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UNtrgw COVENANTS. Borrower and Lender covenant and agree u follows:
11. h4yttaetN a[ MnclMl anti IMereN. 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
as soy Future Advances secured by this Mortgage.
2. l+tiais [or Taos and Iawraace. 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 are payable under the Note. until the Note is paid in full,
a sum (herein "Fund:") equal to one-twelfth of the yearl~~ taxt.~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium inuallments for hazard insurance.
plus otae-twelfth of yearly premium installments for mortgage insurance. it any. all u rctuonably estimated initially and from
time to time by Leader on the buffs of assessments and hills and reasonable estimates thereof.
The fi»tds shall be Geld in an institution the deposits or accounts of which are insured or gwranteed by a Federal of
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. sssesstnents, •
insurance premiums and ground rents. 1_ender may not charge for sa holding and applying the Funds. 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. Harrower and lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall Ix paid to .Borrower, and unleu such agreemtnt a made or applicable law
r+tquirea such interest to be paid. Lender shall not Ix 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. asseuments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
a:setannents, insurance premiums 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
hcW by Leader shall not be sttfftcient to pay taxes, assessments, insurance premiums and ground rents u they [all due,
Borrower shall pay to Lender any amount necessary 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 puagraph 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. A~iieattioa o[ Paytsxats. 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. .
4. Charges; Lkas. 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 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 tht 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 lasrrrance. Borrower shall kcep 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 1_ender may require
and in such amounts and for such periods as Lender may reyuire; provided. that Lender shall not require 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 not be unreasonably withheld. Afl premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if rtot paid in such manner, by Harrower making payment, when due, directly to the
inwrance 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 shall give prompt notice to the insurance carrier and (,.ender. Lender may make proof of loss if not made promptly
by Borrower.
E 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 not economically feasible ar if the security of this Mortgage would
! Ix 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 Lender within 30 days (rein the
ti
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 Prapertv
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
1 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 I8 hereof the Progeny a acyurred by Lender, all right, title and interest of Borrower
in and to any Insurance policies and in and to the pra:eeds 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
acgtusition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit IDevebpments. Borrower
shall keep the Property in good repair and shall not commit y~•aste or permit impairment or deterioration of the Property
and 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 drs•rlopment, Borrower shall perform all of Borrower's obligations under the declaration
- or covenants creating or governing the condomtmum or planned unit development, 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.
~ 7. Protection of fender's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is wmmence~l whtch materially affects Lender's interest in the Property.
including, but not limited to. eminent domain. insohenc~, axle enforcement, or arrangements or proceedings invols~ing a
bankrupt or decedent, then Lender at Lender's option, up~ro notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, includtng. but not limited to, disbursement of
reasonable attorney's fees and entry ufxm the Property to make repairs. if Lender rcyuircd mortgage insurance as a
condition of making the loan secured by Ihrs Mortgage. Born:wer sh.rll pay the premiums required to maintain such
insurance in elfect until such time as the reyuiremcnt (or such insurance terminates to accordance wish Borrower's and
t~~327 P~~E1374 . • , .
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