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UH~poR~a CoveN~Nts. iiorrower and l.endrr cu~•cnant and agr~ti as foUuws:
l. P~meat af PdacipN aod lateresl. Borrowur ~hall rrump~l~ pay N•hcn duc ihe princip.,l ~~f and interest on thc
indebtedness evidenced by the Note, prepayment and latr chargre a. provi~kd ~n the Note, and the pnncipal of and intercs~
on any Future Advances secured by this Mortg•rge. ~
2. FLads for Taues aod I~rance. Subject lo applicahlc iaw .~r ~o a writ~en waivcr by l.cnder, Borrawer~ shall pay :
to Leadcr on Ihe day monthly installmenls af princip:~l and ~ntrrr.t .irc payahlc unJcr tt?c Natc, until the Notc ic paid in full. '
a sum (hercin "Funds") equal to onc-tv?•clfth c?t thc y~arl~ ~a~~. anJ asa;scmcnts which may attain pnority over thic
Mortgage. and ground rents an the Pc+aperty, if any, pluc one-tweltih ot yearly premium installments for haxard insur:,nce.
plus o~e-twelUh of yearly premium installments (or mortgage insurancc, if any, all as reasonably estimated initially anJ from s
time to time by l.ender on the basis af a.ccs,incnts and hills a~xi rr.aonable estimates thercof. ~
71~e Funds shall be held in an instituiion the deEx~su~ or accuunts of which are insured or guaranteed by a Federal or _
state agency (including Lcnder if l.cndcr is au~h an instiwtion 1. Lcnder xhaU apply thc Funds to pay said taxes, asussmcnts, ;
insurance premiums and gtcwnd rents. l.ender ma~~ n~t charge tor ui holding and apE+lying the Funds. analy~ing saiJ acc:~unt.
or verifying and compiling said assessmc~ts ~nd bills, unlcss I.endcr pay~ Bormwcr intcrest on the FunJs and applicable law~
permits Ltnder to make such a charge. l3orrower and I.endcr m~y agrce in writing at the time ot exerutiun ot this ;
Mortgage that interest on the Funds shal! tx~ ~aid to B~rrower, and unless such agreement is maJe ~~r applicable law~ `
requires such intercst to be paid, I_ende~ shall not~tx reyuired to pay Borrovver any interest or earning. on th~: Fundx. 1_cnJcr. ~
shaU give to Borrower, without charge, an annual accouotirig ot the FunJs showing credits and debits to the Fuads and the ~
purpose for which eaeh debit tu the Funds was made. The F~nds are plc~iged as additional securiry for the sum~ ,ecured
by this Mortgage.
If the amount of the Funds held by LenJer, togethcr with ~he future monthly installmcnts of Fundc payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shali exceed the amount reyuired to pa~~ said taxes, ~
assessments, insurance premiums and gmund rents as they fall due, such e~ress shall be, at Borrowcr's optian, either '
promptly repaid to Borrower or credited to Bormwer on munthly installments of Funds. 1( the amount of tFx~ hunds
tntd by Ledder shall not be suf6cient to pay taxes, assessments, insurancc premiums anJ ground rents as th~y fall due.
Borrower shall pay to Lender any amount necessan• to m~ke up the deficiencp within 30 da~~s from the date notice is mailed
by Lender to Borrower requesting paymcnt thercoL
Upon paymenf in full of all sums xcured by thic Mortgage, t_ender shall promptly refund to Bormwer any FunJs ;
held by Len~er. If under paragraph 18 hcreof the Propeny i~ wld or thc Propert~• is otherwisc acquircd by I.cndcr, t_ender
shall apply, no later than immediately prior to the salc of the Property or its acquisition by Lender, any Funds helJ b~• ~
Lender at the time of application as a crcdit against the sums secured by this 1Nortgage.
3. Applicallon ot Payments. Unless applicable law provicies oeher~~ise. all payments received by Lender unJer the
Note and paragraphs I and 2 hereof shall bc applied by I_cnder firSt in payment of amounts payable to Lcnder by Borr~~w~er
-under paragraph 2 hereof. then to interest payable on the No~e, then to the principal of the Note, and thcn to interest and ;
principal on any Futurc Advances. ±
4. .C6arges; Liens. Borrower shall pay all taxes, asscscments and~other charges, fines anJ impositions attributable ro
the Property which may attain a priotity over this J4fortgage, and leasehold payments ~r ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due; directly to ihe
payce thereoi. Borrower shall promptly furnish to I_ender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such paymenis.
