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1.1N1FORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Pdnclpal sad latetrcst. Borruwer shrtl promptly pay when due the principal of and interest on the
indebtedness 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. Faads for Toes and Iasuraace. Subject to applicable law or Io 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 may •attain priority over this
!Mortgage, and ground rents on the Aroperty. +f any, plus one-twelfth of yearly premium installments far 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 re;)sonabfe estimates thereof.
The Funds shall be held in an institution the delx~sits or aca~unts of which are insut•ed or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, anal}•zing said account.
or verifying and compiling said assessments and bills, 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 on the Funds shall be 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 •
,hall 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•as made. The Funds arc pledged as 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, assessments, insurance premiums and ground rents, shalt exceed the amount required 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 Borrow•cr of 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 preriums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}•s from the date notice is mailed
by Leader to Borrower rcqucsting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrow•cr any Funds
held by Lender. If under paragraph IR hereof the Property is sold or the Propcrq• is otherw•isc acquired by Lender, Lender
shall app!}•, no later than immediate!}• prior to the sate of the Property or its acquisition h}• !.coder, an}• Funds held by
tender at the time of application.as a credit against the sums secured by th+s Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Vutc and paragraphs I and 2 hereof shall be applied by Lcndcr first in payment of amounts payable to !.ender by Borrower
under paragraph 2 hereof, then to interest payable nn the Note, then to the principal of the Notc, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Born~wcr shall pay all tads, assessments and other charges, fines and impositions attributahle to
the Propetty 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, b}• Borrower making pa}•ment, whets due, directly to the
I
payee th~rof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Hnrn+wer shall make payment direct!}, Borrower shall promptly furnish to lender receipts evidencing such payments. ;
Borrower shall prompt)}• Discharge an}• 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 m the payment of the obligation secured by
,uch Lien in a manner acceptable to Lender, or shat! in good faith contest such lien hy. or defend enforcement of such lien in,
legal proceeding, which operate to present the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insuranre..Borrowcr shall keep the imp:uvemcnts now existing or hereafter erected on the Property insured
against loss M• fire. hazard, included within the term "extended coseragc". and such other hazards as Lender may require
.uu1 in such amounts and for such periods a. Lender mar require: pr.~s•idc+1, that Lender ,hall not require that the amount of
,u,h coverage exceed that amount of rnverage required u• pay the ,ems ,eeured M• this !Mortgage.
The insurance cattier providing the insurance shall I>L chu,en by Borrower subject to approval by fender: provided, ;
ghat Stich approval ,hall not be unreasonably withheld. Alt prcmiumc on insurance policies shalt be paid in the manner
,~ruvided under paragraph 2 hereof or, if not paid in such manner, b}• Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall tx~ in form acceptable to Lender and sh:+ll include a standard mortgage
.louse in fay°or of and in form acceptable to Lender. Lender shah have the right to hold the policies and renewals thereof.
aad Borruwer ,hall prompth• furnish to Lender all renewal notices and all receipts of paid premium,. In the cxent of loss,
Borrower sh:+N give prornpt nouce to the insurance carrier and lender. Lender ma} make pnwf of loss if not made promptly '
hs• Borrower.
Cinlcss Lcndcr and Borrower otherwise agree in writing, insurance pra:ccds shall be applied to restoration or repair of
the Property damage.f, provided such re,torattor. or repair is economically feasible and the security of this Mortgage is
not thereb} impaired. It such restoration or repatr is not economical!} feasible or if the security of this bortgage would
be impaired,. the insurance proceeds shall be applied t~• the sums secured by this Mortgage. with the excess, if any, paid
w Borruwer. If the Property is ahaudoned b} Borrower. ~r if Borrower faits to respond to fender within 30 da)•s from the
Date notice is mailed by Under to Borrower that the insurance carrier offers to scale a claim for insurance benefits, [.ender
authorized to collect and apply the insurance pruceeds.at Lender's option either to restoration or repair of the Property
ur to the sums s;:cured b}• this Mortgage.
Unless L.:nder and Borruwer otherwise agree in writing. an} such applir.+rion of prexeeds to principal shall not extend
,~r postpone the due date of t1+e munthh• installments referred to in paragraphs 1 and hereof or change the amount of
,uch instalments. if under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisitio:~ 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 Propert}: Leaseholds; ('ondominiunts; Planned Unit Developments. Borrower '
shall keep• the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
asd shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a t+nit in a
~undominn+m ur a planned unit devetopmcnt, Borrower shag perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit devetopmcnt, the by-laws and regulations of the
cond~~min+um or planned unit development, and constituent documents. If a condominium or planned unit devetopmcnt
rider i, executed by Borrower and recorded together wtth this Mortgage, the covenants and agreements of such rider
shall bc: +ncorporatcd into and shall amend and supplement the cx.renants and agreements of this Mortgage as i( the rider
were a part hereof.
7. Protection of Lenders Security. 1f Borrower fork to perform the covenants and agreements contained in this
Mortgage, ur if any acoun ur pra:ceding is commenced which materially affects Lender's interest in the Property,
including. but not limited to, eminent domain. in,ohency, code enforcement, or arrangements or pn~ceedings 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 necessar}• to protect Lenders interest, including, but not limited to, disbursement of
reasonable attome}•'s fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this lortgace. Bnrmwer shall pay the premiums required to maintain such
insurance in effect until ,uch time as the requirement for such tnsurance termi;~atcs m accordance with Borrower's and
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