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UNtt~osut CovtaNANTa. Borrower and Lender covenant and agtroe ss follows:
1l7ynneot a1 Psitrelpl rti lNesaaf. Borrower shall promptly pay when due tots principal of and interest oer the
atd®btedr?esa evidenced by tots Note. prepaytrrerrt and late charges ac provided in the Note, and the principal of and interest
oa any Future Advances trecured by this Mortgage.
llhrai for '1lattea rtrrtl Itsstrsrtrra~e. Slrbject to applicable law ix to a written waiver by Lend, HotroM?er shall pay
to Leader on the day monthly inatallments of principal and intcrect arc payable under the Note, until the Note is pall in full.
a true (bt:reirt "Ftrnda'q aqua{ to orre-twelfth of the yearly taxc. anJ assessments which may attain priority .over this
Mortgage, and ground teats an the Property. if any. plus ate-twelfth et yearly premium iastdlmenta for haurd insurance,
' plus one-twelfth of yearly premium installments for mortgage insurance, it any. all as reasonably estimated initially and than
tune to tints by Leader oa the basis of assessments and hills and reasonable estimates thereof. I
The Flrnds shall be held in an institution the deposits or accounts of which arc itss»red or gtaranteed by a Federal otr
state agency (including Lender if Lender is such an institution). I.ender:ttall apply the Funds to pay :std fazes. astiasments,
insurance premiums and ground rents. !.ender may not charge For :n holding and applying the Funds. analyzing said account,
oc veritying_artd compling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law s
permits Lender to make-such a charge. Borrower and Lendu may agree in writing at the tint of execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable lav?r 1
requires such interest to be paid. Leader shall not be required to pay Borrower any interest or earnings on the Funds. Leader ~
shall pve to Horcower, without charge, an annwl sccawnting of the Funds showing credits and debits to the Funds and the t
purpose for which each debit to the: Funds was made. The Funds are pledged as additional security for the sums secured
by the Mortgsge.
Tf the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to
the dots data of fazes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
agtstaments, insurance premiums and ground rents as they fall due, such excess shall be. at Borrower's option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the 1~urrds ~
held by Lender shall not be wf6cient to pay taxes. assessments. insurance premiums and ground rents ss they fall due.
Borrower shall pray to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Ltoder to Borrower requesting payment thereof.
Upon payment in full of all Burns 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 Progeny is otherwise acquired by Lender. Lender
shall apply. no later than immediately prior to the Bak of the Property or its acquisition by Lender. any Funds held by
Leader at the time of application u a credit against the sums secured by this Mortgage. I
3. A~IkaRioa of Pgw.esrla. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs !and 2 hereof shall be apptitd by Lender first in payment o[ amounts payable to Lender by Borrower '
under ptu-agraph 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. Crargssti Lktas. Borrower shall pay ail taxes, assessments and other charges, fines and impositions attributable to j
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 piragraph, 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 F
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. Hszard Iewrawce. 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 i
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of i
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"ilte insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender providod, ;
that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid iq the manner ¢t
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dtre, directly to the ,
inwraace carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt 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 elf 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 loos 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. It such restoration or repair is not economically feasible or if the security of this Mor!a:.se would
~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
l to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from :he
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insuranct benefits, Lender
is authorized to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unl.~ss'xnder and Borrower otherwise agree in writing, any such application of proceeds to prineip~l 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 a~y;,,~ea Ur :tender, all right, title and interest of Borrower
in and to any htsur.:^~P ;+~!s~i~ and in and to the proceed; thereof resulting from u2mage to the Propt-ty prior to the sale
or acquisition shall pass to Lender to c. aArent of the Burns secured by this Mortgage i. +mediately prior to• such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit uevelopmeats. 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 lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform alt 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 t
a condominium or planned unit development, and constituent documents. If a condominium or planned unit development
1 rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
shall 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. If Borrower tads to perform the covenants and agreements contained in this
t Mortgage, or if any action or proceeding is commenced which materially affects 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 Lender's option, upon notice to Borrower, may 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 tees and entry upon the Property to make repairs. It 1_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the .premiums required to maintain such
inuurance in rffect until such time as the requirement for such ~rsurance terminates to accordance with Borrowers and
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