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Urttrostw Gbvst+anys. llomo~rer aril Lt>nder covenant and agree as follow::
1 1<gm«y et hlae~l ttM 61era1. Borrower shall promptly pay when due the principal of sad iatet+at oa the
ittdebtetiaea evitknoed by the Note, prepaytaeat and late clwrges as provided in the Note, aril the prirtcip~l of sad itttetrest
ea ao)r Ptituro Advances second by the Mortgage.
Z. iftittNs fter'1lsaae ittttl lacerate. Subject to applicable law or to a written waiver by Lettder,_ Borrt+nwetr shall pay j
to Lender on rite day monthly iratalhstents o[ principal and interest are. payable under the Note. until the Note is paid in fop.
s sum (haeirt "Fuods'~ equal to one-twelfth of the yearly taxa~c anti assessrrtatts which may attain priority over this
Mortgage. aril ground nab oa toe Property. if any. plus one-twelhh of yearlli-premium itastalbtnenb for hs:anl irtsurarice,
plus oaatwdith of yearly premium installments for mortgage inutrance. it say, all as reasonably estittnated initially and from
lima to time by Leatkr oa the buffs of assessments and hilh and reasonable estimates thereof.
'Ilse Funds shall be bald in an institution the deposits or accounts of which are insw~od or guaranteed by a Federal or
stale agency (inchtding Leader if Lerder is arch an institution). Lender shall apply the Funds to pray said taxes, asstasritents.
iasurattoe premiums and grourd rents. Lender may not charge for sa holding and applying the Funds. analyzing said account,
of veritying~sad compiling said assessments end bilk. unleu Leader pays Borrower interest on the Funds and applicable law
permib Lender to make such a charge. Borrower and Lender tray agree in writing at the time of execution of this
Moriga~e that interest on the Funds :ball be paid to Borrower. and unless such agreement is made or applicable law
requires :atilt interest to be paid. Ltndei• shall not be required to pay Borrower aryy interest or earnings on the Funds. Lender
shalt give to Borrower. without charge, an annwl aeoounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'lire Funds are pledged as additional security for the sums secured
this M
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a~nw~unt of the Funds held by- Lender. together with the future monthly installments of Funds payable prior to
the dos dates of taxes. assessmenb. ituuranoe premiums and ground rents. shall exceed the amount required to pay said taxes.
ssstmroents. insurance premiums and ground rents as they fall due. such excess shall ba. at Borrower's option. either
promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Furth
held by Leader :ball not be w!&ieat to pay taxes, assessments. insurance premiums and ground rents ss they fall due.
Borro~rrer shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Deader to Borrower rogtre:ting payment thereof.
Upon payment in full of all sutras secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held lsy Leader. If under paragraph 18 hereo[ the Property is sold or the Property a otherwise scquired by Lender. Lender
shall apply. ao later-than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application a: a credit against the sums secured by this Mortgage.
3. Appiipr<ioa aE layeatr. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraplu 1 sad 2 hereof shall be applied by Lender first in payment-of amount: payable to Lender by Borrower
under paragraph 2 hetaeof, 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. CMargefi ILieru. 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 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 under this paragraph, sad 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 writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good [aith contest such lien by, or defend enfor+oement of :uch lien in,
legal proceedings which operate to prevent the enforcement of the-lien or forfeiture of the Property or any part thereof.
S. Aszard iawrartee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured t
agairut loss by fire, hazards included within the term "extended coverage and such other hoards 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 rnverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
1be imuratrct carrier providing the insurance shall be chosen by Borrower subject to approval by Lt:nder, 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
I 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 renewais 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 procceds 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 Lender to Borrower that the-insurance carrier offers to settle a claim for iruuranix benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
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 I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro[erty 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 tttc sale
or acquisition shall pass to lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
f. Ih+aervatiwr and Maintenance of Property; Leaseholds; Condominiums; Pbarred Unit Developments. Borrower
shall keep the Property in good repair and shall not comrgit yraste 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 i
were a part hereof.
7. Protection of Lender's Security. Irrower 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 Boma ,insolvency, code entorcement, or arrangements or proceedings involving a
bankrupt or decedent, then 1_ender at Len r a option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is neces y to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upain the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secure) by this Mortgage, Borrower shall pay the premiums required to maintain such
'insurance in eBect until such time as the reyuirement for such insurance terminates an accordance with Borrowers and
~ooK314 PA~E2715