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UNtFORt?t Covetv~Nrs. Borrower and 1.e~Jer covena~t and agr~~t 3~ follow.s:
1. P'aymeat af P~incipal and late~est. Horravver shall prompti~• pay when due the priocipal of and interest on the
~ndebtedness evidenceJ by the Note, prepayment and late charges as provided ~n the Note, and the principal of and ~nterest
on any Future Advances secured by this Mortgage.
Z. FUnds for Tues and Iatuaace. Subject to applicable lav?~ or to a wrilten waive~ by I.ender. Borrower shall pay
to I.ender on the day monthly installments o( principal and ~~terest are payable under the Note, until the Note is paid in full.
a sum (hercin "Funds") equat to o~e-tw•elfth of the yearly tare~ and assessments which may attain priority over this
1?lortgage, and ground rents on Ihe Pmperry, if any, plus o~e-twelfth o( ycarly premium installments for hazard ins~~rance;
plus one-twelfth of yearly premium installmcnts tor mortgage insurance, if any, all as reasunably estimated initially and from
time to time by Lender on the basis of assessmentS and hills and reasonabte es~imates thereof.
The l~unds shaU be hetd in an institution the deposits or accounts of which are insurcd or guaranteeci by a Fcderal or
state agency (including Lende~ if [.ender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurante premiums and ground rents. I_ender may nat charge for so holdi~g and applying the Funds, anal}~zing said account,
or verifying and compiling said assessmeats and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits l.ender to make such a charge. 8orrower and 1_ender may agrce in writing at t#~c time o[ execution of this .
Mortgage that interest on the Funds shall he paid to Borrower, and ualess such agreement is madc or applicable law
requires such interest !o be paid. Lender shall not I~e reyuired to pay Borrower any interest or earnings on the Funds. Lender
shall give to Barrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose far which each debi! to !he Funds was mad~. The Funds are pledgcd as additionrl security for the sums secured
by this Mortgage.
If the amount of the Funds held by t_ender, together with ~he future monthly installments of Funds pa}•able prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceeci the amaunt reyuired to pay said taxes,
assessments, insurance premiums and ground rents as the)~ fall due, such ercess shall be, at Borrower's option, either
promptly repaid to Borrow•er or credited to Borrower on monthly installmc~ts of Funds. If the ~mount of the Funds
held by Lender shall not be suf6cient to pay ~axes, assessments, imurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar~• to make up the defirienc~• w~ithin 30 dacs !rom the date notice is mailed
by Lender to Barrower requesting paymcnt thereoi.
Upon payment in full of all sums secured b~~ this Mortgage. Lcndcr shall promptly relund to Bormwer ana FunJs
held hy Lender. It under paragraph 18 hercof ~he Propetty ~s ~old or thc Propcrt} ~s otheru•icc acqu~red by I.ender, Lcnder
shail apply, no later than immediatcl~• prior to the sale nf she ProFxrty or its acquisition by Lender, any Funds held by
Lender :~t the time of application as a credit against the sums secured by this Mortgagr.
3. Application of Payments. Unless applicable law pro.•ides otherw•ise, all pa}~ments received by I.ender un.ler the
Note and paraRraphc 1 and 2 hereof shall be applied by I.cnder firtt in paymenl o( amuunts payable to l.ender b~~ Borrower
under paragraph 2 hercof, then to interest payable on the Notr, ~hen ~o thc principal af the Note, and thcn to inter~st and
pr~ncipal on any Fuwre Advances.
d. Cda~qes; Liens. Borrower shall pay aU ~axcs. atises~mrnts and ather charge~. fines an~ impositions aunbutahle to
the Propert~~ which may attain a priority over this I?lortgagc, and leasehold paymcnts or ground rents, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such m:~nner. by Borroa•er making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all not~ces of amounts due under this paragraph, and in the event
Borrow•er shall make payment directh~, Borrow•er ~hall promptly furnish to Lender receipls evidencing such pa~ments.
