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UNIPORM COVBNADti'f, BOt70wer and leader covenant and agree of follows:
1. Paytweat d hMe~al ttmtl INerteat. Borrower shall promptly pay when due the principal of and interest on the
indebtedrt~eas evidt:atxd by the Note, prcpaytttettt and late charges as provided in the Note, and the principal of and interest
oa soy Futuro Advances sectu~ed by this Mortgage.
Fittttrti tort Tatra ts!!i Gtwnace. Subject to applicable law err to a written waiver by Lender. Bormitver shall pay ;
to Leader on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a stun (herein "Fwtds'~ egtral to one-twelfth of the yearly ta>,cs and assessments which may attain priority over this
Mortgage, and ground teats on the Property, if any, plus orte•twelfth of yearly premium installments [or hazard inwrartce.
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 assessmrnts and hills and reasonable estimates thereof.
'Rte Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said (axes. assessments.
insurance premiums and ground rents. 1_ender 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 interest on the Funds shall be paid to 8orwwer, and unless such agreement a 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 fot which each debit to the Funds was 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. irtsurartce premiums and ground rents, shall exceed the amount required to pay said taxes,
a:st:>glttents, insurance prctniums and ground rents as they fall due, such excess shall be, at Borrowers option, either
pmusptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
ht:Id by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Leader 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 is full of all surest tcecured 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 spply. rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. A~pllcatiurt of pa~yareats, Unless applicable law provides otherwise, all payments received by Lender under the
-Note and pangraphs 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 Advancers.
4. Charges; Lkds. 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 hy, 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 pan thereof.
S. Hazard Insurance. Borrower shall keep the improvements now• existing or hereafter erected on the Properly insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
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 by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unreasonably withheld- Alt 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 he 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 earner and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless 1_ender and Borrower otherwix agree in writing, insurance proceeds 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
not thereby impaired. 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 it Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier otters 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
ar to the sums secured by this Mortgage. '
Unless Lender 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 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired 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 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 1,.'it Developments. Borrower
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 it th,s Mortgage is un a leasehold. if this Mortgage is on a unit 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 rnndominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider rs executed by Sorrow•er and recorded together with this Mortgage, the covenants and agreements of such rider
shall 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 Lender's Security. If Borrower faik n• perform the covenants and agreements contained in this
Mortgage, ur if any action or proceeding rs currimenced which materially aBects Lender's interest in the Property,
including, but not limited to, eminent domain. insohency. code enforcement, or arrangements or proceedings invoh~ing a
bankrupt or decedem, then Lender 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's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry ufx~n the Propcrt} to make repairs. !f Lender «yuircd mortgage insurance as a
condition of making the loan secured by SMs Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the. rrywrcnient for uich insurance terminates m accordance with Borrower's and
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