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Borrower and Lsadar covenant and anew u folk?wa:
1. Payassat of Prlacipal and IatereM. Borrower shall PromPW? Pal? wbsn due the principal of and iatsrest oa tM indebtednew
evidsaoad by tM Note, papayaurtt sad late charges u Provided is the Note. sad the priadpal of sad interest oa say Fntnre Advances secured
Eby this Mortgage.
2 Funds for'I"asea sad Ianrraaos. 8ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender oa the day
monthly installments a[principal and interest are payable under We Note. until the Note is paid in full, a sum (herein "PYtads'7 equal to oae•
twelRh of the yearly to:es and aaessmeats which mrUr attain Priority over this Mortsage. and ground rents on the Property. if air. Plw oae•
twelfth of yearly premium installments for basard irunsanoe, plus orte•twelfW of yearly premium inatalLaents for mortgage insurance. itaay,
all u reasonably estimated initially and from time to time by Leader on the basis of assessments and bille and reasonable estimates thereof
The Fltnds shall be held in as institution the deposits or aooounb of which an insured err guaranteed by a Federal or State agency
(incMding Leader if Lender is such an institution). Lender shall apply the Fonda to pay said lases, apasmaab. iasuraaoe premiums and
ground rests. Lsndar may not drarge far so holding sad applying the Phads. analysing said account, or verifjring sad compiling said
aneasmeats and bills. unless Leader Pays Borrower infsreston the Fends and applicable law permits Lender to make such a charge. Borrower
and Leader may agree in writing al the time of execntiori of this Mortgage that interest oa the FWads shall be paid to Borrower, sad unless
such agreement u made or applicable law requires snch interest to be paid. Lender shall not be required to pay Borrower any interest or
earnings oa the Flrads. Leader shall give to Borrower, wiWont charge, as annual aooouatiag of the Ftitnda showing credits and debits to We
Funds sad the purpose for which each debit to the FW?ds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
If the amount of the Fends held by Leader. together with the future monthly installments of Fonda payable prior to the due dates of fazes,
aaseesmenb, insmaace premiums and ground rants. shaD exoaed the amount required b pay said lases. asseearnents. insurance premiums
and ground rents u they fall dne, snch e:osa shall be, at Borrower
s option, either promptly repaid to Borrows or credited to Borrower on
monWly installments of Eberle. If We amount of the Funds held by Lender shall not be suffiicient to pay taxes. assessments, insurance
premim~a and ground ruts u they fall due, Borrower shall pay to Leads any amount necessary to make up the deficiency within 30 days
from the date notice i. mailed by Leader to Borrower requesting Payment thereof.
Upon payment is fell of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under
paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender. Lender shall apply, ao later Wan immediately prior
to the sale of the Property or its acquisition by Lender, any Ftinds held by Lender at the time of application as a credit against the sums seemed
by this Mortgage.
3. Application of Payments. Unless applicable law provides oWerwisa, all payments received by Lender ender We Note and
paragraplu 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by BorroR er under paragraph 2 hereof,
then to interest payable on We Note, Wea to We principal of the Note. and Wen to interest and principal oa any Future Advances.
4. Charges; Liens. Borrower shall pay all rases, assessments and other charges. fines and impositions attributable to the Property which
may attain a priority Dues Wia Mortgage. and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in snch 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 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 Wia Mortgage: provided. West
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
such lien in a manner acceptable to Lender, or shall in good faiW rnntest such lien by, ordefend enforcement of such lien in, legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass 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 not require that the amount of such coverage exceed Wat amount of coverage
required to pay We soma secured by Wis Mortgage.
The insurance carrier providing 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 Wereof 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 fmniah to
i.ender 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 lose if not made promptly by Borrower.
k Unless Lender and Borrower oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided ouch restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such '
restoration or repair is not economically feasible or if the security of W is Mortgage would be impaired, We insmance proceeds shall be applied
to the sums secured by Win Mortgage, with the excess, if any, paid to Borrower. If the Propertyis abandoned by Borrower, or if Borrower fails to
respond to Lender wiWin 30 days from the date notice is mailed by Lender to Borrower Wat the insurance carrier offers to settle a claim for
insurance benefits, Lender is suWorized to collect and apply the insurance pro~~eeda at Lenders option either to restoration or repair of the
Property or the soma secured by this Mortgage.
Unless Lender and Borrower oWerwise 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 We Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to We proceeds
thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We extent of the sums secured by this
Mortgage immediately prior to such Bale or acquisition.
8. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold. I[ this Mortgage is on a unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned
I unit development, We by-laws and regulations of the condominium or planned unit development, and oonetituent documents. If a
condominium or planned unit development rider is executed by Borrower and recorded together wild Wis Mortgage, the covenants and
agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of Win Mortgage as if the
rider were a part hereof.
7. Protection of Leader's Security. if Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any
I action or proceeding is canmenoed which materially affects Lenders interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decadent, Wen Lender at Lenders option,apon
I notice to Borrower may make such appearanecs. disburse ouch enms and take such action as is necessary to protect Lender's interest.
induding, bet not limited to, disbursement of reasonable attorney's ices and entry upon We Property to make repairs. If Leader required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay We premiums required to maintain
such insurance in effect antil such time as We requirement for such insurance terminates in aeoordance with Borrower's and Leaders
written egresment ar applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided ender
paragraph 2 hereof.
My amounts disbursed by Lender pennant to this paragraph with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, ouch amounts shall be payable epos ~ _
notice from Lender to Borrower requesting payment Wereof, 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 world be contrary to applicable law, in which
event sneh amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained is this paragraph 7. shall
require Lender to incur any expense or take any action hereunder.
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