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UNIFORM COVBNANTS. Borrower and Leader covenant and agree as follows:
1. Paymeat of Pdaclpal and Lete~af. Bor.rowe~ shall promptly pay when due the principal of and interest on the
iadebtedriess evidenced by the Note. prepaytnent and late eharges as p~ovided in the Note, and the principal of a~d intercst
on any Future Advances secured by this Mortgage.
2. Fnad~ tor Ta~[es aad Iuwr~oce. Subject to applicable law or to a writlen wsiver by I.ender, Borrower shall pay
to Lender on the day monthly installmeots of priacipal and interest are payable under the Note. until the Note is paid in fuU.
a:um (herein "Funds") equal to one•twelfth of the yearly taxes and assessments which may attain priority ove~ this
Mortgage, and ground renta on the Pmperty. if any. plus one-twelfth of yearly premium installments for hazard i~surance.
plus one-twelfth of yearly premium instaUmeota for mongage in:urance, if any. all as rcuonably estimated initially and from
time to time by ~ender on the basis of assessme~ts and bills and reasonable estimata tt~ercof.
'il~e Funds shatl be held i~ an institution ihe depoaits or accou~ts of which are insund or guarantad by a Federal or
state agency (i~cluding Lender if I.e~der is such an iastitution). Lender shall apply the Funds to pay said tazes. assasmeats.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing aaid account,
or verifying and compiling said assessmenta and bills, unless Lendsr pa~~s Borrower interest on the Funds ac~d applicable law
permits Le~der to make such a charges. Borrower and l.ender may agree in writing at the time of execution of this
Mortgage that interest on the Fuads shall be paid to Borrower. and unless such agrcement is made or applica~le law
requircs such interest to be paid. Ler~der shall not be roquired to pay Borrowe~ any interest or earni~gs oa tt~e Funds. Lender ~
shall give to $orrower, without charge. an annual accounting of the Funds showing c~edits and debits to the Funds and the
purpose for which each debit to the Fuads was made. The Funds are plodged as additional socurity for the sums secured
by this Mortgage.
If the amount of ihe Funds held by Lender, together with the future monthly installments of Funds payabfe prior to
the due dates of taxes. assessments. insurance premiums a~d ground rents, shall exceed the amount requircd to pay said taxes.
assessments, insurance premiums and ground rcnts as they fall due, such eacess shall be, at Borrower s option. either
promptly repaid to Hornower or credited to Borrower on manthly installments of Funds. If the amount of the Funds
hefd by Lender shall not be sutficient to pay taxes. assessments, insurance premiums aod ground rents u they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date nutice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in fuU of-all sutns s~:cured by this Morlgage, l.ender sl~all promptly refund to Borrower any Fnnds
held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is othervvise acquired by Lender. Lender
shall apply. no Iater than immediatcly 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 against the sums secured by this Mongage.
3. Appllcatioa of Payments. Unless' applicable law provides othen~~ise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Bortower .
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of tfie Note, and then to interest and
principal on any Future Advances.
4. CLarges; Lkns. Borrower st~al! pay all taxes, asscssments and other charges, Anes and impositions attributabk to
the Property which may attain a priority over this Mortgage, and leaschold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such rnanner, by Borrower making paymeat, when due. directly to the
payce thereof. Borrower shall promptly furnish to L.ender all notices of amounts due under this paragraph, and in the event-
Borrower shall make payment directly, Borrower shall promptly fumish to Lender receiRts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shal! agree in writing 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 enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insuranee. Borrower shall keep the improvements now e!cisting or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of ~
such coverage exceed that amount of c~verage required to pay ihe cnmc ~ec~~red hv ~h~e MortQage. _
The insurance carrier providing the insurance shall be chosen by Borrovver 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
provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, direcdy to the
insurance carrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
; clauu in favor of and in forrn acceptable to Lender. Lender shall have the right to hold the policies and renewals thercof,
f and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid prtmiums. 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.
Ualess Lender and Borrower othemise 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 Mongage is
not thereby impaired. If such restoration or repair is not economicaUy feasible or if the security of this Mortgage would .
be impaired, the insurance proceeds shall be applied to the swns secured by this Mortgage, with the excess, if any. paid
i to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender wit6in 30 days from the
date notice is mailed by L.ender to.Borrower that the insurance carrier offers to settle a claim for insurance benefits, I.ender
is authorized to collect and apply the iosurance proceeds at ~ender's option either 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 I and 2 hereof or change the amount of
such installments. [f under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Borrower
~n and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to ihe sale
~ or acquisition shall pau to Lender to the cxtent of the surtu secured by this biortgage immediately prior to such sak or
~ acquisition.
6. Preservatloa and t~i~intenaace of Pmperty; Leaseholds; Condominiums; Planned Unit Developmenfs. Borrower
~ shall keep 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 leau 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 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 clocuments. If a condominium oc planned unit development '
~ rider is executed by Bor~ower and recorded together with this Mortgage, the covenants and agreements of sueh rider
~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
s were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
! Mortgage, or if any' action or proceeding is commenced W~hich materially afiects Lender's interest in the Property,
~ including, but not limited to, eminent doma~n, insolvency, code enforcement, or arrangements or proceedings involving a
; bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, ma}• make such appearances, disburse such
Y sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disburxment of
~ reasonable attorney's fecs and entry upon the Property to make repairs. If Lender required mortgage insurance as a
~ condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ;
~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and '
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