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lorrower and Deader covenant and agree a. twbws:
1. 14ragrraent of Princdpal and Interest. Borrowat shall promptly pay wham due the prinapal of sad interest on the indebtedness
evideaoed by the Note, prepayzaeat and late charges a. provided in the Note, and the principal of and interest can any FLture Advances svcund
by this Matigage.
Z. I~tuds for 17ases and Insurance. Subject to applicable law or b a written waiver by Larder, Borrower shall pay to Lender on the der
monthly installments of prireapal and interest are payable wader the Note. until the Note is paid in full. a sum (herein''Fundw") equal to out
twelfth of the yearly taxes and assessments which may attain priority cues this Mortgage, and ground rents on :l:a Property, if any. plus one•
twelfth of yearly p~eminm installments for hazard insurance. plus one`twelith otyearly premium installments formortgage iaeuratrce, ifany. -
all as reasonably e~etimsted initially and from tlu?e to time bM Leader on the basis of asseasmeacs end bills and resronable estimates therec,f.
The Plcnds shall be held in an inatitntioa the deQositf? a accounts of which are insured or guaranteed by a Federal or State agency
(including Leader if Lender is such as imstitutioa). Lender shall apply the Funds to pay said taxes, aasmsmants, insurance premiums and
ground rents. Lender may not cba.~e for so holding and applying the 1?lrnds, analyzing said account, or verifying and compiling said 3
aesaamarts and bills, unless Lender pays Borrower interest ur. the Fonds and applicable law permits Lender to make ouch a charge. Borrower
and Lander may agree is writing a# the time of execution of this Mortgage that interest on the Funds shall ire paid to Borrower. and unless
ouch agreement is made or applicable law requires suck interest to be paid. Lender shall not be required to pet' Borsow~ say interest or
earnings on the Plrnds. Leader shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the
Funds and the purpose for rhich each debit to the Funds was made. 7Ue Funds are pledged as additional security for the sums eccured by this
Mortgage. .
If the amount of the Fends held by Fender, together with the future rwnthly installments of Funds payable poor to the duedatea of taxes,.
asaessmenta, insurance premiums and ground rents. shall exoted the amount required to pay said taxes, assessments, insurance premiums
and grooad rents as they fall due, each excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monWly.installments of Phnda. If We amount of the Funds held by Lender shall sot be sufficient to pay takes, assessments. insurance
premiums and gevund seats as that' 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 to Borrower requesting-payment thereof.
Upon payment in full of aU sums secured by this Mortgage, Leader shall promptly refund to Borrower any funds held by Larder. If under t
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 orits acquisition by Lender. any l~rnds held by Lender ct the time of application as a credit against the sums secured ~
by thin Mortgage. ~ ~
3. Application of Paysiemts.'Unlees applicable law provides otherwise, all payments received by Lender under the Note and f
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 psvyable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
4. Ch _ 4
argea; 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 rents, if any; in the manner provided under paragraph 2 hereof or, i
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender i
all n~tioes of araounta due under this paragraph, and in the event Borrower Rhall Hake 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 alrall not be required todischarge any such lien so long as Borrowershall ague in writing to the payment of *heobligation secured by
such Gen in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings
whidi operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5.. Hazard Inearance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against toes by -
fire,hazards included within the tRrm "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch
periods as Lender may require; provided, that Lender shall not require that the amount of such .overage 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 such approval
steal! not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, J
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. -
AUinsurance policies sad renewals thereof shall be in form acceptable to Lender and shall include a standa:a mortgage dauae in favor of
and in form ameptable to Lender. Lendershall have the right to hold thepolicies and renewals thereof, and Borrower shall promp•Jy furnish to _
i,ender all renewal notices and all receipts of paid premiums. [n the event of lass, Borrower shall give prompt notice to the insurance carrier
and Lende*. Lender may~make proof of leas 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 [easible and the-security of this Mortgage is not thereby impaired_ If such _ 1
restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the auras 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 aeWe a claim foe
insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property br the name secured by this Mortgage. _
Unless Lender and Borrower otherwise agree in writing, eny such application of proceeds to principal shall not extend orpustpone theme
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta_ If under paragraph 18
hereof the Property is acquired' Lender, all right, title and inter2at of Borrower in and to any insurance policies err <:'sn and to the proceeds
thereof resulting from damagf to ''roperty prior to the sale or acquisition shall pass to [.ender to the extent of the sums secured by_ this
Mortgage immediately prior to sucl_- `ale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments: Borrower steal! keep
the Property itr good repair and shall not commit waste or permit impairment or deterioration of the Property and shall c:.:aply wit{. the
provisions of any lease if this Mortgage is on a leasehold. if this Murigage is on a unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower a obligations under the declaration or covenants creatingor governing flee condominium or planned
unit development, the by-laws and -egulations of the condominium or planned unit development, and rnnatituent documents. If a
rnndominium or planned unit develo. meet rider is executed by Borrower and recorded together with this Mortgage, the aovens.nts and
agreements of such rider shall be incorporated into and shat! amend and supplement the covenants and agreements of this Mortgage as if the
rider were a part hereof.
T. Protection of Lender's 3ecurt`~. V Borrower fails to perform tine eovenan4s and agreements contained in this Mortgage, or if any - _ ~
action or proceeding is commenced which materially affects Lender
a interest in the Property, including, but not limited to, eminent domain, -
insolvency, code enforoanent, or arrangements or proceedings involving a bankrupt or deoedeat,~ then Lender at Lender's option,npon
notice to Borrovntr mss make such appearances, diabirrae such sume.ar•'1 take wclr action as is necessary to protect Lender's interest,
including, brit not limited to, disbursement of reasonable attorney's fees a:.~+ -stet' upon the Property to make repairs. If Lands required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain ~
such insurance in effect until arch time as the requirement for such insurance terminates in aocor+dance with Borrower's and Lendtt's
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender i.
Paragraph 2 hereof. -
My amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of
Borrower secured by t>•as l+tortgage_ Unless Borrower and Lender agrex to other~terms of payment, such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which
event arch amounts shall bear interest at the highest rate permissible under applicable taw. Nothing contained in thus paragraph shall -
require Leader to curse any expense or take say action herenrrdtr. _
BUS ~ PAtE~c~2
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