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Ut+rt?oati~r Coverurrrs. Borrower and Lender covenant and agree as follows:
1. !t'ayaseat of Tritse>!al aai lateral. Borrower shall promptly pay when due the principal of and interest on the
inckbledness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Raatis for Tuea tai Iaarnace. Subject to applicahlc law ar to a written waiver by Lender. Borrower shall pay
to Lender on the dsy monthly installments of principal and intr•rcct arc payable under the Note, until the Note is paid in [till,
a trim (herein "Funds") equal to one-twelfth of the yearly ease. and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus orre-twelfth of yearly premium installments for mortgage iitsiirancc, if any, all as reasonably estimated initially and tram
tune to time by Lender on the basis of assessntcnts and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured 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,
insutartce premiums and ground rents. 1_ender ntay not charge for so holding and applying the Frirtdc. analyzing said account,
or verifying and compiling said 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 interest on the Funds shall he paid to Borrower, and unless such agreement a made or applicable law
requites such interest to be paid. Lender shall not br required to pay Borrower any interest or earnings on the Funds. Lender
shall 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 secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes, assessments. ituurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments. 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. If the amount of the Funds
held by Lender shall not be strff~cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar}• 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 all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under 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 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. Applicatlar of Paymeets. Unless applicable law, provides otherwise, all payments received by Lender under the
Note and 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 payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
I. CbarEes; Lkns. Borrower shall pay all taxis, 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 yard 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 Ixnder receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
reywred to discharge any such lien se long as Borrower shall agree in writing to the payment of the obligation secured by
such ben in a manner acceptable to Lender, or shall in gcx+d faith contest wch lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. Huard Insurance. Borrower shall keep the rmprovemems 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 reyuire
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums 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 net be unreasanahl}• withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, rf not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals therrdt shall he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptahle to Lender. Linder shall have the right to hold the policies and renewals thereof,
j and Borrower shall pmmpth• furnish to 1_ender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall gise prurnpt notice to the imur:+nce earner and Lender. Lender may make pnwf of loss if not made promptly
by Borrower.
I Unless Lender and Borrower otherwise agree in writing, imurance pruceed4 shall be applied to restoration or repair of
} the Property +;amaged. provided such restoration or repair rs economicaiiy ieasibie and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not ecunomicall}• 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. It the Pn:pert: is ahandoned h} Borrower, or it Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance earner offers to settle a claim for insurance benefits, Lender
rs authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Pmpens•
ar to the sums secured by this Mortgage.
Unless lender and Borrower otherwise agree in writing, any such application of proceeds to. principal shall rani extend
or postpone the due date of the momhly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments I[ under paragraph ! ti hereof the'Property is acquired by Lender, all right, title and interest of Borrower
in and to any ktsurance policies ,and in and to the proceeds thereat resulting from damage to the Property prior to the sale
or acquisition shall pass to. lender to the extent of the sums secured b} this 1ortgage immediately prior to such sale or
acquisition.
6. ~ Presen•ation and 3laintcnance of Property; Leaseholds; t'ondominiums; Planned Unit Developments. Harrower
shall keep the Property in good repair and shall not commit Kaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any leax it thi, ~turtgage i. on a leasehold. If this Mortgage is on a unit in a
~ condominium or a Itlanned tin+t dcset~:pment. Borrower sh:+Il fx•rtorm all of Hormwer's ohltgations under the declaration
or covenants creating ar governinf; the condomimum or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent documents If a condominium or planned amt development
rider is executed by BOrrawl'r and recorded together with this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall amend anJ supplrntent the covenants and agreements of this Mortgage as if the rider
~ Nere a part hereof.
7. Protection of i.enders Security. If Borrower (.ills to perform the covenants and agreements contained in this
Mortgage, or if any action or pnt.ecdintt is .~~mnirnced which materially allrcts 1 cnder's interest in the Property.
including. but not limited tu. emuicnt durn:un. nisolvenc~. uKle enforcement, or :uranl;entents or proxeedings involving a
bankrupt or decedent, then 1 ender at Lender's option, upon notice to Hormwer. ma) make such appearances, dishurse such
sums and take such action as is necessan ni protect lender's interest. including. but not limited to. disbursement of
reasunahle attorney's fees and entry upon the 1'ropeny to make repairs. if Lender required mortgage inwrancc as a
candiruat lit making the loan sc+urr.l by this ~1~+~t~aec. Horrosxrr sh:dl pay the prcmnnm required to maintain such
insurance in effect anal such time as the reymrenient for such inwrancc terminates m accordance with Bnrrower's and
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