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Uwtrons~t Oovartst~rts. Borrower and bender covenant and agree ss follows:
iw >Agrtt+wot o! hYetNl tttM 1~kreM. Borrower shall promptly pay when due the principal of and interest on the
irtdebtedttea evidenced by the Note„ prepayment and late charges ac provided in the Nob, and the principal of and interest ~
on any Futuna Advartas setatted by this Mortgage.
1 llststls fK '1lszes ttrtd IttwrMee. Subject to applicable law ~x to a written waiver by Leader. Borrower shall pay
to Lettdec on rite day monthly itntallrnents of principal and interest arc. payable under the Note, until tht Note is paid in toll,
s sum (here+n "Fuuds'~ egwl to Otte-twelfth of the yearl~~ tax~y and assessments which may attain priority over this
Mortgage. and ground rent on toe Property. it any. plus one-twelfth of yeadli premium ittstsllments for haurd insurance.
plus efts-twelfth of yearly premium installments for mortgage inu~ranct, if any. all as reasonably estimated initially and frown
tints to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
7Le Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal of i
state agency (inchtding Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes. assessments.
irt:uranoa premiums and ground rents. lender may not charge for :n holding and applying the Fends. analyzing said account.
or verifying.utd compiling said assessments and bilk, unless Lender pays Borroct?er interest on the Funds and applicable law
permits Lender to make wch a charge. Borrower and Lender may agree in writing at the time of execution of the
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requites 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 annual accounting of the Funds showing credits and debits to the Funds and the
purpose [or which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
If the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments. ittsttrance premiums and ground rents. shall exceed the amount required to pay said taxes.
assessments. insurance premiums and ground rents as they fall due. such excess shall be. at Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Leader-shall t?ot ba sul6cieat to pay taxes. assessments. insurance premiums and ground rents as they fall due.
Borrower shall pay to Leader any amount ttetxssary to make up the deficiency within 30 days from the date notice is mailed
by Letadec to Borrower requesting payment-thereof.
Upon payment in full of sll soma secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwjse acquired by Lender. Lender
shall apply. rte later than immediately prior to the sale of the Property or its acquisition- by fender, any Funds held by
Lender at the tune of application a: a credit against the sums secured by this Mortgage, ~ 1
3. A~licatian et 1!ap~eMs. Unless applicable law provides otherwise, _all psytrRents fitceived by Gender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
_ undec~ua~raph 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 Advaooes.
t. Granges; Lituts. 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, J any, in the manner t
provided under paragrsph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the 1
payer: thereof. -Borrower shall promptly furnish to Lender all notices of amounts due udder this paragraph, and is 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 beg as Borrower shall agree in writing to the payment of the obligation secured by
such lies in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien i0.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hassrd iowrance. 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 amounu 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 by this Mortgage.
'I2te iruuranee 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 s
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dot. directly to the
ittwrance carrier.
Alf 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.
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. [n the event of loss. i
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
I 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 i[ 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 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 to the sums secured by this Mortgage.
Unias 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. I[ under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
t in and to any Assurance 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 !
acquisition.
s 6. trtaervatioe and Maintenance of Property; Leaseholds; Condominiums; Planned Uuit IDeveloptnents. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
~ snd 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. It a condominium or planned unit development
E 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
wort a part hereof.
7. Protection of Lender's Security. Ii Borrower fails 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 not limited to, eminent domain. insc?Ivency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then lender at l-seder's 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
reasonable attorney's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
'condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
F insurance in effect until such time as the requirement fur tiuch insurance terminates in accordance with Borrowers and
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