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UntPpltrt Oovttwat+TS. Borrower sad Deader covenant and agroe as follows:
L FgmeM M h~ tttM lrtleraf. Borrower shall promptly pay when due the principal of and interest on the
indebtedrsess evidertoed by the Nola, prapsymatt snd late charges ac provided in the Note. and the principal of sad interest
an soy Future Advatitxs secured by this Mortgage.
1 !'ttstis fw Tttsstt anti It+etrrrrrca Subject to spplicabk law sx to a written waiver by Leader, Borrower shall psy
to Leader on the day monthly installments of principal and intercsl arc.payabk under the Note, until the Note is paid in full,
a sum (herein "Fuads'q equal to otte-twelfth of the yearll• taxz~ and auessrrtents which may attain priority over .this
Mottgage, and ground rafts on the Property. it any. plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and tray
lima to time by Leader oa the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposiu or accounts of which arc insttrod or gwnnteed by s Federal of
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said texas, assessments,
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or vetifyins~rtd complin=vsaid assessmentsvand ~bilh, unless
Lender pays Borrower
nter~est •on the Funds and applicable law
permit: Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of the
Mortgage that interest on the Funds shall be paid to Borrower, :nd unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be r+tquired 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 the Mortpge• . .
U the amount of the Funds hdd 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,
a:seatments, iruuranoe premiums 'and ground rents as they fall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or credited to Harrower on monthly installments of Funds. - I[ the amount of the Funds
btiid by Leader shall not be suf~eat to pay taxes, assessments, insurance premiums and ground rents ss they fall due,
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrows requesting payment thereof.
Upon payment is full of all sums acur+ed by this Mortgage, Lender shall promptly rctund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property u otherwise acquired by Lender. Lender
:hall appiy. tto later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender st the time of .application a: a credit against the sums secured by this Mortgage.
3. A~ikMiotr of layntewts. Unless applicable law provides otherwise, all payments tnceived by Lender under the
Note sad 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.
d. Charges; Liieas. 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 paragaph 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, sad in the event
Borrower shall make payment directly, 'Borrrower 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 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 laserawee. 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 in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
thst wch approval shall not be unreasonably withheld. All premiums on insurance policies shad be paid in the manner
provided unckr paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due. directly to the , - .
insurance 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,
Borcower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
-Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
t 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 or if 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 is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
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! 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 Property
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
or postpone 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 (,ender, all right, title and interest of Borrower i
~ in and to any huurance 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 exte~u of the sums secured by this Mortgage immediately prior td such sale or
acquisition. -
6. Preservation and Maintenance of Properq•; Leaseholds; Condominiums; Planned Unit Developments. Borrower '
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
'and shall comply with the provisions of any Lase if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development. Borrower shall perform all of Borrowers 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 .unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
j shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
S 7. Prolectan of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this '
Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property.
t including, but not limited to, eminent domain, ina.lvency. code enforcement, or arrangements or proceedings invols•ing a '
bankrupt or decedent, then lender at l-ender's option, upon notice to Borrower, may make such appearances, disburse such
•sums and take such action as is necessary to protect lenders interest, including. but not limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. If 1_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Barrawcr shell pay the premiums required to maintain such
insurance in eBect until such time as the requirement for wch insurance. terminates m accordance with Borrower's and 4
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- el,~x 328 p~~f x.473 ; . ,
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