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UN~o~ut Covat+~n~s. BoROwer and l~eadet cow~ant and s~~a u follows:
ra¦~••e .t n~.e~ t.~ere.~. eor~ ~~n ~«~+~i~ wr wne~ a~n ~n~ ot inler~st on the
:ndab~ednas evidenocd b~? tbe Naa p~ep~~ma~~ and lace charae~ a.~ ~uo~?ided in ~he Nae. and tAa principal ot aad intc~est
ca my Futute Advanca securod bp this Mortsa~e. _
2. lf~i ter 1'az~s a~i Irrra¦ce. Stibject to spplical+k law ar to a written waiver by Lender. 8o~rorv~r shsll pay
to Lender on the day monthlp installments of priocipsl a~d intcres~ arc payaMe unde~ the Note. until the Note is paid io tull,
a sum (t~erein "Fundt'q eqwl to one-twelfth of the yearf~• tax~~. and assessmeots which nuy attain priority ovet this
Mortsa~e. and ~round rents on the Pwpertp, if aey. plus oae-twellth d yearly premium instdlmenb fo~ hazard insurance.
plus ooatweltth of yeariy prsmiu~a iastallments tor monjsae inuinncc, it any. all as reasonably astimated initialiy and tr~an :
dme to time by Lender on the bssis of assasments and hills and rcasonabk estimata thereof. !
7be Funds shal! be 6eld in an institutic+n the deposia or accounts of which are insu~sd or awrantecd by a Federal or `
state aseney (includin` Lende~ if L.ender is such an i~atitutionl. I.ender shall appty the Funds to pay said taxa. assasme~ts.
iawranoe premiums and ~round rents. l_ender may oot charge for sc~ holding and spplying the Funds. analyzin~ said account,
oc verifyins..snd complina said assessments and bilh. unlas Lender pays Bomower intenst on the Funds and applicabk law
permia l.e~der to make wch a char~e. Borrower aad L.ender may ajra in writin` at the time o[ execution ot ihis
Mortpse that interat on the Fuada shall be paid to Bomower. and unkss such aaroement is made o~ applicabk law F
requira wch interat to be paid. Lender shall not be rcquired to pay Borrower any interest or arnings on the Funds. Lender
sliall pve to Borrowtr. witl~out cbuge, an annwl acrnunting of tbe Funds showina crcdiu and debiu to the Fu~ds and the
purpae for which each debit to t6e Funds was made. Tbe Funds are plodged as additional security for the sums securod
bY tbi: Mu~t~~e•
If tbe amount o[ the Fuads held by Lender, togcther with the future monthly installments of Funds payabk prior to
t6e due data of taxa, asussmeats. irauranoe premiums a~d ground tents, shall exceed the amount roquired to pay said tues.
ar~t~eats. insuranoe pre~niums and g~+ound reats as they tall due, such excas shall be. at Bonower
s option. either
pma4ptty repaid to Borrower ot ctedited to Borrower on monthly installments of Fuads. If the amount of the Funds
hdd b~r Lea~der s6aU not be wff~eat to pay taues. assessmenu, insurance pcemiums and ground rents as they fall due,
Horro~rer sball Qay to Lender any amouot neassary to make up the deficiency within 30 days from the date notice is maikd
by Lea~de~ to Borrower requatint WYment thereof.
Upon paym~nt in full of all sunu securod by this Mortgage, l.ender shall promptly refu~d to Borrower any Funds
held by I,eader. If uader para~raph 18 hercof the Froperty ia sold or the Property ~s otherwise acquired by Lcnder, Lender
:haU apply, no later tban iiamediately prior to the sak of the Property or it: acquisition by Lender. any Funds held br
I.ender u the time of applicatan u a credit against the sums secured by this Mortaage.
3. A~IieaNo~ ot ~~e~b. Unless applicabk law provida otherwise, all payments roceived by Lender under the
Note and paragraphs 1 and 2 hereof shall be appliod by Lender first in payment ot amounts payabk to Lender by Bor~ower
under pusgraph 2 he~+eof. tbea to interest payabk on the Note, then to tlx principal of the Note. and then to intercst and
priacipal on any Future Advanves.
