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UNIPORId Covtar+~rtra. Borrower and Lender covenam and agree as follows:
1. lyweM st lreMti~ral aM 1tNerpl. Borrower shall prompt)}• pay when due the principal of and interest on the
indebtedna: evidentxd by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances trecured by this Mortgage.
lltMtai for Ta:ea a~tl Iwntice. Slrbject to applicable law ar to a written waiver by Lender, Borrower shall pay
to Leader on the day monthly irtstallrnents of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds'q equal to one-twelfth of the year)}~ tax~y and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if arty, plus one-twelfth of yearty~ premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and front
tithe to time by Leader on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institutitut the deposiu or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an instil+~tion). !_ender shall apply the Funds to pay said taxes. assessments,
insurance premiums and ground ants. lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying_artd 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 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 for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by thu Mortgage. .
If the amount of the Funds held by Lender, together with the faros monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground ants, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground ants as they tall due, such excess shall be, at Borrower's 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 suf5cieat to pay taxes. assessments, itsurance premiums and ground ants as they fall due,
Borrost?er shall pay to Lender any amount rueoessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in fuB of all 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 rs otherwise acquired by Lender, Lender
shall apply. no later 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 sceured by this Mortgage.
3. Atplication of Irr~ymeds. 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 o[ 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.
d. Charges; I.itas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which rttay 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 [aith 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. Hazard lasrrrawce. Borrower shall kcep 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 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,
i 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.
M 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 carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower.
Unless Lender and Borrower otherwise 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 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 ofTers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance procceds 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 to in paragraphs I anti 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 t#rsurance 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. Ptxservatioa and Maintenance o[ Property; Leaseholds; Condominiums; Planned Unlt Dereloprttents. 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 if thrs 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 Borrower's obligations under the declaration
~ or covenants creating or governing the condominium or planned unit development, the by-laws and -regulations of the
j 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
were a part hereof.
$ 7. Protection of Leader's Security. If Borrower fails 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 Irmited to, eminent domain, insolvency. crxle enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then 1_ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is rtecessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's ices and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums require) to maintain such
iruurance in etlect until such time as the requirement for such insurance terminates in accordance with Borrower'. and
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