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Utt[rouw Oovat+awts. Borrower and Leader covenant and agroe s: follows:
lgraraN of hitt~l tttM hMtnel. 8otrower shall promptly pay when due the principal of and interest on the
indebtedrtep evidenced by the Note. prepayment and late clwrges ac provided in the Nob. and the principal o[ and interest
an soy Future Advaatxs aecurod by this Mortgage.
>t<tetMs ter 1'aooaa ttai Irttwrsra~e. Subject to applicable law su to a written waiver by Lender. Borrower shall pay
b Lender on the day monthly installment of principal and interest arc.payabk under the Note, until the Note is paid in full.
a sum (herein "Fuads'~ equal to otte-twdith of the yearly tax~~c and a:sesunents which taay attain priority over this
Montage. and grotutd rent oa the Property. if any, plus Otte-twelfth of yearly-premium installment for hasard insurance,
plus ottatwdith of yearly premium installments for morlgage insurance, if any, all as reasonably estimated initially and from
time b time by Leader oa the bass of assessments and hills and rcasonabk euimates thereof.
The 1Flrnds :ball be held in an institution the deposits or accounts of which are insured or tuaranteed by a Federal or
irate agency (including Lender if Lender is such an institution). Lender shall apply the Hinds to pay said taxes, assessrrrarb.
imuraoce premiums and ground rents. Lender may not charge form holding and applying the Funds. analysing said account.
or verifyingand oompilint said assessment 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 uaku suet agreement is made or applicable law ~
requires such inbrest b be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give b Borrower, without charge, an annwl accounting of the Funds showing credit and debit to the Funds and the
pttrytose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Montage.
If the amount of the Funds 6dd by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, inwance premiums and ground rent, shall exceed the amount required to pay said fazes.
ass neat. insurance premiums and ground rent 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 not be stt~ent to pay taxes. assessments. insurance premiums and ground rent as they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader b Borrower requeiting payment thereof.
Upon payment in full of all sums securod by this Mortgage, Lender sfrall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property a otftenvise acquired by Lender. Lender
:hall apply, no Inter than itnntediately prior to the sale of the Property p(;' - oqui~jtion by Lender. any Funds held by
Lender at the time of application as a credit against the attt?ts. sqg t(t ~ a e.
3. A~iicatiow of lap~aeMs. Unless applicable law p[ovi ottterw ,3 ~t~ ~lfved by Lender under the
Nob and paragraphs 1 and 2 hereof shall be applied by Lender t'Ifr paRnf~ MINtBIrM~piya4ipto Lender by Borrower
under paragraph 2 hereof. then to interest payable oa ~the~ Noky then to the prinppgltq(,p~e ~l~e~and then to interest and
principal on any Future Advances.
4. (.'ranges; 1Lieas. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to
the Properly 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 amount due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payment.
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 brag as Borrower shall egret 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 Nett in,
legal proceedings which operate to prevent the enforrement of the lien or forfeiture of the Property or any part thereof.
S. 1Ha>rard Iwwnartee. 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 ss Lender may require
sad in such amount 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.
'Ibe 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 inwrance policies shill be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making paytmettt. when due, directly to the
insurance carrier.
f 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 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 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 it 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 benefit. 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 wms 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 1 and 2 hereof or change the amount of
such installment. It 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 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.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums, Planned Unit Developtneats. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Properly
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. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commrnced 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, 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
reasonable attorney's fees and entry upon the Property to make repairs. if I.cnder reyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such ume as the requirement for such insurance terminates m accordance with Borrowers and
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