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Borrower and Lender covenant and agree v tolbws:
1. Payment of Principal and Interest. Ilocrower shall promptly pay when due the principal of and interest on the indebtednew
evidenced by the Note, prepayment and late charges a. provided in the Note, and the principal of and interest on any Future Advances secured
'by thin Mortgage.
2. Ftiutda torTa><ea and lasurance. Subject to applicable law or to a written waiver by Lender, Borwwershall pay W l.enderon the_day
~~n+gqnthly inutallments o[ principal and interest are payable under the Note, until the Note is paid in full, a sum (herein"Funds")equal to ons•
tw~lRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw one•
twelfth of yearly premium installmentr for hazard insurance, plw one•twelith ofyearly premium installments for mortgage insurance, itany,
all as reasonably estimated initially and from time to tine by Lender on the basis of assessments and bilb+ and reawnable estimates thereof. ~
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency j
(including Lender i[ Lender is such an institution). lender shall apply the F ands to pay said taxes, aesesamenb, insurance premiums and •
ground rents. Lender may not charge for ao holding pnd applying the Funds, analyzing said account, or verifying and compiling said
assessments and bilb, unless Lender pays Borrower interest on the Funds and applicable law permits !.ender b make such a charge. Borrower 1
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 unlew
such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on the Funds. [.ender shall give to_ Borrower, without charge, an annual acoountinq of the Funds showing reedits and debits to the
F unda 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.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates oftaxes,
assessmenb, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents w 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 held by bender shall not be sufficient to pay fazes, assessments, insurance
premiums and ground rents w they fall due, Borrower shall pay to bender any amount necessary to make up the deficiency within :i0 dsys
from the date notice is mailed by Lender b Borrower requesting payment thereof.
Upon payment in full otall soma 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 is otherwise acquired by lender, !,ender shall apply, no later than immediately prior
u, the sale of the Property or its acquisition bjr !ender, any F
ands held by Lender al the lime of application as a credit against the sums secured
by this Mortgage.
3. Application of Psyments. 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 u, lender by Botruwer 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. Charges;.Liens. iorrower shall pay all taxrs,:u+sessmrnts and ether charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments ur ground rents, if any, in the manner provided under paragraph `l hereofor,
if not paid in each manner, by Burrower making payment, when due, directly to the pay+w thercY,f. Burn,wer shall promptly famish to Ler+der
all notices of amounts due under this paragraph, and in the event Iturn,wrr shall make payment direclly, iurrower shall promptly furnish bi
Lender receipts evidencing such payments. furrower shall promptly disch:vgr :+ny lien which h:+s priority over this Mortgage; provided, that
lionrower shall not be required tc, disc•harge any such (irn su long as licmuwer shall :+gree in writing to the p:+ymrnt of the obligation secured by
such lien in a manner acceptable to I:ender, ur shall in good G•+ith contest such lien by, ordefend rnforrc•me•nt of such lien in, Irgal proceedings
which operate to prevent the enforcement of the lien or furfriturr of thc• I'n,prrty or any par! thane,!. i
.5. Hazard Insurance. Itorrowrer shall keep the improvements now existing or hereafter erected un the Property insured against Ines by
fire, hazards included within the term "extended n,verage," and such other hazards as Lender may require and in such amounts and for such t
periods as Lender may require; provided, that Lender shall nut require that the amount of such coverage rxrced that amount of coverage
required to pay the soma secured by this Mortgage.
The insurance carrier providing the insur-.mcr shall ts• ch,mrn by It„rruwrr subj+•c•t to apprvwal by Lc•ndc•r, provided, that such approval 3
shall not be unre:u+onably withheld. All pn•miums on insurance tMdi+•ir, sh:+Il l,c• paid in the manner pruvid+Yl under paragrph 'l herec,f or, if 1
nut paid in such manner, by liurrowrr making payment, whin due, din•c•tly to the- insur.+nr,• carrier.
All insurance policies and renewals thereof shall he in farm acreptablr b, bender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. !.ender shall have the right b, hold the p,dic•ies and renewals thereof, and Borrower shall promptly furnish tq ~
'i :,ender all renewal notices and all receipts of paid premiums. In the event of loss, !3<,rn,wer shall give prompt notice u~ the insurance tamer
and Lender. Lender may make proof of loss if not made promptly by liurrowrr.
~ Unless Lender and Borrower otherwise agree in writing, insurance pn,cc•eds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is e+•„numically feasible and the security of this Mortgage is not thereby impaired. If such
I restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the soma secured by this Mortgage, with the access, if any, paid to Korrower. if the Property is abandoned by Borrower, or it forrower fails W
M respond to [,ender within a0 days from the date nutire is mailed by bender b, Borrower that the insurance carrier offers W settle a claim for
insurance benefits, lender is authorized W collect and apply the insurance pr+x•rrds at bender s option either to restoration or repair of the
Property or the sums secured by this Mortgage. i
Unleae Lender and Borrower otherwise agree in writing, any such application of pn,reeds to principal shall nut extend or postpone thedue i
date of the monthly installments referred b, in paragraphs 1 and'! hereof or change the amount of such installments. If under paragraph l8
hereof the Property is acquired by !.ender, all right, title and interest of Korrower in and W any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior W the sale c,r acquisition shall pass to (.ender to the extent of the sums secured by this
" binrtgage immediately prior to such sale or acquisition.
6. Preservation and MaintenanceotProperty; I.easeholda; Condominums; Planned Unit I)~evelopments. Rorrowerahal) keep
the Property in good repair and shall not commis waste or permit impairment or deterioration of the Property and shall comply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, p
Borrower shall perform all of Borrower's obligations under the declaration or covenants c•rratingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium ur 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
eKreementa 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 Borrower fails to perform the eovenante and agreements contained in this Mortgage, or itany
action or proceeding is commenced which materially affects Lender's 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 soma and take such aMion as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
mortgage insurance as a rnndition of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain
' such insurance in effect until each time as the requirement for such insurance terminatRS in accordance with Borrower's and Lender's
t written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
~ Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other tknna of payment, such amounts shall be payable upon E
notice from Lender to Borrower requesting payment thereof, and shall beaz interest from the date of disbursement at the rate payabk from
time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall
require Lender to incur any ezpenae or take any action hereunder.
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