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UrtiFaat.t CoveN~Nrs. Borrowcr and l.cn~irr c~~~enant :~;~d ;~~;r~r I~+11~~N~:
1. P~ymeat ot Pdntipal and lulerest. 11~~rrrwrr .hall ~•r~~m~tl~ pa)' whcn ~luc Ihc prin~i~~.~i ~~i aud intcrest un thc
~adebtedness evidenccJ by Ihe Note, prepaymenl an.l latr ch.~ter. ~ruvi~lyd m ~hr I`ote, and thc prinripal of and ~n~erct~
on any Future Advanccs sccurcci by th~c Mortgagc.
2. Rqads for Tues and lasorsnce. Subjrcl t~. appli:.~1 Ir la~+ io a W rittrn ~:~ivcr by l.cndcr, Borrowcr sh:Jl pay
to I.ender on the d•ry munthly ~nctallment~ ot principal ,~nJ ii~;r~r.t .~rc p.?yahlr undrr thr Note, until the Nute ~s paid in (uIL
a sum (hercin "Funds") cqua) to onc-tw~t(1h of thr }rarh ta~~. ~n.l a~.~s~mcnt~ v?fiirh may attain priarity avcr ~l~~~
Mortgage, anJ ground rents on thc Pmpcrty, if any~. pluc onc-tKrMh ol ~~early premium installments for haiard insur;,nre.
plus one-twelfth of y~arly premium installmcn~ti tor mo~tgagc imnranc~. ~f any, all ac rca~onably cctimatcd initially and from
time ta time by l.ender on thc basi. of a..cr.mcnts and h~qti ,,,,.i rr.~,unablr estim~tcs thercot.
The Funds shall be held in an in~t~tuti~~n ihc dc{~+~~., ur ,,.;cuums ul whirh :?re insurcd or guarantea! by a Pcderal ar
state agcncy (including Lcnde~ if t_cndcr i> >ucl~ ,~n imtitution 1. I.cnder +hall ~pply thc Funds to pay ~aid ta~rti, as~~ssn~cnta,
insurancc premiums a~d graund rents. I rnder ma) nc.t chargc t~.~ hi~Wing :~~~i ;~~,~iy~~g ~rx r-~~~~i.. :~„~i~•~ing .aid a.c:~unt.
or verifying and compiling said asse~+ment~ :~nd hill., unlr.~ Lender {~:~y~ Burmwer intcrest on the fi::n~is ;~nd :~pplicahle F.~w
p~rmits Lendcr to makc such a chargc. tt~~rruvrcr anJ Lrndcr m~y :~grec in writing at ~hc ~in~r ~d c~c~ution o( ~hi~
Mortgage that interest un ~he FunJs shall Fx~ paid t~~ Borruw•cr, and unlcss ~uch agreemen~ mad~ ~~r :~ppl~~ahlc laa•
requires such interest to be paid, 1_cnder .hall n.~~ ix rcyu~rcJ tu pa~~ 13orrower an~• intcrest or carning, an th~ I~und.. L~nder ~
shaQ give to Borrowrr, without charge, an annual accounung nf ~he Funds ~howinb creclits anJ dehits ro th~ t=unJ~ and ~h~
purpose fot which each Jebit to the Funds w•a~ m~Jc. 'I7tic F=ur.:1~ are ~lL~tlge~l as additional ~ecurih• fi~r thc sun:, .c:~it~J
hy this Mortgage.
If the amount of the Funds held by Lend.;~, together wi~h the tuturc mm~lhly installmcnts uf Fund< payablc pn~~r to
the due dates of taxes, as.ussmenta, insurance premiums anJ ground rerus, sh~tl excec.~ef the :+mount reyuired to pa~ ,a~J ta~e+.
assessments, insuranee premiums and ground rents as the~~ fall due, such esce,s ~hall be, at Borrow~er's ort~~ai, rither
promptly repaid to Borrower or credited to Borrower on monthly inctallmcnts of Fund~. If the amoum of the Funds
held by Lendcr shall nol be sufficient to pay taxcs, assessments, insurancc premiums anJ ground rents as thry f~ll duc.
Borrower shaU pay ta Lender any amount necessarr to make up ~he deficiency within 3U da?•s trom the date notice iti mailed
by Leader to Borrower reyuesting paymcnt thereof.
Upon payment in full of al) sums sccured by this Morlgagc. Lcndcr shall promptly re[und to Born~wcr an}' Funds
held by l.ender. If under paragraph 1R hereof the Propcrty i~ told ur the Property is otherw•i~c acq~urcd by 1_rndcr, LenJcr
shall appty, no later than immediately prior to the sale of the Prapcrty or its acquisrtion by Lcnde~, any Functt held b}•
Lender at the time ot application as a crcdit against the sum~ secured h~~ this 111ortgagc.
3. Application of Payments. Unlres applicahle law~ provides othcrH~i~c. all payments received by Lender undcr the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender fint in paymcnt of amounts payable to Lender by Borrouer
under pazagraph 2 hereof, then to intere,t payable on the tiac, then to thc princip•r) of the Note, and thco t~~ interest and
principal an any ~uture Advanccs.
4. Charges; Lkns. Borrower shall pay all taxec. asses.~mrnts and othcr charges, fines and impositions atlributable to
the Property which may attain a priority over this Mortgage, and leaschoid payments or ground rents, if any, in tt~e mancter
provided under paragraph 2 herec~f c~~, if not paid in such manner, by 8orrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lendcr all notices of amounts due under this paragraph, and in tt~ event
Borrower shall make payment direc~ly. Borrower shall promptly furnish to 1_ender receipts evidencing such payments_
Borrower shall prompUy discharge any lien which has priority over this Mortgage: prov+ded. that Borrower shal! not be
required to discharge any such licn w long as Bnrrower sha!! egrce in w rihng to the payment of the obligation secured by
such lien in a manner acceptable ta Lender, or shall in good faith conte~t such licn by, or defend enforcement of such lieo in,
(egal proceedi~gs which operate to prevent the enforcement of thc lien or forfeiture of the P:or rt; or a~y Qart thereof.
