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UHIFOIt~ CoveN~NTS.~ Bonowe~ and L.ender covena~t and ag~a as folluwa:
t. ta~:~i ~f !r'.~c3gs! ~ Zaltrtsl: ~r!m~r Sha11 rrnmtulv fsay when due tl~e Principal ot and interest on the
indebtedness evidenced by the Note. {~repaytnent and late charges as provided in the Note. and the principai of and intercst ~
on any Future Advances secured by this Mo~c~age. '
2. I~nd~ tor Tues aad Yaarsuce. Subject to applicabk law or to s written waive~ by Lender. Bortowe~ shall pay i
to l.ender on ~he day monthly installments of principYl and intercst arc payable under the Note. u~til tht Note is paid in full. i
s sum (herein "Funds") equal to one-tweltth of the yeady taxes and assessments wliich may attain priority over this
Mortgsge. and ground rents on tbe Pmperty. if a~y. plus one-tweltth of ~yearly premium installmenta for hazsrd insurance.
plus one-twelfth of yeuly prcmium installmer~ts for mortgage insunr~ce. if any. all xs reuonably estimated initially and trom
time to time by l.ender on the basis of assessments and bills and rcuo~abk estimates thercot.
The Fu~ds shall be t~eld in an institution the deposits or accounts of which are insured or guaranteed by a Fede~al or ;
state agency (including Lendor if Lender is such an institution). ~ende~ shall apply the Funds to pay said taxes. usessments. ~
L---~ -••a ~•••~.•:~e .l.. Fnndc analyzina said aCCOUnt,
+tatuiutce prcmiums ano grouna rcnis. i.enuc~ ~usy u~i w . .e ,.rr.~...o
or verifying and compiliog said assessments and bills, unless Lender pays Borrowcr interest on tt~e Funds snd applicable taw (
permits Len~er to make such a charge. Borrower and Lender may agree in writing at ~he time of execution of this ~
Mortgag~ that interest on the Funds shall be paid to Borrowe~. and anless such agreement is made or applicable law ?
requira such intetest to he paid. Lende~ shall not be required to pay Bo~rower any interest or earniogs on the Funds. Lender
shall give to Borrower, without charge. an a~nual accounting of Ihe Fuods showing credits and debiis to the Funds and the '
purpose for which each debit ta the Punds was made. The Funds are pledged as additional securiry for the sums. secured +
by this Mortgage. .
If the amount of the Fuads held by Lendcr, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxa, ~
asseaments, insu~ance prcmiums and ground ~ents as they fall due: such eacess shall be, a! Borrower
s option. either
promptly repaid to Borrowtr or credited to Borrower on monthly installments of Fu~ds. If the amount of the Funds ~
held by Lender shall nol be sutficient to pay taues, assessments, insurancc premiums and ground re~ts aa they fall due.
Borrower shall pay to Lcnder any amount necessary to make up the deficiency within 30 days from the datc notice is mailed
by Lender to'Borrower rcquesting payment thereof.
Upoa payment in full of al) sums secured by this Mongage, 1_ender shaU prompUy re[und to Borrower any Funds
held by Lenckr. If u~der Qaragraph 18 hereof the Property is sold or the Property is othenvise acquired by Lender, Lender
shall apply. no later than immediatcly prior to the sale of the Propcrty or its acquisition by Lende~. any Funds held by ~
Lende~ at the time of application as a credit against Ihe sums secured by this Mortgage.
