihis Mortgage as if the rider
were a part hereof. ~
7. Protection of Lender's Security. If Borrow~er fails to perform the covenants and agreements contained in this '
Mortgage. or if any action or proceeding is commenced which materially aRects LenJer's interest in the Propeny.
including, but not limited to, eminent domain, insolvency, ccxie en(orcement, or arrangements or proceedings involving a
bankrupt ot decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take sueh action as is necessary to protect Lender s interest, including, but not limited to. disbursement of
reasonable attomey's fees and entry upon the Propeny to make repairs. It Lender required mortgage insurance as a
condition of making the loan secured by this Mongage, Borrower shall pay the premiums requireci to maintain wch
insurance in effect until such time as the requirement (or such msurance terminates in accordance with Borrower
s and
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