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untrotiut Oovtuurrts. Borrower and Ltaader covenant and agree as falows:
)lag'ett N Mrae+al aril 1tMeerat. Borrower shall promptly pay when due the principal of and interest on the
irtdebtetirte:s avidenood by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
oa goy Futtue Advattees secured by this Mortgage.
t 1!'i~is fart 1lnosa ati Iastsrata~e. Stibject to applicable law ~x to a written waivtr by [,ender. Borrower shall wY
to Lertder on the day «wnthly itntallraent of principal and interest arc. payable under the Note. until the Note is paid in full,
a sum (herein "Ftrnds'~ equal to ono-twelfth of the yearn taz~~ anti assessments which may attain priority over this
Mortgage. and ground rent on toe Property, it any, plus one-twelfth a yearly premium installment for hazard inwrance.
plus one-twelfth of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
flora to tune by Lender on the bass of assessments and hills and reasonable sstimates thereof.
The Funds shall be odd in an institution the deposits or accounts of which arc irtsured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution).. 1_ender shall apply the Funds to pay said taxes, assasmenb,
inwt•aetoe premiums and grouttd rents. lender may not charge for sn holding and applying the Ftrttdc. analyzing said account.
or verifying_and compiling said assessment and bilk. unless Lender pays Borrower interest on the Funds and applicable law
permit -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
r~equit+a such interest to be paid. Lender 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 credit and debit to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by tha Mortgage.
ff the amount o[ tote Funds held by Lender, together with tbe future monthly installments of Funds payable prior to
the due dates of taxes. assasrrtents, insurance premiums and ground rent, shall extxed the amount required to pay said taxes.. ~
assessments, irt:uranoe premiums and ground rents as they tall due. such excess shall be. at Borrower's option. either ~ x
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
heW by Lender shall cot be wtfiCieat to pay taxes. assessments. insurance premiums and ground rent as they fall due,
Borrower shall pay to Lender any amount neeeessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Uptxt payment in fuA of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fund':
held by Lender. If under paragraph 18 hereof the Propert is solder,
jhp,~'r~rty ~s otberwise acquired by Lender. Lender
shall apply, no later Wan immediately prior- m the saN o~ `the' Propert or tt acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the stmtsatcucdd'bjr~his Mortgage.
3. ApplkMiow_of layaeNs. Unless applicable law provides ofher~le. ah~~Slyments received by Lender under the
Note and paragraphs 1 and 2 hereof shall 6e applied by Lender first in payment ofarttoutli>: payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal ,o!< t~ Note. and then to interest and
principal on any Future Advances.
4. Crargetti Liens. 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 mantxr
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, whtut due. directly to the
payee Wer+eof. Borrower shall promptly furnish to Lender all notices of amount due under this paragraph, and in the event -
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payment.
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 ibe Property or any part thereof.
S. Hazard loseratta~e. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss 6y fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amount 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 ~y this Mortgage.
j 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 premiums on insurance policies shall be paid in the manner
provided under paragraph 2 bereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
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 receipt 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 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. If such 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 sums secured by this Mortgage, with tbe excess, if 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 protxeds at Lender's option either to restoration or repair of the Property
or to the sums secured by Wis 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
such installments. If under paragraph 18 hereof the Property is acquired by Leader, all right, title and interest of Borrower
in and 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 We extent of the sums secured by this Mortgage immediately prior to sueh sale or
r acquisition.
a 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebptatents. Borrower
f 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. if this Mortgage is on a unit in a
vi condominium or a planned unit development, Borrower shall •perform all of Borrowers obligations under the declaration
1 or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or glanced 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 agrcements 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 M Lender's Security. Tf Borrower fails to perform the covenants anJ agreements contained in this
Mortgage, or if any action or proceeding ~s 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 ixnder at l.eoder s option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest, inclttJing, but not limited to, disbursement of
reasonable auarney's fees and entry upon the Property to make repairs. If Lender reyuireJ mortgage insurance as a
fond~tion of making the loan secure) by this Mortgage. Borrower shall pay the premiums require) to maintain such
insurance in effect until'such time as the requirement for such insurance terminates in accordance with Borrowers and
• Br,~K
°335. P~~~ 811
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