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UNtt~oaM COVENAN7'i. Borrower and Lender covenant and agree u follows:
3. Tgtaeat of >rtiaellttl atN IMerat, Borrower shall promptly pay when due the principal of and interest on the
:ndebtedrtess evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. lhrai for Tara atsi laarraaee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payahk under the Note, until the Note is paid in full,
a ttrun (herein "Funds' equal to one-twelfth of the yearl)~ tax~~ and assessments which may attain priority over this
Mortgage, and Ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus otte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and tr+om
time to tithe by Leader on the buts of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution tfre deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). !-ender shall apply the Funds to pay said taxes, assessments.
inwratnee premiums and ground rents. I.erxler may not charge for sa holding and applying the Frrndc. analyzing said account,
or verifying-and compiling said sssessments and bills, unless fender pays Borrower interest on the Funds and applicable law
psmrits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution o[ this
Mortgage that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requites such interat to be paid. lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
steal! give to Borrower. without charge, an annual acrnunting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds wu made. The Funds are pledged u additional security for the sums secured
by rtes Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
star~ments, iasuartoe premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Funds
held by bender shall not be sufticawt to pay taxes, assessments, insurance premiums and ground rents u they fall due,
Borrower shall pay to Lender any amount netxssary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in fuD of all surus secured by this Mortgage, lender shad promptly refund to 8orrover any Paredes
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
:bail apply. no later than imrtrodiately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at lira time of application as a credit against the sums secured by this Mortgage.
3. ARiicatioa d rgmeMs. 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 hersof. then to interest payahk on the Note, ttxn to the principal of the Note, and then to interest and
principal on any Future Advances.
d. Crtsrges; Lines. 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 evidencing such payrrrents.
Borrower shall promptly discharge any lien which hu priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so brag u 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 lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof.
S. Hazard leasraace. 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 u 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 exceed that amount of coverage required to pay the sums secured by this Mortgage.
'lire 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, dit+ectly to the
insurance carrier.
AI( 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 rrotice to the insurance carrier and lxnder. Lender 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 such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. if such restoration or repair is not economically feasible or if the security of this Mortgage would
i,'^.~ri:~, i^O;;r~tt:! Yrr_~-r~rrc chill M al+nlie(1 to the sums secured by this MortRaRe, with the excess, if any, paid
to Borrower. 1f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 3U 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 autisorized to collect and apply the insurance proceeds at [_ender'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 Property is acquired by Lender, all right, title and interest of Borrower
in and to any fhsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to rtes 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; Condominiums; Planned Unit Devebpments. 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 rhea 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. 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 Lender's Security. If 8orroHer fails t« perfc?rm the covenants and agreements contained in this
Mortgage, or if any action or proceeding rs commenced which materially affects Lender's interest in the Property,
including, but not limited to. eminent domain. insolvency. code enforcemem. or arrangements or proceedings invoh•ing a
bankrupt or decedent. then lender at Lender's option, upon notice to Borrower. rosy make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's interest, mclading. but not limned to, disbursement of
reasonable attorney's fees and entry ulxm the Property to make repairs. If 1_cnder reyuired mortgage insurance as a
. condition of making the loan secured by rhea Mortgage. BorroHCr shall pay the premiums required to maintain such
insurance in etiect until such time as the requirement for wch rns~ranee terminates m accordance with Borrower's and
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