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UNi~ORM COVENANTS. Borrower and Lender covenant and agree u follows:
1. TiayetN of hioclNl ttrtd INtmN. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidettoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. F1rui fo+r Ttutaa trni lwrtrce. Subject to applicable law ~~r io a written waiver by Lender, Borrower shall pay
to Lender on the day monthly it?stallrnents of principal and interest arc payable under the Note, unlit the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the years} ta~?c. and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium inualttnents for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
titre to titre by Lender on the basis of assessments and hills and reasonable estimates thereof.
71te Funds shall be held in an institution the deposits or accounts of which are insut~ed or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution!. 1_ender shall apply the Funds to pay said taxes. assessments,
insurance premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying and compiling said assessments and bills, unless tender 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 be paid to Borrower, and unless such agreement u made or applicable law
requires such interest to be paid. Lenckr shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without chargt, 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 are pledgod u additional security for the sums secured
by this Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly instaliments of Funds payabk 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 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 sttfCcieat to pay taxes, assessments, insurance premiums and ground rents u they fall 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. I[ under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender
shall apply, rto later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the tithe of application as a credit against the sums secured by this. Mortgage.
3. Appiicatioe of Payments. Unless applicable •law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by tender first in payment of amounts payable to Lender by $orrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of rite Note, and then to interest and
principal on any Future. Advances.
1. Charles; Liens. 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, Borruw•er shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priorrty over this Mortgage; provided, that Borrower shall not be
rt-quired to discharge any such lien so long as Borrower shall agree in' writrng 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 defenJ 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. Huard Insurance. 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 rn such amounts and for such periods as 1_ender may require; provided, that [_ender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage.
Tht 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, rf not paid in such manner, by Borrower making payment, when due, directly to the
insuranxe carrier.
Alt insurance poficres and renewals therrot shat! be in form acceptable to Lender and shall include a standard mortgage
clause in favor crf 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 notrces and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance career and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwrsc agree in writrng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, pruvrded such restoration or repair rs economically feasible and the security o{this Mortgage is
not thereby imparred_ if such restoratom or repair is not ccunomicaNy feasible or rf 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 Property n abandoned by Borrower. or it Borrower fails to respond to Lender within 30 days from the
date notice is marled h}' 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 Propene
or to the sums secured by this Mortgage.
Unless lender and Borrower otherwise agree in wrung, any such application of proceeds to principal shall not extend
or postpone the due date of the mnnthl} installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. I( under paragraph It3 hereof the Proferty is acywred by !.ender, a!1 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. Presenation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit .Developments. Borrower
shall keep the Property in good repair and shall nut commit yvaste or permit impairment or deterioration of the Property
and shall comp!} with the provisron~ of any lease rt thrs Mortgage n tin a leasehold. If this Mortgage is on a unit in a
condominwm or a planned unrt development, Borrower ,hall pcrtorm all of Borrowers obhgauons under the declaration -
or covenants creating or guvernrng the cundomrnrum 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
rrder rs executed by Borrower and recorded together wrth thrs Mortgage, the covenants and agreements of such rider
shall be incorporated rnto and shall amend anti supplement the co~cnants and agreements of tfiis Mortgage as if the rider
were .t part hereof.
7. Protection of Lenders Security. If Borre~wer fart, to perform the covenants aria agreements contained in this
Mortgage, ur if any action ur prcxee~hng cummence~t whrch materially affects 1 enaer's interest in the Property.
including, but not hmrted to, cmrncnt domain. in,ol~encs code enforcement. or arrangements or proceedings rnvulsrng a
bankrupt or decrdent. then Lender at i ender's option, uix~n notice to Borrower, m.ts make such appearances, duhurse such
sums and take such :,coon as rs necessan t.r protect Lender', mterest. including but not limned to, disbursement of
reasonable attorney's tees and entry upon the I'mpens fir make repairs. I( Lender required mortgage insurance as a
_ condition of makmg the loan secured h} thr. ~1urtE.rge. &~rrower shall pay the premnnm required to maintain such
rnsurancc in effect until such Ume as the reyurren?cnt (or tiuch msurance tcrmutates rn accordance with Borrower c and
• EL'S P~CE~z