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UNtt~M CovtaNetrts. Horro+tver and Ltxtdet• covenant and agree as follows: `
1~ FgtwsM of ltitsdpttl ttttstt IrMtaresb Borrower shall promptly pay what due the priatdpal of sat! Overeat oa the
ittdebtedrtae evidenced by the Note. ptrepaytnent and ble charges as provided in the Noes. and the princiMl of earl ienereu
as any Futuro Advrtnca secured by this Mortgage.
lraatls ter Tastes tt?ai 6teeeeac~e. Subject to trpplicabk law .x to a written waiver by Lterttitx. lonaatr tthall ptry .
to Leader on the day monthly installments of principal and interest art payable trader the Note. until the Noce is paid is ftti.
a twee (herein "Ftrrtds'~ aqua! to ortatwelfth of rho ;'tart}• taxs~ and assessntatb which .ay ttaaia priority over this
Mortgage, trod ground rents oa the Property. if any. plus one-twelhh d yearly pteatiarer irWaYraatb for hsrstd iawraaee.
plus titre-twdtth of yearly prsmittm installments for mortgage insurance, if nay. tell ss reasonably estintseed initially sad front
time to tittle by Leader on the bass of assesancnts and hilh and reasonable estimates thtxeof.
1Le Fonds shall be held in an institution the deposits or accounts d which are insau+ed a gtrararteeed by a Federal et
state ttgemcy (including Lerder if Lender is such an institutionl. I.emder shall apply the Finds m pay said lanes. astessakntt,,
inwraaoa premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing said acootrat.
or verifying-std rnrnpiling said assessments and bills, unless l.etrder pays Borrower intetrat on the Funds and applicable law
permits bender to make such a charge. Borrower sad Lender may agree in writing at the time of exenrtioa of this
Mortgage that interest on the Fonds shall be paid to Borrower. and unless ttttrh agr~eaaatt is made a appliabk lane
requites stodt interest to be paid. Lender shall not be requited to pay Borrower any interest a graiags oa the Funds. Lander
shall give to Borrower, without charge, an annwl accounting of the Furls showing credits and debits to the Funds sad the
purpose for which each debit to the Funds was made. The Funds arc ptedgtd as additional security for the sums stxtrrtd
by this Mortgage.
U 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. inwance premiums and ground rents, shall exoted the arrtotatt regtririted to pay said taxes,
assesfasertts, insurance premiums and ground rents as they fall due, such excess shall b~ st Borrower's option, either
promptly repaid to Borrower or credited to Borrower om monthly ittstallrnents of Funds. if the amount of the 1Fuads
htt3d by Lender shall not be sutfitdeat to pay taxes. assessments, insurance premiums and groutd rents as they fap due, •
Borrower shall pay to Lender any amount necessary to make up the deficiency within 3(i days from the date rtotioe is mailed
by Lender to Borrower regtrtsting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Bamwer sty Funds
ht:ld by Lender. If under paragraph 18 hereof the Property is sob a the Property is aherwise aoquir+ed by Lender, Calder
shall apply, no later than immediately prior to the sale of the Property of iu aogtrisition by Larder. nay Funds held by
Leader at the time of application at a credit against the sums secured by this Mortgage.
3. AMrlicatioa of PaymeNs. Unless applicable law provides otherwise, all payments received by Lender under the
Note std paragraphs 1 sad 2 hettof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
trader paragraph 2 hereof. them to interest payable on the Note, then to the principal of the •Note, and then to interest sad
primcipa! on any Future Advances.
i. Charges; Clews. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and kasthdd payments or ground rents, if any, is the maaax
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, wbpt due, directly to ttie
payee ther+cof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and is the extant
Borrower shall make payment directly, Borrower shall promptly furnish to Lender reoeipts tvideacirtg such paymeats_
Borrott+er shall promptly discharge any tiro which has priority over this Mortgage; pr+wrided, that 8ormwer shat!-mot be
required to discharge any such lien so bog as Borrower shall agree in writing to the payment of the obligatirnt severed by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, a defend eaforcemertt of such lien iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property a nay part thereof.
S. Haiard lawrrturce. Borrower shall keep the improvements now• existing or hereafter erected m the Property instutd
against loss by fire, hazards included within the term "extended coverage". and such other hands as Lender may require
sad in such amounts and for such periods as Lender may require; provided, that Lender shall not ttquire that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Larder, povidtd,
that such approval shall not be unreasonably withheld. All premiums on inwrance pdicies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower malcrng payment, when due, directly to the
' inwrance carrier.-
Alt insurance policies and renewals thereof shall be in form acceptable to Lender and shall incltttie a standard mortgage
clause in favor of and in form acceptable to Lettder_ Lender shall have the right to hold the pdiaa and reoewah thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. to the event of bas.
Borrower shall give prompt notice to the insurance carrier and gender. Lender may make proof of loss if trot made pranptty
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration 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 restoration or repair is not economically feasible or if the security d 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 it Borrower fails to respond to Lender within 30 days [ran the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for itrsuraace bandits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to testontion or rtpa+.r of the Property I
or to the sums secured by this Mortgage.
Unless Lender and Borrower othet•v?ise agree in writing, an}• such application of proceeds to pnnppal shag oat utead
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the ProFerty is acywred by [.ender, all right, title and interest of Borrower
in aril to any Insurance policies and in and to the proceeds thereof resulting from damagt to the Property prior to ti>L sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Pr+esenatlou sad Maintenance of Propert~•; Lettselwlds; Condomirriatwr Tlswwed Uwiti De+do~ertls. Borrower
shall keep the Property in good repair and shall not comrpit )waste or permit itnpairmt:nt or daerioration of the Property
and shall comply with the provisions of any lease if this Mortgage is nn a leasehold. !f this Mortgage is on a unit in a
condominium or a planned unit development, Borruwer .hall peric?rm all of Borrowers obligations under the dtxlaratron
or covenants creating or governing the condominium or planned unit devebptnent, the by-laws and regulations d the
condominium or planned unit develoi,ntent, and constituent dcxuments. It a condominium or planned unit devek?pnrcnt
rider is executed by Borrower and rernrded together with this Mortgage, the covenants and agrscrnehts of such rider
shall be incorporated into and shall amend and supplement the cotenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this ~
Mortgage, or if any action or prxreding +s commenced whtch materially affects Lender's interest in the Propert}~,
including. but not limned to, eminent domain, insc?Ivency. axle enforcement, or arrangements of proceedings invoivrng a
bankrupt or decedent. then Lender at Lender a option. upon notice to Borrower, ma}• make such appearaooes, disburse such
sums and take such action as is necessary to protect l.endcr's interest. including. but not limited to, disbursartatt of
reasonahle attorney's tees and emry upon the Property to make repairs. If 1_cnder required n1On6~ ittNrranoe ss a
sand+tion of making the loan secure) by this Mortgage. Byrn:wcr sh.tlt pay the premiums regairad-le ttlainta?n such ~
insurance in eBect until such time as the reyoirement for such msuran:e terminates m accot'darrce with Bormv?er s and s