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UNIFO~t CoveN~HTS. Borrower and Lender covenant aod agree as fall~~ws:
1. l~ytaeaf ot Pti~cipl and lnferat. Ho~rower shall prompily pay whcn duc thc princip•rl of and intercsl ~~n the
indebtedness evidenced by the Note, prepayment and late charges ac p~avided in the Na1e, and Ihe principal of and interesl
on aay Futuro Advsnces secured by this Mortgage.
2. Fd~ds tor Tues ~sd lawra~ce. Subject to applicable law or to a written waivcr by Lcoder, Borrowcr shall p:~y
to Le~der on Ihe day moMhly installments o( principal and inte~es~ are payable under the Note. until the Note is paid in full.
a sum (herein "Funda") equal to one-twel[th af the ycarly taxes anJ assessments which may attain priority over this
Mortg~ge. and ground tents on the Pcoperty. if any, plus cu~e-twcl(~h of yearly premium installments for ha~ard in~urance,
plus one-tweltth of yearty premium installments for mahgage insurancc, it any, all as rcasonably cctimated initially anJ from
time to time by l.ender on the basis of assasmcots and hills and reasonable estimatcs thereof.
71~e Funds shall be held in an instiw~ion the depcuits or accounts ~~f which are inwred or guaranteed by a Federal or ' ~
state agency (including Lender if Lender is such a~ institution). 1_ender shatl apply lhe Funds to pay said taxes, assessments.
insurance premiums and ground rcnts. Lender may not charge fa~ ~o holding and applying the Fundc, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and appticable law
permits Lender to make such a charge. Borrowe~ and l.ender may agrce in writing at the lime ot execution of this
Mortgage that inlerest on the Funds shall be paid to Borrower, and unlcss such agreement ~ is made or applicable law
requires such interest to be paid. l.ender shall not be required to pay Borrower a~y intc~est or earnings on ihe Funds. I.endcr
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debi~s to the Funds and the ~
purpose for which each debit to the Funds was made. The Funds are plalgeci as additional security~ for the sums secured
by this Mortgage.
If tl~e amount of the Funds held by I.emier, together with the future monthly installments of FunJs payablc prior to
the due dates of taxes. assessments. insura~ce prcr.iiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assastmnts. insurance premiums and ground rents as they fall due, such excecs shatl be, at f3orrower s op~ion, either
promptly repaid• to Borrower or credited to Borrower on monthly installments of Funds. • If the amount o( thc Funds
6dd by Lender shall not be wRiciwt to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borr~awe~ shall pay to Lender any amount necessary to mak~ up the deficiency within 30 daYs trom the date notice is mailed
by L.ender to Borrower requesting payment thereoi.
Upou paytnent in full of all sums secured by this Mortgage, I.ender shall promptly re(und to Borrower any Funds
held by Le~der. If under puagraph 18 hereof the Prope~ty is sold or the Property is otherwise acquired by l.ender, Ixnder
shall spply. no later than immediately prior to the sak of the Property or its acquisition by I.ender, any Funds held by
I.eoder at the time ot application as a credit against the sums socured by this Mortgage.
3. A~plicatioe of Payme~ts. Unless applicable law provicks otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by [_ender first in payment of amounts payable to Lcnder by Borrower
under puagraph 2 he~+eof. then to interest payable on the Nae, then to thc principal of the Note. and then to interest and
principal on any Future Advances.
4. CharEe~ Lieas. Borrower shall pay all taxes, assessments and othcr charges, fines and impositiuns attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gr~wmd reots. if any, in the manaer
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, diroctly to the
payoe thereof. Borrower shaU pmmptly furnish to Lenckr all notices of amounts due under ihis paragraph, and in the event
Bomower shall make payment directly, Borrower shall Qromptly furnish to Lender receipts evidencing such payments.
Borrower shal! promptly dixharge any lien which has prionty over this Mongage; provided, that Borrower shall not be
rcquired 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 Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia.
kgal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hmrd Iasnrance. 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 wher hazards as l.ender may reyuire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not tequire thal the amount of
such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
1be insurance carrier providing the iasurance shall be chosen by Bonower subject to approval by [~nder, provided,
that such approval shall not be unreuonably 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, direcdy to the
; insurance carrier.
k All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
E clauu in favor of and in form acceptable to Lender. txnder shall have the right to h~ld the policics and renewals thereof,
~ and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice ~o the insurance carrier and Lender. LenJer may make proof of loss if not made promptly
by Borrower.
~ Unless Lend'er and Borrorver otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration 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 insuranEe proceeds shall be applied to the sums secured by this Mortgage, with the eacess. if any, paid
to Borrower. lf the Prupeny 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 otiets to settle a claim for insurance benefits, I.ender
is authoriud to collect and apply the insurance procoeds at 1_ender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eatend
or postpone the due date o( the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
suc6 installments. If under paragraph 18 hereof the Property is acyuired by l.ender, aU right. title and interest of Borrower
in and to any insurance policies and in and to the procoeds thereof resulting from damage to the Propeny prior to the sale
or acquisition shall pass to L.ender to ihe extent af thc sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Preservatioo and Maiatenanee of Property; I.ease6olds; Condominiums; Planned Unit DevelopmenLc. Borrower
shall keep the Property in good repair and shall not comroit wasle or permit impairment or deterioration of the Property
~ apd shall comply with the provisions of any lease if this Mortgage is on a Icasehold. If this Mortgage is on a unit in a
~ coudominium or a planned unit development, Borrower chall perform all of Borrower s obligations under the declaration
or covenants creatiog or governing the condominium or planncd imit development, the by-laws and regulatioas of the
~ condominium or planned unit development, and constituent Jocuments. I( a condominium or planned urit eievelopment
~ rider is executed by Bonower and recorded together with this Morigage, the covenants and agreements of such rickr
- s6a11 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7, protecfio~ of Leeder's Secarity. If Borrower fails lo pertorm the covenan~s and agreements contained in this
~ Mortgage, or if any action or proceeding is commenceJ which materially affects l~nder's interest in the Property,
including. but not limitod to, emioent domain, insolvency, code enforcement, or arrangements or proceedings involving a
~ bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, Jisburse such
wms aod take such action u is aocessary to protect l.ender s interest, including, but not limited to, disbursement of
~ reatonabk attorney's fees and entry upon the Property to makc rcpairs. If Lender required mortgage insurance as a
condition of makiag the loan secured by this Mortgagc, Borrowcr shall pay thc premiums required to maintain such
ins~uanca in eHcet until such time as the requirement for such insurance terminates ~n accordance with Borrower s and
• BOOKGVO P~E 1Q~