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UNIFORM COVENANTS. BOrrowC~ antl l.2ndCr CuvCO~nt and agrCt as follows:
1. l~ymeef ot Priaclpd sad laleresl. H~xmwer ~hell p~ompily p:~y when due the principal ~f bnd interes! on the
~adebte+dnets evidenced by the Note, p~cpaymrnl and latc ch:~rg~~ a+ ~ruvided ~n the Notc, and the p~incipal of and ~nteresl
on any Future Advanrrs secured by th?s Mortgagc.
2. F~eds for Tues and lawraace. Subjec~ to appli~:,blc law ~~r ~o a written wa~ver by l.ender. 8orrower shall pay
to [.ender on the day monthly installmen~s ot principal and inirrc.~ arc p~yablc undcr thc Note, untii the Note is paid in full.
a:um (hercin "Funds") equal to one-twetfth ot the yC:IfI\ ta~~. anJ acsescmen~c which may attain priority aver this
Mortgage, and gro~r~d rents on the Propcrry, if any. plus one-twrl(th .~t yearly premium i~stallmsnts for hazard insurance.
plus one-twelfth of yearly prcmium installmen~s for mortgagc insurancc. ~f any, atl as reasanably estimated initially and from
time to time by l.ender on the basis of asses~mrnt~ ~nd h~lls end rea~una6le es~imatec the~eof.
The Fu~ds shall be held in an instiwtic?n thc depocu+ or arcuunts ot which arc insured or guaranteed by a Fcderal or
state agency (including Lender if Lender is such an imtitutionl. I.ende~ ~hall apply the ~unds to pay said taxes, assessments,
insuranee premiums and ground rentc. 1 rnder may not charFte tor so holding and applying the Fundc. analyxing caid accc~unt.
or verifying and compiliog said assessme~ets anJ hills, unless t.ender pay~ 8orrc~wer in~erest on the Funds and applicable lav?•
permits Lender to make such a charge. Horrower and 1_ender may agree in writing at tM; time o( execwiun ot this
Mortgage that interest o~ the Funds shall hc paid to Borrower, and unless such agreemcnl is made or applicable iaw
requires such interest !o be paid, Lender shall not ~e rcquirecf t.~ pay Bo~rower an~ interest ar earnings on the Fu~ds. 1_ender
shall give to Borrower, without charge, an annual accourtting of the Funds showing credi~s and debi~s to tht Funds and the
purpox for which tach debit to the Funds was made. The Funds are pletlged a~ additional securi~~• for the sums secured
by this Mortgage.
If the amount of the Funds hcld by LenJer, together with thc future mvothly inslallmentc of Fundc p•ryable prior to
tbe due dates of taaes, assessments~ i~surance premiums and ground rents, shall exccecf the amouot reyuired to pa}' said taxes,
assesaments, insu~ance premiums and grou~d rents as they fall due. such excess shall be, at Bnrrower's option, either
pranptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If Ihc amount of the ~unds
hdd by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they (all due.
Borrower shall pay to Lender any amount nocessary to make up the deficiensy within 30 days irom the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upoa payment in full of all sums secured by this Mortgage, l.eoder shatl promptly refund to Borrower any Funds
held by [,ender. I[ under paragraph 18 hereof the PropeRy e. sold or thc Property is otherwise acquired by l.ender, i_ender
shal! apply. no laler than itnmediately prior ~o the sale of the Propeny or its acquisrtion hy Lender, any Fu~ds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatioa ot Paymeats. Unless applicable law provides otherwise, alt payments received by l.eoder under ihe
Note and paragraphs t and 2 hereof shall be applied by I.ender first i~ payment ot amaunts payable to Lcnder by Borrower
under paragraph 2 henof, then to interest payable on the No~e, then to the principal o( the Note, and then to interest anJ
principal on any Future Advances.
4. Charga; I3e~. Borrower shall pa~r all t•rxcs, asscssments and other charges, fines and impositions attributable to
the PropeRy which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
pr~nvidod under paragraph 2 hereof or. if not paid m such manner, by Borrower making payment, when due, diroctly to ihe
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this parasraph, aad in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prio~ity over ~his Mortgage; provided, that Borrower shall not be
reQuind to discharge any such lien so long as Borrower shall agree in writing to the payment of tht obligation secured by
such lien in a manner acceptable to Lender, or shall in gcx~d faith contcst such lien by, or defend enforcement of such iien in.
legal proceedings which operate to prevent the cnforcement of the lien or [orfeiture of the Property or any part thereof.
S. Hwrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fiPe, ha~ards included within the term "extended coverage", and such other haurds as Lender may require
and in such amounts and for such periods as Lender may requirc: provided, that Lender shall not require that the amount of
such coverage exceed that ~amount of coverage required to pay the sums secured ~by this Mortgage.
'IDe insuranct carrier providing the insurance sha!! be chosen by Borrower subject to approval by Lender. provided,
ihat 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.
Ali insurance polic+es and rencwals thereof shall be in form acceptablr to Lender and sfiall include a standard mortgage
clause in favor of and in form acceQtable to l.ender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shafl promptly furnish to Lender alf renewal notices and all receipts of paid premiums. ln the event of loss,
Borrower shall give prompt notice to the insurance carner and (_ender. Lender may make proc~f 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
1he Property damaged, provided such restorat~on or repair is economically feasible and the security of thic Mortgage is
not thereby impaired_ If such restoration or repair is not ecunomically feasible or ;f the security of this Mangage w~~uld
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Propen~~ is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days (rom the
date notice is mailed by Lender to Borrower that ~he insurance carrier oflers to settte a claim for insurance benefits, Lender
is authorized to cotlect and apply the insurance proceeds at Lender's option either to restoration or repau of ihe Propem~
or to the sums secured by this Mortgage.
Unless Lender and Borrower othervvise ag~ee in writiog, an~• such application of prckeeds to pnncipal shall not extend
or postpone the due date of the monthly instatlments rcfcrred t~~ ~n paragraph~ ! and 2 hereof or change the amount of
suc6 installmeuts. If under paragraph 18 hereof the Property is acquired by l.ender, all right. title and interest of Bormwer
en and to any i~uurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediatety prior to such sale or
acquisition.
6. Preservatioo and Maioten~nce of Yroperly; Ltasehulds; Condominiums; Ptanned Uuit Devebpments. Borrower
sha11 keep the Property in good repair and shall not comroit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortg:~ge it on a leaschold. If this Mo~tgage is on a unit in a
condominium or a planned unit development, Borrow•er shali perform att of Borrower's obligations under the declarati~~n
or covenants creatiag or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit development, and ronstituent documents. I( a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mongage, the covenants and agreements of such rider
shall be incorpotated into and shall amend and suppicment the covenants and agreements of this Mortgage as if the riJer
were a part hereof.
7. Protection of Lendtr's Securily. If Borrower fails to perform the covenants anJ agreements contained in this
Mortgage. or if any action or proceeding ~s commenced which materially afiects Lender's interest in the Property.
including, but not limited to, emine~t domain. insolvency, ccxie e~forcemenl, or arrangements or proceedings invol~~ing a
bsnkrupt or decedent, t6en Leader at !_ender s option, upon notice to Borrower, may~ make such appearances, disburse such
sums and take sueh aetion as is n~eessary to protect Lender s~nterest, including. but not limited to, disbursement of
reatonabk attorney's fees and entry upon the Property to makc rcpairs. If I.endcr reyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. B~rrower shail pay the premiums required ta maintain such
insurance in efiect until such time as the requirement for such insurance terminatcs in accordarxe with Bormwer s and
50'~~l~( 29~ PAGE 069 E
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