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UNrroiuc Covetaaans, Borrower and Leteder covenant and ~ agree u follows:
h~yasest of )rriMelNl atN 1tMa~af. Borrower shall promptly pay when due the principal o[ and interest on the
indebtedness evidetetxd b3? the Nde, prepayment and Tate charges ac provided in the Note, and the principal of and interest
tm any Futerre Adv~teees securod by this Mortgage.
>ptirei fietr Ttutos arttfl ItrtrrttK~e. Slrbject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly itestallrnents of principal and interest are payable under the Note. until the Nde is paid in [all,
a tram (herein "Fuads'q egwl to oteatwdith of the yearly taxes and assessments which tttay attain priority over this
Mortgage;. and ground vents on the Property. if any. plus one-.twelfth of yearly premium installrxnts for hazard insurance,
plus oae-twelfth of yearly prcmieure installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to tune by Leader on the basis of assessments and hills and reasonable estimates thereof.
'flee Funds shall be held is an institution the deposits or accounts of which arc insured or gwrantoed by a Federal or
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
insurance prcmiutns and grouted rents. lender may not charge for see 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 Furtds shalt be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not bt 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 ash debit to the Funds wu made. The Funds are pledged u additional security for the sums secured
by this Mortpge.
if the amount of the Funeh 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.
s:swments, insurance premiums and ground rents u they fall due, such excess shall be. at Borrowers option, either
promptly repaid to Borrower or credited to Borrowu on monthly installments of Funds. If the amount of the Funds
held by Leader shall not be sufficieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any tirnount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower rtogeratiag payment thereof.
Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower ariy Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply. fro later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leoder at the tithe of application as a credit against the sums secured by this Mortgage.
3. Appiicatioe off lt~p~tieds. Unless applicable law provides otherwise, alt payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by .Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereaof, then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
1. C6arsex; Lfiems. Borrower shall pay alt 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 theteot. 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 acczptable to Lender, or shall in good faith contest such lien by, or defend enforccemsnt 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 Itewrtuece. Borrower shall keep the improvements now• existing or hereafter erected on the Property insured
against loss by Ere. hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and (or 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 surris~secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that wch approval shalt 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 manrxr, by Borrower making payment, when duo, directly to the
j insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
j 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 grve prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower.
I
i Unless !.ender and Borrower otherwrse 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 tfiis Mortgage is
not thereby imparred. If such restoration or repair is not economically feasible or if the security of this Mortgage would
j bt 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 faits 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 Propem•
or to the sums secured by this Mortgage.
Unless [.ender and Borrower otherwise agree in wrrting, 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 rrtstallments. if under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in artd to any insurance policies and in and to the proceeds thereof resulting from damage to the Properly 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. Presenatlero and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrow•cr
shall kcep the Property in good repair and shall not comrpit y~~aste or permit impairment or deterioration of the Property
aad shat! comply with the provisions of any tease if this Mortgage n 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 undsr the declaration _
or covenants crcaUng or governing the condominium or planned unit development, the by-laws and regulations of the
' i m or ianaed unit develo ment, and constituent documents. If a condominium or tanned unit development
cond~mrn u p p P
cider rs 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. Prottx•tion of bender's Security. If Borrower fade to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding rs cummence.f which materially affects Lender's interest in the Property.
inciudmg. but nut limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings invoh•ing a
' banknipt 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 necessary to protect Lender's intsrest, including. but not limited to, disbursement of
' reasonable attorney's fees and entry upon the Property to make repairs. if !.ender reyuircd mortgage insurance ac a
condition tit making the loan secured by this Mortgage. Burrower shall pay the premiums required to maintain such
insurance in retest until such time as the reyuirem~nt for such msurance iermmates in accordance with Borrower's and