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Urttr+oxt?t Cov~rvANrs. Barrower and Lendrr covenant :u~d agr~c a. lolluws:
l. Yayment of Priacipd aad laterest. lii~rmN~r .h;.ll prrmp~h pa)' whcn due ~he principnl o( and interest ~m ~h~
~adebtedness evidenced by the Note, prepayment and latc rha~gr~ ~+ruvi~kd in the Note, and the principa! of and intems~
on say Future Advances secured by this Murtgagc.
2. Fuads for Tases aad lasuraece. Subject ta applirarlc laa .~r u~ a veritten waiver by Lende~, Borrowcr shall pay
to l.cnder on tht day monthly installments of principal anJ wtrrr.t .ur ~ayahlc unJcr the Note, until ~he Note is paid in full.
a sum (he~cin "Funtis") equal ta one•tw•clfth of Ihc yc:~rh ta~~. an~ us.cssmcnts v?•hich may att;tin prioriiy aver ~hi~
Mortgage, and ground rents on the Pe~operry. if any, pius i.nc-tw~clNh c~t yearly premium installments for hazard ~nsur~nce,
plus orie-twei(th of yearly prcmium installmen~s fur m~?rtgagc insuranrc, if any, all as rcasonably estimated initially anJ from
time to time by 1_e~der on the basis ol a~scs~nicnts and hi!Is and re.?~unable estimates thereaf.
'il~e Funds shaU be held in an insti~uuun the deEx~su~ or a~cc~unts ~~f which are insurecl or guaranteed by a Frderal or
state agency (including Lender if Lc~Jer it surh an institi+tionl. I.ender ahall apply the Funds to p:?y said taxes, ass~ssm~uts,
insurance prcmiums and graund rents 1 ende~ may nM charge to~ holding and applying the Fundc. analyzing wid acc.~unt.
or verifying~ compiling said assessments and hilh. unlecs I.ender Burrower interest on the Funds and appl~cahle law
petmits l.e er ta make such a cha~~. Borruwer and Lcndcr may agree in writing at Ihe Nme ot cxrcutiun at this
Mortgage that interest on the Funds shall txr {+aid t~ ~rrowcr, and unlc~s such agrecmcnt i~ maJc ~?r appli~ahlc law
rcquira such interest to be paid, I.ender shall nc~t Ix mquirc~i a, pay B~~~rower am• interest or earnings on thc Funds. Lender s
shall give to Borrower, without charge, an annual acrnunt~ng of the Funds showing creclits and Jebeis to the FunJs ~nd the
purpose for which each debit to the i=unds wa. madr. The Funds are pl~-~ibeJ as addi~ional security for ~hc sums secured
by this Mortgagc.
If the amount of the Funds held hy Lender, tage~her with ~hc iuture monthly installments of Fund. pay:~blc pri~r to
the due dates of taxes, assessments, insurance premiums and ground rents, sha11 e~ceed the amount reyuircd to puy ~aiJ ta~es.
asses.unents, insurance premiums and gmund rents as ~hey fall due. such excess ~hall be, at Borrow~er's opu~~n, either
{~romptly repaid to Borrower or credited to Borrower on monthly inctatlments of Funds. If thc amount of the Funds
held by I.ender shall not be sufficient to pay taxes, assessments,_insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amaunt necessary to make up the deficiency within 30 da~•s from the date notice is mailed
by Lender to Borrower requesiing paymcnt thereof.
Upon payment in fup of all sums secured by this Morlgagc, l.cnder shall promptly refund to Borrav?er any Funds
held by [.ender_ If under paragraph 18 hcrcof the Propcny i, sold or thc Propcrty is otheru++se acquired by l.ender. Lender
shall apply. no later than immediateiy prior to the sale of the Praperty or its acquisition by I_ender, any Funds held by
Leader at the time of appGcation as a credit agains~ the sums secured by this Mangage.
