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Borrower and Lender covenant sad agree as folbvw:
1. Payment of Pr[acipal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured ~
t
Dy this Mortgage.
g. Fttads for Teutes and Insurance. 3ubjed to applicable law or to a written waiver by I.ender. Borrower shall pay to Lender on the day
r_•~onthly installments otprincipal sad iat~erest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? equal to ores
twelfth of the yearly tares and assessments which may attain priority over this Mortgage, and ground yenta on the PropeKy. if any, plus one•
twelfth of yearly premium inetalbnents for hasard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any,
all as reasonab>,y estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Ptimds 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 ands an institution). Lender shall apply the Funds to pay said tares, assessments, insurance premiums and
ground rents. Lender may rtot dtasge for so holding and applying the Funds, analysing said account. or verifying and compiling said
assessments and bi1L, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower t
and Lender may agree in writing at the time of axecntion of this Mortgage that interest on the Ftimds shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on the P1mds. Leader shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Elmda was made. The Funds are pledged as additional security for the sums secured by this
Mortgage. ~
If the amount of the Fends hdd by Leader, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground yenta. shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they full dne, such e:oees shall be, at Borrowei s option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of PLnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums aad ground rents as they fall dne, Borrower shall pay to bender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in roll of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Uunder ` ~
paragraph 18 hereof the Property is sold or We Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior
to the sale of the Property ar its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
by this Mortgage.
3: Application of Psya~enta. 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 td Lender by Borrower under paragraph 2 hereof
then to inter+eat payable on the Note, Wen to the principal of the Note, and then to interest and principal on any Fntare Advances.
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to We 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 Wis 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, W at
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 We enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lase by
fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in suchamounta and for such
periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed Wat amount of coverage
required to pay We sums secured by this Mortgage.
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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 to the insurance carrier.
AU insurance policies and renewals W ereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals Wereof, and Borrower shall promptly furnish to ~
i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to We 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 We Property ,
' damaged, provided each restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied
to the soma secured by this Mortgage, wi W W e excess, if any, paid to Borrower. I [ We 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 We insurance carrier offers to settle a claim for
{ insurance benefits, Lender ie authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the
! Property or We sums secured by this Mortgage.
UnlessI.enderandBorrowerotherwiseagreeinwriting,anysuchapplicationofproceedatoprincipalahallnotextendorpostponethedue
date of the monWly 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 Property prior to We sale or acquisition shall pass to Lender to We extent of the sums secured by Wis
Mortgage immediately prior to such sale or acquisition. i
6. Preservation and Maintenance of Property;Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep j
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wild We e
provisions of any lease if Wia Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, t
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 We condominium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is executed by Borrower and rernrded together wild Wis Mortgage, We covenants and
agreements of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreementsof this Mortgageasif the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any 1
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 involving a bankrupt or decedent, Wen Lender at Lender a option,npon
notice to Borrower may make such appearances, disburse such sums sad take such action ae is necessary to prated Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender required
mortgage insurance as a condition of making We loan secured by Wis Mortgage. Borrower shall pay We premiums required to maintain
such irunrance in effect until such time as We requirement [or such insurance terminates in accordance wild Borrower's and Lender's
written agreement ar applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to Wis paragraph wild interest Wereon, shall become additional indebtedness of
Borrower secured by Wis Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon
notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law. in which
event such amounts shall bear interest at We highest rate permiaeible under applicable law. Nothing contained in Wis paragraph 7. shall
require Lender to incur any expense or take any action hereunder.
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