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UNIlORI~ COVENANTi. Horrower and l.eoder covenaet and a~roe si follows:
1 tyweN et M~e~i a~i IMereal. Borrowe~ shall ~uomptl) pay when due the principal of and interat on the
ic~debtednas evideaoed by the Note. prepsymeot and late chargec a.s Euovided in tAe Note, and the principal ot aad interat
ca ~::~y F~:~~a :.~..~,-a ~u~ 'vy t~ia niw~~c.
lY~i ter 71n~M a~i lwerce. Subject to applicabk law .x to a v~mtten waiver by I.er~der. Bo~rave~ shall pay
to Lendu on the day monthly installments of principal and intcrcst arc payaMe uoder the Note. uotil the Note is pajd in tull.
s wm (herein "Fuadt'q eqwl to a~e-tweltth of the yeariy tax~Y ancl assasmeets which may sttain priority over this
Mort~a~e. and ~round renb on tbe Pwpeny. if a~y. F+lus onrtvreltth of yeuly~ prcmium instsllmentt foc haurd inwrance.
plus ooatwel[th ot yeatly prcmium installments tor mo~taa~e insurancc, it any, all u rcasonably estimated initially and trom
time to time by Leader on the bua of assasmen~s and hills and rcasonabk ptimata theteaf.
'ILe Funds shall be beld in an instilution ~he deposia or accounts of wrhich are i~uured or guaranteed by a Federal ot
stata a~ency (includin` Lender if I.coder is such an institutionl. 1_eoder shall apply the Funds to pay said taxes. assasrt~ents.
in~unnoe premiums and ~ound rents. l.ender may na charae fo~ sc~ holding and applyinj the F~~nd.a. analyxin~ said account,
or verifyin` aed complinj uid asxssments and Mlh, unlas Lender pays Borrower iote?est on the Funds and applicabk law
permits Le~der to make such a charge. Borrower and Lender may agrce in writing at the time of ezceution o[ this
Mortsase tbat interat on the Fu~ds shall be paid to Borrower. and ualess such asreement is made or applicable I:w
requira such interat to be paid~ Lende~ shall not be rcquired to pay Borrower a~y interat or amings on the Funds. l.ender ~
sbaU pve to Borcower. without charge, an annual accounting of the Funds showina credits and debits to the Funds snd tl~e
purpose for which each debit to the Funds was made. The Funds are pledged u additional socurity for the sums socured
by this MortpSe.
If the amount ot tbe Fuad: held by l.ender, together with the future momhly installments of Funds payabk prior to
t6e due data of tues. suasmcnts. inaurance premiums and ground rents. shall exceed the amount required to pay said taxa.
assatments. in:uraace premiums and ground rents as they tall due, such excess shall be. at Borrower
s option, either
pro~nptly repaid to Borrower or crodited to Bornower on monthly installments of Funds. If the amount ot thc Funds
held by Lender shaU not be sut6cient to pay taxes, ss,xssments, insurance prcmiums and gmund re~ts as they fall due.
Borro~re~ sball pay to Lender any amount nocessary to make up the deficiency within 30 days Irom the date notice is mailcd
by I.eader to Borrowet requating payment thereof.
Upoo payment in fuU of all swas secured by this Mongage, t_ender shall promptly rcfund to Borrower any Fundt
held by Leoder. If uuder pusaraph 18 hereof the Property ia sold or the Propetty ~s otherwise acquired by Lender. Lender
:6aU apply, no later t6an immodiately prior to the sale of the Propecty or it: acquisition by L.ender. a~y Funds held bv
I.ender at the time of application u a ceedit against the :ums secured by this Mortgage.
- 3. A~iicatio~ o[ Pa~mewh. U~less applicsble law provides otherwise, all payments teceived by Len~r under the
Note and paragraphs 1 and 2 hereof shall be appliod by Lender 6rst in payment o[ amounts payable to Lender by Borrower
under parsgraph 2 hereof. thea to interest payable on the Note, then to the principal of the Note. and then to interat and
principd on any Futun Advanoes.
