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Urtt~o~us Covanaw». Borrower and Leader covenant and agra ss follows:
1a 1!'gjweat of leiodMl sttstl 1¦lssat. Borrower :hall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Notes ptepaymeat and late charges ac provided in the Note, and the principal of and interest
oa say Futtsro Advances secured by this Mortgage.
2. lr.~tls fir 1Latea fetal Istsarrtr. Stibjtxt to applicable law ~x to a written waiver by Lender. Borrower shall pay
to Leader oa the day monthly irutallments o[ principal and interest are payable under the Note. until the Note is paid in full,
a sum (herein "Fuads'~ equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground rents oa the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insorartce, it any, all as reasonably estimated initially and from
time to tune by Lender oa the bass of assessments and hills and reasonable estimates thereof.
The Funds t~ltall be held in an institution the deposits or accounts of which are irtstsred or guaranteed by :Federal of
state agency (inchrding Leader if Lender is such an institution!. Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground roots. !.ender may not chsrge for so holding and applying the Funds. analyzing said account.
orveritying.aad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower sad Lender may agree in writing at the time of execution of this
Mortgage that interest on the Foods shall be pvid to Borrower, and unless such agreement is 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 aeoounting 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.
Tf the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due date: of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
atnes:meats, insurance premiums sad ground rents as they fall 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
6dd by Leader shall not be suit to pay taxes. aasessrnents, insurance premiums and ground rents ss 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 Lsnder to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof th_ a Property is sold or the Properly rs otherwise aoquind by Lender, Lender
shall apply, rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the bare of application as a credit against the sums stxured by this Mortgage.
3. A~licatiaa oft tgmeab. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under parsgraph 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.
4. (.'rrage~ Llieas. 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 tbereo[. Borrower shall promptly furnish to Lender all notices of amounts due under this paragrsph, sad is 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 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 lastrratsee. 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 shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The itwrrance 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 shad 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 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 if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier oftets 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 Properly
~ or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree ~n 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 Pro ferry 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 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. I'nestrvatioa aed Maintenance 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
sad 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 Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the t
condominium or glanced 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.
a 7. Protection of Lender'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 limited 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, may make such appearances, disburse such
i sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
j reasonable auomey's tees and entry upon the Property to make repairs. It Lender required mortgage insurance as a ;
~ condition of making the loan secured by this Mortgage, Borrower shall pay the premiwns required to maintain such ~
insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrower's and
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