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UNtraut Covttrutvn. Borrower and Letrder covenant and agroe a: fellows:
L hyiatN at hieiNi tttatl hlasrM. borrower shall promptly pay whrn due the principsl of and interest on the
indebtednea evidenood by tbs Note, prepayrrtwtt and late charges ac provided in the Note, and the principd of and interest
oa soy Futuro Advances ,,scared by this Mortgage.
lfani tK 7lsttea tttM ittwrtret. Sltbject to applicable law rx to a written waiver by Lender, Bortower shall pay
to Lender on the day monthly installrrtents of principal and interest arc payable under the Note. until Ilre Note is paid in full,
a sttm (herein "Fundt'q equal to one-twdtW of the yearly tax« and assessments which taay attain priority over this '
Mortgage, turd ground rents on the Property. it any, plus ottatwelfth of yearly premium installments for hazard insurance,
plus Otte-twelfth of yearly premium irtstallrrrents for mortgage insurance, it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaanteed by a Federal of
tttate agency (including Lender if Lender is such an institution!. 1_ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. lender may not charge for so holding and applying the Frrnds. analyzing said account.
or verifyinssnd 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 Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds :hall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall nd be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annwl accounting of the Funds showing credits 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 the Mortgages.
lE the amount of tbe~ Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, ataessmeots, inwranoe premiums and ground rents, shall exceed the amount required to pay said taxes.
astrtatmeats, insurartce~ premiums and ground rents as they tall due. such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
heW by Lender shall trot be wit to pay taxes, assessments, iruurance premiums and ground rents ss they fall due,
Bormwer shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, !.ender :hall promptly refund to Borrower any Funds
heW by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
chap apply. rte later Wan immediately prior to the sale of the Property or its acquisition by Lender. any Funds held. by
Leader at the tithe of application ss a credit against the sums secured by this Mortgage.
3. A~pBcatlott of lTayaeNa, 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 payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advaooes.
4. C'rarges; I.kas, Borrower shall pay all taxes, assessments 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 thet+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Borrower shall make payment dircetly, Borrower shall promptly furnish 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 brig 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 cantcst 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 lowrtrtrce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such aher hazards as Lender may require
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 by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
West 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
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 policitt and renewals thereof,
I and Borrower shall promptly furnish to Leader 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
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would
~ be impaired. the insurance procceds 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
E date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance betxfits, 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 sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
g or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. !f 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 thy: sale
t or acquisition shall pass to Lender to We extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation sad Maintenance of Property; Leaseholds; Condominiums; Planned Udt Devebpmeats. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
~ and shall comply with the provisions of any lease it this Mortgage n on a leasehold. if this Mortgage is on a unit in a
_ condominium or a planned unit development, Borrower shall prrtorm 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
condominium or planned unit development, and constituent documrnts_ 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
' were a part hereof.
F 7. Protection of Leader's Security. I( Borrower fads to perform the covenants and agreements contained in this
~ Mortgage, or if any action ur proceeding rs commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
1 sums and take such action as is necessary to protect Lender's interest. including, but not limned to, disbursement of
reasonable attorney's fees and entry upon the Property to make repair.. I( I.endrr required mortgage insurance as a
condition of making the loan secured by the Mortgage. Borrower shall pay the premiums required to maintain such
insurance in rBect umil such time as the reyuiremem for such insurance terminates in accordance with Borrower's and
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