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UNIFORM CpVENANTS. Bortower end lender Covenant and agree as tollowtR
1. ParMM of Prlnolpal and inbreat. 8orrowar.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 N ore, and the principal of and interest
on any Future Advances secured by this Mortgage. .
Z. Funds fbrTaxes and Inaurance. 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 are payable under the Note, until the Note is paid in fell,
a sum (herein "Funds'1 equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgaya, and ground rents on the Pro rty, if any, plus one~tweltth of yearly premium installments for hazard insurance,
plus one~tweltth of ygarly premium i~staldent;; for mortgage insurance. it iny, all as reasaonablyestimated initiaify and from
time to time by Lender on the basis of asaiessments and bills and reasonable estimates thereof.
The Funds shah be held in an institution the deposes' or accounts of which are insured a guaranteed by a Federal or
state agency(incltxfing Lender it lender is such an institution). Lender shall apply 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 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 tie 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 orearnings ors 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 this Mortgage.
It the amount of the Funds 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 pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I( the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lenderany amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Bortc~ver requesting payment lher@of.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly„retund to Borrower any Funds
held by lender. It 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. Appllcatlon 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 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. Charyes; liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions ariributable to
the Property which may attain a priority over this Mortg,age~ ~nd_ leasehold payments or.gound rents, it any, in the manner
provided under paragraph 2 hereof or, if not paid in such nhanner, by Borrower making payment,,when due, directly to the
payee thereof. Borrower shat! 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 tong 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 Insurance. Borrower shall keep the improvements now ewsting 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 require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sum secured by this Mortgage.
The insurance ctirtier 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, by Borrower making payment, when due, directly to the
insurance carrier. -
Allinsurance policies and renewals thereat shall be in Corm acceptable to Lender and sha'1 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 fumish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. tender may make proof of loss it 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- It such restoration or repair is not economically feasible or if the security of this Mortgage would
tie impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, it 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 Lenders 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 t and 2 hereof or change the amount of
such installments. It under paragraph i 8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resultirig 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. Preaervatlon and Maintenance of Property; t.eaeeholds; Condominiums; Planned Unit DevsfoRmenis.
Borrower shall keep the Property in good repairarid shall not commit waste or permit impairment or deterioration of the Pro-
perty and shall comply with the provisions a1 any lease if this Mortgage is on a leasehold- It this Mortgage is on a unit in a
condominwm 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 agreements of such rider
shall be incorporated into and shat! amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
T. Protection of Lendsr's Security, if Borrower tails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially atlects Lenders interest in the Property.
including, but not limited to, eminent domain, insolvency. code enforcement. or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lenders 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, disbursements of
reasonable atlorne~s tees and entry upon the Property to make repa!fs. If lender required mortgage insurance as a
condition of making the loan secured by this Mortgage„Borrower shalt pay the premwms required to maintain such
insurance ~n effect until such time as the requirement for such insurance terminates in accordance with Borrowers and