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Untratta Covtananrs. Botmwer and Lender covenant and agree u follows:
1.. TslYtweatt M hMcljttl atM !Merest. Borrower shall promptly pay when due the principal of and inter+at on the
indebtedt?e:s evidenced by tlta Note, prepayment and late charges ac provided in the Note, and the principal of acrd interest
an any Futuro Advances sttcurod by this Mortgage.
2. ltsnis far Taarsa ant ittwnrace. Subject to applicable law .x to a written waiver by Leader, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payahk under the Note. until the Note is paid in full,
a sum (herein. "Funds'q equal to one-twelfth of the yearl~~ tax~~ and assessments which may attain priority over this
Mortgage. and ground rend on the Property, if any, plus one•twelfth of yearly premium inuallments for heard insurance.
plus one-twelfth of yearly premium installments for mortgage insurartcc, if any, all u reasonably estimated initially and from
lima to time by Leader on the buts of assessments and hills and reasonable estimates thereof.
The ~trtds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
:tate_agency (including Lender if Lender is'such an institution). I.endcr shall apply the Funds to pay aid taxes. assessments.
irtwracree premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying.sttd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable !aw
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
r+equir+a 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 accwtnting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds wu made. -The Funds are pledged u additional security for the wins secured
by this Mortgage.
1:f the autount of the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due data of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes. .
asst~trtents, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lander shall not be wt6cieat to pay taxes. assessments. insurance premiums and ground rents u they fall due,
Borrost?er shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lander 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 Lander. If under paragraph 18 hereof the Property is sold or the Property aotherwise-acquired by Lender. Lender
shall spply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the Bute of application as a credit against the sums secured by this Mortgage.
3. A~lieatian of P~yttaes~ts. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I 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.
4. Ckarges; 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. 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 by, or defend enforcement of such lien in,
legal proceedings which operate fo prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Haiard inwrance. Borrower shall kcep 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
sad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage 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,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall. be paid in the manner
j provided under paragraph 2 hereof or, if not pail 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. Tn the event of loss,
Borrower 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
~ 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 br 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
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 I_cnder'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 I and 2 hereof or change the amount of
~ such installmenu. If under paragraph I S hereof the Property is acyuired by Lender, all 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. Preservation and Maintenance of Property; Leasehuldc; Condominiums; Planned Unit Devebpments. Borrower
shall kcep 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 lease- 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 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 unit development '
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
sfiall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
s were a part hereof.
7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreements contained in this'
Mortgage, or if any action or proceeding a commenced which materially affects lender's interest in the Property,
including. but not limited to. eminent domain. insc.lvency. cx~de enforcement, or arrangements or proceedings invoking a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, map make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry ufxm the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. B~rn:wer sh_dl pay the premiums required to maintain such
imurance'in effect until such time as the requirement for wch insurance term~nales in accordance with Borrowers and
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