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UNIFORM Covt:NxNrs. Borrower and Lender covenant and agree as follows:
1. Payment of Principal sad laterest. 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
on any Future Advances secured by this Mortgage.
Z. Funds for Tares and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
tU Lender pn lire Jay AlOtiihiy inStilliazeatS Of prltiClpal end interest arc payable tender file Note, until the Noe is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Propeity, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium instaNmcnts for mortgage insurance, if any, all as reasonably estimated initially and from
time to Time by 1_cndcr on the basis of assessments 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 or
state agency (including Lender if Lender is such an institution). 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.
dr 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
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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 w•as made. The Funds arc pledged as additional security for- the sums secured
by this Mortgage. ,
if the amount of the Funds held by I.endcr, 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 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 shat! not be sufficient to pay taYCS, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make tip the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. fender 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. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_endcr first in payment o[ amounts payable to Lender by Borrower
under paragraph ' hereof, then to interest payable on the Dote, then to the principal of the Note, and then to interest and
principal on any Future Ad~•anees.
4. Charges; Liens. Bc•rruwer shall pay all taxes, assessments and other charge;. fines anJ 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 tender 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 the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defend enforcement of such lien in,
legal proceedings which ap,:rate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Inwrance. Borrow•cr shalt keep the impro~cmcntc now evicting or hereafter erected on the Property insured '
.,gains[ loss by fire. hatardc included within the term "extended coverage", and such other hazards as (_ender may require
and in such amounts and for such periods as Lender may require: prrnided. that Lender shall not require that the amount of
such coverage exceed that amount of cmerage required to pa}• the sums tecurcd by this ,tlortgage.
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. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, hy, Borrower making payment, when due, directly to the
insurance carrier.
Ati insurance policies and renewals there,~t shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lcndcr. Lcndcr shall hose the right to hold the policies and renewals thereof,
and Borrower shall prompt)}• furnish to Lcndcr aU renewal notices and all receipts of paid premiums. In the went of loss,
B~rruwer shall give prompt notice to the incur:ut~e carrier and Lender. Lender may make proof of loss if not made promptly
h~• Kurrower.
Unless Lcndcr and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the. Property Damaged. pruvi.ieJ such restoration ur repair is economically feasible and the security of this Mortgage is
not thereby impaired. I[ such restoration or repair is not economically feasible or if the security of this Mortgage would
he impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. If the Pmp.:rh~ is all:~netoncd by Borrower, or if Borrower fails to respond to Lender within 30 days from the
Date notice is mailed by Lender to Burrower 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 Property t
.,r to the sums secured hy~ this ,~lortgagc.
Unless t ender and Burrower otherwise agree in writing, any such application of proceeds to principal shall not extend
.~r pcutpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tide and interest of Borrower
in and to an}~ 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. Preser.ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit De~•elopments. 8orrow•er
shalt f:eep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shat! comp)}• with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating 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 troll development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shat! 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 Lenders Security. if Borrower faits to perform the covenants and agreements contained in this
lllongage, t;r if any action or procecdmg is commence) which materially affects Lender's interest in the Property, -
including. but not limited tu. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
ban:,rupt or decedent, then Lender at Lender's c.ption. iupon notice to Borrower, may make such appearances, disburse such •
sums and take such action as is necessan• to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property tai make repairs. I( Lcndcr required mortgage insurance as a
condition of making the loan secured h} this Mortgage, 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
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