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l.lr+ttroass Ootnur~tm. Borrower and Lender covenant and agree ss [allows:
IlltOwstN M TeMse1N1 alert WesraM. Borrower shall promptly Pay when due the principal of and interest on the
evideaoed by the Note. ptepayttteat and late clwrges ss provided in the Nora. and tba principal o[ aril iMetest
oa any Futtrte Advsnoes secutrod by this Matrigage.
2. lt1¦stts [tir 7'amea art Irwra~et. Subject to applicable law or to a written waiver by Lender. Borrower shall Pay
to Lender on the day monthly in:tallrnenb of principal and interest arc payable under the Note. until the Note is paid in full,
a ama (herdn "Fuods'~ equal to ort~tweltth of the yearly tax~~ and assessments which may. attain priority over this
Mortgage, aril ground rgrb.Orl tba Property. it any. plus one-twelfth of yearly' premium iastalhrtenb [Or harard insurance.
plus aac-twelttlt o[ yearly premium installments for mortgage inurrartce, if any. all as reasonably estimated initially and foam
time to time by Lender oa the basis of assessments and hills and rcasonsbk estimates thereat.
7be Fund: shall be IteM in an institution the deposia or account: of which aro insured or guaranteed by a Federal of
` state agency (inchding Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, assessmenb,
imuratroe pemiums and ground rents. Lender may not charge fer=n holding and applying the Funds. analyzing said account.
or verifying.artd canpiling said assessments and bilk, unless Lender pays Borrower interest on the Fungi and applicable law
permib Lender to make such a charge. Borrower and Lenckr may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement h made or applicable law
requitaa such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annwl accounting of the Funds showing credib and debits to the Funds and the
purpose for which esch debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by~ this Mortgage.
u the amount of the Funds heW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, irrwranoe premiums and ground rents, shall excetd the amount required to pay said taxes,
saawnenb. insurartoe premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Boirovrer on monthly installments of Funds. if the amount of the Funds
held by Lender shag not be wt6cient to pay taxes. awessnrents, insurance premiums and ground rents s: they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days [rom the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funek
held by Leader. If under paragriph 18 hereof the Prdperty is sold or the Property rs otherwise acquired by Lender. Lender
:ball apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application as a credit agairut the sums secured by this Mortgage.
3. A~catlae d RapwseMs: Unless appliable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts 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.
- 1. Ciwges; Lkas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold pt '?sr?ta or gr+t~trnd rentx. it 8l1Y, in the manner
provided under parsgraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided. that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in v~riting to the payment of the obligation secured by
such tiro in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hared laararree. Borrower shall keep the improvements 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 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 Mortgage.
'ilre inwrance carrier providing the insurance shall be chosen by Borrower subject to approval :by Lender, provided.
that such approval shall not be unreasonably withheld. All premiums on insurance policies shill 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 of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
if and Borrower shall promptly furnah to Lender all renewal notices and all receipts of paid- premiums. in the event of lo-~s,
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 impaired, 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 days from the
date notice is mailed by Ltnder to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properly
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Ltnder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. -
6. Preservation and Maiatenaoce of Property; Leaseholds; Condominiums; Planned Unit Devebpnients. 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. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowei s obligations under the declaration
or 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
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Securlfy. If Borrower fails 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 invoking a
bankrupt or decedent, then Ixnder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action ac is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If I_cnder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance Iermrnates m accordance with Borrower's and
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