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UNIt+OItM COVHNANTS. Borrower and Lender covenant and agree as follows:
1. ltptttest et leMe1N1 sell Wenst. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment artd late charges as provided in the Note, and the principal of and interest
on any Future Advances axured by this Mortgage.
2. llhnia totr Ttutea tats Irttasaaee. Subject to applicable law.or to a written waiver by Lender. Borrower :ball pay
to Lender on the day monthly irtstallrrtent o[ principal and interest arc payable under the Note, until the Note is paid in fuN. ;
a sum (herein "Funds' equal to oae•twdhh of the yearly taxes and assessment which may attain priority over this `
Mortgage, and ground rcnb on the Property. if any, plus one-twelfth of yearly premium installment for hsurd insurance,
plus one~twelfth o[ yearly premium igsiillntents for mortgage insurance, i[ any. all ac r+rasun.bly estimated initially and from
time to time by Leader on the basis of assessments and bills and reasortabk estimates thereof.
7Ue Funds :hall be held in an institution the deposit or account of which are insured or guaranteed by a Federal or
state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, a::essrnent.
insurance premiurra sad ground rent. Lender may not charge for so holding and applying the Funds, analysing said account,
or verifying and compiling said assessment and bills, unless Lender pays Borrower- interest oa 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 agrament is made ~ applicable law
requires 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 sad the
purpose for which eadt 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 Fund: held by Lender, together with the future awnthly installments of Funds payable prior to
the due dates of taxes, assessment. insurance premiums and ground rent, shall exceed the amount required to pay said taxes,
ssses:ments, insurance premiums and ground rcnb as they tall 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 sufHekat to pay taxes. assessment, insurance premiums and ground rcnb as they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upat payment in fuU of all auras secured by this Mortgage, •Lender :hall promptly refund to Borrower any Fund:
held by Lender. If under paragraph 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 it: acquisition by Lender. any Funds held by
Lender at the time of application a: a credit against the sums secured by this Mortgage. -
3. A~cNiasi at laysttestla.. 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 payatent of amount payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the-Nee. and then to interest and
principal on any Future Advances.
4. Crargea; Iieas. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to -
the Property which may attain a priority over this Mortgage. and leasehold payment: or ground rents, if any, is the auutaer
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 noticxs of amount due under this paragraph. sad in the event
eotrower shall make payaxnt directly. Borrower shall promptly furnish to Lender receipt evidencing such payment.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be
requited to discharge any such lien so brag as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner aeoeptsbk 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. IElszard I>twraaea Borrovrer 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
and in such amount and for such periods as Lender may require; provided. that Lender shall not require that the amount of
such coverage exoxd that amount of coverage required to pay the sums secured by this Mortgage.
'I~te inwranoe carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
Wet such approval shall not be unreasonably withheld. All premiums on inwrance policies shag be paid in the manner
provided under paragraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due. directly to the
inwraace carrier.
All inwrance 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 Leader all renewal,notices and all receipt of paid premiums. In the event of loss.
Borrower shall give prompt noticx to the insurance carrier and Lender. Lender may make proof of kus if not made promptly
4 by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to ratoration 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 ratoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the soots secured 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 bender to Borrower that the insurance carrier offer to settle a claim for insurance benefits, Lender
is authorized to rolled and apply the insurance proeeecls at Lender'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 1 and 2 hereof or change the amount of
such instalment. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of-Borrower
in sad to any insurance policies and is and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Leader to the extent of the sums secured by Wis Mortgage immediately prior to such sale or
acquisition.
i. rr+eservatiosi asia Mrtinteaaece of rroperty; Lesselalds; Condorniniusns; Plawoed Udt DevdoptrseNs. Borrower
shall keep the Property in good repair and shall riot commit waste or permit impairment of deterioration of the Property
and shall comply wiW the provisions of any lease if this Mortgage is oa a leasehold. If this Mortgage is on a unit in a
condominium or a plaruted unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenant 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
rider is executed by Borrower and recorded together with this Mortgage, the coveaanta 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. lrotectlott of Leer's Secttriq?. If Borrower fails to perform the covenants and agreement contained in this
Mortgage. or if say action or proceeding is commenced which materially afkct Lender's interest in the Properly.
including, but not limited to. eminent domain, insolvency. code enforcement, or arrangement or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borro_
wer, 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 ices and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the ban secured by this Mortgage, Borrower shall pay the premiums requittd 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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