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UNIFOAM COVBNANTS. Borrower and Leader covenAnt and agra u fotlows:
l. Pa~rmed of hinclpal aod IMeeest. Bormw~ shali p~omptly pay when due the principal of snd interest on the
iadebtodneu ovidenced by the Note. prepaymeat and late chu~es as provided in the Note. and the priacip~l of and interest
on any Puture Advaaces secured by this Mo~t~a~e.
Z. .Read~ to~ Tu~s and loara~ce. Subject to applicable law or to s writtea waiver by Lender. Hotrower shaU pay
to L.ender on the day monthly installmeots of priacipal and interest are payable under the Note. until the Note is paid in lull.
a aum (herein "Fund~'~ equal to w~atwelfth of the yearly taues and assessments which may attain priority over this
Mort~ag~, a~d gmuad renb on the Property, if aay. plus onatwelfth of yeuly premium installments for hazard inaurance,
plus oae-twelfth of yearly premium instalfinents for mortgsge inaurance, if any, all as reasonably estimated initially aad from
time to time by L.ender oa the basis of a~sewnents and bilh and reasonable estimates tlxrcot.
The Funds shalt be held in an institution the deposits or accounts of which are i~sured or gwranteed by a Federal or ;
state agency (including Lec~der if Lender is auch an iastitution). l.ender ahali apply the Funds to pay said taues, sssessments.
insuranca prcmiums aad ground rents. Lender may not chuge for so holding and applying the Funds. analyzing said acoount,
or ve~fyin~ and compiling said assessments and billa, unless Leader pays ~orrower interest on the Fu~ds and applicable law
permits Lender to make such a cha~ge. Borrower and Lender may agree in writing at the time of execution of this
. Mongage that interest on the Funds shal! be paid to Borrower. and unless sucfi agreement u made or applicable law
requira such interest to be paid. Lcoder shall not be required to pay Borrower any interest or earnings on the Fuads. Le~der a
shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the .
purpose for which eac6 debit to the Funds was madc. The Funds arc pledged u additional securiry for the sums secured
by this Mortgage. '
If the amount of the Funds heM by Leader. together with the future monthly installments of Funds payabk prior to
the due dates of taxes. assessmeats, insuraace premiums and ground rents, shall eacceed the amount rcquirod to pay said taxa.
assessments, insuranee premiums and ground nnts as they fall due. such excess~shall be, at Borrower's optio~. either
protnptly repaid to Borrower or _credited to Borrower on monthly installments of Funds. If the atnount of the Funds
held by Leqder shall not be suf6cieat to psy taues. aasessments. insurance premiums and ground rents as they fall due.
Borrower shall pay to I.ender any amount naessary to make up the deficiency within 30 days from the date notice is mailed j
by l.ender to Bormwer rcquating paymen! thereof. . i
Upon payment in full of all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Funds
heW by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by L.ender. any Funds held by
Lender at the time of application as a credit against the sums secured by ihis Mortgage.
3. Applk~ion of Parments. Unless applicable law provicks otherwise, all payments received by Lender under ttie
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and ther. to interest and
principal on any Future Advances.
4. Charae~ Lk~. Botrower shall, pay all taxes, assessments and other charges, fines and impcuitions attributable to ~
the Property which may attain a priority over this Mortgage. and leasehold payments or ground nnts. if aay. in the manne.r ;
provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, wt~ due. direcdy to the ~
payce thec+eof. Borrower shall promptly furnish to Lender all notices of amounfs due under this paragraph. and in the eveat '
Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. 3
Bonower 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 shall agree in w~riting to the payment of the obligation secured by
suc6 fien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforc~ment of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or [odeiture of the Property or any part thereof.
S. Hazard Iasurance. Borrower shall keep the improvements now existing or hereafter erected on the Property iasured
against loss by fire. hazards included within the term "extended coverage", and such other hazards as _Lender may nquire
and in wch amounts and for such periods as Lender may require; 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.
"I~e insurance carrier providing t6e insurance shall be chosen~ by Borrower 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, directly to the
'f insurance carrier.
E All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
[ ciause in favor of and.in form acceptable to Lender. Lender shall. have the rig6t to hold the policies and renewals thereof,
; aad Bbrrower shall piomptly fumish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
` Bortower shall giv~ prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower. •
Unless Lender and Bonower otherwise agree in writing, i~surance 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 ~ot economically feasible or if the socurity of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the exce~. if any. paid
to Borrower. If the Property is aba~don~ by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is maited by Lender to Borrower that the insurance carrier of~ers to settle a claim for insuraace benefits, I.ender
is aut6orized to collect and apply the insuraace proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage. ~
Unless Lender and Borrower othemise 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 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof-the Property is acquired by L.ender, all right~ tide and interest of Borcower
in aod to any insi~rance policies and in aod to the proceeds thereof resulting from damage to the Property prior to the sale ;
or acquisition shall pass to Lender to the extent of ihe sums secured by this Mortgage immediately prior to such sak or -
acquisition. _
6. Preserratioa and Aiainteaance of Properly; Le~eholds; Condominiums; Planned Unit Devebpments. 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 provisious 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 obligatioas under the declaration
` or coveaants creating ot governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, and constituent documents. If a condoroinium or planned anit- development
~ rider is executed by Borrower and recorded together with this Martgage, the covenants and agrcementa of such rider -
~ shall be incorporated imo and shall amead and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof. • ;
~ 7.. Protection of Leode~s Security. lf Borrower fails to perform the covenants and agreemenb contained in this :
Mortgage, or if any action or proceeding is commenced w•hich materially affects Lender's interest in the Properiy, ;
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
~ bankru t or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
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sutns and take auch action as is necessary to protect Lender's interest, including, but not limited to. disbursement of
reasonable attomey's fecs and entry upon the Property to make repairs. If Lender required morigage insurance as a
condition of malcing the loan secured by - this Mortgage, Borcower shall pay the premiums required to maintain such ;
~ insurance in effect until such time as the rcquirement for such insurance terminates in accordance with Bortower's and
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~ . ~ ~~P~ ~02 ; 58
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