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UNIFOitM COVENANT3. 8orrower and LenJer cov~nant and agrec as follows:
hll~~~ ~~~p~l asi Infe~est. Bormwcr ~hail prumptly~ pay w•hcn due thc princip:~f of and i~terest on the
a-tdebtodnat evideaced by ihe Notc. prcpaymeot and late charg~~c •r~ ~ruvidcd in the Nole, and the principsl of and interesl
on aay Futurc Advances secured by this Mor~gage.
2. Fw~ tor Ta~cp wd l~n~ce. Subject to appli~aDlc law ar to a written waive~ by l.ender, Borrower shall pay,
to [.ender on the day moothly installments of principal and intcrcct .~rc payablc unde~ the Note. untit the Note is paid in (ul1.
~t :eun (herein "Funds") oqual to one-twelfth of thc ycarl~ ta~~. and :usessments which may attain priority over this
Mortgage. and ground reats on the Propcrty. if any, plus anc-twclf~h af ycarly premium installments for hazard insurs~ce,
plus one-twelfth of yearly premium installmeots for mongagc insurance, if any. all as reasonably estimated i~itialiy and from
time to time by Lender on the basis ot atses~mcnts~ arni hi!Is anci rcawnable estimates thereof. ,
7be Funds shall bc held in an institwi~~n thc dcpoa~u or arcounts of which are insured ar guaraotecd by a Federal or `
a~~ aBe~cY (~ne~ud~n81-~~ckr if I.ende~ is such ;~n institution). 1_ender ahall apply Ihe Funds to pay said taxes. assessments.
iasuranoe p~emiums and gtound rents. 1_e~der may not charge fo~ sc~ holding and apptying the Fnndc, analyzing said account,
or verifying and compiling said assessments and t?ills, unless !_ender pays Bormwe~ interest on the Funds and applicable law
permiu Lende~ to make such a charge. Horruw•er a~d L.cnder_ may agree in writing at the time of exccutiun of this
Mortgage that interat on the Funds shall be paid ta Borrowe~. and unless such agreement is made or applicable law
requires such intetest to be paid, I.ender shalt not he required to pay ~orrower any int~rest or ea~nings an the Fondc. I_ender {
shaU give to Borrower. wilhout charge, un annual accounling af the Funds showing crcdits and debits to the Funds and the
purpose for which wch debit to the Funds was made. The Funds are pledged az additional socurity for the sums ucured
by this Mortgage. ~
If the amaunt of the Funds heW by Lencle~, together with ~he future mo~thly insta!lments of Funds payablc prior to
t6e doe dates of taxes, asses,tments, insurance premiums and ground rents. shall exceed the amou~t required to pay said tazes.
a~asmeats. insuranoe premiums and ground rents as they fall due. such excess shall be, at Borrower
s option, either
promptly repa~d to Bo~+ower or credited to Borrower o~ monfhly instaitments of Fuads. If the amaunt of the Furtds
held bY Leadet shal! ~wt be suf6cieat to q~y taxes, a~ssments~ insurance prcmiums and ground rents as they fall due.
Borroaer sball pay to Leader any amount necessary to make up ~he deficiency within 30 days from the date notice is mailed
by I,ender to Borrowerrequestia8 paYment thereof.
Upon payment in full of alt sums secured by this Mortgage, l.ender shall prorrtptly refund to Borrower any Funds
held by I.ender. If undet pangraph 18 heroof the Property i~ sold or the Property is otherwise acquired by Lender. l.ender
shall apply. ra later than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by
Lenckr at the time of application as a credit against tt~e sums secured by this Mortgage.
3. A~piicatior of pa~mevs, Unless applicabk Iaw pravides otherwise. aU payments roceivod by Lender under the
Note and paragraphs ! and 2 hereof shall be applied by Lender 8rst in payment of amounts payable to Lender by Borrower
uader pangraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interut and
principal on any Future Advances.
4. Cha~e~ Lkns. Borrower shall pay atl taxes, assessments and other charges, 6nes and impositions attributabk to
the Property which may attain a priorfty over this Mortgage, and kasehold payments or ground rents, if any, ia the manner
pmvided under paragrapl~ 2 heroof or. if not paid in such manner, by Bomower making payment, whw due. dirocdy to the
WYa ~~f• ~~~r ahall pranptly furnish to Lender all nodces of amounts due uader this paragraph. and in t6e evect
Borrower shap malce payment direcQy, Borrower shall prompdy furnish to Lender receipts evidenciag such payments.
