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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Paymeat of Priaclpal and Interest. Borrower shall promptl}• pay When due the principal of ;+nd interest on 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 Taxes and Insurance. 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 are payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which ma}• attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if I_ettder is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground ants. 1_ender ma}• not charge for so holding and applying the Funds, analysing said account,
or verifying and compiling said assessments and hills, unless lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and lender may agree in writing at the Time of execution of this
Mortgage that interest an the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, 1_ender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
shall give to 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 Funds w:u made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
if the amount of the Funds held by 1_ender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender 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 full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 1S hereof the Property is told or the Property is otherwise acquired by Lender, 1_ender
shall apply, no later than immediatel}• prior to the sale of the Property or its acyuisition by .Lender, any Funds held by
Lender at the time u( application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received 6y Lender under the
Note and paragraphs I 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 Nute. then to the principal of the Note, :+nd then to interest and
principal on an}• Future Advances. _
4. Charges; Liens. BO:fOwel shall pay all taxes, assessments :+nd other charges, fines and imp+?sitions attnbataMe to
the Properi}• which may attain a priorit}• over this Mortgage. and leasehold payments or ground rents, if an}•, 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 promptl}• furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment ducetl}•, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge am' lien which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall :+gr~-e in writing to the payment u( the obligation secured by
such lien in a manner acceptable to Lender, or shall in gxxi faith contest such lien M•, or defend enforcement of such lien in,
legal proceeding. which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower ,hall keep the tmprosements nrnv misting ur hereafter erected on the Prriverry insured
against loss by fire. hazards included within the term "c~tended coverage". and such other hazards as Lender ma}• reyuire
and in such amounts and for such pericxls as Lender may reyuire; pins ided, that I.en~ler shall no: reyuire that the amount of
such coverage e~eeed that amount of coverage regwrcd to pa} the wins secured by this :4ortgage.
The insurance carrier providing the insurance shall he chosen by Borrower subject to approval h}• Lender, provided,
that such approval shall not be unreasonably withheld, All premiums on insurance policies shall be paid in the manner
prodded under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
tnsur:+nce earner.
All insurance policies and renewals thereto shall Ix in form accept:+ble to Lender and shall include a .t:utdard mortgage
clawe in favor of and in form accepr,~ble to Lender. Lender ,half have the right to hold the policies and renewals thereof.
and Borrower sh:+Il prompth• furnish to,Lender all renewal notices and all receipts of paid premium. 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
be Borrower.
i Unless 1_ender and Borruwcr otherwise agree in writing. insurance proxeeds 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
t not thereb}• impaired. If such restoration or repair +s nut ecrnmmic:~lh• feasible or if the security of this Mortgage would
r tx: impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Bormw•er_ If the Propcrh• is ahandoned by Borruwcr or it Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Harrower that the insurance carrier offers to settle a claim for insurance benefits, lender
is authorized to collect and apply the insurance pmeeeds at tender's option either to restoration or repair of the Property
or to the sums secured h}• this Mortgage.
Unless Lender and Borrower otherwiu agree in writing. an}' such application of pnvcceds to principal shall not extend
or postpone the due date of the monthly instaNments referred to in paragraphs I and 2 hereof or change the amount of
a such installments. It under paragraph 18 hereof the Property is acynired by Lender, all right, title and interest of Borrower
in and to an} insurance policies and in and to the proceeds thereof resulting from damag.: to the Property prior to the sale
or acyuisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
acyuisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit I~velopments. Borrower
shall keep the Property in good repair and shall not commit waste car permh imperrment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development. Borruwcr shall perform all of Borrower's obligations under the declaration
i or covenants creating or governing the rnndominnrm or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. I(a condominium or planned unit development
I rider is executed b)• Borrower and recorded together with this Mortgage, the covenantsrnd agreements of such rider
z shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider 3
Here a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
e Mortgage, or if any a;aton or proceeding is commenced which materiallyrfiects Lender's interest in the Property.
including. but not limned 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 Lender's interest. including. bot not limited to, disbursement of i
reasonable attorney's fees and entry up~~n the Property to make repairs. II Lender reyuire) mortgage insurance as a
condition of making the loan sc:eured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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