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Borrower and Lender covenant and agree as folbws:
1. Paytaent of Principal and Interest. Borrower shall promptly pay when due the principa3 of and interest on the indebtedness
evidenced by the Note, prepaymentand late charges asprovided in the Note, and the principal of and intereaton any Future Advances secured
by this Mortgage.
2. F~utds [orTa:es and Insurance. Subject to applicable law or to a written waiver by tender, Borrower shall pay to l.enderon theday
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, i sum !herein "F
ands'") equal to one
twelfth ottee yearly taxes 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 one-twelfth of yearly premium installments for mortgage insurance, if any,
all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills 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 or State agency
(including !.ender if Lender is such an institution). !.ender aF?all apply the Funds to pay said taxes, assesamenta, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
asseaamenta and bills, unless (.ender pays Borrower interest on the Funds and applicable law permits (.ender to make such a charge. $otmwer
and Lender may agree in writing at the time o! execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest b be paid, (.ender shall not be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting otthe Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security forthe sums secured by this
Mortgage.
If the amount of the Funds held by (.ender, 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, assessments, insurance premiums
and ground rents as they tall due, such excess shall be, at Botrower's option, either promptly repaid to Borrower or credited b Borrower on
monthly installments of Funds. If the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to !.ender any amount necessary to make up the deficiency within 30 days
from the date notice is maned by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, !,ender shall promptly refund to Borrower any funds held by (,ender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, Fender shall apply, n~ later than immediately prior
to the sale of the Property or its acquisition by (.ender, any Funds held by Lender at the time of application as a credit against the sums secured
by this Mortgage. '
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Linder under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to !.ender 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; Liens. Borrowershall pay all taxes, assessments and other+•harges, fines and impositions attributable to the Property which
m:,y attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if nM 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, Bormwer shall promptly furnish to
l,,•nder receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Burrower shall not be required to discharge any such lien so lank as It?,rn,wer shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in {;Duct faith n,ntest such lien by, ordefend enforcement ofsuch lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrow er 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 Ixnder may require and in such amounts and for such
periods as Lender may require; provided, that Ixnder shall not r?•?tuire that the amount of such rnverage exceed that amount of coverage
required to pay the sums secured h~• this Mortgage.
The insurance carrier providinK the insur.?mr shall IN• chosen by Burn,wer subj+•e-t to appears! b~• 1 w•nder; provided, that such approval
shall not be unreasonably withheld. All premiums on insurnce policies shx{I Ix• paid in the manner provided under par.,gr-,,ph 'l here,dor, if
not paid in such manner, by Borrower makinK payment, when due,, dire•c•th• to the insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable t<, (,ender and shall include a stand:,rd mortgage clause in favor of
and in form acceptable to [.ender. !.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
:,ender all renewal notices and all receipts of paid premiums. In the event of loss, Bormwer shall Kive prompt notice to the insurance carrier
?nd [.ender Lender may make prc,of of loss if not made promptly by Burrower.
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 c~•om,mically 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 Aortgage N•ould be impaired, the insurance proceeds shall be applied
to thesums secured by this Mortgage, N•ith the excess, if am•, paid to Iorrower. if the Property is abandoned by Borrower, or if Borrower tails to
respond to Lender within 30 days from the date Holier is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized to collect and apph• the insurance pn,ceeds at Lender's option either to restoration or repair of the
Property or the sums secured by this 111ortKage.
lJnless Lender and Burrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred u, in paragraphs 1 and 'L l+ereof or change the amount of such installments. [f under paragraph IS
hereof the Property is acquired by [,ender, all right, title and interest of BormN•er in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property pricer to the sale or acgwsition shall pass to [.ender to the extent of the sums secured by this
.Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall Hat commit N•a,te or permit impairment or deterioration of the Property and shall comply N•ith the
pru~•isione of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Burrower shall perform all of Borrower's obligations under the declaration or covenants creatin{;or governing the condominium 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
:,Kreements ofsuch rider shall be incorporated into and shall amend and supplement the covenants and agreementsotthis htortgageasifthe
nder were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects I.ender'e interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or•arrangements or proceedings involving a bankrupt or decedent, then (.ender at Lender's option upon
natice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protett Lender's interest,
including, but not limited to, disbursement of reasonable attorney's ices and entry upon the Property to make repairs. If Lender required
martgage insurance as a condition of making the loan secured by this 1ortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender a
written agreement or applicable l.aw. $orrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of
Borrower secured by this !`lortgage. Unless Borrower and [.ender agree to other terms of payment, such amounts shall be payable upon
natice from (.ender to Bormwer requesting payment thereof, and shall bear interest fmm the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall
require LendF: t; incur any expense or take any action hereunder.
ELaK 327 z'ecE x.541