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Ut~rorus Oovtuuatvt~s. Borrower and Leader covenant and agroe ss follows:
t~gwsN et Mrci~l alai HMes~eM. borrower shall promptly -pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges ac provided in the Note. and the principal of and interest
oa any Future Advances securod by this Mortgage. S
L >Erttis tetr Tacna ~ istwrascw Slrbject to spplicabk law nr to a written waiver by Leader. Bonoerer span Pay
to Leader on the day monthly installments of principal and interest arc. payabk under the Note, until the Note is paid in full.
a sum (herein "Fuads'7_equal to orre-twelfth of the yearly laic. and assasrrrertts which ttnay attain priority over this
Mortgsge. and ground recta oa the Ptperty, if any. plus otre-twelfth of yearly premium installments-for haurd inwnnce.
plus one-twel[th of yearly prtimitun installments for mortgage insurance. if any, all as reasonably estimated initially and from
time to time by Leader oa the basis of assessments and hills and 'reasonabk estimates thereof.
'ILe Funds shell beheld in an institution the deposits or accounts of which are inwred or gttruanteed by a Federal or
estate agency (including Under if Lender is such an institution). Lender shall apply the Flrads to pay said taxes. asseaments, ;
'innuraace premiums and pound rents. lender may not charge for so holding and applying the 1Rrtnds. analyzing said account,
or verifying.sod compiling said assessments and bills. unless Lender pays.Borrower interest on the Funds and applicable law
permits I.trrder to make such a charge. Borrower and Lentkr may agree in writing at the time of execution of this
Mortgage that interest on the Ftrrrds shall be paid to Borrower; and unless such agreement a made or applicabk law ~
requires 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 annwl aocotrnting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 7Le Funds are plodgod as additional security for the sums secured
by tha Mortgage.
Tf the amount of tbti Fuadt hdd by Lender.-together with the future monthly installments of Funds payabk prior to ~
the due data of taxes, atsasmeots, inwrance 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 t
promptly repaid to-Borrower or credited to Borrower on monthly installments of Funds. If the amount of the .Funds
hdd by Lender shall not ba wtfit~t to pay taxes. asxssments, insurance premiums and ground rents as they fall due. tt
- Bocmarer shall pay to Larder any amount rrocessary to make up the deficiency within 30 days from the date-notice is mailed f
by Lender to Borrower tegtnsting pajrment thereof.
Upon payment in full of an sums secured by this Mortgage. Lender shall promptly refund to-Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Propeny rs otherwise acquired by Lender. Lender
Shan apply, no later than immediately prior to the sak of the Property or its acquisition by Lender. any Funds held by
Leader at the tune of application a: a credit against the sums stxured by this Mortgage..
3. A~iicatlorr of iayse~b._ Unless applicabk 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 hermf, then to interest payabk 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 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, 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 this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly .furnish to Lender receipts eyideacing 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 acceptabk 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.
S. ,Huard lewaiee. 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
anel in such amounts 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.
'Ilre insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
West such approval shall not be unrxasonably withheld. All premiums on insurance policies shall be paid in the manner j
If 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 politics 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 shill 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. It such restoration or repair is not 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 to the sums secured by Wis 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. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower i
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. Praervatiorb and Maintenance of Property; Leaseholds; Condominiums; Planned Unit 1Developmentc. Borrower
shall keep the Property in good repair and shall not commit yvaste 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 Borrowers obligations under the declaration ;
or covenants creating or governing the condominium or planned snit 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 ~
were a part hereof.
7. Protection of Leader's Security. If Burrower 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, eminent domain, insolvency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
- sums and take such action as is necessary to protect Lendei 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
insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrowers and
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