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UHttraut Cover+ewrs. Borrower anti Lender covenant and agree as follows:
1. rgwetit et lhfiel~al and ItMaeM. Borrower shall promptly pay when due the principal of and interest on the
irtdebtedntas evidenced by the Note, prepayment and late charges ss provided in the Note, and the principal of and inter+at
on soy Future Advances secured by this Mortgage.
t 1rtNi ter Taws ttenl lrtwrree. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lertder on the day monthly installments of principal and interest are.payable under the Note, until the Note is paid in full,
a stmt (herein "Fttttds'7 equal to onatwdith of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property, it any, plus one-twelfth of yearly Premium installrents for htturd insurance.
nlue.w.t,.?elftlr of yysly nrr_miuen installment: for rinortaa[e insurance. it env. all at reasonably estimated initially and from _
time to time by Leader on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposia or accounts of ~thich are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxis. assessments.
insurance premiums and ground rents. lender may not charge for so holding and applying the Fttrtds. analyzing said account,
or vtrifying_artd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
ptirmiq Lender to make wch a charge. Borrower 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 law
requires such interest to be paid, Lender shall not be requitYd to pay Borrower any interest or grnings on the Funds. Lender
:!tall 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 wens secured
by thu Mortgage.
If the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments, irtwranee premiums and ground rents. shall exceed the amount required to pay said taxes.
asseamenta, irt:urance premiums and ground rents as they tall 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
btdd by Lender shall not be wf6cieat to pay taxes. amssrrtent:. insurance premiums and ground rents as they fall due.
Borr~oarer 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 aU sums socurod by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If 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 sale 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. A~cation. oQ Pstyaew. 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.
4. Cttsrges; Lft~. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Properiy 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 thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Rmm~wer ehall make osvment 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
suc6lien 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. IHazard Irtwrawce. Borrower shall koep the improvements now existing or hereafter erected on the Property insured
agaitt:t loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
Ali 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.
~ 'Ilte 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 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
inwrance 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 nut 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 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 monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under .paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any t#tsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th.: 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 Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall kcep the Property in good repair and shall not commit Kaste or permit impairment or deterioration of the Property
and 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 Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned 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.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commence.! which materially affects tender's interest in the Property,
including. but nut 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
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 ulx~n the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan cecureJ by this Mortgage. Borr.:wcr shall pay the premiums required to maintain such
insurance in eQecl until such time as the requirement for wch insurance terminates in accordance with Borrower's and
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- so~~23 P~;F25.91