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Utttroetat Oovtawat+rs. Botiotwer and Lender covenant and agree ss follows: 1
iv lf'ytwe~f at hit1N1 aoti lrhrwl. Borrower shall promptly pay when due the principal of and interest oe the 1
utdebtednps evidettped by the Nee. prepayttxnt and late charges as provided in the Note, and the principal of and interest ~
on soy Future Advances socur+ed by this Mortgage.
!b¦i f!at 73ntaa ant Leetttnttee. Stiebject to applicable law .u to a written waiver by I.ertder, Borrower shall pay 1
to Lender on the day monthly installments of principal and interest ~rc payable under the Note. until the Note is paid in full.
a seen (herein "Fuuds'~ equal to one-twdith of the yearl)• tax~~ and assessments which may attain priority over this
Mortgage. and ground gents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for ntortgsge insurance. if any. all 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 itnurod or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
iwtreaaoe premiums and ground. rents. lender may not charge for sn holding and applying the Frrndt, analyzing said account,
or verifying.and rnmpiling 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 i
requires such interest to be paid, Lentkr 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
this M
~ TE the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to +
the due dates of taxes, auessmeau. insurance prcmiutns and ground rents, shall exceed the amount required to pay said taxes.
assessments, insut'anoe 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
brad by Lender shall not be wf6cieat 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 Leader to Homower r+equating payment thereof.
Upon payment in full of all sutra secured by this Mortgage, Lender 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 Lender. Lender
shall apply, tto later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lander at the time of application as a credit against the sums secured by this Mortgage.
3. AlNicaNoee of PrtytoeNa. Unless applicable law provides otherwise, all payments received by Lender under the
Note and 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.
t. Charges; Lkttrc. 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 nut paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower droll promptly furn+sh 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 to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Huard Inwtraace. Borrower shall keFp 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 coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. s
'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that wch 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, by Borrower making payment, when due, directly to the
insurance carrier.
f 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 alt renewal notices and all receipts of paid premiums. In 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 w•r+ting, 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. I( such restoration or repair is not economically feasible or if the security of this Mortgage would $
be impaired, the insurance procceds 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 it Borrower fails to respond to Lender within 3U 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 Lender's option either to restoration or repair of the Property +
or to the sums secured by this Mortgage. 4
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 installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in arrd to any fr+surance 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. Presen•stion and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower j
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration. of the Property j
' and shall comply with the provisions of any lease if this Mortgage iv on a leasehold. If this Mortgage is on a unit in a i
condominium or a planned umt development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creator or overnin the condominium or tanned unit develo ment, the b laws and re ulations of the
8 8 B P p y- g I
condominium or planned unit development. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with thiv Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider j
were a part hereof. I
7. Protection of Lender's Security. If Borrower fails m perform the covenants and agreements contained in this t
Mortgage, or if any action or proceeding is c++mmenccd which materially affect; Lender's interest in the Property.
includmg. but n++t limited to. eminent domain. insolvency. code enforcement. ar arrangements ar proceedings involving a
bankrupt or decedent, then 1_ender at Lender's option, ulx+n notice to Borrower, may make such appearances, disburse such i
sums and take such action av is necessary to protect Lender's interest, including, but. rat limited to, disbursement of
_ reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage inwrance as a }
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condition of making the loan secured by this Mortg:+Re. B+,rmwcr shall pay the premiums require) to maintain such j
insurance in eftect until wch time as the reyuiremcnt (or wch msuranee Terminates in accordance with Borrowers and
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enoK 330 PdcE 131