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Ut+ttrotur Oovst+ar+rs. Barowar sad Fader covenant and sgroe a: tolbws:
L ttOt~t etc ttN t¦Iursst. BorwMror titan pranptly ps~? what dw tbs principal of sad iawteet on cite
iadabtsdrtess svidntad by tiN NoM. prpaytamt aqd lets ther=e: as prowidrd is the NoM. and tM pda~cipal d anti iatpat
en ~ >!?tteun Advsnoes sectrtsd by this Mortgage
lltitai Istr'l1~tg ttsti ittaeatt+et. Sbbject to applicsbb law or to a written waiver by Leetdsr, 1at+trtrar s1aB psy
b Lender oa Ibe day montMyiastalpnettq of principal snd iMer+cst aro.payabN under the Note. until tits Note b paW is lull.
a sum pnnia "Foods") egwl N oas-twelfth of tM yea fi taxcc and aaeuntaris which atsy attain prioriq? o~ru' Ibis
Mortgage, acrd grotttld nab oa the Property. it any, phis ooatwelRb of ysatili ptraaium i~bgsnb tot bstsird iasttrattos.
phis ass-twelfth of yssrly prwaitna ertpallmettb for otortgaga insurance. if say. aq as rwonably Mated initially anti ftam
tiers to tiaras 67 Lsader oo the basis of asses;rrtents sad hilk and rasottabk estirnatss thaeof.
'Itis prtnds abaci be held is an institution the deposits or account of which are unwed a guaranteed by s Federal at
state aleatcl? fiadttding Lsoder if-Lertder is such an institution). Lender shall apply the Puads so pay said taxes; saastt~aas.
iasuraoa pt~aaiwns~attd-ground ttials. Lender may not charge for m holding artd applying the Rands. snaly:iag said account.
or writyingaad eomptliag said assessments and bills, unless Lendsr pays Borrower iMetwt oa the ponds and applicabis law
permit l~sadsr tD retake suds a charge. Borrows sad Lender may agroe M writing at the time of exacteion of this
Morn first interest oa the ponds shall be paid to BormMrsr, tad itoless suc>t agneaneM is made or applicabN taw
regltiree suds ioterat t0 ba paid, lender shall not be required to pay Bono~wer any iMer~at or earnings on tits Funds. Leader
sMH give ~ Borrower, without charge, an annual aooounting of the Funds showing credit and debits ro the Fortis sad the
purpose for which each debit to the Funds was _ made: The Funds are pledged ss additional security for the sutras secured
by this Mortgage. -
T< tbs aaotourrc o[ the Funds held by Fender. together with the futuro taonthly iratallaieab of Funds payable prior to
the due daces of taxes. astttsisraatb, irwtranoa premiutm and ground rents.:>ug exceed the amount required to pay :aid taxes.
assesstseab, irwuaoos premiums and ground rents as they fall due. such excess shag be. at Borrower's option. either
promptly repaid to borrower a credited to Borrower on moatMy installments of Funds. if the amarat of the Funds
held bq I.eodsr-sbstll not bs aicieot to pay tsxes, afsrasrnatb. itrsutaace premiums and =round rents as they fall due.
Borr~ shell py to Lender any amount Mary to make up the deficiency within 30 days from the date notice is mailed
by Lsoder b Borrower requtoting psymt:at thereof.
Upon payment in full of ap sums socttred by this Mortgsge. Lender shall promptly reftmd to Borrower any Fund
held by header. u under paragraph 18 hereof the Property ~ sold or the Property rs otherwise acquired by Lender. Lender
shall apptp, no later than immediately prior to the ask of the Property or its acquisition by Lender. any Funds held by
Under at tbs time of application as s credit sgaiost the sutm secured by this Mortgage.
3. A~licafisa of lgasatts. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof :hall be applied by Lender bra in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. they to interest payable on the Note, then to the principal of the Note, and then to interest and
principal oa say Future Advaooe:.
4. Cbasgew Lists. Borrower shall pay all taxes. assessments and other charges. fines and impositiau attributable to
the Property which may attain a priority over this Mortgage. and ksxhoW payments or ground rants, if any, in the manner
provitkd under ~ragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, airectiy to the
payee thereof. Bosower shall promptly furnish to Lender sq notices of amounts dire under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall pranptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hss priority over ttris Mortgage: provided. that Borrower shsq not be
required to discharge any such lien w long as Borrower shall agree ip,writing.to the payment, of the oblisgtjgn secured by
such lien in a manner acceptable to Lender. or shall in good faith contest such lren by, or defend atforeeiaent of such lien in,
legal proceedings which operate to prevent the enforcetnent of the lion or forfeiture of the Property or say part thereof.
S. ]Eta:rtri Iawra~ee. Borrower shall keep the improvements now existing or hereafter erected oa the Property insured
against loan by fire. hazards included within the term "extended coverage". and such other hazards u 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 that amount of coverage required to pay the wins secured Eby this Mortgage.
'11re inwranoe carrier providing the insurance shall be chosen by Borrower subject to approval by Leader, 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
f IafufanCe Cairler. •
All insurance policies and renewals thereof shall be in form aceeptabk to lender and shall include a standard mortgage
clause in favor of and in form accxptabk to Lender. Lender shall have the right to hold the policies and renewals thereof.
sad Borrower shall promptly furnish to Leader 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 sad Borrower otherwise agrce 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 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. If the Property is abandoned by Borrower, or if Borrower fails to respond to Leader within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for irtsuraacx 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 i and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro forty is acquired by Lender. all right, tick and interest of Borrower
in and to say insurance policies and in and to the procceds 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.
f, treservatioa and Maiotcaaace of Property; I.es9ebolds; Coadomiairra~ Pleased Unit Derelopraeals. Borrower
shall keep the Property is good repair and shall-not comWit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any kale 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 Borrower's obligations under the declaration
or eovenants creating or governing the condominium or planned unit devebpment, 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.
Protcctioa of Leader's Secarity. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially aBects Lenders interest in the Properly,
including, but not limited to. eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a
bankruq or decedent, then Lender at Leader's 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. 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 premiums required to maintain such
iawrarrce in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and