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UNlraw COVaNANTf. Borrower and Lender covenant and agree as folbws:
)TayeM of ~elnclMt tttati iNeretM. Borrower shall promptly pay when dues the principal of and interest on the
indebtedness evidenced by the Nile, Prepayment and late charges as provided in the Nde, and the principd of and interest
on any Future Advances secured by this Mortgsge.
1hNtis for Ttwe ttsrtl Iawra~ee. Subject to applicable law rr to a written waiver by Lender. Botmower shall Pay
to Lender on the day monthly installments of principal and interest ant payable under the Nde, until the Nde is paid in full,
a start (herein "Futtds'q equal to one-twelfth of the yearl~• tar?c~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hszadd insuranrx.
plus oartwelfth of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
time to lima by Lender on the basis of assessments and hills and reasonable estimates thereof.
'Ilre Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agetrcy (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
insuratce premiums and ground rents. lender may not charge for sn holding and applying the Frrnds. analyzinE said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that irrttere:t on the Funds shall be paid to Borrower. acrd 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. Leader
shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds acrd the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If 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, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
asxsprrtents, itrsuratrce premiums and ground rents as they fall due, such excess shall be. at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
bdd by Leader shall rid be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borraaer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, [.ender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property rs dherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Furrds held by
(..ender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payttaetstr. Unless applicable law provides otherwise, all payments received- by Lender under the
Nett and paragraphs 1 and 2 hereof shall be applied by (.ender 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 Advarroes.
1. Charges; Lkrrs. 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, it any, in the manrxr
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 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 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 tor[eiture of the Property or any part thereof.
S. Hazard lawrrrrrce. Borrower shall kcep 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
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
7?re 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 shill 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
itrwrarxe 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 Lender. lender shall have the right to hold the policies and renewals thereof,
j and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
I Borcower shall give prompt notice to the insurance carrier and lender. Lender 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. It 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 n 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 offers to settle a claim for insurance benefits, Lender
is autborittd 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 installments.- If under paragraph I8 hereof the Property is acquired by (..ender, 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. Praenation and !Maintenance of Property; I.easehulds; Condominiums; Planned Unit Devebpmenls. Borrower
shall keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property
~ and shall comp)}• with the provisions of any lease if this Mortgage is tin a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development,-Burrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or plantxd unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and rernrded together whh this Mortgage, the covenants and agreements of such rider T
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 Leader's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced.- which materially aBects Lender's interest in the Property,
including. but not limned to, eminent domain. insolvency. code enforcement. or arrangemems or proceedings involving a
bankrupt or decedent. then I~nder at I-ender's option, upon notice to Borrower, may make such appearances, disburse such
Burns and take such action as is necessary to protect Lenders •interest, including. but not limned to, disbursement of
reasonable attorney i fees and entry upon the Properly to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Born:wcr shall pay the premiums required to maintain such
insurance in effect until such time as the reyuiremem for wch msurance terminates in accordance with Borrower's and
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