( 4. C~a; Ueas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
tbe Propecty which roay attsin a priority over this Mortgage, and leasehold payments or ground rcnts. if any. in the manner
provide~ under paragnph 2 hereof or, if not paid in such manner, by Bormwer making paym~nt. wha~ due, dirxtly to the
payee thereof. Borrower shall prompUy furnish to Lender all notices of amounts due under this pangnph, aod ia the eveM
Borrower shall make payment diroctly. Borrower shall promptly turnish to Lender receipts evidencing such payments.
Borrower shall pranptly discharge any lien which hu p~iority over this Mongage: provided: that Bormwer shall rat be
requirod to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation ucurod by
such lien in a manner acceptable to Lender. or shall in good faith contes~ such lien by, or defend e~forcement of such lien in.
kgal proceedings which operate to provent the enfurcement of the lien or forfeiture of the Property or any part thereof.
S. Harar~ Insors~ce. Borrower shall keep the improvements now existing or hereafter erected on the Propeny insurod
agai~t loss by 6rc, hwrds included within the term "extended coverage", and such other huards u Lender may rcquirc
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage ~zceed that amount of coverage required to pay the sums sticured by this Mort6age. ,
'Ibe insuranoe carrier providing ihe insurance shall be chosen by Borrower subject to approval by Lender, provided,
t6at such approval shall not be unreuonably withheW. All premiums on insurance policia shall be paid in the manner i
j provid~d under paragraph 2 hereof or. if not pai~ in such manner. by Borrower making payment. when due, dirtctly to tht ;
~ iowrance carrier.
~ All insurance policies and reaewals thereof shall be in form acceptable to Lender aod shall include a standard mortgage
~ clause in favor of and in form uceptable to L.ender. Lender shall have ihe right to hold the policia and renewals thercof, ;
~ and Borrower shall promptly furnish to Lender all renewal notices and all •receipts of paid prcmiums. in the event of loss, ~ i
{ Borrower shall give prompt notice to 1he insurance carrier and Lender. Lender may make proof of laas if not made promptly '
~ by Borrower.
r ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or npair 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 not economically teasible 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 l.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits. Lender ~
~ is authorized to collect and apply the insurance procceds at Lender's. option either to restoration or repair ot the Propeny ;
or to the sums securod by this Mongage. ;
~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend ~
or pcutpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of i
~ suc6 installmeats. If under paragraph 18 hereof the Pro~,erty is acquired by Lender, all right. title and interest of Borrower ;
~ in and to any tnsurance policia and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums secureei by this Mortgage immediately prior to such sale or
~ acquisition.
~ 6. Preservation and Naintenaace of Properly; Leasel~ulds; Condominiums; Planoed Uuit Devebpments. Borrower
= shall keeQ thc Property in good repair and shall not com~pit yvaste or permit impairment or deterioration of the Property
~ and shall compl}' with the provisions of any lease if this Mortgage is 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 obligations under the declaration
~ or covenants creating or governing the condommium or planned unit develupment, the - by-laws and regulations of the :
r condominium or planoed unit development, and constiwent documentc. If a condominium or planned unit Jevelopment
~ rider is executed by Borrower and recorded together with ~his Mortgage, the covenants and agreements of such rider ~
~ shall be incorporated into and shall amend and supplement the covenants and agreemenls of this Mortgage as if the riJer `
~ were a part hereof. ~
E Protectioe of LendePs Security. If Borrower failc t~• ~erform the covenants and agreements contained in this
~ Mor~gage, or if any action or proceeding is commenced whieh materially afTects 1_ender's interest in the Properly,
~ including, but not lim~ted to, eminent domain, int~lvency. crde enforcement, or ~rrangements or proceedings involving a
~ bankrup~ or decedent. ~hen Lender at l_ender's option, upon notice to Borrower, ma~~ make sueh appearances, disburse such '
~ sums and take such actiun as is necessary Iu prutect Lender's ~nterest. including. but not limrted to, disburxment of
~ reasonable auomoy's lees and emry upon the Propcrty to make repairc. I( Lcndcr reyuired mortgage insurance as a {
~ condrtion o( making the loan SecureJ by this Mortgage, B~~rrower shall pay the premiwns requireJ to maintain such €
insurance in etiect uMil such time as the reyuiremeni for .uch ~nsuranre terminatrs ~n :~ecordanee with Borrowers and t
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~ . . ~ gooK 307 ~acF 5d6
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