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Utv~FORt~ CovEN~Nrs. Borrower and l.eader cuvenanc and ag~~~e ioiiowi:
1. Paymtat ot Pri~c~al and laterest. Burr.~wcr ,hall p?~~mpU~ pa)' Nfirn dur Ihc ptincipat of and interest on the
i~debtedness evidenced by the Note, prepaymcot and latr ch.~r~r. ~ruvi~ted en the Note, and tbe principal of a~d interes~
or~ any Futurc Advances secured by th~s Mor~gagc.
2. Fbnds tor Tues and lasuraate. Subjcc~ to applicahlc law ~a ro;? wriUen W81VCf by l.ender, Borrower shall pay
to l.ender on ~he day monthly installments of principal and.~n~rrr.t arr ~~yaMr undcr thc N~~te, unt~f the Note ~c paid in (uN.
a sum (herein "Funels") equal to onatwelhh o( Ihe yearl~ ia~c. an~l ,ascestmentc Hhirh may attain pnority over ~h~.
Mortgage, and ground rents on 1ht Pmpe~ly, ef any. plus nne-twrU~h ol yearly prcmium installntents tot hazard ~nsuranre.
plus one-twelfth of ytarly premium installmen~s for mortgagc ~nsuranrc, i( any, all a~ rcasonably estimated initially and from _
time to time by I.ender on thc basis ot a~ses~mcnts anJ hills and re.~.unshlr estimates ~hercaf.
The Funds shall be held in an institutian the depc~tiit. e~r ;,rcuunts ot whirh are insured or Ruaranteeci by a Federal or
slate ageney (including Lender if !_ender ~uch an instittnionl. I enJer ~hall apply the Fundc to pay ~aid tares, assessments,
ituurance prcmiums and g~aund rents 1 cndcr nia~• n~~t chargc lur hnlding and apph•ing ~hc Fund~. anal~•~in~ ~aid account.
~ n.__......., F~~ndc ,nd annlicable law'
or v~rifying and compd~ng sa~a assescments anu biii~, unir~~ i.~~~~~~
permits Lender ta make such a cha~ge. &~rrower and l.cnder may agrce in writing at ~hc tinic ot c~ecutiun ut thi~
Mortgage that inlerest on the Fu~ds shall tx ~+:~id to Borruwer, and unless such agr~:ment is made ur applicable law •
rcquires such interest to be paid, l.ender shall not hr reyuired tn p:+p Borrower any interest or earning~ on the Funds. 1_ender
shall give to Borrower, without charge. an annuat arcounting of the F•und~ .howing credi~s and Jehits to the Fund~ and the
purposo ior which each debi~ to the Funds wa~ m•rdc. The i-und~ are pledged a~ additional securit~~ for thc suma secured
by this Mortgage. ~
lf ihe amount oi the Funds held by Lencier, together with thc futurc monthly installmcnts of Funds pa}•ablc,prior to
the due data of taxa, assessments, insurance premiums •rnd eround renb, shaU excced the amount reyu~red to pay aaid taxes,
assesstnents, insurance premiums and ground rents as thcy fall due, surh exce.s shall be, at Borrov?•er's option, ei~her
proenpUy repaid to Bormwer or credited to Borrawe~ on monthly installments of Funds. If the amuunt of [hc Funds
htld by Lender shall not be sutFcient to pay taxes, assecsments, insur•rncc premiums and ground rents as they fall due,
Bortower shall pay to Lender any amount necessary to make up the deficienc}• wilhin 30 days (rom the date notice is mailed
_ by l.ender to Borrower requesting paymcnt thereof. .
Upon payment in full of al) sums secured by this Mortgage, Lender shalt promptly re[und to B~rmwer any Funds
held by Le~der. if under paragraph 18 hercof the Property sold or the Propcrty is otherwise acquired by. l.ender, l.cnder
s6a1) apply. no later than immediately prior to the sale af thr Property or its acquisition hy l.ender, any Funds held by
Lender at the time of application as a credit against the sum~ secured by th~~ Mortgage.
3. Applicatiun of Papmen4s. Unless applicable law~ provides otherwix. all payments received by t_ender un~lrr ~he
Note and paragraphs t and 2 hereof shall be app6ed by l.cndcr first in p:~~ment of amuunts payable to Lrn~cr b}' Borrutier
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, anJ thcn to interest an~f
principal on aoy Future Advances.
4. Chartes; Liens. Borrower chall pay all taxcc. aaestmcnts and othrr chargcs, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and teaschold P•ryments or ground rents, if any, in the manner
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, where due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the event
$orrower shall make payment directly, Borrower shall promptly furnish to Lender rereipts evidencing such payments.
