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Ut+tso~ut Cavatr~xra. Borrowcr aad Leackr oovenant and a~rre as foUows:
1. ~+K at lri~dld a~ INaest. Borroww shall pranptly paY whea duc tde principAl ot and interext on tho
iadebtodnw cvidenoed by tbe Note. pcapaYment and lato ch~~es aw ~i~-~i~kd in the Note, and the principal of and intec~ett
on aay Future Advu~ces secured by ihis Mort~s~e. '
' Z. Fti~i tor Tws Mi Irnrace. Subjoct to applicabb law or to a wdtten waiv~er by Lertder. 8orrowar sh~l paY
to Lead~ on the ctay monthly installments ot p~incipal and intercst ue payabla u~ufer the Note. until tMs t.~t:. :s patd in full.
a tum (here+n "Funds'7 egual to o~k-twclhh ot the yeariy taxes and assasmants which may ~tUin prioAty over this
k1~t~t0. and atntmd ~nts oa tbe Propetty. if any. plus ono-twclflh of yeulY premium i~sullmeets for haucd in:urance,
plus wwtwelfth of yaarly premium instaiimenb tor anortpse i~uurance, if any. ali~as roisonably estimated initially and from
Nme to time by I.~ader oa the bua oI sssessments and bilb and reasoaabk estimatex thercof.
' Tfie Ftinds shali be held in an i~titution the ~posita or eocounts o[ which aro insured oc ~uanntoed by a Federal or
. state a~encY ti~cluding I.aade~ if I.ender a such an institution)• Lender ahall apply the Funds ro pay said taxes. asseumeatR
iasuranoe premiums aad ~ound rcats. [.eeider may not char~e for so hofding and aPpiYing the Funds. snslyzing said acoount,
or veritying:nd campilina said ss~.cments and bilh, u~las t.eader.pari Borrower i~te~est on the Funds aad appiic~bk law
pntmits Leader to maka such ~ charge. Borrower aad Lender may agra in writing at the time of execuGon of this
Mortgaga tbat interat on the Ftinds shall be paid to Bor~ower. an~ unlas such aarce~ii;,~s ~ made or applicabla law
r+equi~ec sl~ch interat to be paid. Leader shaif not be requir~ed to ~ay Borrowu any iaterat or earnings on th~e fiiads. Lceder
sbalt givQ w Borrowt~, withuut charge, aa a~nwl aocounting of tbe Funds sl~sving credits and debits t^ Funds a,nd the
ptrpose for which each debit to the Funds was~made. The Funds are plodged as additi~~u! ~.~uriey for the sums secured
by this Morip~e. .
~ If tbe amount of tha Fuadi hdd by Lender. together with the future monthly instalimeats of Funds paypbk prior to
the due data ot tues~ asseumeats, iniurance premiums and ground cents. ahall exoeod tUe amount required to pay aaid ta~ces,
~sseamcats, inwraace pt~emiums and gcound rcats as they fail due. such excess shap be, at Aorrovver's option. eithcr
promptly repaid to Borrower or credited to. Borruvrer on monthly installments of Funds. If U~e amount of the Fur~ds
held by Leader shsl! aot be wtBcieat to psy taxa, assessments, insurancc prer.uums and grouad rents as they fall due.
Bomo~?er shaU pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice ia mailed
by Lender to Borrowe~ ~+equestio8 payment tbereof.
Upon paytqeat in full of all sutnt socured by this Mortgage, l.tnder shal! promptly refund to Borrower any Funds
held by I.eader. If umiet psngrspb 18 hercof the Pcoperty is sold w the Property is ott~erwise acquiral by Lender, L.endcr
s6aU apply. no later than immediately prior to the sak of the Property or iu acquisition by Lender, aay Funds held by
L.endtr at ttu time of applicatio~n as A credit against the sums secured by ihis Mortgage. ~
3. Applicatiw~ of Pqweds. llntaa applicabk law providc~ otherwise. a!1 paymenis nceived by Lender u~det the
~ Note and paragraphs 1 and 2 httreof s1~a1! be applied by Lender first in paymeot of amaunts payaWe to Lender by Borrower
undcr paragraph 2 heroof. then to interest payabk oa the Note, then to thc principal of the No1e, and then to interat aad
- principal on any Futurc Advances. , -
` 4. C4arse~ Lieos. Borrower shall pay aIl taxes, assessments and other charges, tines a~ci iinpasiteqns $tlributable to
the Properiy which r+nay attain a priority over this Mortgage, and leasehold paymeata or ground rents. if any, in the manaer
providai undtr par~graph 2 hereof or, if ~ot paid in such manner, by Borrower making payment, when due, diroctly to the
payee theneof. Borrower s6at1 prnmptly furaish to l.eader all notices of amounts due under this paragraph, aad in the eveat
Bormwer shall make payment directfy, Borrower shaU promptly fumish to Lender receipts evidencing such payments.
