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8orrowm and Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shag promptly Pay when doe 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 sad interest on any Future Advances secured
by this Mortgage.
4. Fonda for rases and Inarranoe. 3ubied to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the dry
monthly installments of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds' equal to one
twelfth of the yearly fazes and aaeeesaaents which may attain priority over this Mortgagee, and ground rents on the Property, if any. Plus ons•
twelRh of yearly premium indallmeats for hasard insurance, Plus oaetwelRlr of yearly premium indallments for mortgage insurance, ff any,
all as reasonably estimated initially and from time to time by Lender on the basis of aasesaments and bills and reasonable estimates thereof.
The Ptimda shall bs held in as inditutioa the deposits or aooounts of which are insured or guaranteed by a Federal or State agency
(indnding Lender if Lender is such an institution). Lender shall apply the Fw~ds to pry said fazes, assessments, insurance premiums and
ground rents. Lender may not d~arge for so holding and applying the Funds. analyzing said account, or verifying and compiling said
~ awessmeats sad bills. unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower
and Lender may ogres in writing at the time of a:eartioa of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such. agreement is made or applicable law requires auch_interest to bs paid, Lender shall not be required to pay Borrower say interest or
ceraiags on the F+mds. Leader shall give to Borrower, without charge, as anneal aooounting of the Funds showing credits and debits to the
Fonds and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security for the sums secured by this
Mortgage.
Itthe amount of the Fends held by Lender. together wiW the Eaters monthly installments of Funds payable prior to the due dates of fasts,
aaseasments, irunrance premiums and ground rents, shall ezosed the amount required to pay said fazes. aasesaments. insurance premiums
and ground rests as they fall dne, such ezoess shall be. st Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly instalments of P1mds. If the amount of the Fends held by Leader shall not be sufficient to pay fazes, aseessmeata, insurance
premiums and ground rents as they fall due, Borrower shall Pay to Lender any amount necessary to make rep the deficiency within 30 days
from the date notice is mailed by Lender to Borrower regaeating payment thereof.
Upon payment in roll et all auras secured by this Mortgage, Lender shaA promptly refund to Borrower any funds held by Lender. V under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Leader shall apply, no later than immediately prior
to the sale ~ the Property or its aognisitioa bar Lender. any Funds held by Lender at the time of application as a credit against the some second
by this Mortgage.
3. Application 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 foal in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then to intend 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 fazes, seseesmenta and other charges. Sues anduapositiona attributable to the Property which
may attain a priority ova this Mortgage. and leasehold payments or ground ants, if any, in We manner provided under paragraph 2 hereof or,
if not paid in each manner. by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Leader
all notices of amounts dne Hader this 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. that
Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing Lo 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. Hasard Insurance. Borrower shall keep the improvements now ezisting or hereafter erected oa the Property insured against loss by
fire, hazards indnded within the tenor "extended coverage," and such other hazards as Lender may require and in such amounts sad for sack
periods as Leader may require; provided, that Lender shall not regaire each coverage amount exceeding the minimum. a$ may be required by
state or federal regulations governing 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 to the insurance carrier.
All insurance policies sad renewals thereof shall be in form aooEp:able to Lender and shall indnde 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
i.ender all renewal notices and all receipts of paid premiums. Ia the event of loses, Borrower shall give prompt notice to the insurance carrier
and Lender. bender 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 each restoration or repair is economically feasible and the cecarity of this Mortgage ie not thereby impaired. If such
restoration or repair is sot 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
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.
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 installments. ff ender paragraph 18
hereof the Property is acquired by Lender, all right, title and intered of Borrower in and to any insurance policies and is and to the proceeds
thereof rcealting fi+om damage to Property prler to the sale or acquisition shall pass tD Lender to the eztent of the soma secured by this
Mortgage immediately prior to such Bale or aegnisitioa.
6. Preservation and ffiaiatenanoe of Property; Leaseholds; Condominnme; Planned Unit Developments Borrower shall keep
the Property in good repair and shall not commit waste or permit impairment or deterioratioa_ of the Property and shall comply wiW We
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned snit development,
Borrower shall perform sU of Borrower's obligations under the declaration or covenants creatingor governing the eondomiaiom or planned
unit development, the by-laws and regulations of the condominium or planned Wait development, and eonatitnent docnmenta. If a
condominium or planned Wait 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 ooveaanta and agreements of this Mortgage as if the
rider were s part hereof:
7. Protection of Lender's Secnrib. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is oommenoed which materially affects Lender's interest in We Property. including. but not limited to, eminent domain,
insolvency. code enforcement, or arrangements os proceedings involving a badQUpt or decedent, the Lends at Lender's optionnpoa
notice to Borrower may make such appearances. disburse such soma and take such action as is necessary to prated Lender's interest,
including, but not limited to. disbnrsemeat of reasonable attArney's fees and entry upon the Property to make repairs. H Leader regaind
mortgage insurance as a condition of making the loan scarred by this Mortgage, Borrower shall pay the premiums required to maintain
wch insurance in effect until such time as the requirement for each insurance terminates in accordance with Borrower's and Leader's
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna: provided under
paragraph 2 hereof.
Any amounts dubnrsed by Lender pereaant to this paragraph with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon
notice from Leader to Borrower regnestiag payment thereof; and shall bear intend from the date of disbnrsernent at the rate payable from
time to time on outstanding principal ender the Note unless payment of interest at such rate world be contrary to applicable law. in which
event each smounb shall bear interest at the highed rate permissible under applicable law. Nothing contained in this paragraph 7, shall
ngnire Leader to incur any expense or take any action hereunder.
6o~x316 PA~E1(l83