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UHtvaiut CovaHet+». Dorwwer and Lender covenant and agree ss tolbws:
lie - PaywstN N ihMel~al tsM 1¦NseM. Borrower shall promptly pay when due tbs principal o[ and iaterae on the
utdebMdatsa svidentxd by the Nola prgaymeat std late clwrges as provided in the Note. and the principal of and interest
as soy Future Advttaoes tsecw~sd by this Moctgaga
Z. Ifhr¦ds flstr Zlattes tttttd lttttttrra¦a~e. Subject to spplicabk law ar to a writlett waiver by Lender. Renewer shall py
to Leader on this day monthly instalUaents of principal and intereal arc payable under the Noss. until the Note is paid in full,
a tram (hsreirr "Fuads'7 equal to errs-twelfth of the yearly ta~?t~ and assessments which may attain priority over this
Mortgage. and ground rata on tbs Ptvperty, if any. plus Otte-twelfth of yearl)i premitun iratallmenu for hazard insurance.
plus oae~twelUh of yearly premium installments for mortgage inutrattcc, it any. all ss reasonably estimated initially and tray
dins to tints by Lander oa the basis of assessments and hills and reasonable euimates thereof.
'Ibe Fonds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Feuds to pay :aid taxes. assessments,
iasurarroe premiums and ground rents. Lender may not charge form holding and applying the Fttttds. analyzing said account,
or verityingstd compiling said assessments and bilk. unless Lender pays Borrower interest on the Funds and applicable law
ptsrmits Larder 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
r+equir+es such interest to be paid. Lender shall not be required to pay Borrower any interest of 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 are pledged as additional security for the sums secured
by this Mortpge.
It the amount o[ 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 u they fall due, such excess shall be. at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 1[ the amount of the Funds
hold by Lender shall not be wfl3cieot to pay taxes. assessments, insurance premiums and ground rents ss they fall dqe,
Borrower shall pay to Lender any amotmt necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment is full of all sums secur+od by this Mortgage, lender shall promptly refund to Borrower any Fund:
held by Leader. If under paragraph 18 hereo[ the Property is sold or the Property u otherwise scquircd by Lender. Lender
s6a11 apply, rte 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. Appiicatlon of )rayweMs. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs !and 2 hereof shall be applied by Lender 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.
4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges. fines and impositions attributable to
the Property which may attainYa priority over this Mortgage. and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if pot 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, sad in the event
Borrower shall make payment directly, Borrower shall promptly famish 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 long 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 I~en by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
S. Hazard losarartce. 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 such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of
I'I such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'ILe insurance 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 u_ nder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to the
insurance carrier.
Ap insurance 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 pdicies 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 bas if not made promptly
by Borrower.
Unless Lender and Borrower otherwise- agree in writing, insurance proceeds shall be applied to restoration or repair of
y 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~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 it Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offer: to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds 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 installmenu. If under paragraph I8 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
acquisition.
6. Preservation sad Maintenance of Property; Leaseholds; Condomioiutas; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a trait in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit devebpment, 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 covenants 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. Protection of Lender's Sccurfq*. It Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is cummenceel which materially affects Lender's interest in the Property,
including. but not limited to, eminent domain. inse.lvertcy, 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 protect Lender's interest, including. but not limned to, disbursement of
asonable attorney's tees arfd entry apart the Properly to make repairs. If Lender reysrired mortgage insurance as a
condition of making the loan secured by this mortgage. Borrower shill pay the premiums require) to maintain such
insurance in effect until such time 3s the reyuiremem far such msuran:e terminates in accordance with Borrower's and
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