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UNIFORM COVENAN78. Borrower anJ lender covenant and agree as follows:
1. Payment of Principal ttttd latet•est. Born?w•er shall promptly pay when due the principal of and interest on the
indebtedness evidenced 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.
T. Fonds for Taxes sad lastttrance. 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 ma)• attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-Iw•elfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lcndcr on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall t+e held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pa)• said taxes, assessments.
insurance premiums and ground rents. lender may not charge for so holding and applying the Funds, analyzing said account,
ur verifying and compiling said assessments and bills, unless lender pa)•s Borrower interest un the Funds and applicable law
permits 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 applicahle law
reyuites such interest to be paid. Lender shall not be required to pay Borrower any interest ur earnings nn the Funds. I.cnder
shall give to Borrower, without charge, an annual aca?unting 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
b)• this :?lortgage.
if the amount of file 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 they fall due, st+ch excess shall be, at Burrowers option, either
promptly repaid to Borrower or 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 preriums 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 notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortg:+gc. Lender shall promptly refund to Borrower any Funds
held by lender. I[ under paragraph 18 hereof the Propem• is sold or the Property is otherwise acquired by Lender. Lender
shall apply, nu later Than immediately prior to the sale of the Property or its acquisition h) Lender, any Funds held by
t_endi:r at the time of application as a credit against the sums secured h)• this Mortgage.
3. Application of Payments. Unless applicahle law prorides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be appUed by Lcndcr fiat in p:+)•mcnt of amounts payable to Lender by Borrower
under paragraph ~ hereof, then to interest pa~ablc on the Notc. then to tl+e principal of the Notc, and then to interest and
principal on any Future A,dvance~.
4. Charges; Liens. Borros+er shad pay all taxes, asscsunents and other charges, fines an+i• impositir?ns attributable to
the Property whicF may :.train a priority over this !1lortgagc~ ynd 1v~~hoW F~'4!~ ~ag;~Nrld ant's. if an)'. in the manner
provided !mder paragraph 2 hereof or. if not paid in such manner, by Burrower makm~ payment. when d+:,. directly to the
payee tFe:eof. Borrower shall promptly furnish to Lender all notices of -irnoirinfs d'tteiirSder this paragraph, and in the event
Borrower shall make pa)•ment dircaly, Borrower shall promptf) furnish to Lender re+~eipts e4iifenring such payments.
Borrower si?all p-omptiy discharge any lien which has priority over this Mortgage; pruwded. that- Borrower shall not be
required to discharge soy-such lien x? long as Borrower shall agree in writing to the pa)~rnent of the obligation xcured by
such lien in a mam+er acccptahtc to Lcndcr, or shall in good faith contest such lien hy, or defend enforcement of such lien in.
legal pro.cedings which operate to prevent the enforcement of the I+en or forfeiture of the Pmpert)• ur :m)• part thereof.
5. Hazard Imurance. Borrower shall kc~;p the impmvcments now existing or hereafter erected on the Propert)• insured
:+gainst loss h.• tier. hazards included within the term "extended cover:?ge". and such other hatards as Lender ma)• require
anJ in su:h amounU and fur suLh periods as Lcndcr may require: p~osidcd, that I_cnder shall not require that the amount of
,uch cover.+ge exceed that amount of coverage required to pay the ;ums su:cured h)• this Mortgage.
The insurance carrier providing the insurance shall be cho~ca by Borrower subject to approval M• Lender, provided,
that su:h approval shall n~f be unreasonably withheld. All premiums un insurance policies shall tx: paid to the manner
p•;.vidt.l under p:.rabraph 2 hercoE or, +f nut paid in such manner. by Burrower making payment, when due, directly to the
+nsurance carnet.
All insurance policies anJ renewals thereof shat' be in fornt acceptable to Lender and shall in.lude a standard mortgage
;lausc in favor of anJ `in form acceptable to Lender. Lender shall have the right to hold the puli~ics and renewals thereof.
and Bnrn?wer shall prompth• furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Burrower shall give prompt notirr ro the insurance carrier and !_ender. Lcndcr may make 1>-oaf of loss if not made promptly
b~ Borrower.
w Unless I_endcr and Borruwcr otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoratron or repair is cco:TOmically feasible and the security of th+s Mortgage is
not thereby impaired. If such restoratas+ or repair is not economically- f:asihle or if the se:unty o[ th+s Mortgage would
tx: impaired. the insurance procee+Is st+:,!i F,e applied to the sums secured by this Mortgage. wit!t the excess. if any, paid
n+ Borrower. If the Property is ah:u.doncd M Borrower_ or it Burrower fails to respond to Lcndcr within 30 days from the
Jate notice is mailed by Lcndcr to Borrower that the insurance carrier offers to settle "a claim for insurance benefits, Ixnder
is :,uthorized ;o rnllect and apply the insurance proceeds at Lcndcr s option either to restoration or repair of the Property
or to the sums secured by this ~1ortgage.
unless l.endrr :md BonoH•er otherwise agrcc in writing. an) such application of pnxeeds to principal shall nut extend
..r postpone the due date of the monthly installments referred t~• in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph f 8 hereof the Property is acy+•ired by I_cnder. all right, title and interest of Borrower
+n and to am insurance policies and in and to the proceeds thereof result+ng from dariage to the property prior to the sale
ar acquisition shall pass to Lcndcr to the extent of the sums secured h; this Mortgage immediately prior to such sale or
acquisition.
6. Preser.ation and ~taiutenanre of Properly; Leaseholds; ('ondominiums; Planned Unit Ikvelopmenls. Borrower
shall keep the Property in good repair and shall not commit waste +~r permit imp:+irment or deterioration of the Property
~ :u+d shall compl) with the provisions of any lease if this Mortgage is ue a leasehold. If this Mortgage is on a unit in a
€ condominium ur a planned un+t dcsclopment, Borrower shall perform all of Borrower's ohi+gations under the declaration
or rnvenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
com3e.minium or planned unit development. and constituent documems. If a .ondominium or planned unit development
mder is executed by Borrower and recorded together wuh thrs M~~rtgage, the covenants and agreements of such rider
shall be +ncurporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
E were a part hereof.
7. Pr_oteclion of Lender's Security. If Borrower fails to perform the rnvenants and agreements contairtied in this
Mortgage. or if any action ilr proceednng is commenced which materially affects Lender's interest in the Property,
including. but sot Gm+ted to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
b~rti:rupt or d.-~edent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sutra and take such action as is necessary to protect Lender's interest. ircluding, but not limited to. disbutxment of
reasonable attorney's fees and entry u{x~n the Propert)• to make repairs. If Lender required mortgage insurance as a
condition of making the loan secure) by this Mortgage, Borruwcr shall pay the premiums required to maintain such
insurance in effect until stteh time as the requirement for such insurance terminates in accordance with Borrowers and
~~~K 337 Pa~E 194