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UNttfcut?t CovartAt+7a. Borrower and Leader covenant and agroe as follows:
1. hynteat of lritciptii a¦i LMersef. Borrower shall protptly pay when due the principal of sad interest oa the
iadebtedaese evidenced by the Note, prepayaneat sad late charges s: provided in the Note, and the principal of and interest
oa any Puturo Advattoes secttrod br this Mortgage. Borr+awer sltap Pay
. lht~is for '1'aaea aatl lrwsoea Subject to spplkabk law or tD a written waiver by Lettder,
to Lender on the day raoathly iauallmenb of principal and interest are payable uadar the Note, anti! the Note is paid is full,
a sum (heroin "PunRM"j equal to oae•tweNth of lire yearly taxes and auesaments which troy attain priority over this {
Moryage, and ground rattb oa rite Pteporty, it my, plus one•tweUth of yearly premium iauallatenb for hazard insurance, i .
plus one-twelfth ~ yearly premium installtnenb for mortgaja ittstrrartce, if nay, all as ressonably estitnatod initially and from
lima to time by Leader oa tbo basis of assessmenb and bilb and reasonable estimates thereof. '
The Funds shaft be held Ia an iaaHtution the deposib or aceouab of which aro inwred or guaranteed by a Pederal of =
sate agency (ineluding Leader if Lender b such as inaitution). Loader shall apply the Funds to pay said taxes. as:canvenb,
iasurutos premium: and ground [eats. Loader may.not charge for so Noldiag and applying the Funds, analyzing said account,
or verifying and compiling said assasmeab and bilb, unless Leader pays Borrower interest oa the Funds and applicable law
pt3rmib Cantle[ to make such a charge. Borrower and Lender may agroe in writing at the ,time of execution of tha ;t
Mortgage that interest on the: Funds shall be paid to Borrower, and unless such agreement s mule or applicable law `r
requires such intetostso be paid, Loadar:ball pot be required to pay Borrower any interest or prniagt on the Funds. Leader
shall give w Borrower, without char~o. as annual aooouating of the Funds showing credib and debib to the Fund: and the
purpose for which each debit to the Funds was made. Tha Funds are pledged u additional security for the sums secured
by this Mortgage.
U the amount of the Funds held by Lender, together with the futuro monthly installmenu of Funds payable prior to
the. due dates of taxes. assessment:. insurance premiums and ground teats, shag exceed the amount roquired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due. such excess shall ~ be, at Borrower's option, either
praaptly repaid to Borrower or credited to Borrower oa monthly installments of Funds. If the amount of the Funds
heW by Leader shall not be wlBcient to pay taxes, asstsstnettts. insurance premiums and ground rents ss they fall du0.
Bomowet shall pay to. Lender any amount necessary to make up the deficiency within 30 days from the date notice b mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. lender shall promptly refund to Borrower any Fund:
held by Leader. If under paragraph 18 hereof'tbe Property is sold of the Property is otherwise acquired by Lender,-Lender
shall apply, rro later than immediattly prior to the sale of the Property or its acquisition by Lender, any. Funds held by
Leader at the time of application at a credit against the sums secured by this Mortgage.
3. Appiieatioa of Psyateab. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payab~ti to.Letr~er by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the' Mote; anti then to interest and
principal on any Futuro Advances. ~ ~ "
4.~ Ctsargefi Liens. Borrower shall pay all taxes, assessments and other slrarges: floss sad impotitiiltb attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground ~ronb, i# at>)r, is tie manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making pymeat, whtet,Qtte. dirxtty to ~
payee thereof. Borrower shall promptly furnish to Leader all notices of aanouttb due under this paragraph, sad in the event
Borrower shall make payment directly. Borrower shall promptly furaa6 to Lender receipts evidencing such payments.
Borrower shall promptly discharge nay 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 writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest sash lien by, or defend enforcement of such lien le.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or soy part thereof.
S. $azua Iasmastce..Borrower shall keep the improvements now existing or hereafter erected on the Property inwred
against lost by Ere, hazards included within the term "extended coverage", and wch other hazards as Lender may require
and in such amounts and for such periods as Lender may roquire;~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.
'Ibe insurance carrier providing the insurance shall be chorea by Borrower wbject to approval by Lender, provided,
that such approval shall not be unreasonably: withheld. All premiums on insurartee policies :hall 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
inwraace cattier.
All iawrance policies and renewab thereof chap be in form acceptable to Lender and shall include a sandard mortgage
clause in favor of sad in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give ~ompt rt_ol;ce to the insurance carrier and Lender. Lender may make proof of loos if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agrce 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 unpaired. If such restoration or repair is not economically feasibk~ar if rho security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. Tf the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
~ _ date notice is mailed by Fender to Borrower that the iawranct carrier offers to settle a claim for insurance berxfits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option .either to restoration or repair of the Property
or to the wms sxured by this Mortgage.
~ Unless Lender and Borrower otherwise agrce in writing; any such application of proceeds to principal shall not extend .
i 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 pangrap6 18 bereaf the Property is acquired by Leader, all right. title and interest of Borrower
in and to any insurance pdicita and in and to the proceeds thereof resulting from damage to the Property prior to tbe sale
€ or scquisitioa shall pass to Leader lo. the extent of -the sums secured by this Mortgage immediately prior to such sale or
acquisitioh.
€ f. h+atrvstioe and Maioteaaoce of Property; I.etrsehold~ Coadomiaioms; Plsaaai Udt Derdopments. Borrower
t shall keep the Property in good repair and shall not canmit waste or permit impairment or deterioration of the Property
and shag 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 declaration
or covenants creating or. governing the condominium or planned unit development, the by-laws and regulations of the
condominiwn or planned unit development. and constituent documents. If a condominium or planned unit development
rider is. executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
ahaU be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
- wen a part hereof. -
7. Protection of Leader's Secs+rlty. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. insolvency, code. enforcement, or arrangements or proceedings involving s
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances. disburse such
sums and take such action as is necessary to protect Lender': interest. including. but not limited to, disburseatent of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance ss a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain arch
insurarxx in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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