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UNt~K p~ven~t+~s. gon~oMret and i.ender coveosnt and a~roe u tollows:
~ I~jrsnt d hi~e~1 ~i iNereM. Borrower sh~ll p~omptl) paY when due tbe' principsl ot aod i~terest on the
indebtednat evideaoed by the Note. prepsymeot and late charsec ac provided io the Note, and the principal ot sud inte~est y
oa aoy Futun Adv~nca secured b~? this Mortgaae.
2. FYMi hr Taz~s Mi l~t~te. Subject to applicabk law ~.r to s written waiver by Lender. Borraa?~r shall pay
to I.~ader on the day mo~thlp installment~ of principal and intcrcct ~rc ~yable under the Note. until the Note is paid in tull,
a sum (hereie "Fuads'7 equsl to o~e-twelfth ot the yearl)~ ta~?c~ anJ assessments which may attaie priority ove~ this
Mortsaje. and ~~ound reeb on tbe Propeny. if any, plus one-twelf~h of yeuly ptemium installments for haurd insurance.
plus ooe-twelfth of yearly premium installments for mortgage insurancc. it any, all u reawriably estimated initially and from
time to time by Lender oa tbe buis of assasments and hills ahd rcasonabk atimata thereof.
'tUe Funds shall be Deld in an institution ~he deposica or accounts ot whicb arc insured o~ ~uanotced by a Federal ot
state ajency (includin6 L,ender if Lc~der is such an irtstitution). I.ender shall apply the Funds to paY sa~d taxa. assessme~ts.
i~aurance premiums and amund rcnts. 1_ender may nm cha~ge fo~ ui holding and applying ~he F~~ndc. analyzing uid accoun~
or veriEyintand complin~ said sssessments and bills, unless Lender pays Borrower interat on the Funds and applicable law
permits L~ender to make such a chsrge. Borrower and Lender may agree in writina st the time ot exccution ot this
Mortga=e t6at intt~at on the Fuads shall be poid to Borrower. and unless such agrcement is made or applicabk law
~+equira such interat to be paed. Lender shall ~ot be rcquired to pay Borrower any interat or earnings on the Fu~ds. Lender
slull pve to Borrower. witl~out charge, an annual account~ng of the Funds showing credits and debits to the Funds and ihc
purpose [or which eaeh debit to t1x Funds was made. The Funds are pledged u additional security for the sums secured
by this Mortpae.
If tl~e amou~t of the Funds held by Lendcr, togethe~ with the future monthly installments of Funds payable"prior to
the doe dates of tues. atsasments. ~osurance prcmiums and ground ronts, shall exceed the amount requircd to pay said taxa.
aas~meats, insuranee pt~emiutns u~d ground rents u they fall due, such excess shall be. at Bonower s option, either
promptty repaid to Bormwer _M creditod to Borrower on monthly installments of Funds. lf the amount of the Funds
heW bryr Leuder shall twt be autficient to pay tua, asxssments, insurance prcmiums and ground rents u they fall due,
Borro~ver shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leuder to Borrower rcquesting payment thereof.
Upon pay~aent in full of all sums ~cured by this Mongage, l_ender shall promptly rcfund to Borrower a~y Funds
held by [.ender. If under puag~aph 18 hercof the Property ia sold or the Propeny ~s othervvise acquircd by Lender, Lender
shaU apply. no later than immediately prior to the sale of the Property or its acquisition by i.ender. any Funds held bv
I.ender at the time of application as a credic against the sums sscured by this Mongage.
3. prpikatio~ ut P~ynesN. Unless applicable law provides otherwise. all payments received by Lender under the
Note and puagnphs 1 and 2 hereof shall 6e applied by Lencler first in payment of amounts payable to Lender by Borrower
under paragraph 2 l~e~eof, then to interest payable on the Note, ~then to the priRCipal o[ the Note, and then to interest and
priacipal on any Futurc Advatxxs.
