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UN~FORAt CovtN~Nrs, Borr~~~cr and Lcn~l~r c~~vcoant a,~d ;~~~rr ;n t~,li~~WC~
1. P~ymeat of Principa! aud Interesl. NormH~r .h:Jl ~+r~~in~~l~ ~1:~)' NFII'll ~luc thc pnn~i~~.~l +,f anJ interest un thc
~:~ckbtedness evideneed by the Note, prepayment anJ latr ch.~~~r. pravi~led u~ the Ni~te, and the principai of and ~ntenst
on any Future Advancex secureJ by this Mortgagr.
2. Funds for Tazes and Iasurance. Subject to appli~.~fd~ l.sH wriucn waiver by Lender, Borrower shull pa~•
to I.enckr on ~he day monlhly installments of pnncip:J and m;r~r.~ ,,rr ~,.~yahlr unJ~r the Note, until the Note ic paid in f:ill.
a sum (herein "Funeis") cyual to one-t~~~lhh tix yr:irh ;a~~. and a~.c~~mentti w~hich may attain priority ovcr th~.
Mortgage, and ground rents an the Pmperty, if aqy, pluc anc-~~r~lfth ~~f ~•carl~~ prcmium installntents for hazard msuranrc,
plus one-twelfth of yearly premium installmcntti f~~r m~~rt~age ~n+uranrc, :iny, all as rca~onably c~timated initially and from
time to time by l.endcr on thc basi, af a.~~.•,n~rnts ana F~~~h ,~n~l rr.~,unabtc e~tima~cc thcrcol.
The Funds shal) be held in an in~t+tut~~~n thr dcFx~si,. ar ,,«<~unts uf which arc insureJ or guarantccd by a Frderal or
state agcncy (including Lender if l.cnder ~..uch ,~ri itt~tetuti~~n?. ! c~~~er ~hall apph~ ~he Funds to pa}~ said ta~~~, as,~ssmcnt~,
insurance premiums and ground rcnt~ 1 encler ma~ ~~I charge tc,r u~ holding and ;~pplying the Fnndc. an:~I)'Tlh~ ~:llll aec.~unt.
ar verifying and rnmpiling said asse+~mcnts :~nd hill,, unlr.s Lcndcr ~y~ Borruwcr intcr~~st on thc Fundt and appticai~IC I:IN'
permits Lende: make such a cha~gc. 13~~rruwer .~nd Lrn~~r ntay agrre m writing at the Ume u( rxrrutiun ui ~hi~
Martgage that interest i~n the Funds sh~ll tx~ paid t~~ Hnrn~wer, and unle~s such agreemenl i~ m:~Je ~~r ~pplicahlC law•
requires such interest to be paid, Lender tihall m.t Fx reyuir~~f to pa~• ~;orrower am~ interest or rarnin~i ~~n Ih~ f'und.. LcnJer
shall.giv~ to Borrower, without charge. an annual accuunt~ng uf the Fun~, shuwing credits ~n~i dehrtc to thc 1=undti and the
putpose for which each debit t~~ the 1'unds wa. m;~dr. The Furid~ are ple~ged a~ addi~i~~na! +ecurit~ fi~r thr ~un:, ,~cured
by this Mortgagc.
If Ihe amount af the Fonds held by I.endcr, ~ogether with thc iuture monthly imtollmen~ti of Fund. pay:~blr pri~.r to
the due dates of taxes, assessments, insuranrc premiuma anJ gr~und rent:, shail r~cc~Yi thc :~mount ~cyuircd tc? .a~d taxcy,
assessments, insurance premiums and ground rents as thcy L~ll due, such ecre~s ~hall be, at Bi~rrow~er's optu~n, c~~her
prompqy repAid to Borrower or credi~ed to Borrow•er on monthly installments of Funds. If the amount of thc i-unds
held by Lendcr shall not be sufficient to pay taxes, asscctimcnts, imuranrc prcmiums and ground rents as th~y f:~tl duc.
Sorrower shafl pay to Lender any amount necessan• to m:~ke up the deficiency within 70 dat~ (ront the datr notire i, ma;led
by Lender to Borrower reyuesling pa~~ment thercal_
Upon payment in Full of all sums secured by this Mortgagc. Lendcr chall prompUy refund to BorruHCr any Fun~s '
held by lxn~ter. It under paragraph 1~? herrof ~hc Propcny i. ~old or the Propcrty is othenvisc acyuircd by I.rndcr, Lcndcr
sha11 apply, no tatcr than immediatcly pnor to the sale of thc Pm~rty or its acquisition hy l.endcr. any Funds hel~ by
Lender at the time o( application as a creJit against the sums secured by th~s 1~lartgage.
3. Application of Paymeots. Unlec~ applicahle law provides otherH•i,e, all payments received by Lender unJer the
Note and paragraphs 1 and 2 hercof shall M: applieJ b}- l.ender fint in payment of amounts payable to Lender hy B~rroHCr
undcr paragraph n c~reof, then to intcrest payable on thc Nutc, then t~~ the principal of the Notc, and thcn ti~ interest and
principal on any Fes!are Advanccs.
4. C6arges; I,iens, Borrower shall pay all taxec, a~~s~mrnts and i~ther ch.ugcs, fines and im~xisitions attributable to
the Property which may attain a priority over this Mortgagc, and leaschold payments or ground rents, if any, in the manner
provided under paragraph 2 hereo( or, if not paid in such manner, b~• Borrou•er making payment, when due, direcNy to the
payce thereof. Bc~rrower shal! promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrow•er shall promptly furnish ~o l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over this Mortgage: provided, that Borrower shall not be
required to d~scharge an}• such lien u~ tong as Borroµ•~r shJ1! agrce in writ~ng ta thc payment of thc obligatiun serured by
such lien in a manner acceptable to Lender, or shall in gcx~d faith contrst tiuch lien hy, or defend enForcement of such lien in,
legal proceedings w•hich operate to prevent the enforcement of the lien or forfeitfirc of the Property or any part thereof.
