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Borrower and Lender covenant and agt~ee as folbars: •
1. Payeseat of Principal and Interest. Borrower shall promptly pay wham due the principal of and interest oa the indebtedness '
cvideaced by the Note, prepaytn~tt and late charges ss provided in the Note, sad the principal o[ andu+tcrest on any Future Advances secured '
by this Mortgage. ;
2 Phnds Wr T'artea and lrwuraaee. 3ubjed to applicable law or b a written waiver by I.ender, Borrower shall pay to Lender an the day
monthly installments of principal and interest are payable under the Nate. until the Note is paid in full, a sum (heron "Funds")equal to one-
twelfth o[the yearly taxes and assessments which may attain priority over this Mortgagz, and ground rents on the Property, if any. plus ~xte•
twelfth of yearly premium i.Rataltments foi hazard insurance. Plus one-twelfth of yearly premium instal Invents for mortgage insurance, if any.
all sa reseanably estimated initially and from time to time by Lender on the basis of assessments and bilb and reasonable estimates thereof
The Funds shall be held in an iastiitntion the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender if Lender is ouch an institution), Lender shall apply the Fonda to pay said taxes, asaa~emente, insurance premiums and
grouud rents. Lender may not charge for w holding and applying the Funds, analyzing said accounk or verifying and compiling said
asseasrrrmEa sad bills, unless Lender pays Borrower interest on the Funds and applicable taw permits Lender to make anch a charge. Borrower
and Lender mqy agree in writing at the time of a:ecution of this Mortgage that interest on the Winds shall be paid to torrower, artd unless
such agroement is made or applicable law requires anch interest to be>paid, Lender shall not be required to pay Borrower any intsrert or
earnings on the Fonds. Lender shell give to Borrower. without charge. an annual accounting of the Funds showing credits and debits to the
Funds and the purpose fur which each debit to the lltrtds was made. The Funds are pledged u additions) security for the sums secured by this
Mortgage.
if the amount of the Funds held by Lender. together with the future monthly':natal! menu of Funds payable prior to the due dates ottautes,
assessments. insurance premiums and ground rents. shall e:czed the amount required to pay said fazes. assessments. insurance premiums _
and ground rents as Wey fail due, sack excess shall be, at Borrower's option. either promptijr repaid to Borrower. or credited to Borrower on ,
monthly installments of F:uuds.. If the amount of the-Funds held by Lander shall not be suffiaent to pay fazes, assessments. insurance
premiums and ground rents as they fall due. Borrower shall pay w Lender any amount necessary to make ttp the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof..
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Upon payment is full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under !
paragraph 18 hereof We 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 a8 a credit against the sums secured f
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Leader first in r?ayment of amounts payable to Lendzr 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. Charges; Liens. Borrowershali pay all taxes, assessments and othercharges, 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, s
if not paid in such manner, by Borrower making payment, when'due, directly to the payee thereof. Borrower shall promptly famish to Lender
all notices of amounts due under this paragraph, and in the event Borrower shalt make payment directly, Borrower shall promptly famish to }
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvtded, that
Borrower shall not berequired to discharge any such lien so lcng as Borrower shall agreein writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
3. Hazard 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 anch other hazards as).ender may requirr and in such amounts and forsuch
periods as Lender may require; provided, that !,ender shall not require that the amount of such coverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier providit<q 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 13onrower making payment, when due, directly to the insurance carrier.
All insurance policies and rene:als thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof
and in form acceptable to Lender. ).ender shall have the right to hoW the policies and renewals thereof, and Borrower shall promptly famish to
i,ender all renewal notices and all receipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carrier
and Lender. ).ender may make proof of loss if not made promptly by Borrower. i
Unless I~nder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property i
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such _ ~
rtgage would be im proceeds s1,a11 be applied
restoration or repair is not economically feasible or if thesecurity of this ftio paired, the insurnnce €
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 ).ender to Borrower that the insurance carrier offers to nettle a claim for i
insurance benefit r, Lender is authorised to collect and apply the insurance proceeds at Lender's option either to restoration ur repair of the
~ Property or 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 s
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 f
hereof the Property 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 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 Maintenance of Property; Leaseholds: Condominums: Planned Unit Devebpmenta. Borrowershall keep j
the Property in good repair and shall not commit waste or aermit impairment or deterioration of the Property and shall rnmply with the l
~ provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit developmenk
Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creating or governing the condominium or planned
~ uni: development, the by-laws and regutationa of the condominium or planned unit development, and constituent documents. If a
rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and I
agreements ofsuch rider shall be incorporated into end shall amend and sspplement the covenants and agreementsof this Mortgageasifthe
~ rider were a part hereo: ~
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 rnrnmeneed which materially afCecta Lender
a inter~+t in the Property, including, bat not limited to, eminent domain.
insolvency, code enforcement, or arrangemeirta or pr+ot:eedingw involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse such soma and take such action as is ne~oeesary to protect Lender's intsrest.
incuding, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to.make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the pre:aiums required to maintain ;
such inenrnnce in effect until ouch time as the requirement for such insurance terminates in accordaz?~'e with Borrower
s end Lender's #
written agreement or appiicahk Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender
paragraph 2 hereof. - ;
Any aruounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
borrower secured by this Mortgage. Unless Borrower and Lender agree to other term` of payrrenk such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and eh,.f bee r interest from the date of disbursiement at the rate payable fig t
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, is which
event anch amounts she{1 bear interest at the highest rate permissible under applicable law. Nothing rnntatned in this paragraph 7. shag ~
f require Lender to incur any expense or take any action hereunder. ~
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