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UNIFO~b/ COVENANTS. Borrower and lender covenant and agree as follows: itt
1. lryrteN of PrMclrsl artl INerat. Borrower shall promptly pay when due the principal of and interest on the t
indebtedness evidenced by tht: Note. prepayment and late charges as provided in the Note, and the principal of and interest
on say Future Advances secured by this Mortgage. '
2. Rawls for Ta:ea art iasararee. 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 arc 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. 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
rime to time by Lender on the bass of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed 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 miums and ound rents. Lender ma not char for so holdin nd a in the Funds, anal ~
Prc !P y ge g a pply g yzing said acrnunt,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on 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 applicable law
requira sacs interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shag give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'ibe Funds are 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, iasuranoa premiums and ground rents as they tall due, such excess shall be. at Borrowers option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds.. If the amount of the Funds
heW by Leader shag sot be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
8orraver shall pay to Lender any amount necesury to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower rcgtresting payment thereof.
Upon payment in fuB of aU gums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by lender. If under paragraph 18 hereof the property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, ra 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. Alplicalioa of Pr~erb, . Upkss applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by IRnder 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 Note, and then to interest and
principal on any Future Advances. -
1. l-'der, i.iews. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the which tm attain a
property y priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
Pr'm+~ under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment. when due, directly to the
payee tber+eof. 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 .shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so bag 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 the Property or any part thereof.
3. Nazani Iwsarawc~ Borrower 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 su.:h amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of a
such coverage exceed that amount of coverage required to pay the sums secured b this Mona
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'Ibe rnwrance 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 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
j All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
f 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 all renewal notices and all receipts 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_
E 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 sums 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 Leader within 30 days from the
date notice is mailed by bender to Borrower that the inwrance carrier offers to settle a claim for insurance ber-,c5is, Lender
is authorized to collect and apply the insurance procxeds at Lender's option either to ratoration 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 tlrc monthly installments referred to in paragraphs 1 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 interat 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 surra secured by this Mortgage immediately prior to such sale or
acquisition.
Prsservado¦ art Mar~ewswce of Property; ~ Condominiums; Planned Uwlt Devebpments. Borrower
3 shall keep the Property io good repair and shall not commit waste 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 j
condominium or a planned unit development, Borrower shall per[orm all of Borrowers obligations under the declaration
~ or covenants creating or goverr~ing•the condominium or planned unit development, the by-laws and regulations of the
i 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 covenants and agreements of such rider
shall be igporporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part heroof.
` 7. Protsctiow of Lender's If Borrower fails to
Secrrity. perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially affects Lender's interat in the Property,
including. but not limited to. eminent domain, insolvency. code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take -such action as is necessary to protcet Lender's interest. including, but not limited to. disbursement of
reasonable attorney's. foes and entry upon the Property to make .repairs. If Lender .required mortgage insurance as a
fff condition of making the loan sceured by this Mortgage. Borrower 'shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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