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Unu?orut Oovltr+satitt. Bort+owar and Lender covenant and scree u follows:
1.. it~etN of hinelMl tltatl IttNetast. Borrower shall prom y pay when due the principal of and interest on the
indebtedttps evidenced by the Kota, prepayment and late charges ac~+rovided in the Note, and the principal of and interest
as aoy Ftxura Advances sxered by this Mortgage. ,
!`is ter Tawas anti lttattrtree. Subject to applicable law or to a written waiver by Lettder. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until tlta Note is paid in full, 1
s attm (harem "Ftrttds•ry equal to otratwelfth of the yeari}~ taxc. and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any. plus one-twelfth of yearly premium irtstalltnenb for Itarard~nwrattce,
plus orte•twdtth of yearly premium installments for mortgage insttrancc, if any, sll u reasonably estimated initially and fr+nm {
time to lima by Lander on the basis of assessments and hills and reasonable estimates thereof.
'IUe Funds shall be held in an institution the deposrta or accounts of which arc ittwred or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments,
iwurattee premiums and ground rents. Lender may not charge for so holding and applying the Frmd-s. analyzing said account,
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 Futtds shall be paid to Borrower, and unless such agreement a made or applicable law '
require such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give tD Borrower. without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which eaeb debit to the Funds was made. The Funds are pledged u additional security for the sums secured
by this Mortgage.
If the amount o[ the Fund: held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes, assessments. itaurance premiums and ground rents, shall exceed the amount required to pay said taxes,
atttttatments. 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. If the amount of the Funds
held by Leatkr shslt not be sui6Cieat to pay taxes. assessments. insurance premiums and ground rents u they tall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Deader to Borrower requesting payment thereof.
Upoa payment in full of sll sums 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 Properly rs otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. A~iit:atlort of lgreNs. Unless applicable law provides otherwise, all payments received by Lender under the
Nola and paragraphs 1 aced 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. Charge:; Liews. Borrower shall pay all taxes, assessments and other charges, tines 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 thet+eof. Borrower shall promptly Iurnish to Lender all notices of amounts due under this paragraph, attd 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 hu priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long u Borrower shall agree in writing to the payment of the obligation secun!f 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 (orfeuure of the Property or any pan thereof.
S. Hazard laaraaee. Borrower shall leap the improvements now existing or hereafter erected on the Property insured s
against loss by fire, hazards included within the term "extended coverage", and such other hazards u Lendtr may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the aims secured by this Mortgage. i
7Le 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
rovided under ar ra h 2 hereof or, if not and in such manner, b Borrower makin ment, when due, direr to the
i P P ag P P~ Y g WY uY
itwrance carrier. ~
` All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
i clause in favor of and in form acceptable to tender. Lender shall have the right to hold the policies and renewals thereof,
aced 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. I~nder may make proof of loss if not made promptly
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. I[ 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 tails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offiers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceedsrt lender's option either to restoration or repair of the Properi~
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree m 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 installments. If under paragraph 18 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 rho sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. -
f. lreservatioo and ~laiotenaace of Property; Leaseholds; Condominiums; Planned Udt IJevebpments. Borrower
I shall keep the Property in good repair and shall not commit yvaste or permit. impairment or deterioration of the Property
s and shall comply with the provisions of any lease if thn Mortgage 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 cundommium or planned unit development, the by-laws and regulations of the
! condominium or planned unit develoiment. and constituent documents. if a condominium or planned unit development `
i rider is executed by Borrower and rernrded together with thn Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the cotenants and agreements of this Mortgage as i( the rider
` were a part hereof. r
7. ProteMioa of Lender's Security. If Borrower fade to perform the covenants and agreements contained in this ,
Mortgage, or ~ if any action or proceeding is commence.t which materially aliects Lender's interest in the Property.
including, but not limited to, eminent domain. incotvency, c~xlc enforcement, orrrrangements or proceedings invoking a
bankrupt or decedent, then Lender at Lender's option, ulxm notice to Borrower, may make such appearances, dishurse such
' sums and take such action as is necessary to protect Lender's interest. including- but not limned to.sdisbutsement of
reasonable attorney i fees and entry ulx?n the Properly to make repairs. If Lender required ~mOrtgagt' insurance as a
condition of making the loan secured b}• this Mortgage. Born:v?cr sh ell pay the premiums required to maintain such
insurance in ettecl until such t5me as the requirement for wch m:uran,e terminates rn accordance with Borrower's and
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