S. Hazard Insurs~nce. Borrower shaU keep ~he impmvemems now existing or hereafter erected on the Pmperty insured
against loss h~• fire. hazards inciuded within the term "extendeJ coverage", and such olher hazards as Lender may reyuire
and in such amounts anJ for such periods as Lcnder may rcyuirc; pro~~ideJ, that Lcndcr shall not reyuirc that the amo~mt o[ ~
such coverage exeeed that amount of ro~~erage required to pay the sums cecured by this Mortgage. ~
'I~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. {
that such approvai shall not be eirtreasonably withheld. All premiumt on insurance policies shall be paid in the manner
provided under paragraph 2 here~if or, if not paid in such manner, by Borrower making payment, when due, direcqy to thr
insurance carrier. x
All insuranre Ewlicie~ an~ renewals therec•f shafl be in fami accep~able ro LenJer anJ sh~ll include a stanJard mortgage
clause in favor of and in form acceptable to Lxnder. 1_ender ~hall ha~•e the right to hold the policies and renewals thereof.
and Bormwer shail promptly furnish to Lencler all renewal notices and all receipts of paid premiums. In the event of lo~;.
Borrower shall g~ve prompt notice to the insurance carrier :~nd I.enJer. Lender may make prcx~f of loss if not made pmmptlti
by Borrower_
Unleu Lender and Borrow~er othcrw ix~ agrec in w riting, insurance pn~ceeds shall bc applied to restoration or repair ~~i :
ihe Property damaged, provided surh rcsturation or repair is ea~nomicall}' feasihle and the securiry of this M~rtgage i~
not thereb~• impa~red. It such restor:?uon or rrpair is n~~t economicatt)• fea~ibie or if ~he security of this ~1}ortgage w~~~}rtJ
be impaired. the insurance prucee~~ SIIJII M.'. applie~ ti~ the sums ucured by lhis Mortgage.' w~ith the excess, if an~~. pa~d
to Borrvwer. I! the Properl} is aband~~ned h~ Borrow~er, or it Borrower fails to rc~(xmd !o Lender within 30 days fr~~rr thr
date notice is maileci b~• Lender to Borrow~er that the insuranie carr+er otTen to seulc a claim for insurance benefit~, Lr:..i~-
is auth~xized to c~.lleci and apply the insurance proceeds ~t Lender's uptiun either te~ restoration or repair of the Pr~~pen~.
ur to the sums ,ecured by this Mortgage.
Unless Len~ler and Burruw•~r othen~i,e agree in writing, any such applicauon ~.f pnx:ceds to principal ~h:dl nut c.~r~:J
or postpone the due date ot the monthly installmcnts rcferrcd t~~ in paragraph~ I anJ 2 hcrcof or change the amount .~t
such installmeni~. If under paragraph 18 hereof the Propert}• is acyu~md b} I.enJer, aU right, title and interest of l3nrr~~acr -
in and to any insurance policies anJ in and to the prcx:eed~ thereof rc~ultmg fn.m damage to the Propeny pcior to thc ~.u~ !
or acquisition shall pass to Lender to the e~tent of the sums secureci b}'.this ~tortgage immediately prior to such ~:,Ie ~r
acquisition.
6. Presen~tion aod 1laintenance of PropeA~; LeaSehulds; ('ondominiums; Planned Unit Ihti-elopmeets. H~rr~++: r #
sha(1 keep the Property in good repair and shal! not cvmrpit waste or permit impairment or deterioration of the Propert~• $
and shall comply w•ith the provisions of anp lease if th~s Dlortgage i~ on a Ieasch~~ld. If this Mortgage is on a unit in a r
condominium ur a planned uni? development, Borrower ~hall rerf~~rm all of Borrowers obligations under ~he declarati~~n
or covenanis crcating or governing the condominium or planned unit devele?pmrnt, the by-laws and regutations of ~he
conJominium or planned unit development, aad conslitucnt J~num~nt~. If a condominium or planned unit Je~~clopmcnt
rider is executed by Norrow~er and rernrded together w~th thi~ Mortgage. ~hc covenants and agreements o( ~uch ri~'.r
shal) be incorporated into and shall amend and supplement the co~~enants and agreemcnts of this Mortgage as if thc n.tcr
were a part hereof.
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7. Protection of Lender's Security. If Borrower fail~ m perform !he covenants anJ agreements contained in this
Mortgaae, or if any aetion or proceed~ng is commenecd w hich m;~terially afiects Len~er's interest in the ProEx rh~.
including, but not lim?ted to, eminent domain, insolvency, code rnforcement, or arrangements or proceedings invol~•ing a
bankrupt or decedent, then Lender at Lender's op~ion, upon notice to Borrower, ma}• make such appearances, disburse such
sums and take such action as is necessary to protect l~nder s mterest, incluJing, but not limited to, disbursement of
re~sortable attorney's fees and enlry upan the Properry to makc repairs. If I.ender rcyuired mortgage insurance as a
condition of making the loan secuted by this Mortgage, B~ROV?er shall pay the premiums required to maintain such
ituuranee in efiect until such time as the requirement for such msurance tcrminates i~: accordance with Borrower. •rnd
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