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LlNttrotW CoveHartTS. Borrower and Lender covenant and agree u follows:
1~ ~ of hficrNl tri ItNereN. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
on aoy Future Advances secured by this Mortgage.
2. IhrtNs ter Tatra alai Irtnnnee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly.installments of principal and interest an payat>te under the Note. until the Note is paid in full.
a loin (herein "Funds' equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Montage. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
pltu one-twelfth of yearly premium installments for mortgage insurance, if any. all u reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc instucd or guaranteed by a Federal of
state agency (including Lender if lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
insutance premiums and ground rents. t"ender may not charge for so holding and applying the Funds. analyzing said account.
or verifying and compiling uid assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shag five to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
ptrpoae for which each debit to the Funds was made. The Funds are pledged u additional security for the sums secured
by this Montage.
If the amount o[ 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,
assesaaents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents u they fall due,
Borraver shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lander to Borrower requesting payment thereof. "
Upon payment in full of all sums secured by this Mortgage, t_tnder shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shag 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 as a credit against the sums secured by this Mortgage.
3. Applicatiow off payttaeats, Unless" applicable law provides otherwise, all payments received by Lender under the
Nott and paragraphs t and 2 hereof shall be applied by Lender 6rsC in payment of amounts payable to Lender 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.
1. Charges; I.ietss. 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, if not paid in such manner: by $orrower 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 Linder 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 ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard [nsurawce. 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 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 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 doe, directly to the
insunnce carrier.
All insurance policies and renewals thereof steal! 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. 1n the event of loss,
Borrower shall give prompt notice to the insurance carrier and tender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower othen+ise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such re~torat,on 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 ol` 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 i( 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 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
^r !o tL+e sums ~!-!rrPd 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 t 8 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in and to any insurance pohcres and in and to the proceeds thereof resuiung from damage to the Properly prior to the sale
or acquisition shall pass to Lender to the extent of the gums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen•ation and Maintenance of Property; Leaseholds; f"ondominiums; Planned Unit Developments. Borrower
shall kcep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ,s on a leasehold. If this Mortgage is on a unit in a
condominium or a planned umt development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condomin,um or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. 1f a condominium or planned unit development
rider is cxe~;uted by Borrower and recorded together xith 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 iE the rider
were. a part hereof. _
7. Protection of Lenders Security. If Borro~+cr fa,ls to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding commence) which materially affects Lender's interest in the Property. ;
including, but not hm,ted to, em,nent domain. insolvency. code enforcement, or arrangements or proceedings irvoh•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 as is neces.ar}• to protect Lender's interest, including. but not lim,ted to, disbursement of
reasonahle attorney's fees and entry up,m the Property to make repairs. if Lender required mortgage insurance as a
conduu,n of making the loan secured by this Mortgage. Borrav?cr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance term,nates ,n accordance with Borrower's and
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