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UNtroaw CovereNrs. Botro~rer and l.eade~ covenant a~d ajroe as tollows: :
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1~. l~qr~e~t o[ hi~e1~1 a~i INeresf. Borro~we~ shall prompd) paY when due tda principal of and interat oo the i
indebtedne~t evideaoed bp tbe Not0. pnW~t aed late clwrgec a.c ~xcrrided in the Note. and the principal of and inttrat ;
on aoy Futur+e Advaaces secured bp this Mortjs=e. ~
2. lh~i tor'I'a~~s a~i I~wes~ee. Subject to applicahk law ~x ta a writteo waiver by Lender, so~ wy ;
to Leoda on the day monthly installments of principal aod intc~cu arc paysMe unde~ the Note. unti! the Note is paid in (ull. f
a sum (heoein "Fun~'~ eqwl to one-twelfth ot the yearty tas~~ aM! auessments which may attain priority over this F
Morts~e, and Sround renls on the Pnopeny. if any, pfus ooe-twel(th of yearly premium instaltments for hazard insurance. ~
plus oae-tw~lfth of yearly premium instaltments tor mortaage inu~nncc, it any. all u reasonably estimated initially a~d troan j
time to time by Lender on tl~e basis of assessmcnts and hills and roasonabk atimata thereof. ~
The Funds shall be Ixld in an irutitution the deposia or •rccouots of which arc i~uured or guaranteed by a Fedenl olr ~
:tate s~ency (includin` Lende~ if Lcnder is such an institution). 1_ender shall apply the Funds to pay uid tua. assessme~ts. ~
ieturanoe premiun?s aod ~ou~d rents. l.ender may not cha~ge for se holdins and applying the Fuods. analyzin~ said account,
or verityi~`.and compling said assessments and bills. unleu Lender pays Botrower interat on the Funds and applicable law ;
permits l.eeder to make such a charge. Borrower a~d l.ender may agrce in writi~` at the time of execution of tha }
Moritase that interat on the Funds shall t+e pvid to Borrower. and uakss such aareement is made or applicabk law ~
roquira wch interat to be paid. Lender shall not be requiced to pay Borrower a~y interest or earnings on the Fu~ds. Lende~ ~
slul! pve to Bo~rower, without charge, an a~nwl accounting of the Funds showing credits and debits to the Fuods and the
pucpose for which ach debit to the Funds was made. The Funds arc plodgod u additional secutiry for the sums secured ~
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by this Morts,aae. -
If the amount of t6e Fuads heW by Lender, together with the future raonthly installments of Funds payabk prior to
t6e due dates of taxa. assessmeats. inwrance prcmiums and ground rents, shall exceed the amount rcquired to pay said taxa.
asseameats. i~uuranoe premiums and ground rcnts u they tall due, such excess shall be, at Borrower
s option. either
pranptly repdd to Borrower or credited to Borrower on monthly installments of Funds. If the amouat of the Funds
hdd by L.endef shall not be suH'icieat to pay taxa. assessme~ts. insurance premiums and ground rents as they fall due,
Bocm~?er sball pay to l.ender any amourtt necessary to make up the deficiency within 30 days trom the date notice is mailed
by Lender to Horrower requesting payment thereof. ~
Upoa paymeat ia fuU of dl sums socurcd by this Mongage, 1_ender shall promptly refund to Bc,rrower any Funds
held by I.ender. If uader puagtaph 18 hereof the Property ia sold or the Propeny ~s othervvise acquircd by l.ender. Lender
shdl apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held bv
I.ender at the titne of application as a credit against the sums secured by this Mortgage.
3. A~lieatio~ of Paymeeb. Unless applicable law provides otherwise, all payments received by Lender under the
Note and pangraphs 1 aod 2 hereof shall be applied by l.ender first in payment of amounts payable to Lender by Borrower
uoder puagraph 2 hereof. then to interest payabk on the Note, then to the principal ot the Note, and then to intercst and
principal on any Future Advanoes.
4. C~es; Lites. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable to
t6e Property which may attain a priority ovcr this Mortgage. and leacehold payments ~r ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payee thereof. Borrower shall promptly [urnish to Lender,all notices of amounts due under this paragraph. and in the event
Bonower shall make payment directly, Borrower shall promptly fumish to i.ender receipts evideacing such paym~nts.
