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UNIFOUM COVENANTS. Borrower and Lender covenant and agree u follows:
4 )!'~Yweat of h{~clNl ttrti laler+ed. Borrower shall promptly pay when due the principal of and interest on the
indebtednea evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
ititada for Tatty ttui lnwrauee. Subject to applicabk law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a sum (herein "Fund:") equal to one-twelfth of the yearly faze. 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 orte-twelfth of ye:rly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
time to.titrte by LendeF 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 of
s4te agency (including Lender if Lender is such an institution). 1-ender shall apply the Funds to pay said taxes. assessments.
insurance premiums grid ground rents. Lender may not charge for so holding and applying the Frrnds, analyzing said account,
or verifying and rnmpiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits. Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be 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 annual accounting of the Funds showing credits and debits to the Funds and the ,
purpose for which aeh debit to the Funds wu made. The Funds are pledged u additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, usessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents u 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 toes. assessments, insurance premiums and ground rents u 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 Lender to Borrower requesting payment thereof.
Upon payment in full of all auras secured by this Mortgage, lender shall promptly refund to Borrower .any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sak of the Property or its acquisition by Lender, any Funds held by
Lander at the time of application as a credit against the sums secured by this Mortgage.
3. A~plicatlota of Payraneats. 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
principal on any Future Advances.
4. Charges; Lkas. 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 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 lien in,
legal proceedings which operate to prevent the enforcement of the Iren or [orfeiturr of the Property or any pan thereof.
S. Hazard Insurance. 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 as Lender may require
j 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 Eby this Mortgage.
j The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
f 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 Burrower making payment, when due, directly to the
~ insurance carrier.
All insurance policies and renewals thereof shall br in form acceptable to Lender and shalt 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 sha!I promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall grve prompt notice to the insurance earner and (.ender. (.ender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower othervrrsr agree in wntrng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such rrstoratron.or rrparr is economically feasible and the security of this Mortgage is
not thereby imparted. It such restoration or repair is not rcunomically feasible or it 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
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date notice is marled by Lender to Borrower that the insurance carrier ofTers 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 Burrower otherwise agree in writing, any such application of prcx:eeds to principal shall not extend
or postpone the due date of the monthh• installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by Iw:nder, 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. Presen•ation and Miuotenance of Property: l.easehulds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit y+aste ur permit impairment 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 emit 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 drxuments. If a condominium or planned unit development
~ rider rs execut•_d by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplement the cusrnants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of [.enders Security. If Borrower farts try perform the covenants and agreements contained in this
~ Mortgage, ur if any action ur procredmg i, cummrncrJ which materialh affects Lender's interest in the Properly,
including. but not Gnuted to. rmment domain. ina~henc}. code rnforcrmrnt. or arrangrmrnK or proceedings invoh~ing a
bankrupt or decedent. then Lender at Lender's upnon, upon nonce t~. Borrower, may make such appearances, disburse such
sums end take such action as is necessary ai protect Lender's interest. including. but not limned to, disbursement of
reasonable attumry's fors and entry upon the Property to make repairs. If I.cndrr reyuired mortgage insurance as a
condmon of making the loan secured by thn Mortg:+ge. Burrower shall pay the premiums required Io maintain such
insurance in effect until such time a1 the rcyuiremrnt for wch insurance trrmrnatrs m accordance with Borrower's and
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