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Borrower and Iwr,daR oovansat and agree a• folbws:
1. paysaent of Prindpal sad Iater+sst. Borrowee shall promPVY WlY when dw tba principal of and inland oa the indebtedness
evidenced by the Note, prepaymant and late charges a. provided in the Note. and the principal otaad interest on any Future Advaaoes secured
by this Moetgssa.
Z. Pleads for Tnses sad Iasuranoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on We day i
monthly installments of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Fnnds'7 equal to ons~ j
twelfth of the yearly lase and anessments which may attain priority over this Mortgage, and groundrents ontheProperty. ifany. plw oae- ~
twdRb of yearly premium indaihnants [or hazard insurance. plw oaetwellth ofyearyr premium indallaaenta for mortgage insurance. itany.
all as reasoaabl,? estimated initially sad from time b time by Lender on rho basis of eatessmants and bills and reasonable estimates thereof.
Tbs Fends shall bs held in an inditntion the deposits or aooouab of which are insured or guaranteed by a Fede~rel or State agency
(indnding Lauder if Lender is such an institution). Lender shall apply the Fends to pay said lases, assessments, insurance premiums and {
ground rents. Lender may not charge for so holding and applying the Fends, analyzing said acoonnt, or verifying and compiling said 1
aapament~ and bills, unless Lander pays Borrower interest on the Funds and applicable law permits Lender to make arch a charge. Borrower
and Leader may agree in writing at the time of esecntion of thin Mortgage that intered on the Funds shall be paid to Borrower, and Unless
such agreeroeut is made or applicable law requires such interest to be paid, Lander shall not be required to pay Borrows any intend or
earnings on the Fonda. Lends: shall give to Borrower. without charge. an annual accounting of the Funds showing credits and debits to We
Fonda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage. ~
If the amount of the Panels held by bender, together with the future monthly inatalhnents of Funds payable prior to the due dates of lases,
assessments. insurance premiums and ground rents, shall esawd the amount required to pay said lases, assessments, insurance premiums ~
and ground rents s. Wey fall due. such excess shall be. at Borrowers option. either promptly repaid b Borrower or credited b Borrows: on 1
monthly iastallaseata of Fends. If the amount of We Fonda held by Lender shall not be sufficient to.pay lases, aasessmants, insnranee s
premiums and ground renb w they fall due. Borrower shall pay to Lender any amount necessary to make up the detlciency within 30days
from the date notice is muted by Lender to Borrower requesting payment thereof. is - = . •
Upon pa~ymant in roll d all sums secured by this Mortgage. Lender shall promptly refund to BasROw~s any. fends held by Lender. If render
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall appl}r, na later than immediately prior
to the sale of the Property or its acquisition by Lender, any Fends held by Lender a#the Sims of appNcatiodas
a credit against tlieisYims secured
by this M~gag~ ; , r _ ; : : _ -
3. ApplieatJon 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,
than to intered payable an We Note, then b 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, itany, in the manner provided under paragraph 2 hereofor, - -
ifnot 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 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 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, ordefend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of tke lien or forfeiture of the Property or any part thereof.
5. Hazard Iaeurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards inducted within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsnch
periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage
required to. pay the sums secured by this Mortgage.
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 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
i.ender all renewal notices and ail receipts of paid premiums. In the event otloss, Borrower shall give prompt notice to the insurance carrier
~ and Lender. Lender may make proof of lass 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 security of this Mortgage is not thereby impaired. If such
restoration o: repair is not economically feasible or if the security Qf 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 faik to
~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier criers to aeWe 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 sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahal l 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 inatallmenta. 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 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; t;ondominums; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall not rnmmit 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 unit 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 unit development, and constituent docnmenta. If a
rnndominium 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 rnvenants and agreements o[this Mortgage as if the
rider were a part hereof.
7. Proteetioa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminant domain,
insolvency, code anforoemeat, or arrangements or procxedings involving a bankrupt or decedent, than Lender at Lender's option,apon
notice to Borrower may make such appearances, duburae each sums and take such action as is necessary to protect Lender's interest.
inducting, bet not limited to, disbursement of reasonable attorney's fees 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 insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's
writtan agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts diabaraed by Lends persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lends agree to other terms of payment, such amounts shall be payable neon
notice from Lends to Borrower requesting payment thereof, and shall bear intered from the date of disbursement at the rate payable cram
time to time on outstanding principal under the Note nnlesa payment of interest at such rate would be contrary to applicable law, in which
event snch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall '
require Lender to incur any expense or take any action hereunder. - ' ' `
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