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~ UNIFORM COVENANTS. Borrower and Lender covenant and agree. as toljows:
1. hytneat of Prlndpsl tutd laterest. Borrower sh111 promptly pay when+ due the principal of grid interest on the
ittdebtedneu evidence) by the Note; prepayment and late charges as prOvitkd in the Note. and the principal of .add interest
oft any-Future Advances secured by this Mortgage. -
2. Ragas for Taxes ana Inmrttaca Subject to applicable law or to a written waiver by•Lender. BorTOwer shall pay ,
to Lender on the day-ttgnthly instaJlnc~nts of principal and interest arc payable under the Note, until the Note is paid in full, .
a :um (htrein "Funds") equal to one-twelfth of ~ the-yearly 'taxes and assessments ,which may assails priority over, this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium .installments for hazard insurance. '
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
time to time by I_cndcr on the basis of assessments and bilk and reasonable estimates thereof. _
The Funds shall be held in an institution the- deposits or accounts of whist are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). 1_endgr Shall apply the Funds to pay said taxes, assessmems,
• insurance p~miums and ground ants.. Lender may not charge for so holding and applying the Funds, analy2ing said account,
or verifying and'compiling said assessments ant bills, unless lender pays Borrower interest on the Funds and applicable law, '
:permits Lender to make such a charge. Borrower and•Lendgr may agree in writing at the time of execution'of this
Mortgage that interest on the Funds shall he paid io Borrower. and unless such agreement is mach or applicable hw • -
requites such intemst to be paid. Lender shall not be reglrireJ to pay Borrower ariy interest or earnings on the Funds. Lender
shall give td Borrower, without charge, ari annual accounting of the .Funds showing credits and debits to the Funds and the
' purpose for which each debit to•tire Funds was made. The Funds arc pledged as additional security for the sum;.secured
~by this 14fortgage. ~ ~ _
If the amount of the Funds"held by Lenten together with the future monthly installments of Funds payablt~prior to
the due slates of taxes, assessments, insurance premiums and ground rents, shall exc~xd-the amount required to pay said taxes,
assessments, 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 on monthly installments of Funds. If 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 Lender any amount necessary to make up the deficiency within 30 days from the date nfiice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragrap?t 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. Application of Payments. Unless applicable law, provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_cndcr_ first in payment of amounts payable to Lender by Borrower
under paragraph 2 hetrnf, then to interest payable on the Note. then to the principal of the Note, and then to interest and
principa! on any Future Advances.
4. Charges; Lkns. Borrower shall pay all taxes asussments and other charges, fines ant imlx~sitions attributable to
the Property which may attain a priority over this Mortgage, and leaseholJ 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 I-ender 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 long as Burrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in goal faith contest such lien hy, or JefenJ 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 existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extendeJ coverage", ant such other hazards as 1_ender may require
anD in such amounts and for such periods as Lender may require; provide), that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the s++ms 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 nut be unreasonably withheld. All premiums on insurance policies shall be pail in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly !o the
insurance career.
~ All insurance policies ant renewals thereof shall Fx in form acceptable to Lender and shall include a standard mortgage
E clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies ant renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices ant all receipts of paid premiums. In the event of loss,
l3orruwer 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 otherw•ise_ agree in writing, insurance proceeds shall, be applied to restoration or repair of
the Property JamageJ, 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 cconotnically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secure) by this Mortgage, with the 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 proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Boi..,...,r otherwise agree in writing, an}~ such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 ant 2 hereof or change the amount of
such installments. If under paragraph 18 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 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 Aortgage immediately prior to such sak or
acquisition.
~ 6. Presen~ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
i shall keep the Property in good repair and shall not commit waste or perm+t impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
~ condominium or a planned unit Jevelupment, 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 planneJ 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
l shall be incorporated into and shall amend ant supplement the covenants and agreements of this Mortgage as if the rifer
were a part hereof.
'j ~ 7. Profectioa of Lender's Security. If Borrower fails to perform the covenants ant agreements contained in this
k Mortgage, ur if any action or proceeding is commenteJ which materially affects Lender's interest in the Property,
including, but nut limited to. eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or Decedent. then I~nder at Lender's 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, disbursement of
reasonable attorney's tees and entry upc?n the Property to make repairs. If Lender require) mortgage insurance as a
condition of making the loan secure) by this Mortgage, Borrower shall pay the premiums require) to maintain such
insurance in eftect until such time as the requirement for such insurance terminates in accordance with Bornwer s and
'r ~ ~ ~ B~~K 335 P~~F i446