1, Chartes; Lie~s. Borrower shall pay ail taxes, assessments and othe~ charges, fines and "impositions attributable to
the prope~ty which rnay attain a priority over this Mortgage, a~ leasehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the
payee theroof. 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 l.ender receipts evidencing such payments.
Borrower shall pmmptly discharge any lien which has pnority over this Mortgage; provided, that Borrower shall not be
rcquircd to dixharge any such lien so long as Borrower shall aKree in writ~ng to the payment oi the obligation ucured by
such lien in a manner acceptabk to Lender, or shall in good (aith contest such lien by, or defend enforcement of such lien in,
legal proceedings wh;ch operate to prevent the enforcement ot the I~en or forfe~ture of the Property or any pan thercof.
S. Hizard Insnrawce. Borrower shall keep the improvements now existing or hereafter erected on ihe Property insurod
I against loss by 5re, hazards included within the term "extended coverage", and such other hazards u 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 Mortaage.
` 'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to apQroval by L.ender. provided,
~ that wch approval shall not be unreuonably withheld. All premiums on irsurance 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 af and in form uceptabk to Lender. Lender shall have the right to hold the policia ar~d renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid prcmiums. In the event of loss,
k Bortower shail give prompE notice to the insurance carrier and l.ender. Lertder may make proaf of loss if not made promptly
~ by Borrowcr.
~ Unless Ltnder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of .
the Propeny damaged, provided such restorat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is n~~t economically feasible or if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to ihe 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 [.ender within 30 days from the
date natice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits. Lender
~ is authoriud to collect and appty the insurance proceeds at Leoder's option either to restoration or repaer of ihe Propert~•
~ or to t6e sums secured by this Mortgage.
Unltss Lender and Borrower othervaise agree m wnting, any such application of proceeds to principal shall not extend
' or pcutpone the due date of the monthly ins~allments referred ta in paragraphti 1 and 2 hereof or change the amount of
~ such installments. If under paragraph 18 hereof the Property is acywred by l.ender, ali nght, tiNe and interest c,f Borrower
~ in aad to any A?surance policies and in and to the proceeds thereof resulting (rom damage to the Property prior to thc sale
~ or acquisiuon shall pass to l.ender to the extent of the sums aecured by this Mortgage immediately prior to such sale or
~ acquisition.
6. Presenatioo ~nd ltaiutenance of Property; Leasehulds; Condominiums; Plaoned Unit Developments. Borrowcr
~ shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
~ and shall comply~ with the provisions of any lease it this Mortgage is on a leaschald. 1f this Mortgage is on a unit in a
Y condominium or a planned unit clevelopment, Borrower shal! pertorm all of Borrower's obligations under the declaration
or coveoants creating or governing the condominium or planned unit development, Ihe by-laws and regulations of the ;
condominium or planned unit development, and constiwent Jocument~. If a conJominium or planned unit development ?
~ rider is ezecuted by Borrower and recorded i~~gether w~ith this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend and supplcment the covenants and agreements of this Mortgage as i( the riJer
were a part hereof. '
~ Protection of i.eoders Securfty. If Bortower faik t„ perform the covenan~t and agreements contained in this
r Mortgage, or if any action or proceedmg ic commrnce~i wh~ch materiall} aBectc I.ender's interest in the Property. ~
~ includmg. but not lim~ted to. eminent doma~n. ina.lvency, cude en(oreemen~, or arrangements or proceedings invol~~ing a
bankrupt or decedent. then Lender at I.ender's option, u{x~n not~ce to Borrower, ma~ make such appearances, dishurse such ~
~ sums and take such ection a~ is nececsar}' tu pn~tect Lender's intereat, includmg. but not limi~ed to, disbursement of
reasonable attomey's fces and emry upi~n ~hc Property~ to make rcpa~rs. If Lrndcr reyuireJ mortgage inturance as a
~ condilion of makmg the loan secare~ b~~ thi~ 141~?rtgagr. Barravrer sh.ill pay the premiums requireJ to maintain such
~ ~nsurance in rtiect until such timc as lhc reyuircmcnt fi~r wch insurancc ~crminatc. in accordancc with Borruwcr's anJ
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