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VNIPORtir Qpvlt~tANTa, Borrower' and lender covenant and agree a: follows:
M rtpttaestt of lhiatlttal ttttttt 6Meseal. Borrower sftall promptly pay when dw the principal of and interest on the
indebtedttas evidenced bl? the Note. prepayttxat and Tate charges as provided in the Note. and the principal o[ aced interest
oa any Fttrlw+e Advances stscurod bl? this Mortgage.
2. 1t<rtis fez Tarns Wort Irtwrertce. Subjtxt to applicable law ~x to a written waiver by tender. Borrower shall pay
to lender on the day monthly installments Qf principal and interest arc payable under the Note. unlit the Note is paid in tWi,
a soot (herein '•Fttnds'y equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property. it any. plus one-twelfth of yeatili premium installments for hazard irtwraace.
plus one-twelfth o[ yearly premium installments for mortgage ittsttrartce. if any. all as reasonably estimatedinitially and iron
date to time by Lender oa the boa of assessments and hills and reasonable estimates thereof.
The Fttrtds shall be held in an institution the deposits or account: of whkh arc insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institutionl. Lender shall apply the Fonds to pay uid taxes. assessments, ,
inwrartce pemiums artd ground rents. Lender may not charge Form holding and applying the Fonds. analyzing said account,
or verifying.atd compiling uid assessments and bilk. unless Lender pays Horrawer interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the tune of execution of the
Mortpge that interest on the Fututds-shall be 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 u additional security for the sums secured
by the Mortgage.
If the amount of tbti Futtds heW by Lender, together with the future ttaonthly installments of Funds payable prior to
the due data of taxes. assessments. imurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assaaoents, irauratuce premiums and ground rents u they fall due. such excess shall be, at Borrower's option. either i
promptly rcpttid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
bald by Lander shall not be wfficieat to pay taxes. assessments, insurance premiums and ground rents as they tall due. }
Borrower shall pay to Leader any amount neiYSSary 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 secured by the Mortgage, lender shall promptly refund to Borrower any Funds
held by bender. tf under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender. Lender
shall apply. rte later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held br
Lender at the time of application as a credit against the sums secttrcd by this Mortgage.
3. A~iicatiort oft lrpwsetMs. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 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 Advatttxs.
4. (,'barges; Lieas. 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 leasehold payments or ground rents. if any. in the manner
provided 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 is 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 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 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.
S. Hazard Ias>arattce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, haurds 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 requite 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 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 pail in such manner, by Borrower making payment. when due, directly to the
insurance carrier.
All insurance politics 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,
f and Borrower shall promptly [nrnish 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
j by Borrower. -
Unless Lender and Borrower otherw~x 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 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 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
is autborizod to collect and apply the insurance procxeds at Lender's option either to restoration or repair of tbe 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 poat~orte the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 1.8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any Auurance.policies and in and to the proceeds thereof rewlting 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
acgttaitiort.
f. lh+eecrvatloo gad Alttinteaaace of Property; Leaseholds; Condominiums; Ptanued Unit 1Deretopmeats. Borrower r
shall keep the Property in good repair and shall not comtoit yvute 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 unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent da:umentc. 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 tbe rider
were a part hereof.
7. Protection of i.etader's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, i
including, but not limned to. eminent domain. insolvency. c~x1e enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lenders option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary' to pmte}t Lender's interest, including, but not limited to, disbursement of
~ reasonable auomey s fees and entry ufxm the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrrwcr sh.tll pay the premiums required to maintain such
inuurance in effect until such time as the requirement for such msuran:e terminates to accordance with Borrowers and t
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