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Unt>*otes[ Covtanret~s. Borrower and lender covenant and agree ss follows:
1. rgttwnt ett ltiudMl atai luleaeaf. Borrower shall promptly pay when due the principal of and interest on the
indebtedttea evidertoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
oa say Futuro Advances secured by this Mortgage. '
!1~i fatr 7lrzas awtl Ittttaeaac~e. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a twm (herein "Fttads'~ equal to one-twelfth of the yearly tax~~ and assessments which troy attain priority over this
Morlgase, and ground rents on the Property. it any, plus otte•twelfth of yearly premium iastallments for hsurd insurance.
plus one-twelfth of yearly premium installments for mortgage inu~rartce, if any, all u reasonably estimated initially and from
time to time by Leader on the base of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the depatita orrccounts of which are insured or gwanteed 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.
irt:uratnoe premiums and ground rents. lender may not charge for so holding and applying the Ftrrtds, analyzing said account,
or verifying_and compiling acid 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
Mottga=e that interest on the Funds shall Ix paid 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 aooounting 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 u additional security for the sums secured
by the Mortgage.
If the amount oI the Funds 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 excocd the amount required to pay said toes.
aaeaaatents, itr:uranee premiums and ground rents u they fall due. such excess shall be, at Borrower's option, either
praaptly repaid to Borrower or credited to Borrower on monthly instalttnents of Funds. If the amount of the Funds
bt.ld by Leodershall not be sui5cieat to pay toes. assessments, insurance premiums and ground rents u they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender w Borrower r+equatiag payment thereof.
Upon payment in fuQ of all wins secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lander. If under paragraph 18 hereof the Property is sold or the Properly u 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
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. A~plicatiwt of lPay'eds. 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 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 Advances.
1. Cdarges; Liens. 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 rears, 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 fumish 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. Ha:ard Insurance. 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
j 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.
'Ibe iasurance 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 iasurance policies shall be paid in the manner
j provided uader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dir~ectty to the
insurane carrier.
Alf insurance policies and renewals therrof 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 shat! give prompt notice to the insurance carrier and lender. Leader may make proof of lass 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. !f 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 offers to settle a claim for insuraace benefits, Lender
~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
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 and 2 hereof or change the amount of
such installmeats. If under paragraph 18 hereof the Proferty is acquired by Leader, all right, title and interest of Borrower
in and to any iasurance 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. iPreservatioo and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developrrtetrts. Borrower
s shall keep the Property is good repair and shall not commit waste or permit impairment or deterioration of the Property
~ sad shall comply with the provisions of any lease if this Mortgage rc 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
s condominium or planned unit development. and constituent documents. !f a condominium or planned unit development
rider is executed by Borrower and rernrded 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 it the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this t
Mortgage, or i( any action ur proceeding ~s commenced which materially affects Lender's interest in the Property.
~ including. but not hm~ted to, eminent domain. ina•lvency. code enforcemem. or arrangements or proceedings invoh•ing a
bankrupt 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 interest. including. but not limned to. disbursement of ~
reasonable attorney t tees and entry upon the Property to make repairs. I( Lender required mortgage insurance as a '
condition of making the loan secured by th?s Aortgage. Borrower shall pay the premiums required tci maintain such }
f 'insurance in eBect until such time as the reyuirrment for wch insurance terminates m :ucordanee with Borrower's and
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