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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
t . Payment of Prlnr:ipal +nd Interest. Borrower shalt promptly pay when due the principal of and interest on the '
indebtedness evidenced by the Npte. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
Z. Funds forTaxM and Insurance. 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 are payable under the Note, until the Note is paid in full,
a sum (herein "Funds' aqua! tp one•Ivrelllh of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, it any, plus one•tweltth pt yearly premium installments for hazarq insurance,
pins one•tweiith of yearly ~rd~i?iiiii iri5tatirri8nts for mortgagt: insurar,cs, if any, 3f! as reas3^n8bty@gtimrited initia~lyand from
time to time by Lender on Rte basis of assessments and bins and reasonable estimates thereof. •
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agencylinCluding Lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may not charge for so 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. Bomrn?er 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 is made or applicable taw
requires such interest to be paid, Lendershall not be required to pay Sorrowerany interest or earnings or 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 are pledged as additional security for the sums secured
by this Mortgage.
If the amount of 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 exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fail 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
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d ?)ay tv LCi aicr a..y aii.:;iia ,
~~av:...w. ~ .L' ,.r = 4 1? a date notice IS rrtaited
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums sequred by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, lender
shall apply, no later than immediately prior to the sate of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Appllgtlon of Payments. Unless applicable law provides othen+vise. 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 an any Future Advances. ~ -
4. Chargaa; (Jens. Sonower shall pay all taxes, assessments and othercharges,frnetand impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or gqund•rents, if any,:io the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dui, di~pCtly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due udder this paragraph, and ~ ~ event
Borrower shall make payment directly,.Borrower shall promptly tumish to• Lender receipts evidencing`subh payments.
Borrower shall prompty 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 shalt agree in writing to the payment of the obligation secured by
such lien in a manneracceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in.
legal proceedings which operate to prevent tt?e enforcement of the lien or forfeiture of the Property or any part thereof.
5. tr?asard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by tire, 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 require; provided, that Lender shall not require that the amount of
such coverage exceed that amountof coverage required to pay the sum secured by this Mortgage.
The insurance carrier provitling 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 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.
All insurance policies and renewals thereof shall be in Corm acceptable to Lender and shall include a standard mortgage
clause in favor of and in forrl~ acceptable to Lender_ Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly fumish to Lender all renewal notices and all receipts of paid premiums. In the event of toss,
Borrower shaft give prompt notice to the insurance carrier and Lender. Lender may make proof of toss 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 o? 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. It the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is malted by tender to Borrower that theinsurance 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 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 rrronthly installments referred to in paragraphs t and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is 2cquired 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. Preservation and Msingnance of Property; Leasaholda; Condominluma; Planned Unlt Devslopmsnta.
Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pro-
perty and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit 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 o' planned unit development. the by-laws and regulations of the
condominium or planned unit development and constituent documents. 11 a condominwm or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall tie incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
were a part hereof.
T. Protsetlon of tendsr'e Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any actior. or proceeding is commenced which materially affects lenders interes! 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 Lenders option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest. including, but not limited to, disbursements of
reasonable attorneys fees and entry upon the Property io make tePeirs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrovlr~r shelf pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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