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Utvtraast Cbvtu+at~s. Borrower and Lender covenant and agroe as follows:
L i!'a~rsatst of hiaelwl tttM tttMeeaw. Borrower shall promptly pay when due the principsl of and interest oa the
indebtedans wideuoed by tba Note prepsytnent and late charges ax provided in the Nee, and the principal of and interest
as soy Futuna Advances secured by this Motngage.
¦~aMs Qtx Ttt~as tu¦i ltta>rrrce. Subject to spplicabk law ~w to • written waiver by Lender. Borrower shall pay
to Lender oa the day ttwathly installments of principal and interest are payable under the Note. until the Note is paid in full,
a sum (;herein "Funds") equal to one-twelfth of the yearly tax~~ and antxsmeats which may attain priority over this
Mortgage, and ground rents on the Property. it any, plus one-twelfth of yurh?~ premium inuallmenu for hazard inwrance.
plus cps-twelfth of yearly premium installments for mortgage insurance, it any, all as reawttably estimated initially and from
time to titrte by Leader oa the bssis of assessments and hills and reasonable estimates thereof.
711e Funds shall be held in an institution the deposiu or accounts of which are insured or gwranteed by a Federal of
state agency (including Lender if Lender is such an irutitutionl. I~nder shall apply the Funds to pay said taxes. assessmeats.
iawratxe premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
or veritying.srd compiling said sssessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
parmiq Leader to make such a charge. Borrower and Lender may agree in writing at thq time of execution of the
Mortgage that interest on the Ftutds shall be paid to Borrower, and unless such agreement is made or applicable law
roquites 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 [a which each debit to the Funds was made. The, Funds are pledged as additional security for the sums secured
by this Mortgage.
TE the tttrtotmt of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the dues dates of taxer, assessments, insurance premiums and ground rents, shaft exceed the amount required to pay said taxes.
aaataoeats, it>sttranoe premiums and ground rents as 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
bald by Leodar shall sot be wf5cieat to pay taxes. assessments. insurance premiums and ground rent: s: they fall due,
Bon~oorer shall pay to Lender any amount necessary to make up the deficiency within 30 days [nom the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upaa paytaeat in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 heron( the Property is sold or the Properly a otherwise acquired by Linder, Lender
sbaU apply. no later than immediately prior to the sale of the Property or it: acquisition by Lender, any Funds held by
Leader at the time of application at a credit against the sums secured by this Mortgage.
3. AppBeatioa el ll'gsasnb. Unless applicable law provides otherwise, all payments rtceivxd by Lender under the
Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount: payable to Lender by Borrower
under paragraph 2 hereof. rhea to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advancers.
Charges; Lkns. 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 riot paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly tumish to Lender all notices of amounts due under this paragraph, and is thr• event
Borrower shall make payment directly. Borrower shall promptly tumish to Lender receipts evidencing such payments.
Borrower shall pranptty 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 enforttment of such liar in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard larstrance. Borrower shall keep the improvements now existing or hereafter erected on the Property imured
against loss by fire, hazards included within the firm "extended coverage", and such other hazards as Lender may require
atxi 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 ~y 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 inwrance policies shall 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
inwrance carrier.
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
4 clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies 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 loss if not made promptly
by Borrower.
Unles: 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. If such restoration or repair is not economically feasible or it the security of this Mortgage would
be unpaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any. paid
~ to Borrower. 1t the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
i date aotice is mailed by Lender to Borrower that the insurance carrier offers to settle a-claim for insurance benefits, Lender
t 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 I and 2 herrnf or change the amount of
such installmeats. If under paragraph 1 g hereof the Property is acquired by Lender, all right. title and interest of Borrower
in sad to any Auurance policies and in and to the proceeds thereof raufting from damage to the Property prior to th.: 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. Pr+aervatbn and Maintrnsace of Property; Leaseholds; Condominiums; Planned Ueit 1Jevelopmeats. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any kale if 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 re&ulations o[ the
E condominium or planned unit development. and constituent documents- If a condominium or planned unit development
rider is executed by Borrower and rernrded 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 Security. If Borrower fails to perform the covenants and agreements contained in this
I Mortgage, or if any action or proceeding is a?mmcnced which materially affects I-ender's interest in the Property, l
including. but not limited to, eminem domain. insolvency, code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent. then Lender at I-ender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary fa protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a
condition of making the loan secured by This Mortgage. Borrower shall pay the premiums required to maintain such
insurance in etieSt until such time as the reyuiremem for such insurance terminates m accordance with Borrowers and
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