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UNIFOlIM COVENANTS. Bonower and Leader covenant and agree as follows:
l. lqmeot ot trinclpd aod Inhnst. Borrower shail promptly pay when due the principal of and intercst on the
inckbtednes~ evidenad by the Note. prepaymeot and Iate charges as provided in the Note. and the pri~cipal of and intercst
on any Futuro Advanccs secared by tbis Mortgage?.
1 Ftiad~ tor Tn~a aod Iaweasce. Slibjcet to applicabk law or to a written waiver by Lender. Borrower shall pay
to Lender on the day mor~thly installments of principal a~d ir?terest arc payable under the Note. until the Note is paid in full,
s sum (herein "Funds") equal to ono-twelfth ot the yeariy laxes and assessments which may attain priority over this
Mort~age. and ground nnts oa the Property. if any, plus onatweltth of yearly premium installments for hazard insurance.
plus o~e-twelfth of yeuly premium installments for mortgage insurance, if any, ~II as reawnably estimated initially and fmm
time to time by Lender oa the basis of.assessments and bills and rcasonable estimates thercof.
The Funds shall be held in an institution the depoaiu or accounts of which are insured or gwranteed by a Foderal or
statt agency (including Leader if Lender is;och an institution). Lender shall apply the Funds to pay said tues. asaasments.
insurance prcmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
or verifying and compiling said assessments and billa, unlas Lender pays Borrower interest on ihe Fu~ds and applicable law
permits Lender to make st~ch a charge. Horrower and Lender may agree in writi~g at the time of execution of this
- Mortgage that interat on the Funds shall be paid to Borrowe~. and unless such agreement is made or applicable law
requires such interest to be paid.~Lender shall not be rcquired to pay Borrower any interest or earaiags on the Funds. .Lender
shall give to Borrower, without charge, an an~ual accounting of the Funcis showing crediu and debits to the Funds and the
purpox for which each debit to the Funds was made. The Funds are pledged as additiona! security for the sums securcd
by this Mortgage. -
If the amount of the Funds held by Lender. together with the future monthly installments of Funds payable Prior to
the due dates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount requi[~ed to pay said taxes.
asseutaents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Fu~ds. If the amount of the Funds
held by Leader shall not be sufficient t~ pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender an} amount necessary to malce.up the deficiency within 30 days from the date notice is mailed
by L.ender to Borrower rcquesting payment thereof. •
Upon payment in ful) of all sums secured by this Mortgage, l.ende~, shall promptly refund to Borrower any Funds
held by L.ender. If uader paragraph 13 hereof the Propetty is sdd or the Prop~~ty is' othenvise acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of ,{he Property o~ Ih-a[cquwjtion by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by'this.~ge. '
3. Applicatioa oE paymeats. Unless applicable law provides~othenvise, all payrrtents receivtd by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of ar~i6ttnts 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 Advances.
4. C6arses; Lk~, Borrower shall pay all taxes, assessments and other charges, fine's and impositions attributable to
the Property which may attain a priority over this Mortgage. and lea~sehold payments or groond 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
payce thereof. Bonower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall p~omptly fumish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to dis..harge any such lien so long 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 fa;th contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or torteiture of the Property or any part thereof.
S. Hazard lasurance. Borrower shall keep the irpprovements now cxisting on c~reafter erected on the Property insured
againat loss by 6re, hazards included within the term "extended coverage", and sueh other hazards as Lender may require
attd in such amounts and for such pcriods 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.
i The insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender, provided.
t6at 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, direcUy to the
~ insurance carrier.
i All insurance policies and re~ewals ihereof shall be in form acceptable to Lender and shall include a standard mortgage
~ clause in favor~ of and in form acceptable to I.ender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnish 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
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 feasible or if the security of this Mortgage would
~ be impairod, 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 day~s from the
~ date notice is mailed by I.ender to Borrower that the insurance carrier oHers to settle a claim for insurance benefits. Lender
~ is aut6orized to collect and apply the insurance Froceecis at Lender's option either to restoration or repair of ihe Property
or to the sums securod by this Mortgage.
~ Unless Len~er and Borrower othenvise agree in writing, any such application of proceeds to principal shall not eztend
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereuf or change the amount of
suc6 installments. lf under paragraph 18 t~ereof the Property is acyuired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds t6ereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
f acquiaition.
` 6. Prrservatbn and Maintenance of Property; Leaseholds; Condominiums; Planned Unit DevebQments. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
~ and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1[ 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
ur covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
e ridsr is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and s6a11 amend and supplement the covenants and agreements of this Mortgage as if the rider
` were a part hereof.
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7. ProtecNoo of I.ende~s Secarity. If 8orrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or 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
~ bankrupt or decedent, then Lender at Lender's option, upon notice to 13orrower, may make such appearances, disburse such
sums and take such action as is necessar}~ to protect Lender s interest, inciuding. but not limited to, disbursement of
~ reasonable attorneys fces and en~ry upon the Propeny to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured b~• this Mongage, Borrower shall pay the premiums required to maintain such
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, insurance in effect uniil such time as the reyuirement for such insurance terminates in accordance with Borrower s and
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