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UNIFORM CovENaw-rs. Borrower and lender covenant and agree as [allows:
1. Payment of Prlnclpal wad Interest. Borrower shall promptly pay when due the principal o[ and interest un 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.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the year!}• taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
time to time by Lender 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 b}• a Federal or
state agcnc)• (including Lender if Lender is such an institution). Lender shall app!} 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 anJ compiling said assessments and hills, 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 he paid to Burrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be~reyuiri.~cf 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 anJ Debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are plcdgecl as additional security for the sums secured
by this Mortgage.
If the amount of the Fiinds 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 pa}• said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower -ur credited to Borrower on monthly installments of Funds. if the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, imurance preriums and ground rents as the-y fall due.
Borrower shall pay to I_cnder any amount necessary to make up the deficiency within 30 da}'s from the date notice is mailed
by Lender to Borrower requesting payment thereat.
Upon payment in full of all sums scoured b}' this Mortgage. Lender shat! promptly refund to Borrower any Funds
held by Lender. If under paragraph IR hereof the Property is sold or the Property is othenviu acquired by Lender, Lender
shall apply, no later than immediate!}• prior to the sale of the Property or its acquisition by 1_ender, any Funds held by
Lender at the time of application as a credit againstlhc sums secured by this tortgage.
3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraph. I and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to interest and
principal on any Future Advances. '
4. Charges; Liens. Borrower ,hall pay all taxes, asessments and other charges. fines-and impositions attributahle to
the Propert}• which ma}' attain a priority over this Atnrtgage, and leasehold payments or ground rents, if any, in the manner
provided under p:~ragraph 2 hereo[ 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
Porrower shall make paymeui directh, Borrower shall promptly furnish to Lrrdcr receipts evidencing such payments.
Borrower shall promptly discharge an}• lien which has priority over this Mortgage; provided. that Borrower shall not be
required to discharge any suoh lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien irE a manner acccrtable 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 an}• part thereof.
5. Hazard Insurance. Borrower shall kcY:p the impruvemenfs now esisting or hereafter erected on the Pn•perty insured -
.+gainst 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 reywrc that the amount of
such ooverage c~oced that amu~nt of coverage required to pay the ,ums secured by this Mortgage.
The insurance carrier providing the incur:mee shall be cho,en by Borrower subject to approval by Lenckr, provided.
that such approval ;.hat! not be ~inreasonahly withheld. All premiums on insurance policies shall be paid ui the manner
provided under paragraph 2 hereo? or. if not paid in >uoti manner, by Burrower making payment, when due. directly to the
insurance earner.
All insurance policies and renewals them++t shalt Fx: in form accertablo to Lender and shall include a standard mortgage _
clause in favor of and in form acceptahle to Lender. Lrndcr shall have the right to hold the policies and renewals thereof.
:end Borrower shall promptlc• furnish to I.endei all renewal notices and al! receipts of paid premiums. In the event of loss.
Borrower shall givo prompt notice to the insurance carrier anJ lender. Lender may make proot of loss if not made promptly E
I h~• B~~rmwer.
Unless Lender and Borrower otherwi,e agree in writing, insurance proxeeds shall be applied to restoration or repair of
E the Property damaged. pr+wided such resturatiun or repair is econr~mioally feasiblcrnd the security of this Mortgage is '
` not thercbc impaired. If such :c,tarati;~:: ur repair is not econrmicalh• fe.+sihle or if the secunt}• of this Mortgage would
be impaired. the insurance proceed; :hail be applied to the sums secure.! by this Mortgage, with the excess, if any, paid
to Borrower. If rho Propert}~ is al~sndoned h} Borrower or if Borrower fails to respond to l_endcr within 30 days from the
~ .late notice +s mailed by Lender ro &.rmwcr that the insurance oarr?er offers to settle a claim for insurance benefits, Lender
authorized to collect and appl~• the iinuranc° proceeds at Lender's option either to restoration or repair of the Property
..r to the sums secured Iz~- this Mortgage- -
L'nless lender and Borrower otherwise agree m writing, am such application of proceeds to principal shall not extend
or postpone the due date of the nu+nthl~• installments referred to in paragraphs I and ?hereof or change the amount of
,ooh imtallinenb. If under paragraph 18 hereof the Propcrt}• is acquired h: (~ndcr. all right, title and interest of Borrower
in and to arts incur.+nce policies and in and to the proceeds thereat resulting from damage to-the Property prior to the sale
ur acywsitio~i ~h:+ll 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 Propert}; Leaseholds; Condominiums; Planned C~nit Developments. Borrower
shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property
and shall comp!} with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
( condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
4 ur covenants creating or go:•erning the condominium or planned unit development, the by-laws and regulation of the
condominium o: planner; unit development, and rnnstituent documents. If a condominium or planned unit development
nder is c<eouted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be +ncorporated into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage. ur if any actwa or proceeding is commenced which materially affects Lender's interest in the Property, •
' includrng. but not Gm+teii to. emiaent domain, insuhenoy. code enforcement. or arrangements or proceedings involving a
bankrupt or decedent. then 1_ender at Lender's option, upon notice to Borrower. may make such appearances, disburse such
sums and take such action as is necessan• to protect Ixnder's interest, including. but not limited to, disbursement of
reasonable attorney's fees and emry up+~n the Propcrt} to make repair.. If Lender required mortgage insurance as a
oondrtion of making the loan secured b: this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in etiect until such time as the requirement for such inwrance terminates in accordance ,with Borrower's and
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