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E3orrower and I.ender covenant and a~ree w folbvin:
1. Papment ot Priacip~l aad latere~~ Bormwer shall promptly pay when due the principal ot and interesl on the indebtedness
evidenced by the Note. ptepayment and late chargen as pmvided in the Note, and the prinripal of and intereat on any fl~ture Advances secured
by thu Mwrt~age.
2. PLnd~ for Texe~ aed Iaeurance. Subject to applicable law or to a written waiver by Leader, Borrowe~ ahall pay to l.ender on the day
monthly i~stallments of principal and interest are payable under Ihe Note, until the Note is paid in full, a sum (hetein "Funda") equal to one
twelfth oi the yea~ly ta:es and aasesert~eaLs which may attain priority over thia Mortgage, a~d ground cents on the Property, if any. plus one
tweltth of yearly premium inataliments for hazard ineurance, plus onetwelRh otyearly premium instaliments for martgage inau~ance, if any,
all es nasonably estimated initially and from time to time by I.ender on the basie of asaessmenta and billa a~d reasonable eatimates thereof.
The I~Lnds shall be held i~ an inditution the depoaits or accounta of which are ineured or guaranteed by a Federal or State agency
(including Let~der if Lender is such an institution). Lender shall apply the Funds to pay said taxes, aasesamenta, insu~ance premiums and
ground nnts. Lender me~y not charge for io holding and applying the Funds, analyzing eaid account, or verifying and compiling said
seaesaneate and biW,unles~ Lender pays Borrower interest on the FLnds and applicable law permits Lender to make auch a charge. Borrower
and La?der may egree in writin6 et the time of execution of this Mortgage that intereat on the ~nds ahall be paid to Borrower, and unlees
such agrcement is made or applicable iaw requires euch interest to be paid, Lender shall not be requieed to pay Borrower any intereat or
earninQs on the FLnds. Lend~ shaU give to Borrower, without charge. an annual accounting of the Funds showing credita and debita to the
Funda aad Lhe purpose for which each debit to the ~nda waa made. Tfie Funda are pledged as additional security for the suma eecured by thia
Mortgage. ~
If the amount of the I~nds held by LendeT, together with the future monthly installments of Funds payable prior to the due datea ottaxea.
asseeaments, insuranoe premiuma and ground rents. ahall exc2ed the amount required to pay asid taxee, aaseasmenta, inaurance premiums
and ground renta as they fall due. such e:ceas shall be, at Bo~rower a option, either prompdy repaid b Borrower or credited to Bormwer on
monthly inatallments oi FUnds. If the amount of the Funds held by l.ender ahall not be aufficient to pay taxes, assesaments. inaurance
premiuma and ground rents as they fall due. Bor~ower ehall pay to L.ender any amount necessary to make up the deficiency within 30 days
from the date notice ia mailed by Lender to Borrower requesting payment thereof.
Upon peyment in fuU of aU anms secured by this Morigage, I.ender ahall promptly rrfund to Borrower any [unda held by Lender. lf under
paragraph 18 hereof the Property is aold or the Property is otherwise acquired by Lender, [.ender ahall apply, no later than immediately prior
to the eale ot the Property or its acquisition by Lende"t, any Flinds held by Lender at the time of application as a credit against the suma secured
by thia Mortgage.
3. Applieation of Pwymente. Unless applicable Iaw provides otherwise, all payments received by I.ender under the Note and
paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to [.ender by Borrower under paregraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. .
4. Charges; Liene. Borrower shall pay ali taxea, as.sessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground 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 payee thereof. Rorrower shal) prompdy furnish to I.ender
all notices of amuunts due under this paragraph, and in the event Borrower shnll make payment directly, Borruu er shall promptiy fumish to
I.ender receipts evidencing such payments. Borrower shall promptl~ discharge Any lien which has priority over this Mortgaqe; pmvided, that _
Borrower ehaU not be required to discharge any such lien so long as {~c~rrower shall agree in writinK to the payment of the obligation secured by
such lien in a manner acceptable to [xnder, or shall in good faith conte~t such lien by, ordefend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forteiture of the Pruperty or any part thereuL
5. Hezard Insurance. Borrower shall keep the impmvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may requirc and in such amounts and for such ~
periods as Lender may require; provided, that Ixnder shall not reyuire that the amount of such rnveraRe exceed that amount of coverage ~
required to pay the sums secured by this MeTtRaQe_
The insurance carrier providing the insurance shxll br chusen by Rurrower subjeM to appruval by I.ender, providecl, that such approval
shall not be unreasonably withheld. Ail premiums un insurance Ex~licicw shall t?e paid in the mann~r proeidecl under paraQraph 'l hereof or, if
not paid in such manner, by E3orrower makinR payment. when due. directh• to the insurance caririer.