Borrower shal! promptly~diacharge any lien_which has priority over this Mortgage; provided. that Borrowcr shall not be
tequieed to discharge any such lien so bng as Borrower ahall agree in writing to the payarent of the obligation sxurcd by
suc6 liea in a manner acceptable to Lender, or shall in good faith contest such lien. by, or defend enforeement of such lirn iq
kgai proceedings which operate to pr~evapt the enforctment of the liea or forfeiture of the Property or any part thereof.
S• Huard Issurance. Horrower shall keep the impmvements now ~xisting or hereafter erccted on the Property insured
against loss by fire. huazds included within the term "exteaded rnverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lendar may require; provided, that Lender shall not require that the amount of
such coverage exce~ that amount of eovenge required to pay the sums secured by this Mortgage.
T6e insurance carrier providing the insuran~ ~11 be choaen by Borrower subject to approval by Lender, provided,
that such apprQVal shall not be uareasonably withheld. 1U1 premiums on insurance policies shall be paid in the manner
proyided uakr paragraph 2 hereof or, if tat paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier. . .
AI! insurance policj~ aad renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ~
clause in favor of and in form acceptable to lxnder. Lender shall have the right to hold the policies and renewals thereof. ~
and Borrower shall promptly furnish to Lender all renewal notices and all roceipta of paid premiums. In the event of loss.
Borrower shail give prompt notice to the iosurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower. .
Unlest Lendcr aad Borrower othscwise agroe in writing. insurance procee~s shall be applied to restaration or repair of
the Property damaged, provided such restoration or repsir is economically [easible and the security oE this Mortgage is
not thereby impaired. If such restoration or repair u aot economically feasible or if tha security of lhis Mortgage would
be impairod, the ;psuranee procoods shall be applied to the swna secured by this Mortgage, w;th the ea~c~ss. if aay~ paid
to Borrowe~. If the Properry is abandoned by Borrower, or if Borrower fails to respund to I.ender within 30 days from the
~ date uotioe is muikd by Lender to Borrowcr that the ins~uance carrier of[en to settk a claim for insuranre benefits, Lender
is authoriud to ootlect and appiy tbe insurance proceeds at Lender's option eit6er to restoraaoa or repa~ir of the Property
or to the su~ secured by tbis Mortgage.
Unle~ Lender and Bonower otherwise agree in writing, any such applicadon of proceeds to principal shalt not extend
€ or poatpone the due date of the monthly inuatlments referred to in paragraphs 1 and 2 hereof or change fhe amount of ~
such installmeAts. If under ~aragraph 18 hereof :!x Property is acquired by l.eoder, all right, title and interat of Borrower
in and to any iasurance policiea and in and to the praxeds thereof resulting from damage to the Property prior to tbe sak
or acquisidon shall pass to Lender to the excent of the sums secure~ by tbis Mortgage imrtiediately prior to such sak or
aoquisitia~. '
f. Pnservadoe awl Mai~teoaocY of P~roperty; Lea~eLdd~ Coudomininm~ Planned Udt Drvdopmepts. Borrower
shall keep the Property in good repair and shall not commit waue or permit impairment or deterioration of the Property
and shall comply with the ptovisiau of any lean if this Mortgage is on a leasehold. If this ~Mortgage is on a unit in a
coodominium or a planncd unit devebpmeat, Borrovr~r si~atl perform all of Borrower
s obligations under the decluation
or covenants creatiag or governing tbe cc~ndominium or plannsd unit development, the by-laws and regulatioru of the
condominium or plannod unit development, and constituent documents. If a condominiwn or plaaned unit development
rider is enecuted by Borrowa and recorded togethet with this Mortgage, the coveoants and agrcements of such rider
shall be incorporsted iato and shaU amead and suppkment the corenants and agreemenb of this Mortgage~as if the rider
~ vrere a p~rt her~oof.
7. Profectlo~ oi Lenier's Secerity. If Borrower fails to perform the covenants and agraments containod in this
Mortgage. or if u~y actioa or proceeding is commeoad which materially aHects Lenda's interest in the Property,
_ including, but not limited to, eminent domain. insolvency. code enforcement, or urangements or proceodings iavolving a
baakrupt or decedent, then Leader at Leuder's option. upoa notice ~o Bormwer, may make such appearances, disburse such
sums and take such action as ii nocessary to protect I.ender'a interest, including, but not limited to. disbursement of
reasonable attomey's fecs and en~ry upon t6e Propeny to make repairs. If Ixnder roquircd mortgage insurance u a
? condition of malcing the loan ucured by this Mortgage, Borrower shalt pay the prcmiurr~s required to rnaintain wch
# insurance in eHect until suct~ time as the requirement for such inswance terminates in accordance with Borrower's and
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