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UNtt't)a[~t COV@hANT$. BOrfOwer and Lender covenant and agree as fellows:
1. Payment of Principal and lnteresh Borrower shall promptly pay when due the principal of and interest un the
indebtedness evidenced by the Note, prepayment and late charge, as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Tales and Insuraact. Subject to applicable law or to a writtrn waiver by Lender, Borrower shall pay
to Lender vn the day monthly installments of principal and interest arc payahle under the Nvte, until the Note is paid in full,
a sum (herein "Funds"1 equal to one-twelfth of the yearly taxes and assessments which may attain priority veer this
Mortgage, and ground rents on the Prapetty, if any, plus one-twclith of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage ins+tra~ce, if any, all as reasonably estimated initially and from
time to time by lender on the hasis of assessments and hills and reasonable estimates thereof.
The Funds shall he held in an institution the deposits yr accounts of which are insured yr guaranteed by a Federal or
,tale agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said !axes, assessments,
insurance premiums and ground renh. Lender may not charge for sv holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, wiless Lender pays Borrower interest un the Funds and applicable law
permits Lender to make such a charge. Burrvwer and Lender may agree in writing at the time of execution of this
Mortgage that interest un the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, 1_cnder shall nut iH: reyuired to pa)• Borrower an)• interest or earnings on the Funds. Lender
shall give tv Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the hands was made. The Funds arc pledged as additional security for the sums secured
by this \lortgagc.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable privy to
the due dates of taxes, assessments, insurance premiums and ground ants, shall exce~•d the amount reyuired to pay said taxes.
assessments, insurance premiums and 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 of the Funds
held by Lender shall not be sutBcient to pay taxes, assessments, inu+rance premiums *rr+~ .groy~d rents as they fall due,
Borrower shall pay to Lender an}• amount necessary to make up the deficiency withi~;~O y(a1•s from the date notice is mailed
by Leader to Borrower rcyuesting pa)•mcnt thereof.
Upon payment in full of all sums secured by this Mortgage. Lender shall prompNy reftrtgti to.Bvrrowrr any Funds
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held by !.ender. If under paragraph It± hcrcof the Propcrt) is sold or the Property is otherwise ;µc~uired bye Lender, Lender
shall apply. no later than immediately prior tv the sale of the Property or its acyuisition_hy Len~e~ an}• Funds head by
Lender at the time of application as a credit against the sums secured by this ?Mvrtgage.
3. Application of Payments. Unlrs applicably law• pro+•idrs othen+iu. all payments recris•ed by Lender under the
\ute and paragraphs I and hcrcof shall br app6rd h}• !.coder fist in payment of amounts payahle to Lender by Borrower
under paragraph 2 hereof. then to inhre,t payable on the Note. then to the principal of thy Note, and then to interest and
principai un any Future Advances-
4. Charges; Liens. Bnrru++cr shall pa}• all taxes, :+„es,mrnts and other charges. fine. an.l imp.~sitions attributahle to
the Property which may attain a priority over this !?1ortgage. and leasehold payments ur ground rents, if an)•, in the manner
provided under paragraph 2 hcrcof er. if not paid in such manner. M• Borrower making pa)•mynt. ++hen due. directly to the
payee thereof. Borrower shall prompt!) furnish tv Lender all notices of amounts due under this paragraph, and in the event
Bor:ower shall make payment direct!), Borrower shall prompt{}' furnish to 1_endyr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has poorly u+•cr this Mortgage; provided. that Borrower shall not be
required to drschargy any ,uch lien lung as Borrower shall agrry in writing to the payment of the obligation ,reared b)•
,uch lien in a manner acceptable to Lender, ur sh:dl in g.a•d faith conic,[ such lien hy; or defend enforcement of such lien in,
legal prcccedrrigc which operate to present the ynfurcement of the lien or forfeiture of the Property or am' part Iherrof.
5. Harard Insurance. Horruwer shall keep the impmvrmynt now e~i,ting or hrrea(ter erected on the Pmlxrty insured
.+gainst kx, by fire, hazards inriuded w ithrn the term "exlrndr.f Coverage". and such other hazards as Lender ma}• reyurre
and in such amounts and for such periods as Lender may reyurre: provided. that Linder ,hall not reyurre that the amount of
,uch cmerage exceed that amount o. crn•rrage reyuired to pa~• the ,um, ,scored h) the, ;Mortgage.