3. Application of Payments. Unlecs applicable law provides otherwise. all payments received by [_ender unJer the
Note and paragraphs 1 and 2 hereof shall be applied by 1_endcr first in payment of amaunts pay:?ble to Lender by Borrower
under paragraph 2 hereof, then to interest payabte on the Note, then to thc principal of the Note, and then to interest and
principal on any Futu:e Advances. '
4. Charges; Lie~. &?rrow~er shall pay all tax~s, assescments and other charges. fines and impositions aUributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by B~~rrower making payment, when due, directly to the
payee thereof. Borcower shall promptly [urnish to Lencier all notices of amounts duc under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to l.encier receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority ovcr this Mortgage: provided, thai Borrower shall not be
required to discharge any such iien so long as Borrower shall agree in wri~ing t~ the payment of the obligation secured by
such lien in a man~er acceptable to Lender, or shall in good faith contcsi such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o( the tien or forfeiture of the Property or any part thereof. ;
S. Hazard Insurance. Borrower shall keep the improvements noN• existing or hereafter erected on the Praperry insured :
against loss by fire, hazards included within thc term "ettended coverage", and sucb olher.hazards as Lender may requirc
and in such amounts artd for such~periods as Lender may req~irc; pmvideJ, that Lender shall not requirc that the amount o~ ~
such cor•erage ezceed that amount of ~coverage required to pay the sums secured by this Mortgage.
'Il~e insurance carrier providing the insurance shall t+e chosen by Borrower sabject to approval by I.ender, 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 carrier.
All insurancc policies and renewals thereof shall tx: in form acceptable tv Lender and shall include a standard mortgage a
clause in favor of and in form acceptahle to Lender. Lcnder shall have the right to hold the policies and renewals thereof, '
and Borrower sh•rt! prompdy furnish to Lender all rcnewal notices and all reccipts of paid premiums. In the event of lo~s,
Borrower shail give prompt noticc to the insurance carrier and Lender. Lender may make proof of loss if not made prompUy
by Borrower. ~
Unless Lender and Borrowcr othcru~ise agrcc in writing, insurance proreecis shall be applied to restoration or repair ~?t
the Property damageJ, provided such restorat~on or repair is economically feasible and• the security of ihis M~~rtgage ie ;
not thereby impaircd. It sueh restoration or repair is not economically feasible or if the security of this hiortgage wni~,d _
be impaired, the insurance procee.ls thall be applieJ to the sums secured by this Mortgage, with the excess, if an~•, paid ~
to Bormwer_ (f the Property~ is abande+ncd b~ Borrower, or iE Borrnwer fails to responJ to Lender within 30 da~s from ehe =
daEe notice is mailed by Lender to Borrower that the insurrnce carrier otTers to se~Ue a claim for insurance benefits, 1_rc~i~: s
is authorized to collect and apply the msurance proceeds at Lender's option either to restoration or repair oF the Yri~~en~ _
i
or to the sums sccured b}• this 1lortgagc. - ;
Unless Lender and Borrower otherwise agree in writing, any such application ~+f prckeeds to principal shall not ~.iriid ~
or postpone the due date of the monthly installmcnts referrcd t« in paraFraph~ I anJ 2 hereof or change the amount of ~
such installtnents. Ii under paragraph 18 hereot the Property is acyuired bp Lender, aH right, title and interest of Borr~~w•cr ;
in and to any insurance policies and in and ro the proceeds thereof resulting from Jamage to the Propeny prior to A?c sal~
or acquisition shall pass to Lender to the eztent of the sums secured by this I~1ortgage immediately prior to such salc or f
acquisition.
6. Presen~ation and ~t~intenance of Property; Leaschalds: Condominiums; Ptsnned Unit Devebpments. Borro++rr
shall keep thc Pcoperty in good repair and shail not comro~t waste or permit impairment or deterioration of the Property ~
and shall compl?' with the provisions of any lease it this Mortgage i. un a Ieasehold. If this Mortgage is on a unit in a ;
conduminiom or a planned unit devclopmcnt, Borrow~er shall perform all of Borrower's obligations under the deciarativn ?
or covenants creating or governing the condominium ur planned unit deveiopment, the by-laws and regulations of the '
condominium or planned unit development, and constituent doe:umemc. If a conJominium or planned unit development
rider is executed by 13orcower and recorded together µrth this Mortgage, the covenants and agreements of such rid.r ;
shal! be incorporated into and shall amend an~l supplement ihe co~•enants and agreements of this Mortgage as if the n.ter '
were a paR hereof. s
7. Protection of Lender's Security. If Borrower fails ro pcrform the covenants and agreements contained in this '
Mortgage, or iE any action or proceeding is commenced which materially aPfects I_ender's interest in the Pmpert}~. `
including, but not limited to, eminent doma+n, inu~lvency, cc~de enforrement, 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
sutns and take such aciion as is neccssary to protect i.ender
s interest, encluding. but not limited to.. disbursement of
reuonable auomey's fees and entry upon the Propeny to makc repairs. If I.cnder requireJ mortgage insurance as a
condition of making the foan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
iasurance in effect until such time as ~he requirement for such insurance terminates in accordance with $orrower s and ;
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~o~K 285 ~ A~t 93 _