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UNtlORM COVBNA!lT:, Horrower and Lender covenant and a~ra u[ollows:
1~ ~M et hic~1 a~i idenN. Bo~rowe~ shall ~xomp~ly paY when due tl~e principal of and intercst a+ the
it~debtednat evideaced by the Nde. Prepayment :nd late char~es ac ~+rovided in ~he Note. aod the principal ot and ioterest
on aoy Future Advanca securod by this Mort~aae.
2. ttiMt tor Tasa a~i l~aeaKY. Subject to applical+k law ar to a written waive~ by Lender. Borrower shall pay
to Lender on the day maithly installments of principal and intcrc~l rn payaMc under the Note, unt+l the Note is paid in full.
• sum (be~ein "Fund~'~ equal to ono-twelfth o( the pea~l~~ ~a~?~~ anJ usessments which may attain priority over this
Mo~a~e, and ~round reoa on ~he ~openy, if any. F+lus one-tweltth of yearly premium installments for huard insura~ce.
plus oae-twelfth of yqrly premium installments for mortgage insunncc. iI any, all as rcssonably estimated i~iti~lly and tronn
time to time by Lender oa the basis of asxscmcn~s and hills and rcasonabk atimates thereof. _
The Funds shall ~e held in an institution the deposita or accounts of which arc inwred or gwranteed by a Federal ot
state a~ency (includina Lender if Lcnder is such an institution). 1_ender shall apply the Funds to pay uid ~axa, sssessments.
insuranoe premiums and ~rouod rcnts. I.ender may na cAarge tor so holding and~applying the Fi~nd~. analyzing said account,
or verifyin~ and compling said assessmenu and bills, unkss l.ender pays Borrower interat on the Funds and applicable law
permits I.ende~ to make such a ch,srge. Barrower and Lender may agrce in writina at the time o( execution of this
Mort~aje tbat interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires wch intercst to be paid. Lender shall no1 be required to Pay Borrower any interest or earni~gs on the Funds. l.ender
sl~al) 6ive to Borrower, without charge, an annual accounting of the Funds showing credits aad debits to the Funds and the
purpose for which wch debit to tbe Funds was made. The Funds are plodged u additional security for the sums secured
by thi: Monsage.
If the amount of tbe Fut~ds hdd by Lender, together with the future monthly installments of Funds payaDk prior to
the due dates of tues, asseasments, insurance premiums and ground rents, shall exceed the amount required to pay said taxa,
assdtments, insurance premiums and ground rents as they fall due, such excess shall be. at Sorrower s option, either
pranptly repaid to Borrower or crediled to Borrower on monthly installments of Funds. If the amount ot the Funds
beld by Leoder shall not be suRicient to psy taxa. assessments, insurance premiums and ground rcnts as they fall due,
Borro~ve~ st~all pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thercof: -
Upon paytnent ia full of all sutna secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by Lender. If unda puagraph 18 hereof the Property ia sold or the Propeny ~s otherwise acquircd by Lender, Lender
s6a11 apply. no later than immediately prior to the sale of the Property or i~s acquisition by Lender, any Funds held bv
Lender at the time of application as a crcdit against the sums secured by this Morigage.
3. A~pi~catio~ oi Paya~e~tr. Unless applicable law provides otherwise, all payments received by Lender under the
Note and patagraphs 1 and 2 hercof shall be applied by l.ender first in payment of amounts payable to Lender by Borrower
under parsgnph 2 hercof. then to interest payabk on the Note, then to the principal of the Note, and then to interest and
principa! on any Future Advances.
1. Crar~es; I3e~. Borrower shall pay all taxes, asscs~ments and o~hcr charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner
provided u~der paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thet+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aod ia the event
Borrower shall make payment directly. Borrower shali promptly fumish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in wrihng to Ihe 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 entorcement of the Gen or forfe~ture of the Property or any part thercof.
S. Hazard Iasuraxce. Borrower shall keep the ~mprovcments now existing or hereafter erected on the Property insured
against loss by firc, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require
wd in such amounu 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 Mort6age.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
I that wch. approvat 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, dircctly to the
' insurance carrier.
~ All insurance policies and renewals ihereof shall be in form accepteble to Lender and shall include a standard mortgage
E clause in favor of and in form acceptable to lxnder_ Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal not~ces and ail receipts of paid premiums. in ihe event of loss,
~ Borrower shall give prompt notice to the insurance carrier and l_ender. I_ender may make proof of loss 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 restorauon or repair is economically feasible and the security of lhis Mortgage is
not thereby impaired. If such restoration or repair is not ea~nomically feasible or if the security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the exceu, 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 ~s mailed by lxnder to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
~ is aut6oriud to collect anJ apply the insurance proceeds at Lendcr's option either to restoration or repaer of the Pmpem•
~ or to t6e sums secured by this Mortgage.
~ Unless Lender and Borrower otherwise agree m v?nting, any such application af proceeds to principa) shall not extend
or postpone ~he due date of the monthh~ installmcntc rcferred tu in paragraph~ I and 2 hereof or change the amount of
~ such installmeuts. if under paragraph 18 hereof the Propert} is acyuired by Lender, all right, title and interest of Borrower
~ in and to any tnsurance policies and in and to the proceeds thereot resulung from damage to the Property prior to thc sale
~ or acquisition shall pass to Lender to the extent of the sums secured by th~s t~tortgage immediately prior to such sale or
~ acquisition.
~ 6. Presen•ation and ~faintrn~nce of Property; I.easehulds; Condominiums; Planned Unit Developments. Borrowcr
- shall keep the Property in good repair and shall nat comro~t K~aste or permit impairment or deterioration of the Property
- and shall compt}~ with the provisions of any lease ~f this Morigage i~ on a leaschold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obGgations under the declaratiun
~ or coveaants creating or govern~ng the condominium or planned unit devel~?pment, the by-laws and regulations of the
condominium or planned unit development, and constiwent documems. Ii a condominium or planned umt development
rickr is executed by Borrower and recorded together with ~h~ti Mortgage, th~ covenants and agreements of such rider
shall be ~ncorporated ~nto and shall amend and supplement the co~enants and agreements of this Mortgage as if the rider
" were a part hereof. .
~ 'l. Protection of Lender's Security. If Bormwer fa~l~ t~~ ~xrf~~rm the :covenants anJ agreements contained in this -
~
- Mortgage, or if any action ur proceedmg iti cummrnce:l whi~h materiallti• alTects I_en~fer's ~nteres~ in the Propen}~,
- mclud~ng. but n~~t lim~ted to, eminent domain. ina.lvenr}~, cucie cnf~~rcement. ~.r arrangementc ~,r proeeedings invol~ing a
bankrupt or deceJent. ~hen l.ender at I.ender's opuon, upem no~ice lo Borrower. ma~ make Such appearances, disburse such
~
sums and ~ake such actiun ac is necestiary~ ta prutect Lender's inierest, incluil~ng, but not limited to, disbursement of
~ tt~sonable attorney'~ (ccc and enlry .u~~n ihc Propcrty to makc rcpair~. If 1_rnder rcyiiired martgage insurance as a
condrtion o( makmg thc loan SccureJ by thi~ M~~rtKagc. B~.rru..cr sh.~ll pay thc prcmiums rcyu~red to maintrm such
~ insurance in rtTect until wch time as Ihe rey~nremem for .uch insurancc terminate. ~n ;iccordance with Bormwer's and
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