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Ur+t~ottrrt CoverrerrTS. Borrower and Lender covenant and agree as follows:
4 >Mytwetst oaT hMe1N1 soil 1Neres1. Borrower shall promptly pay v?~hen due the principal of and interest on the
indeMcdnas evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances sectored by this Mortgage.
2. lhtriis for Tuna seed Itttwrtncs. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest rrc payahk under the Note, until the Note is paid in full,
a stint (herein "Funds' equal to one-twelfth of the yearl} taxes and assessments which may attain priority over this
Mortgage. and ground rents on the Property, if any, plus one-twelfth of yearly prcmirrm installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage ittstrrancc, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reawnable 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 Lender if Lender is such an itutitutionl. Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. I-ender may not charge for so 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. 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 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
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 are 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 dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums seed ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. If the amount of the >+unds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as 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 Leander to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, 1_ender 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 (.ender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Ixnder, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatiar et?f Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by [_ender fiat 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; [.taro. Borrower shall pay all taxes, assessments and other charges. fines and ,mposiUOns attnbutahle to
the Property which may attain a priority over this Mortgage, and leasehold payments or grot?nd rents, if any, in tht manner
provided under paragraph 2 hereof or. rf not pa,d rn such manner, by Borrower making payment, whin dtx, directly to the
payee thereof. Borrower shall promptly furnrsh to Lender all notrces of amounts due under this paragraph, and in the event
Borrower shall make payment d,rectly. Borrower ;hall promptly furnish to Ixnder receipts evidencing such payments.
Borrower shall prompNy discharge any lien which has pnorty over the Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writrng to the payment of the obligation secured by
such hen in a manner acceptable to Lender, or shat! in good tarth contest such lien hy. or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Iran or jorfe,uue of the Property or any part thereof.
S. Hazsrd Insurance. Borrower shall keep the rmpros•r:ments now existing or hereafter erected nn the Property rosured
against loss by fire, hazards included within the term "attended coverage", and such other hazards as Lender may reyuire
and m 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 regwred to pay the wins secured ~hy this Mortgage.
"ilea insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not pars in such manner, by Borrower making payment, when due. directly to the
insurance carrier. .
All insurance poluies and renewals•thereof shall he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptahle G~ Lender. Lender shall have the right to hold the policies and renewals thereof.
f and Borrower shall promptly furnish to Lender all renewal notices and a!I receipts of paid premiums. In the event of loss.
Borrower shall g,ve prompt nonce to the rnsur,ince earner and lender. Lender ma} make pnx+t of loss if tint made promptly
~ by Borrower.
l Unless (_ender and Borrower otherw,ce agree in w rrting. Insurance proceed( shalt he applied to restoration or repair of
t the Property damaged, prov,ded wch re.roratx+n +~r repair rs ec++numicalk frasrhle and the security of thrs Mortgage ,c
not thereby impaired. if such re,toration or reparr s n+~t rc~+a+mically feasihlc or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied t,. the ;time secured M this Mortgage. with the excess, if any, paid
s to Borrower. If the Property is ahandoned by Borrower. or rt Borower farts to respond to Lender within 30 days from the
date notice is marled by Ixnder to Borrower that the ,nsurance earner oiTen ra settle a storm for insurance benefits,' Lender
is authorized to collect and apply the insurance proceeds at Lender"s option erther to restoration or repair of the Properts•
or to the sums secured by this Mortgage
Unless Lender and Borrower otherwise ogres rn wntmg, am~ uech application of pn~ceeds to principal shall not extend
~i or postpone the due dote ,~f the monthh installment. referred to rn paragraphs I and 'hereof or change the amount :+f
such installments. if under paragraph I i{ hereof the Pr+>pert} rs acyurred hs Ixnder. aN tight, title and interest of Born+wer
in and to any Risurance polices and in and to the pr+><eeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender t.+ the rstent ,+f the wens sectired h} this Mortgage rmrnediately prior to such sale or
acquisition.
6. Presenation and Maintenance of Property: Leaseholds: t'ondominiums: Planned Unit Developments. Borrower
shall keep the Property in gcxxi repair and shall not comrpit ;c astc ,+r perm?t impairment or deterioration of the Property
( and shall compl} with the provisirns of am lease it the. ~lorte.ige n ,m , Ieasrh,+id. If this Mortgage is tin a unit in a
f condomimun~ ur a planned unit development. Borr++wer .hail I+rrturm all of Borrower's ~~hligations under the declarati+~n
4 or covenants creating or governing the cundonunnrm ,+r planned rant development. the by-laws and regulaticnc of the
condominium or planned unit deselupment..uid .oasntuent d,}~umenrs If a condominium or planned unit development
rider is executed by Borniwrr and recorded t++grthrr ~~rth rhrs fit,+rtgagc. the covenants and agreements of ,uch rider
shall be incorporated into and ;hall amend .uul srrpplemrnt the cu•.cnantc :,rid agreements of this Mortgage as if the rider
were a part hereof.
r 7. Protection of Lenders security. It B,,rrn~+rr t.uls r,+ I+ertr+rm the covenants and agreements contained rn this
~ Mortgage. nr if any action ,~r prixreding .,+ti,r,rrn.rr; .vhi~h m,itrnalh .itircts l erider's :ntcrest in the Properrs,
including. but n,+r hmrted tc+. rnuncnt d,+ni.un ;u.,,i~r-r~•: ,i~de rnh+rcentent. ,~r .srrani;rmrnts i,r pr:~cecdings :nvohmg a
hanknipt ur decedent. then 1 ender at I ender'. ,+pu,ne.:rlti~n notice Born,wrr. may ?i.ike w:h appear:±nces, dishune such
sums and sake such ac nun as is neces.:u: t,~ protect t rrdrr~s entrrest. :nciuding. huI not ;,meted so disbursement ~~t
reasonable att,+mey'. errs suet entry upon Ihr I'n+pcrty to rnake reparr. I1 I.rnder rcyuire~l ni,+rtgage imurance as
conditu,n ..t n,nkuig the l++.ur ~ecureJ by thn \1,~rti~a~r. B.•rrr+vcr ,h ell pas !hr prcnuuuis rcyrnred to maintain such
imurancr. nr c•lirct until ,ucfr tuns as the reyieucnicut t, •r ~ucl+ ;nwiance trrr•.nir.itr. rn ac:,+rdanee with Borrower's and
b al~rnc 32`7 ~ac~ 2654