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UNiFMtM COVENANTS. Borrower and Leader cove~ant and agrce u follows:
l. P~meot ot lhriacl~tl asd Isfereq. Botrower shatl p~omptly pay when dua the principal of and interest on the
indebtedness avidenc.ecl by the Note, propaymeat and late charges as provided in ihe NWO. aod tho principal of and interat
on any Future Advae~ces xcund by this Mort~a~oe.
2. Fbads [or Tues aod Io~ncaece. Stibject to applicable law or to a written waiver by Lender. Borrowe~ shall pay
to Lender on the day monthly installments of principal and interest a~e payable uader the Nate. until the Note is paid in full,
~ sum (herei~ •'Fundt") equal to onatwelfth of ~the yeady taxes snd assessmcnts which may attain priority over this
Mortgsge. and grnu~d i~enta on the Property, if a~y, plus ono-twelfth of ycarly pcemium installments for hazard insurance,
plus one•twelftA of yearly premium installmenta for mortgage insurance, if any. all as reuonably estimated initially and from
time to time by Lendcr on the basis of assessments aad bills and reasonable estimates theeeof.
'Il~e Fuads shall be held in an institution the depoaita or accountt of which are insured or guarAnteed by a Fedenl or
state age~cy (including Lender if Lender is such an iastitution). Lender shall apply the Furtda to pay said taxes, assessrrnnts.
iruuranca premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyciag said acoount,
o~ verifying ar~d compiling said assessments and bills. untess l.ender pays Borrowe~ interest on the Funds and applicable law
permits Lende~ to mafce such a charge. Borrower and Lender may agree i~ writing at the time of exaution of this
Mongage that inter~st on the Funds sball be paid to BonoweF, and unless such agreement is made or applicable law
requirea such interat to be paid. I.eader ahall not be required to pay Borrower any i~terest or carnings on the Funds. I.ender
shall give w Borrower, w~thout charge, an annual arcounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds waz made. The Funds are pledged as additional security 7or the sums xcured
by this Mortgage.
If the amount of the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. asse.ssmcnts. insurance premiums and ground rents. shall exceed the amount required to pay said taxes.
assessments, insurance premiums and graund rents as they fall due. such excess shall be. at Borrower s option, either
promptly repaid to Bormwer or credited to Borrower on monthly installments of Fu~ds. lf tha amount of the Funda
held by Lender shall aot be suf6cient to pay taxes. assessments, insurance premiums and gmund rents as they fall due. _
Borrower shall pay to Lender any amount nece.xuary to make up the deficiency within 3Q days from the date notice is mailod
by l.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. I_ender shail promptiy refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the.Property is othervvise acquired by Lender. I.ender
shall apply. no later than imrtiediately prior to the sale of the Property or' its acquisition by Lender, any Funds held by
Lend'er at the time of application as a credit against the sums secured by this Mongage.
3. Appllcatloa of Payments. Unless applicable Iaw provides otherwise, all payments received by Lender under the
Note and paragraphs l and 2 hereof shall be applied by I_ender first in payment of amounts payable to Lender by Borrower _
under paragraph 2 hereof. t6en to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
4. Charges; Liees. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any. ia the maa~r
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the .
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and ia the event
Borrower shall make payment directly. Borrower shall promptly furnish ,to Lender receipts evidencing such payments
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that $orrower shall not be.
required to dixharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
suc6 lien in a manner acceptable to I.ender, or shall.in good faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or any part theeeof.
S: Hszard Insnrance. Borrower shall keep the improvements now existing or hereafter erected on the Propetty insured
against loss by 8re. hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounu and far such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed thaf amount uf coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower 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
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
; insurance carriet.
~ 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 Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shal! promptly furnish to Lender all renewal notices and atl receipts of paid premiums. In the event of loss,
~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower. ~ .
Unless Lender and Borrower othetwise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economically feasible and the socurity of this Mortgage is
not thereby impaired. If such restoration or repair ia not economically feasible or if the security of this Morigage would
be impaired, the insutance proceeds shall be applied to the sum; secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Property is abandoned by 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 authorizod to collect and apply the insurance proceeds at Lender's option eithec to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by l.ender, atl right, tiUe and interat of Bonower
in aod to any insurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to t6e sale
or acquisition shall pass to Lender to t6e extent of the sums secured by this Mortgage immediately prior io such sak or
acquisitioa. .
6. Preser~atioo and Maiutenance oE Property; Leaseholds; Condominiuras; Planaed Udt Devebpmeots. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property F
~ and shall comply with the provisions of any lease if this Mongage is on a leasehold. If this Mortgage is on a unit in a ?
coodominium or a planned~ unit development, Borrower shall perform all of Borrower s 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 daumeRts. If a condominium or planned unit development ;
rickr is eaecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider i
~ shall be incorporated into and sball amend and supplement'the rnvenants and agreements of this Morigage as if ihe rider
' w•ere a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform ttie covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially aftects Lender's interest in the Properly,
~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Leader's oQtion, upon notice to Borrower. may make such appearances. disburst 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. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrow~er shall pay the premiums required to maintain such
insurance in effut until such ume as the requiremetu ~or wch iqsurance terminates in accordance with Bort~wer's and
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