Borrower shall promptly discharge any lie~ which has priarety over this Mortgage; provided, that Borrower shall not be -
rcquercd to discharge any such lien so long as Borrowershall agree in wri~~ng to the payment of 1he obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith conte.~ such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enfurcement of the I~en or (orfeiture of the Property or any part thereof.
~ S. Hazud Insurance. Borrower shall kcep the improvements now cxisting or hercafter erected on the Pmperty insured
' against loss by fire, hazards included with~n the term "crtended roverage", and such other hazards as Lender may reyuire
! and in such amounts and for such periods as Lender may reyuire; provided, that L_enJer shall not reyuire that the amount of
i such coverage exceeci that amount of coverage required to pay the wmt secured ~by this Mortgage.
~ 71~e insurance carrier providing the insurance shal! be chosen by Borrower subject to approval by Lender, provided,
' that such approval shall not be unreazonably withheld. All premium~ 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, directiy to the
insurance carrier.
Atl insurance policies and reneuals ihereof shall be in form acceptable to Len~fer and shall include a standard m~rtgage
~ clauu in favor of and in form acceptable ~o Lender. Lender chall have the right to hold the poli~ies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiumti. In the event of la~s,
Borcower shall give prompt notice to the inwrance carrier rnd i.ender. Lender may make proof of loss if not made prompd~~
by Borrower.
Unless Lender and Borrower othervrix agree in K•~it~ng, insurance proceeds shall be applied ta restoration or repair of
the Property damaged, proviJed such restorat~on or repair is econvmicaUy feasible and the security af this Mortgage ic
not ~hereby impaired. If such restoraticm or repair is not erune~mically frasihle or if the ceeurity of this Mortgage wruld
~ be impaired, the insurance proceeds shall be applied to the sums secu~eJ by this Mongage, with the excess, if any, paid
to Borrower. If the Propert}' is abandoned hy Borrower, nr it Bormwer fails to respond to I_ender within 3U days from the
date notice ~s mailed by Lxnder to Borrower that the insurance carrier offers to setUe a claim for insurance bene6ts, 1_ender
' is authorized to cottect and apply tt?e insurance proceeds at !_ender's optiun either to restoraUOn or repaer of the Pmpert~~
` or to the snnu secured by this Mortgage. ~
' Unless Lender and Borrower othervvise agree in wnting, any such application of prckeeds to pnncipal sh:+ll not e~tend
or postpone the due date of the monlhly installments referred to in parag~aph~ 1 and 2 hereof or change the amount of
; such instatlments. If under paragraph I8 hereof the Property ~s acyuireJ hy l,ender, all right, title and interest of Borr~~wcr
in and to any insurance policies and in and to the proceeds thereof resuh~ng from damage to the Property prior to th~ sale
or acquisition shall pass to L,ender to the extent of the sums yccured by this Mortgage immediately prior to such sate or
acquisition.
6. Preservation and :~taintenance of Properiy; l.easeh~,lds; ('ondominiums; Planned 13nit De~elopments. Borrowcr
shal! keep the Property in good repair and shall not comrpit a•aste or permit impairment or deterioration of the Property ~
and shall comply with the provisions of any lease if this Mortgage ~c un a leasrhold. I( this Mortgage is on a unit in a
condominium or a planned unit Jevelopment, Borrower shalt perform all of Borrower's oblrgations under the dectarate~.n
or covenants creating or governing the condominium or planned unit development, the by-laws and regulationc of the
condominium or planned unit development, and constituent daumentc. If a c~~ndominium or planned unit develapment
rider is executed by Borrower and recorded together Hith this Mortgage, the covenants and agreements of such ridrr
shall be incorporated into and shall amend and supplement thc co~enants and agreements of this Mortgage as if the re.lcr
were a part hereof.
7. Protec6oa of Lender's Stcurity. lf BorroNer fa~ls t~~ ~rform the covenants an~l agreements cuntained in this
Mortgage, or if any action or proceeding is commeneed which materially afiects Lender's interest in the Pro~xny.
including, but not lim~ted to, emment domain, insolvency, code enforeement, or arrangcmems or proceedings invol~•ing a
bankrupt or decedent, then L.ender at (_ender's option, upon notice to Borrower, ma~• make such appearances, dishurse such
sttms and lake such action ac is necessary to protect Lender's imerest, including, but not limited to, disbursement of
reasonablt attorney's_ fees and entry upon thc Property to makc rcpair~. If I.endcr reyuircd mortgage insurance as a
eondition of making the loan secured by Ihis Mongage. Be•rrowcr sh.~ll pay the premiwns reQuired to maintam such
inswance in effect until such time as the reqe~irement for >uch ~nsurance terminates ?n accordanee w•ilh Borrowers and
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