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UNtpontrt CovtanAntts. Borrower and Lenckr covenant and agree as follows:
fi. of hiae~al anti ialereM. Borrower shat! promptly pay when due the principal of and interest on the
indebledtt~as evidettoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on gay Future Advances stxur+ed by this Motrtgage.
>RtttNr for Taataa nttl iaanace. Subject to applicable law wx to a written waiver by Leader. Borrower shall pay
to Lender on the day rnonthty instalttttents of principal and intcrcit arc payable under the Note, until the Note is paid in [all,
a gum (herein "Furrda'~ equal to one-twelfth of the yearl~~ tax~y and assessrrtents which may attain priority over this
Mortgage, and ground r+ertts on the Property. if any, plus orre~twelfth of yearly premium installments for hazard inwrance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
tirrte to tithe by Leader on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of phich are insured or guaranteed by a Federal otr
sUte agency (including Lender if Lender is such an institution). 1_ender shall apply the Futtds to pay said taxes, assessments.
iasurattce premiums and ground rents. lender may not charge for sa holding and applying the Fttnds. analyzing said account,
or verifying_snd compiling said assessments and bills, unless Leader pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower gad Lender may agree in writing at the time of execution of this
Mortgage that ieterest on the Funds shalt be paid to Borrower. and unless such agreement is made or applicable law
trgtutes such interest to be paid. Lender shall raw be required to pay Borrower any interest or earnings un the Funds. Lind=r
shag 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 arc pledged as additional security for the sums scoured
by this Mortgage.
If the amottni of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes,
a:saaments, it~urance prcmiurns and ground rents as they fall due, such excess shall be, at Borrowers option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sul6eieot to pay taxes, assessments, insurance premiums and ground rents as they _ fall due,
Borrower shall pay to Lender any amount ntooessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payrnent thereof.
Upon paymeat in full of all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Fund:
held by Leader. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquit+ed by Lender. Lender
ahal! apply. no later than iratnediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lteoder at the titre of applicatio~t as a credit against the :ums secured by this Mortgage.
3. A~piicatioo of PrtYtaeafs. Unless applicable law provides otherwise, all payments received by Lender under the
Note attd paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 lterrof. s!t_ts 2%? interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
1. C6artes; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
rho Property which tray 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
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 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
such lien 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. Hazard larwrrawee. 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 such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shalt not require that the amount of
such coverage exceed that amount of coverage required to pay the stems secured Eby this 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 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 shat! 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 mgt economically (easib{e 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 Propert}• is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed b}• Lender to Borrow+•er 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 insurance policies and in and to the proceeds 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.
6. Preservation and ~taiotenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
.shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
sod shall comply with the provisions of any tease 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 nr planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with tha 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 Leader's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property,
inctudmg, but nut limned to, eminent domain. inu~lvenc}•, code enforcement, or arrangements or proceedings invoh•ing 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 ac is necessary to protect Lender's interest, including, but not limned to, disbursement of
reasonable attorney's fees and entry uptm the Property to make repairs. If Lender «yuired mortgage insurance as a
condrtic:n of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the rcyuiremeot for wch msuranee terminates in accordance with Borrowers and
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