S. Hazatd Insurance. Borrower shall keep thc ~mprovementti now existing or hereafter erected on the Pmperty insured
against (oss by fire, hazards included within the term "~xtcnJe~i rover~gc", and surh other hazards as Lender may reyuire
and in such amounts and for such ~riods as Lcndcr may reyuirc; prcwided, that l.cndcr shall not reyuirc that thc amount of
such coverage exeeed that amount of coverage required to pay the tums securcd by this Mortgage.
"Ihe insurance carrier providing the insura~ce shall be chosen by Borrower subject to approval by [.ender, pravided.
that such approval shati not be unreazonahly withheld. AN prcmiums on insurance policies shall be paid in the manner
provided undcr paragraph 2 hereof or, if not paid in such manner, by Barrower malcing payment, when due, directly to thr
insurance carrier. ~
Ail insurance E~licics and rencuals thcreof shall Fx~ in forni srcept:~blc to [_rndcr and shail indudc a standard mortgage
clause in favur of and rn form acceptahle to Lender. t_rnder ,ha!! have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to [_ender all renew•al notices and all receipts of paid premium~. In the event of lo~..
Borrower shall gi~~e prompt notice to the insur.~nce carrier ~nd I.ender_ I_ender ma~• make prcx.f of loss if not made prc~mpth
by Borrower.
Unless Lender and Hnrro~+~er oiherw~x~ :~gree in writing. incurance pr~~ceeds shall be applied to restoration or rep.~ir ~~F
the Property damageJ, prov~Jed surh re>toraUun ur repair is eronumically feasible and the security of this M~rtgagr ic
not thereb}~ impa~red. If such retitoraU~~n or repair is ni~t ea~nomicrlly (easihle or i( the security of this Mortgagc wr~~iJ
be impaired, the insurance pra:eed~ shail bc: apptied lo the sums krure~ by this Morigage. with the exce.ts, if an)~. ~~aid
to Borruwer. !t ihe Pruperh~ is ahanJuncd h~ Bormwer. i~r it Borr~~wer fails t~? res~nd to Lender within 30 day~ fr~ar thr
date noiicc is mciiled by Lender a~ Bormwer that the insurance carrier o1Ten to set~le a claim for insurance benefit., I.ct.~i~r
is authofized t~. collect and apply the insuranre proceeds at Lender's optiun either ti~ restoration or repair of the Prnper~~.
ur to the sun» ~ecured hy Ihis ~iorigage.
Unless l.ender and Borruwer ~~thervri,r :+gree in writing, any such applir:ilion ~~f pnxeeds to pnncipal ~hall n~t ~.;r,:d
or postpone thc due Jate of thc mi~nlhl~• intitallmcntt referrcd t~. in paragr~ph~ f and 2 hcrcof or changc thc amount ul
such instalfinents. I[ under paragraph 18 hereof the Property is acyuireJ h} I~nder, a(I right, littc and interest of [iorr~~:~~r
in and to an~ insuranre poli~ies and in and to the proceeds thereuf rc~sult+ng tmm ~amage to !he Property prior to th~ ,.~i~
or acyuisition shall pass Io Lender to the e~tent of the sums secured b~ thil htortgag~ immediately prior to such t:~le ~r
acquisition.
6. Presenatian aod ~1~inlenance of Propert~~: [,easeholds; ('ondominiums; Planned Unit [~vebpmenis. K~.rrc.ti+~r
shall kecp the Pmperty in good repair and shall not comrpit waste ~~r pcrmit impairment or deterioraiion of 1he Proper~y
and shall compl} +~ith the provisions of any lease if thiti Murtg.~ge i, ~~n a Irasehuld. !f this Mortgage is on a unit in a
condomin~um ~~r a plann~d unit devclopment. Borrow•er tihall ~+erform all o( Borrower's obligations under the declarat~~m
ur covenants crealing or governmg the condominium ar plannrd unrt devclopmcm, the by-laws and reguiations of the
condominium or planned unit deveiopment, and constituent Jocument.. 1( a cunduminium or planned einit developmcnt
r~der ~s executed by Borrower end recorded tngether w~lh Ihis Mortgage, the rnvenants and agreements of tiuch ri~t.r t
shall be incorporated into and shall amcnd ~nJ supplcment the co~~cnante and agreemcnts of thi~ Mortgage as if the n.fcr -
N~ere a part hercof.
7. Protectioa of i.ender's Securify. If Borrower faik ti, perfc~rm the covenants anct agreements contained in thic ~
Morigage, or if any action ur procecdmg is commenced w•hich materially a(iects I.ender's interest in the Pn.perh•.
including. b~~t not limited to, cmi:~cnt domain, ir,u?Ivcncy, ccxlc cnforccmcnt, or arrangcm~ntc or procccdings invol~•ing a
bankrupt or decedent, then Lender at Lender's option, upem nrnice to Horrower, may make such appearances, dishurse such
sums and take such action as is nec:essary to protect t.cnder's interest, incluJing, but not limrted to, disbursement of
reuonabte attorneys fees and enlry upon the Propcrty tn makc repairs. If I.cnder reynircJ mortgage insurance as a
condition of making the loan secureJ by this MortgaRe, Ri~rmwrr shall pay the premiums reyuireJ to maintain such
insutance in efTert until such time as the rcyuirement for wch insurance terminates in accordance with Borrower's rnJ
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