Borrower shall promptly dixharge any lien which has prio~ity over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of th~ obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
legai ptoceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thercof.
S. Huard Iawnwce. Borrower shall k~ep the improvements now existing or hereafter erected on the Property insurod
against loss by fire, hazards included within the term "extended coverage", and such other hazards as L.ender may require
and in such amounts and for such periods ac Lender may require; provided, that Lender shall not require that the amount of
wch coverage exceed that amount of coverage required ~o pay the sums secored by this Mort~age.
'I'6~ ieuurance carrier providing the insurance shall be chosen bjr Borrower subject to approval by Lendtr, pmvided.
i that 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 making payment. when due. directly to the
~ inwra~ce curier.
~ All insurance licies and renewals thereof shall be in forn? acce table to Lender and shall include a standard mortgage
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~ claux in favor of and in form acceptable to Lender_ 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 prcmiums. In the event of loss.
i Borrower shall give prompt notice to the insurance carrier and Lender. Lertder may make proof of loss if not made promptly
~ by Borrower.
Unless Lender and Borrower otherw~se agree in writing, insurance procceds shall be applied to restoration or repair of
• the Property Jamaged, provicied 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 feasibie or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sutns secured by this Mortgage, with the excess. if any, paid
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days trom the
date notice is mailed by l.ender to Borrowet that the insurance carrier ofters ~o settle a claim for insurance benefits, l.ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restorativn or repair of ihe Propertv
or to the sums ~ecured by this Mortgage. ~ -
Unless Lender and Borrower otherwise agree ~n writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments rcferred to in paragrapht 1 anJ 2 hereof or change the amount of
such installments. If under patagraph 18 hereof the Pro f,erty is acyuireci by Lender, all right, title and interest of Borrower
in aod to any tnsurance policies and in and to the proceeds thereof resultmg from damage to the Propeny prior to thc sale
or acquisition shall pass to Lender to the extent oi the aums secured by this htortgage immediately prior to such sale or
acquisition. , -
6. Presenation antl ~faintenance of Properly; Leasehulds; Condominiums; Planned Unit Devebpments. Borrower
~ shall keep the Property in good repair and shall not comrpit Waste or permit impairment or deterioration of the Property
and shall comply- with thc provisions of any lease if this Mortgage ic on a leaschold. 1( this Mortgage is on a unit in a
~ condominium or a planned unit development, Borrower shall perform all of Borrowsr's obligations under the declaration
~ or coveoants cr~ating or governmg the condominium or planned unit development, the by-laws and regulatioac of the
~ condominium or planned unit development, and constituent doc:umemc. If a condominium or planned unit elevelopment
~ rickr is eaecuted by Botrower and recorded ~ogether v?ith ~hiti Mortgage, the covenants and agreements of such rider
~ shall be incorporated ~nto and shall amend and supplement the co~enants anJ agreements af this Mortgage as if the rider
s were a part hereof. ,
~ 7. Protection of I.ender's Securify. It Bnrrower fail~ a. ~rform the covenants and agreements contained in this
Mor~gage, or if any action ur proceedmg is ~ummrnceJ which materially atiects I.enJer's interest in the Property,
includmg. but n~~t I~mrted to, emment domain. incc.lvency, cude cnfe~rcement. ~~r arrangementt or proceedings involv~ng a
bankrupt or JeceJent. then I.ender at I.enJer'~ opuon, upi~n notice ta gorruwer. may make such appearances, disburse such
sums and take such action aa is necessary tu protect Lender'c mterest, including, but not limited to, disbursement o( `
reasomble at~omey's tces and cmry upon thc Pmpcrly to make rcpairc. If Lrnder reyuireJ mortgage insurance as a
condition e~f mal:~ng the loan tiecured by~ this Mortgage. B~~rmwrr shall pay thr premiinns requireJ to maintain such
insurance in rl(ect undl wch ume as ihe reyuirement f~~r wch ~murancr tcrminateti in :~ecordanee wi~h Borrower's anJ
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~ - ~~~;K 312 PA~E 10.30
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