C~ar~ex Lie~s. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
tbe Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in thc manoer
providul under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. wlx~ due. dirccdy to the
payee theroof. Borrower shall promptly furnish to Lender all notices of amounts due under this parasraph. and ia tbe eveat
Borrower shall make payment directly, Borrower shaQ promptly fumish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hu priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrce in writing to the payment of the obligatiun securcd by
such lien in a manner acceptable to Lender, or shall in good taith contest such lien by, or defend enforcement of such lien in,
~ kgal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hsisrd lesr~aece. Borrower shall keep the improvements now existing or hereafter erscted on the Propetty i~urod
~ against loss by firc, hazatds included withm the term "extended coverage", and such other hazards as Lender may rcquire
j and in such amounts and for such periods as Lender may requirc: provided, that Lender shall not rcquirc that the amount of
! such coverage exceed that amount of coverage required to pay ~he sums secured by this MortaaEe.
~ The insurance catrier providing the insurance shall be choxn by Borrower subject to approval by Lender, providod.
~ thst such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
€ provided uader paragraph 2 hereof or, if not paid in such manner, by Borrower mafcing payment, when due, directly to the
~ insunnce curier.
~ All insurance policies and renewals therrof shall be in form acceptable to Lenckr and shall include a standard mortgage
clause in favor of and in form acceptable ~o Lender. Lender shall have the right to hold 1he policies and renewals thereof.
f and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. Tn the event of loss,
' Borrower shall give prompE notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
w ~ Unlesi Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or tepair of
~ the Property damaged, provi~kd such restorat~on or repair is economically feasible and the security of this Mortgage is
~wt ~hereby impairCtf- I( stxh r~WraU~n ur repair ~s nol ecunumicaliy feasible ur if Ihe securi[y u( this Mortgage wouid
~ be impaired, the insurance procceds shall be applied to the sums secured by this Morigage, with the excess, if any. paid
~ to Borrower. If the Property is abandooed by Borrower, or it Borrower fails to respond to Lender within 30 days (rom the
~ date notice is mailed by Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, L.ender
g is authoriud to collect and apply the insurance proceeds at Lcnder's option either to restora~ion or repair ot the Propertv
~ or to the sums secured by this Mortgage. _
Unless Lender and Borrower otherv?ise agree m writing, any such applica~ion o( proceeds to principal shall not extend
~ or postpone the due date of the monthly installments referred to in paragraphc I and 2 hereof or change the amount of
sucb installments. If under paragraph 18 hereof the Pro f,erty is acquired by Lender, all right, tide and interest of Borrower
~ in aod to any Insurance policia and in and to the proceeds thereof resul~ing from damage to the Property prior to th~: sale
or acquisition shall pass to Lender to the extent of the aums secured by this Mortgage immediately Prior to such sak or
acquisition.
~ 6: Prese~atan aod Mainteaance of PropertY; I.essehulds; Condominiums; Planned Uuit Devdopments. Borrowcr
~ shall keep the Property in good repair and shall not comrpit Waste or permit impairment or deterioration of the Property ~
~ and shall compl}~ with the provis~ons of any leau ~t th~s Mortgage ~t on a leasehold. 1f this Mortgage is on a unit in a
condominium or a planned unit development. Borrower shall perform all of Borrower's obligations undet the declaration
~ or covenants creating or governing ~he condommium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development. :~nd constituent document~. I( a condominium or planned unit ckvelopment
~ rider ~s executed by Borrower and recorded iogether Kith ~his Mortgage, the covenants and agreements of such rider
~ shall be incorporateJ into and shall amend anJ supplement the co.enants and agreements of this Mortgage as if the rider
~ were a part hereof.
~ 7. Protection of I.eodePs Securfty. If B~rrower (adc to perform the covenams and agreements contained in this
" Mortgage, or if any acdon ur ptoceedmg cummenced which materially afircts l.enJer's mterest in the Property.
~ including, but nc~t fimi~ed to, em~nent domain. in~olvency, c.x1e entarcemen~, or arrangements or proceedings ~nvolving a
~ bankrupt or decedem, then 1_ender at LenJer'~. opuon, uEx?n notice to Borrower, ma~ make such appearances, disburse such
sums and take such ac~ion as is nececsary tu pr~~ect l.ender's interest, includ~ng. bw not lim~~ed to, disbursement of
~ reasonable auomey's (ees and emry uFxm the Propcny to makc rcpairs. I( Lcnder reyuircd mortgage insorance as a '
~ cond~~~on o( making thc loan ~ecureJ by thu Aturtgage. B~.rrov?cr shall pay the premiums required to maintain such
- insurance in efiect until such time as Ihe reyuiremenl (or ~uch insurance termin~tes in ac~ordance w~lh Bnrmwer's and
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`J~}~~ 311 P~~.1034
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