Borrower shall promptly discharge any lie~ which has priority over this Mortgage; provided, that Borrower shall not be i
requircd to discharge any such lien so long as Borrow~er shall agre~: in writing to the payment o( the obligalion secured by k
such lien in a manner acceptable to Lender, or shall in gooci faith contetit such lien by, or defend enforcement of such lien in, s
legal proceedings which operate to prevent the enforcement of ih~ hen or [or[eiwre of the Property or.any part thereof.
S. Hazard Insurance. Borrower shall kcep the ~mprovements now~ existing or hercafter erected on the Properry insured ~
against loss by fire, hazards included within the term "e~?tendeJ coverage", and such other hazard.c as Lender may reyuire
and in such amounts and (or such periods as Lender may requirc: prmideJ, that Lender shall not require that the amount of
such coverage ezceed that amount of coverage required to pay the sumz securcd by this Mortgage.
'Ihe insurance rarrier providing ihe insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not pdid in such manner, by Borrow•er making payment, when due, directly to thc
,
~ insurance carrier. . ~
~ All insurance policies and renew•als thereof shalt be in form acceptable to LenJer and shall include a standard mortgage `
[ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold ~he policies and renev?•als thereof,
6 and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums_ In the event of 1ocs.
( Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promp~ly
E by Borrower.
~ Unless Lender and Borrower otherw~ise agree in writing, insurance proceeJs shall be applied to restoration or repair of
~ the Property Jamaged, provided such nstorat~on or repair is ernnomicall~ feasible and the security of this Mortgage i~
not (hereby impaircd. I( such restoration or rcpair is not economically feasible or it the secority of this Mortgage w•ruld
be impaired.'the insurance proce~:ds shall be applied to the sums secured by this Mortgage. with the excess, if an}•, paid
to Borrowcr. If the Propcrty is abai:donrd by Borrower, or il Borrower fails to responJ to Lender within 30 days from the
date notice is mailed by L.ender to Borrower that ~he insurance carrier.ofiers ~o setUe a claim for insurance benefits, Ler.dc:
is authorized to collect and apply the insurance proceeds at Lendcr's option either to restoration or repair of the Pr~pen~~
or to the sums secured by this Mortgagc. - ~
Unless Lender and Borrower otherwise agree in writing, any such application of prcx;eeds to principal shall nut c~tend
or postpone the due date of the monthly insiallments rcfcrred to in paragraphti 1 and 2 hercof or change thc amount uf
such installments. I[ under paragraph I8 hereof the Property.is acyuirecl b} I.e.nJer, all right, title and interest of Borrower
~ in and to any insu[ance policies and in and to the proceeds thereof re•sul~~ng from damage to the Property prior to th~ ~ai~
~ or acquisition shall pass to Lender to the extent of the sums secureci by this Mortgage immediately prior to such sale or
~ acquisition.
6. Preservatioa wd Maintenanct of Property; Leasehuldc; Condominiums; Planned Unit Derelopments. Borro~~•rr
~ shall ~eep the Property in good repair and shall not comroit waste or permit impairment or deterioration of the Properry
and shall comply with the provisions of any lease if this Mortgage ~s on a Ieasehold. lf this Mortgage is on a unit in a
condominium ur a planned unit development, Borrow-er shall pertorm all of Borrower s obligations under the declaratiun
~.r or covenants creating or governing the condominium or planned unit devclopment, the by-laws and regulations of the {
~ condominium or ptanned unit development, and constituent documents. Ii a condominium or planned unit development
rider is executed by Borrower and recorded together with tfiis Martgage, thc covenants and agreements of such ridcr
~ shall be incorporated into and shall -rmend and supplement the covenants and agreements of this Mortgage as if the nder
were a part hereof.
~ 7. Protection of LendePs Security. If Borrower faifs to perform the covenants and agrecments contained in this
~ Mortgage, or if any action or proceeding is commenced which materially aBects Lencler's interest in the Propertp.
~ including, but not limited to, eminent domain, insolvency, code en(orcement, or arrangements or proceedings invoh•ing a
ban~crupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such i
' sums and Cake such action as is necessary to pratect [xnder s imerest, including, but not limited to. disbursement of t
reasonable attorney's fees and entry upnn the Propcrty to makc rcpairs. It I.cndcr requircd mortgage insurance as a
~ condition of making the loan secureJ by this Mortgage, Borrowcr shall pay the premiums requireJ to maintain such _
~ ,insurance in etTect until such time as the requirement for such insurance terminates in accordance with Bormwers anJ
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