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Untwant CovttHat+ts. Botrarer and Leader covenant and ages ss follows:
1. ttgweat et Irsirte}itl rttatt lalenM. Borrower shall promptly pay when due the pritrcipal of cud iatetest on the
indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
oa soy Ftdure Advarroes secured by this Mortgage.
Z. llrai ter Taow ntai Iesrrrtttra~e. S~rbject to applicable law .x to a written waiver bye lender. HoR~ower shall pay
to Leader on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full, t
a sum (herein "Fuada'~ equal to one-twelfth of the year)}• taa~~. and assasmatts which ttoay attain priority aver this
Mortgage. and ground rents on the Properly. it any. plus one-twelfth of yearl}i premium irtstalraarts for hazard inwra,rce,
plus one-twelfth of yearly premium installments for mortgage instrance, if any, all as reasonably estimated initially and from
time to tithe by Lender oa the basis of assessments and hills and reasonable estimates thereof.
7Le Funds shall be held in an institution the deposits or accounts of which arc ittsttred or guaratrteed by a Federal err
state agency (including Lender if Lender is such an institution). I~nder shall apply the Funds to pay said taxes. assessmaus.
iawranoe premiums and ground trots. lender may not charge for so holding gird applying the Firndt, analyzing said account.
or verifyingard compiling said assessments and bills, unless Leader pays Borrower interest on the Funds std appliabk law
permits Lender to make such a charge. Borrower and Lttder 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 agreemart is made or applicable law ,
regtur+a 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 annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Furrds was made. The Funds are pledged as additional security for the sums secured
by Wle Mortgage. •
If the amount of the Funds heW by Lttder. together with the future monthly installments of Funds payable prior to
the due dates of taxes. astswmeats, inwranoe premiums and ground rents, shall exixed the amount requited to pay said taxes.
assaaments, insurance premiums and ground rents as they fall due, such excess shall bt:, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the atrtount of the Funds
heW by Leotkr shall not be wfficieat to pay taxes. assessments, insurance premiums and ground rents as 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 Leader to Borrower requesting payment thereof.
Upon payment in full of all autos scoured by this Mortgage, lender shall promptly rcfurd to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender, Lender
shall apply. no later Wan immediately prior to the sale of the Property or its acquisition by Lender. any Funds heW by
Leader at the tune of application as a credit against the sums secured by this Mortgage.
3. Application of lanreMs. 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 Advancers.
C6arzes; Liras. 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 ar ground rents, if any, in the manner
provided under paragraph 2 hereof'or. if not paid in such manner, by Borrower making payment, whar due, directly to the
pr<y8e thti'rof. Surrower shah praruptly furnish to Lender all notices of amounts dui under this paragrspb, 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 writrng 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. Hwrd Irrsrrrawee. Borrower shall keep the improvements now existing or hereafter erected on flee 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 rat require that the amount o[
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,
that wch approval shall not be unreasonably withheld. All premiums on inwrance 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
inwratxe 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 hoW the policies and renewals thereof,
I and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Ions.
Borrower shill 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 writrng, insurance procceds 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. I( such restoration or repair is not economically feasible or if the security of Wis Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the execs, 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
F is authorized to collect and apply the insurance proceeds at Lender i option either to restoration or repair of the Propert~• '
€ or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in v.riting, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installmenu. if under paragraph 18 hereof the ProE,etty is acquired by Lender, all right, tick 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 tha: 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. Preservation and Maietenance of Property; Leaseholds; Cordomiaiurns; Pbataed Uiait Devebpmeats. Borrower
shall kcep the Property in good repair and shall not commit yiaste or permit impairment or deterioration of the Property
~ and shall comply with the provisions of any lease if thu Mortgage is on a leasehold. If this Mortgage is on a emit 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
R condominium or glanced unit development, and constituent documents. If a condominium or planned unit development
rider 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. i
i 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
F Mortgage, or if any action or proceeding n commenced which materially affects Lender's interest in the Pmperh•.
including. but not limited to, eminent domain. ina.fsency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Ixnder 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 limited to. disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. I( Lender reyuircd mortgage inwrance as a
condition iii making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement fir wch insurance terrmnatc~ m accordance with Borrower's and