All inaurance policies and renewals thereof shall be in form accept~~ble to [xnder and shall include a standard mortgage clause in favor of
a nd in form acceptable to Lender. I.ender shall haye the right to huld the policies and renewals thereof, and Borrower shall promplly fumiah to
i.ender all renewal notices and all receipls of paid premiums. In the event of loss, E3orruwer shall give prompt notice to the insurance carrier ;
~ and Lender. Lender may make proof of loss if not made promptly by Aorrower. ~
Unleas [.ender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~
€ damaged, provided such restoration or repair is economicaliy leasible and the security of this Mortgage ia not themby impaired. If such '
~ restoration or repair is not economically feasible or itthe security of this Mortgage would be impaired, the insurance proceeda shall beapplied ~
to the sums secured by this Mertgage, with the excess, if any, paid to I3orrower. If the Property is abandoned by Borrower, or if $orrower fails to j
~ respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier of~ere to settle a claim for ~
~ inaurance benefite, Lender is authorized to coliect and apply the insurance proceeds at l.ender's option either to restoration or repair of the :
Property or the aums secured by this Mortgage. ~
Unleas Lender and Borrower otherwise agree in wriling, any such appliration of proceeds to principal ahall not extend or poatpone the due ,
date of the monthiy inatallmenta referred to in paragraphs 1 and'l Fiereof or change the amount of such installments. If under paragraph 18 ;
hereof the Prop2rty ia acquired by l.ender, all right, title and interest of E3orrower in and to any insurance policies and in and to the proceeda ?
thereof reaulting from damage to Property prior to the sale or acyu~sition shall pass to I~ender to the extent of the sums secured by this ~
hlortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenance of Property: Leaseholds: Condominums; Planned Unit Developments, Borrower shall keep !
the Property in good repair and shall not commit vvaste or permit impairment or deterioration ot the Property and shall comply with the '
proviaions of any lease if this Mortgage is on a leasehold. If this MortgaKe is on a unit in a condominium or a planned unit development, _
Borrower ahaU pedorm all of Borrower's obligations under the declaratiun or covenanta creatinKor govern~ng the condominium or planned
unit development, the by-lav?a and regulations of the condominium or planned unit development, ar~d constituent documenta. If a
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and
agreementa of such rider shall be incorporated into and shall amend and ,upp!ement the covenants and agreements of this MortgaRe as if the
rider were a part hereof. s
t 7. Protection of Lender'e 3ec~rity. If Borrower faila to perform the oovenanta and agreemente rnntained in thie Mortgege, or if any ;
~ action or proceeding is coromenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain.
~ ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option.upon
~ notice to Borrower may make auch appearancee, diaburee euch aums and take such action ae ie neceesary to protect Lender s in~t,
= including, but not limited to, diebureement of reasonable attorney'a feea and entry upon the Property to make repaire. If Lender requised
r mortgage inaurance ae a condition of making the loan aecured by this Mortgage, Borrower ahall pay the premiums required to maintain ;
€ such insurance in effect until such time as the requirement for auch inaurance terminatee in accordance with Borrower'e and L.ender s ;
~ written agreement or applicable Law. Borrower aha11 pay the amoant of all mortgage insurance premiuma in the manner provided under
~ paragraph 2 hereoL t
~ Any amounte disbnreed by Lender perauant to thia paragraph 7, with intereat. lhereon, ahall becrome additiona? indebtedneas of ,
~ E3orrower secured by thia Mortgage. Unleae Borrower and Lender agree to other terma of payment, auch amounts ehall be payable upon ;
~ notice from Lender to Bormwer requeeting payment thereof, and shall bear intereat from the date of diebureement at the rate payable from
time to time on outetanding principal under the Note unleae payment of interest at such rate would be contrary to applicable law, in which
event auch amounta shall bear intereat at the highest rate permisaible under applicable law. Nothing contained in thie paragraph 7, ehall
require Lender to incur any expense or take any action hereunder.
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a~,';x312 FacEzO3? '
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