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lJNtrottss OovaNattts. Bort~ower and Leader onvatant and agree as tolkws:
!<ttYmatN st hlaelNl ri LMtrest. Borrower :hall promptly pay when due the principal of and intereq oa the
indebtedness evideooed by the Note, prepaymatt and late charges as provided in the Note. and the principal of sad intetYSt
oa say Ftxure Advaaoes secured by this Mortgage.
>t<tri let Titles sad ttwe~aaee. Subject to applicable law or to a written waiver by Lender. Botro+rer shall pay
to Lender on the day monthly inuailments of principal and interest ire. payable under the Note. until the Note is paid in toll.
a sum (herein "Funds'? equal to ortatwelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and gcourtd mats oa the Property. if any, plus one-twelfth of yearly premium inuallment: for haurd insurance.
plus oartwe![th of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
time to tune by Leader on the basis of assessments and hills and reasonable estimates thereof.
The Fund: shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (inchrding Lwtder if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments,
~nsuraaca premiums and ground rents. Lender may not charge for so holding and applying the Furtds, analyzing said account,
oc verityingaad compiling said assessmenu and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Leader 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 ag.~eement a made or applicable law
require such interest to be paid. Lender shall not be required to pay Borrower arty interest or earnings on the Funds. Lender
shall give to Borrovtrer, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which eacb debit to the Funds was made. The Funds arc pledged as additsonal security for the sums secured
by this Mortgage.
Tf the amount 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.
asseapaeats, insurance 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 oa `sue installments of Funds. if the amount of the Funds
btdd by Leader shall not be wf6cieat to pay taxes, assessments, ut~1~Kl!!' ae and ground rents sa they fall due,
Bormarer sball pay to Lender any amount necessary to make up the deft ' tlrtthtn ~daygtfrom the date notice is mailed
by Lender to Borrower regtrestiag payment thereof. ~ ~ Cl.f' ~ }t, iy~,~
Upon payment is full of all awns secured by this Mortgage, Lbn~~°shsH' proptptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold'of fhb Prgpprty is otherwise aC~Mired by Lender. Lender
sball apply. no later than immediately prior to the sale of the Property or its acquisition by Lea~er, any Funds held by
Leader at the time of application a: a credit against the sums sxur+ed by this Mortgage. •
3. Appiicatiott of PayaeNs. Unlats applicable law provides otherwise, all payments receivbd 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 i
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, Cranes; Llews. 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, sad 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. Hazard laswratsce. Borrower shall keep the improvements now existing or hereafter eructed 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 prmiums on insurance policies shall be paid in the manner
'I provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier. ~
j 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,
j sad Borrower shall promptly furnish 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. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shah be applied to restoration orrcpair 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 or if the security of this Mortgage would ~
F 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 it 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 bentfits. Lender
is authorized to collect and apply the insurance proceeds at [_ender'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
sucb installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower i
in sad 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. 1
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
sad shall compl}' with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
f 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
a rider is executed by Borrower and recorded together with this 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
were a part hereof. ,
7. Protection of Lender's Security. If BorroKer fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvent}•, 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 q
sums and take such action as is necessary to protect I~nder's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. 1( Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ~
~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and ;
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BOOK 332 PAGE 2581,