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Uttn+gtnt t~ovttrrew7s. Borrower sail Leader covenant and agree ss fellows:
>ti. Ihgweat of hMeipttl tttN IaMswt. Borrower shall promptly pay when due the principal of and interest on the
itrdebtedtrtus evidenced by the Note, prepayment and late charges as provided in the Nob. and the principal of and-interest
oa say Future Advances secured by this Mortgage.
llitti fhr 7lraes ttM Ltswsttte. Slrbject to applicable law or to a written waiver by Lender. Borrower dull pay
to Fender on the day monthly installments of principal and interest are. payable under the Note. until the Note is paid in full,
a-sum (herein "Furrds'q equal to one-twelfth of the yearly tax~~c and assessrrrents -which may attain priority over this
Mortgage, and p+owtd rents on tlra Property. if any, Flus one-twelfth of yeafi?~ praaium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
limo to time by Lender oa the basis of assessments and hills and reasonable estimates thereof.
'ibe Irltrrds shall be held is an institution the deposits or accounts of-which arc insured a guaranteed by a Federal of
state agency (inchding Lender if Lender a such an institution). Lender shall apply the Funds to pay said taxes. assessments.
iawranoe premiums and ground rents. Lender may not charge for sn holding and applying the Fnndc. analyzing said account,
or verifying.aad compiling said assessments and bilk. unless Leader pays Borrower interest on the Funds and applicable law
permits Lender to make wch a charge. Borrower and Lender may agree in writing at the tune of execution of this
Mortgage that interest on the Funds shall ba paid to Borrower, and unless such agreement is made or applicable 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 snow) aeoounting of the Funds showing credits and debits to the Funds 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.
U the amount of tbts Funds beW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments. irtsuranoe premiums and ground rents. shall exceed the amount required to pay said taxes,
assessments, iratrranoe premiums sad 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 o[ the Fund:
6dd by Lender shall not be su~cimt to pay taxes. assessttratts. insurance premiums and ground rents as they fall due.
Bonoaner shall pay to Lender any amount rreoessary to make up the deficiency within 30 days from the date notice er mailed
by Deader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fund:
held by Lender. If under paragraph l8 hereof the Properly is sold or the Property a otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by ~,arder, any Funds held by
Lsaskr at rho time of application at a credit against the sums secured by this Mortgage.
3. A~dcatlaa of laymeab. Unless applicable law provides otherwise. all payments received by Lender under the -
Nob and paragraphs 1 and 2 hereof shah be applied by Lender first in payment of amounts_ payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on say Future Advances. .
4. Crash Litws. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage: a_nd leasehold payments-or ground renter 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 furaerh to Lender all notices of amounts due under this paragraph. soil 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 bog 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 [with contest wch 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. Hazard lowra~ce. Borrower shall keep the improvements now exerting or hereafter erec?~d oa the Property insured
against lass by fire, hazards included within the term "extended coverage". and such other harards as Lender may require
sad in such amounts and for such 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.
'ilre insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided.
that wch approval shall not be unreasonably withheld. All premiums on insurance policies shill 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
in_
surance 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 Lender all renewal notices and all receipts of paid premiums. in the event of kiss,
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, inwrance procceds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economicatly feasible and the security of this Mortgage is - ~
not thereby impaired. If such restoration or repair is nc+t economically feasible or if the security of this Mortgage would
be impaired, the insuratxx procceds shall be applied to the sums secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Property er 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.
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 I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro forty is acquired by lender, all right, title and interest of Borrower
in and to any Rtsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
- or aequisigon shall pass to Lender to the extent of the sums secured by-this Mortgage immediately prior to such sale or
acquisition.
6. Preservatloo sad Maintenance of Property; Leasehdds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commis yvaste or permit impairment or deterioration of the Property
arsd 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 da:uments. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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 Lender's Secorlty. If Borrower faits to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property,
including, but not limited ro, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then I~nder at Lender s option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect .Lenders interest, includir: but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. 1( Lender required mortgage insurance as a
condition of making the loan secured by this Mort Rage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the reyuiremenl for such insurance termroates in accordance with Borrower's and
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