3. Appllcstion of psya~e~ts. Unless applicable law provicles otherwise, all payments received ky Lender unJer thc ~
Note and paragraphs I and 2 hereof shall be applied by I.cnder first in payment o( amounts payable to l.cnder by Borr~wer
u~der paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and thtn to interest and t
principal on any Futuce Advanoes. ~
4~ Char~ges; Lieus. Borrower shall pay all taxes, assessmeats and other charges, fines anJ impositions attributable to
the PropeRy which may attain a priority over this Mortgage, and leasehold paymenis or ground rents. if any, in the mann~r
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to the
payee thereo(. Borrower st~all promp~ly furnish to Lender atl noEices of amouau due under this paragraph.~and in the event '
8orrower shall make payment directly, Borrower sh~l1 promptly furnish ta Le~der '~eceipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shalt not be
required to•discharge any such lien so long as Borrower shal! ~g~ee in w~riting to the payanent of the obligation secur~ed by
such lien in a manner acceptable to Lender, or shail in good faith contest such lien by, or defend enfonement ot such lien in. !
legal proceedings N~hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazsrd l~uerance. Borrower shall keep the improvements n~w existing o~ hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as [.ender may require ~
and in such amounts and [or such periodc as Le~der may requirc; provided, that Lender shall not require that the amount of ~
such coverage exceed ihat amount of coverage requircd to pay the s~ims secured by this Mortgage.
'il~e insurance carrier providing the insurance shall bo chosen by Borrower subject to approval by Lender. provided. ~
that such approval shall not be unreasonably withheld. All premiums on- insura~ce policies shatl be paid in tht manner t
provided under paragrapE~ 2 hereof or. if aot paid in such manner, by Borrower making payment, when due, directly to the t
insurance catrier.
All insurance policies and renewals thereof shall be in foim acceptable to Lender and shall include a standard mongage ~
clause in favor of and in form xceptable to Lender. Lender shall have the right to hotd the poiicies and t~enewats thereof, ;
and Borrower shall promptly furnish to-Lender ail renewal notic~es and all receipts of paid premiums. In Ihe event of loss.
Borrower sha!! give prompt noiice to the insurance carrier and Lender. Le~der may make proof of loss if not made promptly ~
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of ~
the Propeny damageJ, proviJed. such re~totation or repair is economically feasible and ihe security af this Mortgage is
not thereby impaired. If such restoration ot repair is not economically feasible or if the ucurity of this Mortgage would
be impaired, the insurance procoeds shall be applied to the sams secured by this Mortgage. with the excess, if any. paid ~
to Borrower: !f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from ihe ~
date notice is mailed by I.ender to Borrower that the insuranee carrier otiers to settle a claim for insurance bCnefits, Lender `
is authoriud ta collect and apply the insurance proceeds at Lender's option either to restoration or repair of tt~e Property
or to the sums secured by this Mortgage. -
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to prine+pal shall not extend F
or postpone ~he due date of the monthly installments~ referred to in Paragraphs 1 and 2 hereof or change the amount of
such installmtnts. If under paragraph 18 hereof the Property is acquired by l.ender, all right, tide and interest of Borrower
in and to any insurance p~licies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acquisition shall pass to Lender to the.extent of the sums secured by this Mortgage immediately prior to sueh sale or
acquisition. .
6. Prrxrvation aad Maiatenance of Property; Le~seholds; Condominiums; Planned Uait Devdopmenfs. Borrowet ~
shall kcep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a Icasehold. If this Mortgage is on a uRit in a
condominium or a ptanned unit development, Borrower shall perform all of Borrower's obligations under ~he deciaration
or covenants creating ot governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit development, and constituent documents. It a condominium or planned unit cievelopment =
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agrcements of such ridu r
shall be incorporated into and shall amend~and supplement the covenaots and agreements of this Mortgage as if the rider ~
were a part hereof. ~ ~
7. Prolection of I.eader's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenceJ which materially afTects Lende~'s interest in the Propeny. ~
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~
bankrupt or decedent, then Lender at Lender's option, upon notice to ~Borrower, may make such appearanca, disburse such . ~
sums and take such action as is necessary to protect l.ender s interest, including, but not limited to. disbutsement of
reasonable attomey's fees and entry upon the Propcrty to make repairs. If Lender requircd mortgage insurance as a
condition .of making the toan secured by this Mortgage, 8orrower shall pay the premiums required to maintain such
insurance in tffect until such time as the reyuirement for such insurance terminates in accordance with Borrower's and
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