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Utrtraw Covanan». Borrower and Leader covenant and agree a: follows:
1 Ftpmsrtf of hLdNl tttatl htlsswl. Borrower shall promptly pay when due the principal of and intereq on the
indebtedness svidenoed by tbs Note. pttepaytneat and late charges ac provided in the Note, and the principal aI trod interest
oa soy Futuro Advances second by this Motrtgags.
>ttts>i ter'hatsa ttrti lastt~s~s. Subject to applicable law rx to a written waiver by Lsrtdu, 8orrosrer shall Pay
to Lettdar on the day monthly installments of principal and interest arc payable trndec the Not0. until tlts Note a paid in full,
a sum (hsroin "Funds'q equal to onatwslttb of the yearly taxr~c and assessments which may attain priority oust this
Mortgage. and Sramd tents on tlN Property. it any, plus one-twelfth of yearly prottaium iastalhnenb for hazard inwrartce. t
plus otto-twelfth of yearly ptemittrrt installrtxnts for mortgage insurance, it any, all ss reasonably estimated initially and troan
time to time by Lender on the basis of sssessments and hills and reasonable estimates thereof.
7Le Funds shall be bell in an institution the deposits or :recounts of which aro irtwred or guaranteed by a Federal otr
slats agency (including Leader if Lender is wch an institution). Lender shall apply the Funds to pay said taxes. asseurrtents,
ittsutraaoe premiums and ground rents. Lender may not charge for m holding and applying the Funds, analysing said account.
or verityingand compiling said asseuments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and [.ender may -agree in writing at the time of execution of this I
Mortgage that interest on the Foods shall be paid to Borrower, and unless such agroement is made or applicable law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earrings on the Funds. Lender
stall pus to Borrower, without charge, an annwl accounting of the Funds showing credit: and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by tbu Mortgage.
It the amount o[ the Funds htdd by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. astessrttenta, inwtantx premiums and ground rents, shall exceed the amount required to pay said taxes.
astttasmeat:, insurance premiums and ground rents ss they fall due. such excess shall be, at Borrowers option. either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
bdd by Lender shall not be sutficieat to pay taxes, assessments, insurance premiums and ground rents a: they tall due.
Borroa?er shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requeuing payment thereof.
Upon payment in full of all sums secured by this Mortgage; Lender shall promptly rofund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the PrapErty a. sold or the Property rs otherwise acquired by Lender, Lender
:ball apply, no later than immediately prior to the sale of the Property or ih a~uisision by Lender. any Funds held by
L,eoder at the time of application st a credit against the sums secured by this Mortgage.
3. A~lication of >I~etW. Unless applicable law provides otherwise. all payments rbceived by Lender under the.
Note sad paragraphs 1 and 2 hereof shall be appllcd by Leader first in payment of amounts payable to Lender by Borrower }
under paragraph 2 hereof, then to interest payable pa the Note. then to the principal of the Note. and then to interest and
principal on any Future Advances.
1. Crat=es; Lktss. Borrower shall pay all taxes, assessrents and other charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
payee theroof. Borrower shall promptly famish to Lender all notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts 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 bng as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender. sir shall in good faith contest such lien by, or defend enforcement of such lien in, j
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard lasarawce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loos by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require i
and in such 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 Eby this Mortgage.
The insurance carrier providing the 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 i
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly fumuh to Lender all renewal notices and all receipts of paid premiums. 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.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
j the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. I[ such restoration or repair is not economically feasible or if the 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. 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 Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender }
j is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
I or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree 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 I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the ProFerty is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to rho sale ,
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. PtYServatioo and Maintenance of Property; Leaseholds; Condominiums; Planned Udt Developments. Borrower I
shall keep the Properly in good repair and shall not comrgit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the s
condominium 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
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
i were a part hereof.
i 7. Protection of Leader's Security. If Borrower fails tc? perform the covenams and agreements contained in this
Mortgage, "or if any action ur 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 a
I bankrupt or decedent, then Lender at lender's option, upon notice to Borrower, may mrke such appearances, dishurse such
sums and take such action as is necessary to protect Lender's interest. including. but not limited to. disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. I( I_cnder reyuircd mortgage insurance as a
condition n( making the loan secured by this Mortgage. Bormwcr shall pay the premiums required to maintain such
F insurance in effect until such time as the reyuiremem for such insurance terminates in accordance with Borrower's and
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