Borrower shall promptly discharge any lien ~•hich has priorit~• over this bfortgage: provided, that Borrower shall not be
required to discharge any such tien so tong as Borrower shall agree in ++rit~ng ~o the pay~ment of the obligation secured by
such lien in a manntr acceptable to Lender, or shall in go~x1 faith contetit such lien b}~, or defend enforcement ~f such lien in,
j legal proceedings which operate to pre~~ent the enforcement o( the lien or forfeiture of the Property or an}' part thereof.
; 5. Hazard lnsuraace. Borrower shall keep the ~mprovements now existing or hereafter erected on the Property insured
I against loss hy fire, hazards included withtin the term "~xtendec} cover:~ge", and si~ch other hazards as Lender may reyuire
and in surh arrto~mts and for such periods as Lender may reyuirc; pro~•ideJ, that Lender shall not require that thc amount of
sueh coverage ezceed that amount ~~f coverage required to pa~• ~he sums cecured by this Mortgage.
i The insurance carrier providing the insurance shall be chosen by BorraHer subject to approval by Lender; provided,
that such approval shali not be unreasonabty a•ithheld. 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, direcUy to the
insuraoce carrier.
All insurance policies and renewals thereof shall be in form accep~abie to Lencic:r :~nd shall inctude a standard m~rtgage
clause in fa~or of aod in form acceptable to Lender. Lender ~haq have the right t~~ hold the policies and reneN~als there~f,
and Borrou•er shall prompU~~ furnish to Lender all rencwal notices and all receipts of paid premiums. In the e~•ent o[ loss.
Borrower shall give prompt notice to ~he inwrance carrier and 1_ender. Lender may make proof of loss if not made promptly
by Borrower.
Uniess Lender and Borr~wer otheru~rx. agrc*e in wreting, insurance pr~eeJs shal{ be applied to restoration or repair of
the Property damaged, provided such re~torat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. lf such restoration or repair is not eronomicall~• frasible or if the security of this Mortgage would
be impaired. the insurance proceeds shal( be app{ieJ to the sums seaired b}~ this Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoned h~ Borrowcr, or it Borrower fails to respond to Lender within 3U days from the
da~e notice is mailed b}~ Lender to Borrow~er that the insur;~nce carricr otTers to settle a claim for insurance benefits, Lender
is authorized to collect and appl~~ the insurance proceeds at l_ender's option either to restoration or repair of the Property
ar to the sums secured by this Mortgage.
Unless Lender and Borrower otherxise agree in writing, any such application of prcxeeds to principal shaU not extend
or postpone the due date of thc monthh~ installments referrcd to in paragraphs I and 2 hereof or change the amount of
such installments. If uader paragraph 18 hereof thc Property is acyu~rcd b~ Lendcr, ap right, title and interest of Borrower
in and to any insuranre poficies and in and to th~ proceecis thereoC resulting irom damage to the Property prior to the sal'e
or acquisition shall pass to Lender to the extent of the sums secured by this Atortgage immediately prior to such sale or
acquisition.
6: Preser~ation and ~iaintenance of Property: Leaseholds; Condomi~iums; Planned Unit Der•elopments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comgly with the provisions of any lease if this A~ortgage is on •r leaschold. If this Mortgagc is on a unit in a
condominium or a planned unit dcvclopment, Borrower shall perform all of Borrower's obGgations under the declaration
or covenants creating or governing the condom~nium or planned unit development, the by-laws and regulations of the
conJominium or planned unit development, and constituent d~uments. !f a conclominium or planned umt de~elopment
rider is executed by Borrou~er and rerorded together wi~h th~s Mortgage. the co~~enants and agreements ot such rider !
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Pr~tection of Lender's Security. lf Bormaer failc ~o perfarm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is cummer~ce~ u~huh materially ~tiects Lender's interest in the Propert}~.
including, but not limrted to. eminent domain, insol~•cncy, c~~e enf~rcement_ or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to BorroWer, ma~~ make such appearances, disburse such
sums and take such action as is necessary tn protect Lender's inte~est, incluiling. but not limited io, disbursemeM of
reasonable attorney's fees and entry apon the Property to make repairs. lf Lender rcquircd mortgage insurance as a
condition of making the loan xcured by this MoRgage. Bi~rruwcr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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