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I.INIFORM CoveN~rtTS. Borrower and 1.enJer covenant and agree as fo~lovii~~~ ~4~
1. Payment of Principal sad laterest. Burrower shall promptly pay when due the principal of and interest on the
indebtedness evidence) by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. lihrads for Taxes and lnsuraace. Subject to applicable law or to a written waiver by lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until•the Note is paid in full,
a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over This
Mortgage, anJ 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 estimate) initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the delx?sits or accounts of which are insured or guarantecct by a Federal or
state agency (including Lender if lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. 1_ender may not charge for so hoping and applying the Funds, analysing said account,
or verifying and compiling said assessments and hills, unless lender pays Borrower interest on the Funds and applicable law
perntits Lender to make such a charge. Borrower and l.ernter may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless 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. lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and Debits 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 this Mortgage:
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as tbeJ• tall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower ur credited to Burrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums anJ ground rents as they fall due,
Borrower shall pay to Lcndcr any amount necessary to make up the Deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lcndcr shall promptly refunJ to Borrower any Funds
held by I_enJer. If under paragraph 18 hereof the Property is sold ur the PropertJ• is otherwise acquired by Lender, Lender
shall apply, no later than immediatclJ• prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lt:nJer at the time of application as a credit against the some secured by-this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise. all payrttent~ received by 1_ender under the
Note and paragraphs 1 and 2 hereof shall be applied by LenJcr first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Notc, anJ then to interest and
princ:pal on any Future Advances.
J. CharKes: Liens. Borrower sh:dl pay all taxes assessments and other charges, fines arnl impositions attribwable to
the PropcrtJ• which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provide) 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, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shalt 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 1_ender, or shall in good faith conteu such lien hy, or JefenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall kc-ep the improvements now c~isting or hereafter ereiaed on the Property insured
against loss by fire, hazards incluDrJ within the term "e~tendcJ coverage", anJ such other hazards as Lender may require
anJ in su:h amounts anJ for such periods as Lender may require: provide), that Lcndcr shall not require that the amount of
such coverage cxceeJ that amount of coverage required to pap the sums secured h}' this ~tortgage_
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by 1_ender, provided,
that such approval shall nut be unreasonahly withheld. All premiums on insurance policies shall be pail in the manner
provided under p:+ragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when due, Directly to the
uisurance career.
Alf insurance pohcies anJ renewals thereof shall be in form acceptable to Lender anJ shall. include a standarJ mortgage
clause in favor of and in form acceptable to Lender. Lcndcr shall have the right to huld_thc policies and renewals thereof.
and Borrower .hall promptly furnish to lender al{ rene++•al notices anJ a!I receipts of paid premiums. In the event of loss,
{ Borrower shall give prompt notice t~ the insurance carrier anJ Lender. Lender roes) make proof of loss if nut made promptly
bs• Borrower.
Unless 1_ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damage), proviDed such restoration ur 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
k, 5e impaired. the insurance proceeds shall be applieJ to the sums secure) by this Mortgage. with the excess, if any, paid
~ to Borrower_ if the Property is abandoned hJ• 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
u authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secured by this \lortgage.
~ Unless Lcndcr and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend
or postpone the due Jate 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 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 Mortgage immediately prior to such sale or
I acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
c shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shad comply with the provisions of any lease if this Mortgage is un a leasehold. If this Aortgage is on a unit in a
condominium ur a planned unit Jevclupment, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating rr governing the condominium or planned unit development, the by-laws and regulations of the
con~i.~minium or planned unit development, and constituent documents. If a condominium or planned unit development
~ rider is executed by Borrower and n;corded together with this Mortgage, the covenants and agreements of such rider
shall bP mcorporateJ into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof. _
7. Protection of f.ender's Security. If Borrower fails to perform the covenants and agreements contained in this
t Mortgage, or if any action or proceeding commence) which materially affects Lender's interest in the Property,
i including. but not tiro+ted to. eminent domain. insoh•ency, code enforcement, or arrangements or proceedings involving a •
bari:rup! or JeceJent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums anJ take such action as is necessan• to protect Lenders interest, including, but not limited to, disbursement of ~
reasonable attorney's fees and entry upon the Property to make repairs. If Lcndcr required mortgage insurance as a
condition 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 Borrowei s and
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