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UNIFORM COVENANTS. 8orrower and LenJer covenant and agree as talluws: ;
l. hyeneat ot Princlpal aod lateresi. Borrower shall promptly pay when due the principal of and ioterest on the
indebtedncu cvidenced by the Note. prepaymcnt and late charges as provided io the I`otc, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Fbads [or Taxa and Iawraace. Subject to applicable taw or to a written waiver by l.ender. Borrowe~ shall p9y ~
to Ltnder on the day monthly installments of principal and interest are payablo under the Note, until the Nate is paid in full. ?
a aum (herein "Fun~") equal to one-twcifth of the yeariy taxes and asseuments which may attain priority over this '
Mottgagc, and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance, ~
plus one-twelfth of yearly premium installme~ts [or mortgage insurance; if any, all as reasonably estimated initially snd from
time to time by Lender on the basis of ass~,ssmenls and bills and reasonable estimates theteof. ~
'Il~e Fu~ds shall be held in an institution the deposits or accounts ot which are insurcd or guara~teed by a Federal or
state agency (including Lender if Lender is such an institution). t_ende~ shalt a !
pply the Funds to pay said taxes, assessmenu. ;
insurance premiums and ground rents. Lender may ~ot charge for sa holding and applying the Funds, analyxing said account~ i
or verifying and compiling said assessments and bills. u~less Lendcr pays Borrower interest on the Funds and applicable law
permits Londer to make such a charge. Borrower and Lender may agree in writi~g at the time ot execution of this ~
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annuaf aceou~ting of the Funds showing credits and debits to the Funds and the
purpose for which each dtbit to the Funds waz made. The Funds are pledged as additional seeurity for the sums secured
by this Mortgage.
If the amount of the Funds held by L,encier, toge~her with the futu~e monthly installments of Funcis payablc prior to ~
ihe due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes,
assessments, in~urance premiums and ground rents as they fall due, such excess shal) be, at Bonower's option. either
pr~mptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficieat to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount nocessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thercof.
Upon payment in fu11 of al! sums seeured by this Mortgage, !_ender shaU promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by L.ender, 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 time of application as a credit against the sums secured by this Mortgage..
3. Applk~tion of Paymeafs. Unless appticable law provides otherwise, all payments received by Lender under the ;
Note and paragtaphs 1 and 2 hereaf shall be applied by I.ender first in payment of amounts payable to Lender by Borrower '
under paragraph 2 hereof, then to iuterest payable on the Note, then to the principal of the Note, and then to i~terest and
principal on any Futuce Advances.
4. Charges; I3ens. 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 gruund rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. whe~ due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shail make payment directiy, 8orrower shal) promptly furnish to Lender receipts evidencing such payments.
Borrower shall promplly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required 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 in,
legal proceedings whieh operate to prevent the en[orcement of the lien or fodeiture of tha Property or any part thereof.
S. Hazard Insarance. Borrower shall keep the improvements noW eKisting or hereafter erected on the Property insured
against 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 exceed that amount of coverage required to pay the sums secured by this Mortgage.
The iasurance carrier providing ihe insurance shall be chosen by Bonower subject to. approval by Lender, provided,
that such approval shall not be unreasonably 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, directly to the
insurance cazrier.
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 [.ender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier a~d Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Propeny damaged, provided such restoration or repair is economically feasible and the security of lhis Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Pcoperty is abandoned b~~ Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is aut6orized to collec! and apply the insurance proceeds at Lencier's uption either to restoration or repair of the Aroperty
or to the sums secured by this Mortgage.
Unless L.ender and Borrower otherwisc agree in writing, any such application of proceeds to principal shall not extend
or postpane the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amoi+nt of
such installmenis. If under paragraph 18 hereof the Propeny is acquired by Lender, all right, title and interest of Borrower
in and to any ins~rance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to L.ender to the extent of the sums secured by ihis Mortgage immediately prior to such sale or
acquisition. ~
6. Presen•atlon aad ~tainteaance of Property; I_easeholds; Condominiums; Wanned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or delerioration 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. Borrow~er shall perform a!! of Borrowers obligations under the declaration
or covenants creating or governing 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 6y Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated in[o and shatl amend and supplement the coe~enants and agreements of this Mortgage as if the rider
were a part hereof. •
'f. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affecls Lender's interest in the Property,
ineluding, but not limited to, eminent domain, insotvency. 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, disburse such
sums and take such action as is necessary to protect Lender s interest, including. but not limited to. disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. (f I.ender required mortgage insurance as a
condition of making the loan secured b}~ this Mortgage. Borrower shal! pay the premiums required to maintain such
insurance in efTecE until such time as ~he requirement for such insurance terminates in accordance with Borrower s and
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