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l1NtPOttnl COVtaNANl3, Borrower and Lender covenant and agree u follows:
1. trywent ar hinclMl atsi Interest. Borrower shall promptly pay when due the principal of and interest on the
indtbtednt~ evidenced by the Note. prepayment and late charges as provided in the Note, and the principal o[ and interest
on any Future Advances sectrred by this Motrtgage_
2. 1lhrtNs for Top ttrtattl Irtwnece. 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 cull.
a stun (herein "Funds'q ogwl to one-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium itutalltttents for hazard insurance.
plus on.~2welfth 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 arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes. assessments.
insurance prcmiutns and ground rents. I.tnder may not charge for so holding and applying the Funds. analyzing 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 interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicabk law
requires such interat to be paid. lender shalt 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 each debit to the Furtds wu made. The Funds are pledgod 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, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
ateattrrents, 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 sutficieat to pay taxes, assessments, insurance premiums and ground rents u they tall due,
Borrower shall pay to Lender any amount necessary to make up the deficitncy within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in Lull of a1! sums 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 +s otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, arty Funds held by
Lender at the tune of application u a credit against the sums secured by this Mortgage.
3. Appllcatios of Payareets. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to tha principal of the Note, and then to interest and
principal on any Future Advances. .
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4, Charges; Liens. Borrower shall pay all taxes. assessments and other charges. fines and impositions attributable to
the Properly 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 alt notices of amounts due under this paragraph, sad 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 shalt 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 Property or any part thereof.
S. Hazed irwrraace. 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
and rn 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 s+rms secured by this Mortgage.
-Ilre 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, directly to the
insurance carrier. -
All 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 notice to-the insurance career and Lender. Lender may make proof of loss if not made promptly
by Borrower. '
Unless Lender and Borrower otherwise agree in writing,. insurance proceeds shalt 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 imparted: It such restoration or repair is not economically feasible or if 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 if Borrower fails to respond to 1_ender within 30 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 authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propen~•
or to the sums secured by this Mortgage.
Unless fender 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 insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to thr 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 Developments. Borrow•cr
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if the Mortgage is un a leasehold. !f this Mortgage is on a unit in a
condominium or a planned unit development, Burrower 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.:+nd constituent documents. If a condominium or planned unit development
rider rs executed by Borrower and recorded mgether with this Mortgage, the covenants and agreements of such rid^.r
shalt 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 Leader's Security. If Burrower fark m perform 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 nut Gmrted to, em+ncnt domain. insolvcnc~. axle enforcemcm. or arrangements or proceedings invoh•ing a
bankrupt or decedent. then Lender at Lender's option, ulx+n notice to Borrower. ma} make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's +merest, including, but not limited to. disbursement of
reasonable altatney's fees and entry up+m the Property to make repairs. If Lender required mortgage insurance as a
condition of mak+ng the loan secured by this Mortgage. B+•rr++wer sh:dl pay the premiums required to maintain such
inuurance in effect until such time as the requirement fur ,uch msurance Icrmrnates m accordance whh Burraw•er's anJ
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