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Ut+u~ar~ Covtrtsrtra. Borrower acrd Lender covenant and agroe as tdlows:
4 lgtweet N leYtclpal ani telaeA. Borrower shall promptly pay when due the principal of and interest on the
indebtedrrps evidetttxd by the Note, prepayment and late. clwrges as provided in the Note, and the principal of and intete:f
oa any Future Advances secured by this Mortgage.
lhmi tK Tsttae ttai lltwtrawce. Subject to applicable Nw ar to a written waiver by Lender. Bottower shall pay
to Letrder on the day ttronthty installments of principal and intercct are payable under the Note. until the Note is paid in full.
• sum (herein "Fumds'~ equal to one-twelfth of the Yearfy tax~~ and assessments which may attain priority over this
Mortgage. and grotrtrd tents on the Property. it any. plus one-twelfth of yesrly premium ituallments for hazard inwratrce,
plus osre-twelfth of yearly premium installments for Inortgsge inurrancc. if any, all as reasonably estimated initially and from
time to tithe by Lender on the basis of assessments and hilh and reasonable estimates thereof.
The Fonds shall be held in an institution the deposiu or accounts of which are insured or gwnntetd by a Federal of
state agency (including Lender it Lender is such an itstitution). Lender shall apply the Funds to pay said taxes, asseurrrents. 1
insutatrce premiums and ground rents. Lender may not charge for so holding and applying the Frrrrds. analyzing said account,
of verifying and compiling said assessments and bills, unless Letrdet pays Borrower interest on the Funds and applicable law
permits Leader to make wch a charge. Borrower and lender may agree in writing at the time of execution of this
Mortgage that interat on the irttads shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall raw be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an shawl accounting of the Funds showing credits and debits to the Funds and the
purpose for which estdr debit to the Funds was made. The Funds arc pledged u additional security for the sums secured
by this Mortpge.
Tf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessmenp. irtsunrrce premiums and ground rents. shall extxcd the amount required to pay said taxes.
atsestrnents. imuratrce premiums and ground rents as they fall due, such excess shall be. at Borrower's option, either
promptly repaid to Borrower a ceeditod to Borrower on monthly installments of Funds. if the amount of the Funds
hdd by Leader shalt not be suf8ciient to pay taxes. assessments, insurance pmniums and ground rents as they [all due..
Borrower shall pay to Lender any amount netxssary to make up the deficiency within 30 days from the date notice is mailed
by ).coder to Borrower requesting payment thereof..
Upon paytaemt in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender, If under parsgnph 18 hereof ttre Property is sold or the Properly rs otherwise acquired by Lender, Lender '
shall spply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lander at the tithe of application a: a credit against the sums secured by this Mortgage.
3. A~Ncatioe of ~rtetWs. Unless applicable law. provides otherwise, alt payments received by Lender under the
Note arM paragraphs ! sad 2 hereof shall be applied by Lender first in payment of amount: payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of fire Note. and then to interest and
principal on any Future Advances.
4. Ctaarges; Liras. 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. it 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 dui under this paragraph, and im 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 tMe obligation secured by
such lien in a manner acceptable to [.ender, 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. Hasard irrwrawee. Borrower shall keep the improvements now existing or hereafter erected on the Property inwred
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
sad in such amounts and [or such periods as tender may require; provided, that Lender shall not require that the anpount of
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 wch approval shall not be unreasonably withheld. All premiums on inwranrce policies strait 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.
All 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 Lendtr. Lender shall have the right to hold the policies and renewals thereof.
sad Borrower shall promptly furnish to Lender al! renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance earner and tinder. Lender may make proof of loss if not made promptly
by Borrower. a
Unless Lender and Borrower otherw,se 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 it 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 i/ Borrower fails to respond to Lendtr within 30 days from the
date notice is marled by Lender to Borrower that the insurance carrier otters 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 t ne the dui date of the month)
P~ Po y installments referred to in paragraphs I 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 l
in and to any f4uurance policies and in and to the proceeds thereof resultrng from damage to the Property prior to tFrc 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 and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrt?it 3vaste or permit impairment or deterioration of the Properly
sad shall comply with the provisions of any lease it this Mortgage rs an a leasehold. If this Mortgage is on a unit 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 development, the by-taws and regulations of the
condominium or planned unit development, and constituent documents. 1f a condominium or planned unit development
rider is executed by Borrower and recorded together ss,th this Mortgage, the covenants and agreements of such rider
shall be incorporated rate and shall amend and supplement the covenants and agreements of this Mortgage as if the"rider
were a part hereof.
7. Protectiar of Leader's Security. If Borruucr fa,ls to perform the covenants and agreements contained in this
Mortgage, or it any action ur proceeding ,s commenced which materially affects Lender's interest in the Property,
including. but n~H limited to, eminent domain. insi~lvency, code enforcement. or arrangements or proceedings invols•ing a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such 3
sums and take such action as is necessary to protect Lenders interest, including. but not limited to, disbursement of
reasonable attorney s~ ices and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a
cond,Uon, of making the loan secure) by this Mortgage. Borrower shall pay the premiums rtginred to maintain such , ~
insurance in effect until such time as the reyuiremenr for such insurance terminates m accordanet with Borrower's and
• ' • BOOK ~ Pl.G'E ~t~ ' _ r
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