"The insurance carrier providing the insurance sh:+11 be chosen by Borrower subject to approval by Lender; provided,.
that such approval .,hall not tx unryasonahl}• withheld. All premiums tin insurance lx~licies shat! he paid m the manner
provided tinder para_raph 2 hyrro! us. rf nut p:+id in such manner, h)• Burrower making payment. when due, directly to the
insurance .;arnrr.
j All insurance policies an.! renewals thrreot shall to in form acceptable w Lender and shall include a standard mortg:+ge
plat»y rn facer of and in farm acceptahlr h~ I.rnder. Leader ,hall have the right to -hold the policies and renewah therert.
! .+nd Borr~•wcr ,hall prompth Grrri,h to Lender all renewal notices and all receipts of paid premium,. In the event of loss.
i~ Burrvwer,h:rN gr~r prompt notice to the u+sur;u+ce earner anJ Lender. Lender mac make proof of loss if mgt made promptly
! M Burrower.
Unirss Lcndcr and Borrower Mherur,e agree in writing. insurance pr.wyeds shall be applied to re,tor.+tion or repair of
the Property damaged. pmvrded such ~rstvrahua ur repair rs rconumicalh• feasible and the security of thi, 1lortgagy is
~ net theryb+• impaired. If su.:h restoratum or repair is net economical!) (easihle or if the security of this ~lortgagr would
lx impaired. the insurance proceeds shall he applied to the cams secure) by this Mortgage. with the excess, if any. paid
I to Borrower. 11 the Properh~ is abandoned by ltorruwrr. or if Borrower fails to respond to I.endcr within 3O daps from the
.iate notice i, mailed by Lender to Bnrnw•rr that the insurance carrier otTers to settiy a claim for insurance benefits, Lender
i, authorized to collect and apply the insurance proceeds at I.yndrr's option either to restoration yr repair of the Property
~~r to the sum, secured by this Mortgage.
Unles, I coder :+nd Horruwer othyrwi,e agree in writing. an} such application of pnxyeds to principal ,hall not extend
nr postpone the due date of the munthh- installment, reterrcd d. in paragraph, 1 and 2 hcrcof or change the amount of
,uch installment. 11 under paragraph I S hereof the Propern• a acyuired h+ Lender, all right, title and interest of Borrvw•er
rn and w am rmuranre policies an.! in and to the proceed, ~hrreot rrs+dting from damage to the Property prior to the sale
yr acyuisrtion shall ffass to Lender to the extent of the sum, secured h) this ~lurtgage immediately prior to such sale or
~ acyursitivn.
6. Preser+ation and Maintenance of Proper[}; Leaseholds, Condominiums; Planned Unit Des•elopments. Hvrrower
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shall keep the Property in good repair and shall not commit waste or permit impairment or dyterivration of the Property
and shall cornply with the provisions of any lease if this Mortgage r, on a leasehold. If this ~lortgagc is on a unit in a
~ condominium or a planned amt development. Borrower ,hall perfurmall of Horrower's ohligatrons under the declaration
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ur crn•enant, creat,ng ur governing the rondumrnrum or planned unit development, the b)•-laws and regulations of the
.ondomin;um or planaed unit development, and constituent documents. If a condominium or planned unit development
rider r, cxycuted by Borrower and recorded together wuh this Mortgage, the covenants and agreements of such rider
shall bc: uicorpvrated rote and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a p:ut hereof-
'7. Proter:liun of Lender's tircurity. if Burrower fails to perform the covenants and agreements contained in this
Mortgage. ur if any actu~n or prcx-eedrng rs commenced which materially affect Lender's interest in the Property,
including. but nut limned tu. ymir;ent domain. insolvency, crxie cnfurcement, ar arrangements or proceedings invoh•ing a
bankrupt yr decedent. then Lcndcr at Lender's option, upon notice to Borrower, ma}' make such appearances. disburse such
sums and take such action as is necessary to protect Lender'. mterrst. including. but not limited to. disbursement of
reasonable attorney'ti fee, and retry ufx+n !hr Proper) to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan secured b) this Murt¢age. Borr~~wer shall pay the premiums required to maintain such
insurance in etfrct unril ,uclr time as the requirement for .uch insurance terminatys rn accordance with Borrower's and
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