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Ut+ttroaw Covtuunns. Borrower sad I~et?der covenant and agree as follows:
>ti? llgasstd at hielpal atni dMrsafi Borrower shall promptly pay when due the principal o[ srtd interest oa the
ittdtrbbedrttra evidenced by the Note. prepaymatt sad late charges as provided in the Note, and the pratcipal of sad interest
on soy Ftttta~e Advances ttet~rred by this Morngage. -
3. lrais fir Taws ttttstl Ltwetraaw Subject to spplicabk law air to a written waiver by Lender. Borrower shall pay
to Leader ort the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full.
a soar (htrcin "Fuads'~ equal to one-twelfth of the yearly tax~~ and asspsrrtatts which may attain priority over this
Mortgage. and growtd tents oa the Property. if any. phis orte-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth o[ yearly premium inutallments for mortgage inurrance, it soy, all as reasonably estimated initially and fran
lima to time by Leader oa the bass of assessments and hilts and reasonable estimates thereof.
rite rttnds inaii be bald in an institution the deposits or accounts of which sre inwred a gwanteed by a Federal or
state agency (including bender if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may na charge for sn holding and applying the Funds. analyzing said account.
or verifying-and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless wch agreement is made or applipbk law
requires such interest to be paid. Lender shall not be re4uircd to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower. without charge, an annual aooounttng of the Funds showing credits and debits to the Funds and the
purposes for which each debit to the Funds was made. The Funds are pledged as sdditional security+for the sums secured
by this Mortpge.
Zf the amount of the Funds held by Lender. together with the future monthly installrrttnts of Funds payable prior to
the due dates of taxes. attsessmenb, inwrana premiums and ground rents, shall exaxed the amount required to pay said taxes.
aaaaaeats, iasuraaoe- premiums and ground rents as they tall due. such excess shall be. at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of the Funds
held by Leader shall not be sul6c:ieat to pay taxes. assessments. insurance premiums and ground rents as they fall due.
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leaky to Borrows requesting payment thereof.
Upon- payment in full of all sums secttred by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Property ~s otherwise acquired by Lender, Lender
shall apply. no later than immediately pray to the sale of the Property or its acquisition by Linder. any Funds held by
Leader at the time of application a: a credit against the sums sxured by this Mortgage.
3. A~tlcatioa of tspveNs. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 sad 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.
I. Crarges; I.ieas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which racy attain s 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. Borrower shall promptly furnish to Lender all notices of amounts due undei 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 w erg ~s Borrower shall agree in writing to the payment of tbe obligation secured by -
suc6lien 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. Hsrard laiwrarrce. 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
wd in such amounts and for such periods as Lender may require; provided, chat Lender shall not require that the amount of
- such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
1be insurance 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 shall be paid in the manner
~I provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
~ irotrrance carrier.
~ All insurance policies sad 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,
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 restoratan 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.securcd 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 Lender to Borrower that the insurance carrier offers 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 tbe Property
or to tbe 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 I and 2 hereof or change the amount of r
such installments. If under paragraph 18 hereof the Pro ferry 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 Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acgtrisitan.
6. Presen-atioo and Maintenance of Properly; Leaseholds; Condominiums; Planntd Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste 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 Borrowers 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 Leode~s Security. If Harrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property, ~
including, but nut 6m~ted to, eminent domain. inu~lvency, code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then Lender at Lender ~ option, upon notice to Borrower, may make such appearances, disburse such ~
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of i
reasonable attorney's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a ~
condition of making the loan secure) by thin Mortgage, Burrower shall pay the premiums required to maintain such
insurance •in eliect until such time as thy. requirement for such insurance terminates m accordance with Borrowers and
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