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Harrower and Leader covenant and agree as folbws:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prapdvyment and late charges as provided is the Note, and the prinapal of and interest on aqy Plature Advanea secured
by thin Mortgage.
Z. Funds for Tares and Luursutoe. 3ubjed b applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installmen4 of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funda'~ equal to one'
twelfth of the yearly fazes and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any. plus one'
twelfth of yearly premium installments for hazard insurance. plus onetwelfth of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to time by Lender on the basis of aaasmeata and bills and reasonable estimates thereof.
The Farads shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is such an institution). Larder shall apply the Funds to pay said taxes, assessments, insurance premiums and
gronad rents. Lender may not charge for so holding sad applying the Funds. ana)ning said account, or verifying and compiling said t
asaeasmeats and bills. unless Lender pays Borrower inteteet on the Funds and applicable law perraita Lender to make such a charge. Borrower [
and Lender may agree is writing at the time of execution of this Mortgage that interest on the Funds rrhall be paid to Borrower. and unless I
such agnanent is made or applicable law requires such interest to be paid, Lender-shall not be required to pay Borrower any interest or t
earnings oa the Farads. I.ende< shall give to Borrower. without charge, an annual aoooanting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security for the some secured by this
Mortgage.
If the amount of the Funds held by Lender, together with We future monthly installments of Funds payable prior to the due dates of fazes,
assessments, insurance premiums and ground rents. shall ezoaed the amount required to pay said tares. assessments, insurance premiums
and ground rents as Wey fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of F1mds. U the amount of the Funds held by Lender shall not be sufficient to pay taxes, aaaeaamente, insurance
premiums and gronad rents as they fall due, Borrower shall pay to Lender any amount necessary to make up We deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment is hill of all snma eecnred by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender: If under
paragraph 18 hereof the Propertyr is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
to the sale of We Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
by Chia Mortgage.
3. AppUcadon of Payments. Unless applicable 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.
4. Charges; Liens. 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 arch 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 evidrocing 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 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.
5. Hazard Iasuraaoe. Borrower shall keep the improvements now eziating or hereafter erected on the Property insured against lose by
fire, hazards included within the term "eztended oovetage,° 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 such coverage amount exceeding We minimum, as may be required by
state or federal regulations govensing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage,
whichever is the greater.
The 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 provided under paragraph 2 hereof or, if
not paid in such manner, by Borrower making payment, when due; directly t6 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 poHciea and renewals thereof, and Borrower shall promptly funziah to
i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
j and Lender. Lender may mate proof of lose 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 We e:eesa, if any. paid to Borrower. If the Property ie 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 the
Property or the soma secured,by this Mortgage.
t 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 refereed to in paragraphs 1 and 2 hereof or change the amount of arch installments. V under paragraph 18
hereof We Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in end to the proceeds
thereof resulting fry damage to Property prior to the sale or. acquisition shall peas to Lender to the extent oLthe sums secured by th:s
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominnms; Planned Unit Developments. 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 Wait in a condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned anit development, and ooaetitnent docnments. If a
condominium or planned unit development rider ie e:ecated 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 $earrity. If Borrows: fails to perform the covenants and agreements contained in thin Mortgage, or if any ~
@ action or proceeding is eommenoed which materially affects Leader's interest in the Property, indnding, brat not limited to, eminent domain, ~
insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or deoedeat, then Lender at Lender's optioee,npon ~
notice to Borrower may make each appearances, disbnree arch sums and take sash action as is necessary to protect Leader's interest,
including, bat not limited to. disbursement of reasonable attorney's fees and entry neon the Property to make repairs. ULender required
E mortgage insurance as a condition of mating the loan secased by this Mortgage, Borrower shall pay the premiums required to maintain
~ arch insurance in effect until each time as the requirement for such insurance terminate in aeooedance with Borrower's and Leader's _
r written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided undo
paragraph 2 hereof.
Any amounts disbursed by Lender persnant to this Paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, each amounts shall be payable upon
notice from Leader to Borrower requesting payment thereof and shall bear interact from the date of dubursar?eat at the rate payable from
time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which
event sack amounts shall bear interest at the highest rate permissible ender applicable law. Nothing contained is this paragraph 7. shall
require Lender to incur any expense or take any action hereunder.
BOCK 315 PEE 1276