Borrower shall ptiomptly dischargc any lien which hu priority over this Mortgage; provided. that Borrowe~ shall not be
required to discharge aoy such-lien so long as Borrower shall agtee in writing to the payaient of the obligation secured by
wch lien in a manna acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement oi such lien in,
kgal proceedings which operate to prevent ttee enforcement of the lien or forfeiturc of the Property or any put thereof.
S. Hazard Iasaranet. Borrower shall kcep ihe improvements now existing or hereafter erected on the Property insured
agaioat loas by fire. hazar+ds included within the term "extendeci coverage", and such other hazards as I.ender may r~equire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not roquire t6at the amount of
such rnverage excced that amount of coverage required to pay the sums secured by this Mortgage.
1be i~urance carrier providing tbe insurance shaN be chosen by Borrower subjoct to approval by Lender, provided,
that such approval sball not be unreasonably withheld. All premiums on insura~ue policies sha11 be paid in the manner -
pmvided under paragraph 2 hereof or, if not paid in suc6 man~r, by Borcower making payment, when due, di~+ectly to the
insnrance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standatd mortgage
clause in favor of aod in form acceptable to L.ender. [.ender shall have the rig6t to hold the policies and renewals thereof.
and Borrower shall prompdy furnish to L.ender all renewal notices and alt rxeipts of paid premiums. In the event of loss,
Borrower shall give prom~ notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unlesa Lender and Borrower otherwise agree in writing. insurance procceds shall be applied to restoration or repair nf
the Property damaged, provided such restoration or repair is econom~. ally feasible and the security of this Mortgage ic
not t6ereby impair~ed. If such restoration or repair is not economically feasible or if the security of this Mortgage w~•uld
be impaired, the insurance proceecis shall be applied to the sums secured by this Mortgage, with the excess. if a~y, paid
to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to [.ender within 30 days from the
date notiee is maited by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance bene6ts* Ler.de:
is authoriud to collert and apply t6e insurance proceeds at Lender's option either to restoration or repair of the Propen~~
or w t6e sums securcd by this Mortgage.
' Unless I.ender and Borrower otherwise agret in w~iting, any such application of prceeeds to principal shall na cxtend
or postpone the due date of the monthly instailments referred to in paragraphs 1 and 2 hereof or chaage the amount of
such installments. If under p~ragraph 18 heroof the Property is acquired by Lender, all right, titk and intercst of Borrower
in and to any iasurance policies and in and to the proceeds thereaf resulting from damage to the Property prior to thc sal~
or aoqnisition shall pass to Leader to the extent of the sumc secured by this Mortgage immediatety prior to such sale or
acyuisition.
6. P~rservatbe ~d Maiateaaace of Properiy; I,es~e6old~ Condominium~ Planned Unit pe~dopmeats. Borrowcr
shall koep the Propetty in good repair and shall not comipit wute 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, Borrower shati perform alt of Borrower's obligat+ons under lhe declarativn
or cavenants creating or goveming the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agroemeots of such rider
s6a11 be incorporated iato and s6a11 amead and supplement the covenants and agreements of this Mortgage as if the riJer
were a part herwf.
7. Pro~tectjo~ of Leode~'s Sec~. If Borrower fails to perform the covcnants and agreements contained in this
Mortgage, or if any acGon or proceeding is commenceci which materially affects Lencier's interest in the Propeny,
including, but not limited to, eminent danain, insolvency. code enforcement. or arrangements or proceodings involving a
bankrupt or daaeda~t. t6en Leoder at Leader's option~ upon notice to Borrower, may make such appearanoes, disburse such
sums aod take such xtion as is nocGSSary to protect Ixoder
s interest, including, but not limited to, disbu~sement of
reasonsbk attoroey's fees and entry upon the Property to make repairs. If Lender requircd mortgage insurance u a
c~ondition of making the loan socurai by this Mortgage, Borrower shail pay the premiums requi~+ed to maintain such
inwraace in effcet until such time as the requireroent for such insurance terminates in aecordance with Borrower's and
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