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UNtPO~tt?t CovEN~N~rs. Borrower and Le~de~ covenant and agrce as tollows:
1. Paymeot ot P~lacipd aad laferest. Boreowe~ shall p~omptly pay when due the principal ot and interest on the
indebtedneu evidee±ced by the Note. prepayment and late charges as provided in the Note, a~d the principal of and intercst
on aay Futuro Advances securcd by this Mortgy~e.
S. Fbad~ to~ Ta:es aad lawranca Subject to applicable law or to a written w~iver by I.ender. Borrower shall pay
to I.ender on the day monthly instaliments of principal and interest are payable uoder the Note, until the Note is paid in full,
a:um (he~ci~i "Funds") equsl to ono-twelfth of the yearly taxes and asscssments which may attain priority over this
Mortgage, and ground renta on the Pmperty, if any. plus onatwelfth of yearly premium . installments for ha~ard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and tmm
timc to time by l.ender on the basis of assessments and bilis and reasonablc estimates thenwf.
'il~e Funds shall be held ie an institution the depoaits or accounts of which are insured or guara~toed by : Federal or
state agency (including Lender if Lender is such an institution). I_e~der shall apply tbe Funds to pay said taxes. asstssments,
insurance prcmiums and grouad rents. l.ender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicablt law
permits Lcndcr to make such a charge. Borrowcr and I.ender may agree in writing at the timc of rxecution ot thls
Mortgage that interest on the Fun~s shall be paid to $orrower, and unless such agrcement is made or applicable law
requires such interest to be paid, Lender shall ~ot be rcquired to pay Barrower any intercst or earnings on the Funds. Lender
shall give to Borrower, without charge, an unnual accouotina of the Funds showing credits and debits to the Funds and the `
purpou f~r which each debit to the Funds was made. The Funds are leci '
p ged as addition3l security for the sums secured _
by this Mortgage.
If the amount of the Funds held by Lc~der, together with thc future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount requircd to pay said taxa. -
assessments, insurance premiums and ground nnts as they fa{I due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. ~ If the amount ot the Funds
held by Lender shall not be sutTicient to pay taxes, assessments, insurance premiums and ground rents as they fatl due,
Borrower shatl pay to Lender any amount necessary to make up the dehciency withia 30 davs irom the date notice is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums secured by this Mortgage. Lcnder shall promptly refund to Borrower any Funds
held by L.ender. if under paragraph 18 hereo[ ~he Property is sold or thc Froperty is othervvise acquired by Lender, Lender
shatl appty, no later than +mmediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit agamst the sums secured by this Mortgage.
3. Appticatlon of Payments. Unless applicable IaN~ provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by (.cnder first in payment af amounts payable to Lender by Borrower
under paragraph 2 hereof, thea to interest payablc on the Note, then to thc principal af the Note, and then to interest and
principal on any Future Actvances.
a. Charges; Lkas. Bvrrower shall pay all t:~xcs, asscssments and olher charges, fines and impositions attributable to
the Propeny which may attain a priority ovcr this Mortgage. and leasehold payments or ground rents. if a~y. in the manner
pcovided under paragraph 2 hereof or, if not paid in such rr~anner, by Borrower making p~yrnent, when due, dirccdy to the
payee theteof. Borrower shall promptly furnish to Lender all notices o[ amounts due under this puagraph, and ia the event
Borrower shall make payment directly, Borrow•er shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien N~hich has priority over this Mortgage; prnvided, that Horrower shall not be
reqe~frtd to discharge any such lien so long as Borrower shall agres in writiqg to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enfo~cement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture'of the Rr~riy or any part thereof.
S. Hazard Inwrance. Borrower shall keep the improvements now• existing or hereafter erected on the Propeny ieuured
against toss by fire, hazards included withirt the te~m "extendeJ coverage", and such other hazards as L.ender may require
and in such amounts and for such periods as Lender may reyuirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pa} the sums secured by this Mortgage. "
'Ilte insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided.
that sucn approval shall not be unreaso~ably wiihheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Bonower rr?aking paymeat. when due, dirocdy to the ~
insurance carrier.
AI[ insurance policies and renewals thereof shall be in form acceptable to Lender and shal) include a standard mortgage
clause irt favor of and in form acceptable to Lender, Lender shal! have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender a!1 renewal notices and all receipts of paid premi~ms. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Ioss 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 Property damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economicaily feasibte ar if the security of this Mortgage would
be impaired, the insurance proc;eeds shal! be applied to the sums secured by this Moctgage, with the exeess, 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 l.ender to Borrower that the insurance carrier often to settle a claim for insurance benefits. Lender
is authorized to collect and apply t6e insurance prooeeds at Lender's option either to restoration or repair of the Property
or to the surres secured by this Mortgage.
Unless Lender and Borrower otherwix agree in writing, an}• such application of proeeeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
such installments. !f under paragraph l8 6ercof the Property is acqu+red by Lender, all righ~, title and int~rest of Borrower
in and to any :nsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Leoder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservatfon and Maintenance of Property; Leaseholds; Condominiams; Plsnned Unit Devebpmeots. Borrower
shall keep the Property in geod 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 leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declarat+on
or Covenants creating or governing the condomenium or planoed uoit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. )f a condominium or planned unit development
rider is executed by Borrower and recorded together with ~his Mortgage. the covenants and agrcements of such rider -
shall be incorporated into and s6a11 amend and supptement the covenants and agreements of this Mortgage as if the rider
w•ere a part hereof.
7. Protect~on of Lender's Security. If Borrower fails to perf~rm the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenceJ which materially affects Lender's interest in the Property.
including, but not limited to, eminent domain, insofvency, code enforcement, or arrangements or proceedings involving a
bankrupt or deccdent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary ta protect Lender's interest, including, but not limited to, disbursement of
rcasonable attomey's fees and entry upon the Propert}~ to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured b~~ this 111ongage, Borrow•er shatl pay the premiums required to maintain such
insurance in effect until such time as the reyuirement for such insurance terminates in accordance with Bormwer's and
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