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Uwtaaut Covtartntrts. Horroww std Lstder covenant and agroe as follows:
>d• K hlnetNl atatl 1 Borrower shall pranptll• pay when due the principal of and interest on the
indebtedness evideaoed by the Note, prepayment and late charges ac provided in the Note, and the principal of and interest
oa any Future Advances secured by this Mottgage.
ihsni tar 1i~sa W lawea¦a~e. Subject to applicable law .x to a written waiver by tender, Borrower shall pay
to Lender on the day monthly installments of principal and interest an payable under the Nott, until the Note is paid in full,
s stun (herein "Furrds'7 equal to orte-twelfth of the yearly taz~•. and assessments which tatay attain priority over this
Mort;sge. and ground rents on the Property. it any, plus one-twelfth of yesrly~ premium installments for hazard insurance.
plus otx-twelfth of yearly premium installments for mortgage insurance, if any, all as tt;:sortably estimated initially and from
time to time by Leader oa the basis of assessments and hilts and reasonable estimates thereof.
7Le Fonds shall be bald in an institution the deposits or accounts of which are insured a guaranteed by a Federal of
state agency (including Linder if Lender is such in institutiony. Lender shall apply the Funds to pay said taxes. assessrt+ents.
iasuraaoe premiums and ground rents. lender may not charge for so lwtding and applying the Fnndx. analyzing said account.
or verifying_and compiling said assessments and bills, unless Lender psys Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender rosy agree in writing at the time of execution o[ this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a made or applicable law
requira such interest to be paid. Leader shalt not be required to pay Borrower any interest or earnings on the Funds. Lender
sbaA give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
TE the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, atisastrteots. irtsttnnce premiums and ground rents, shall exceed the amount required to pay said taxes,
ataestments, iawraaoe premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. If the amount of the Funds
Meld by Leader shall not be :tr>8t~eat to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Leader any amount netxssary to make up the deficiency within 30 days from the date notice is mailed
try header to Borrower requesting payment thereof.
Upon payment is full of ail stuns aecuted by this Mortgage, Lender shall promptly refund to Borrower "any Funds
held by Lender. If under gragraph 18 hereof the Property a sold or the Property +s otherwise acquired by Lender, Lender
shall apply. rte Inter than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application a: a credit against the sums securM by this Mortgage.
3. AHtiicattoa of M'areats• Unless .applicable law provides otherwise, all payments received by 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 Note, then to the principal of the Note. and then to interest and
principal on any Future Advsnoes.
d• Crarges; Lieas. Borrower shall pay all taxes, assessments and other charge, fines and impositions attributable to
the Property which may attsin a priority over this Mortgage, and leasehold payments or ground rents, if any, in the tnanaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, what due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aid is the event
Borrower shall make payment directly, Borrower shall promptly furnish to Linder 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 lien or forfeiture of the Property or any part thereof.
S. Hazsrd lasoruce, 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 in such amounts and for such periods as Lender may require; provided, that Lender shalt not t+equirc that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'life 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
iasurance 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 Ixnder. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and alt receipts of paid premiums. 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
by Borrower.
Unless (_ender and Borrower othewise 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. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance procceds 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 Lender 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 Propert~•
or 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 !o in paragraphs 1 and 2 hereof or change the amount of
such installments.- If under paragraph 18 hereof the ProE,erty is acquired by Lender, afl 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. Prrrservatioa gad hfaintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers 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 documents. If a condominium or planned unit development
rider is executed by Borrower 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
wort a part hereof.
7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not tim~ted 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, ma}• make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest. including. but not limned to, disbursement of
reasonahle attorney'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 Mortgage. 8orrowcr shall pay the premiums required to maintain such
insurance in etiert until such time as the requirement for such +nsuranec terminates +n accordance with Borrower's and
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