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Ut+trdtu Covten~utrs. Borr~oMrar and Lender covenant and agroe as follows:
>i. ~ et IlelnefNl ttai lttlsissl. Borrower shall promptly psy when due the principal of and interest on the
utdebtedttea evtdatoed by the Note, prepayment and late charges as provided in the Note, and the principal o[ and interest
as any Future Advattoes secured by this Mortgage.
1 Erais fir Zlsaoas sari lastrsa¦a~e. Sltbject to applicable law or to a written waiver by Lender. Borrower shall PaY
to Lauder on the day monthly instalhtnents of principal and interest arc. payable under the Note, until the Note is paid in full.'
a sum (herein "Fuads'~ equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground meats on the Property. it any, plus one-twelfth of yearly premium iauallments for haurd insurance.
plus ooe•tweltth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
lima to time by Larder oa the basis of assessments and hills and reasonable estimates thereof.
'llte Funds shall be beW in an institution the deposits or accounts of which are itattred a `uaranteed by a Federal otr
state agency (inchtding Lender if lender is such an hWitutionl. !.ender shall apply the Furls to pay said taxes, assessnratts.
insttraaoe premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account.
or verifying~rtd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and appligbk law
permits Lender to make such a clt:rge. Borrower and !.ender may agree in writing at the time o[ execution of this
Mortgage .that interest op the Funds shall be paid to Borrower, and unless such agreement it made or applicable law
require such interact b 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 accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit. to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this MorRgrRge. -
iE the amount of the Funds held by Larder. together with the future nwnthly installments of Funds payable prior to
the dots dates of taxes, asssssrrreots. ittsunnce premiums and ground rents, shall axonal the amount required to pay said taxes,
aaamrents. iasttrattoe premiums and ground rents as they fall due. such excess shall be, at Borrowers option, either
promptly repaid to Borrower a credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Leader-ahaU not be t to pay taxes, anessmarts. insurance premiums and ground rents as they fall due,
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof. ,
Upon payment in fuU of aU sums sxtued by ibis Mortgage, Lender shsil promptly rifuad to Barr~-cr a-ry Furs
6eW by I.eoder. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender
:ball apply, no !star rhea immediately prior to the sale of the Property or it: acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
' 3. A~licaliaa of Igateals. 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. then to interest payable on the Note, then to the principal of the_ Note. and then to interest and
' ptinapal on any Future Advances.
4. Cues,; Liie>,s. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a prarity 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, what due. direMly 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 fumish 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, or defend enforcement of such liar itt,
legal proceedings which operate to prevent the enforcement of the lien pr forfeiture of the Property or any part thereof. _
S. Hazard Iewra~ce. Borrower shall koep the improvements now existing or hereafter erected oa the Property insured
against loss by fire. hazards included within the term "extended coverage and such other hazards as Lender may require
' and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceod that amount of coverage required to pay the sums secured ~y this Mortgage.
'Ibe inwranse carrier rovidin the insurance shall be chosen Borrower subject to approval by Lender; provided,
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that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in rite manner '
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to the
inwrattce carrier.
AU 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, ir.~.trance 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. I[ 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 i
to Borrower. If the Pr9perty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the 3
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 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
in and to any Rrsurance 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.- Praerratbn and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ifleveiopmeats. Borrower
shall koep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall ccrply :v:th ilii: pra.is6aas of any Mast 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 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, th- 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 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, 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 Lenders interest. including. but not limited to. disbursement of
reasonable attorney's fe-s and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the lean secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time a's the requirement for such insurance terminates in accordance with Borrowers and
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