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UNtraw COVBNANTa. Borrower arld Lender covenant snd agroe u follows:
1. hiytttiattt of hinciNtl sent iNetrep. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
on say Future Advances secured by this Mortgage.
2. Ftttois ter Tana tali itwraaee. Subject to applicable law c.r to a written waiver by Lender. BotTOwer shall pay
to Lender on the day monthly installments of principal and intcrcct arc payable under the Note. until the Note is paid in full,
a stun (Itercin "Funds'? equal to one-twelfth of the yeari~• taxi. 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 hazard insurance.
plus otte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to tithe by Leader on the buffs of assessments and hills and reasonable estimates thereof.
• The Funds shall be held in an institution the deposits or accounts of ~rhich arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institutionl. 1_ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. lender may hat charge for sn holding and applying the Funds. analyzing said account,
or verifying snd 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
Mort~e that interest on the Funds 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 are pledged u additional security for the sums secured
by this Mortpge.
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. imurance premiums and ground rents, shall exceed the amount required to pay said toes.
assessments. insurance premiums and ground rents u 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
held by Lender shall not be suf6cieat to pay toes. assessments, insurance premiums and ground rents u they fall due,
Borro~trer 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, tender shall promptly refund to Borrower any Funds
held by Leader. If under puagraph 18 hereo[ the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply. rto later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application u a credit against the sums secured by this Mortgage.
3. AlplkMioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_cndcr 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.
d. Charges; Liter. 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 grourta rents, if ary, 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 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 t~ the payment of the obGgaliun 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 Iren or forfeiture of the Property or any part thereof.
S. Harard Ineuranee. Borrower shall keep 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 u Lender tray require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount o[
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage.
'Itie ittwrance 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 curler.
AI! 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 rcnew•als thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid prcmiumc. 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.
Unless Lender and Borrower othervviu, agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair rs 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 procceds 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 fails to respond to Lender within 30 days from the
~ date notice ?s mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the inwrance pn?ceeds at 1_endcr's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless fender and Borrower otherwi~t agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthl}• installments referred to in paragraph. 1 and 2 hereof or change the amount of
such installments. It under paragraph I8 hereof the Property is acquired by Ixndcr, all right, title and interest of Borrower
in and to an} Risurance policies and in and !o 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. Preservation and lfaiotenance of Property; Leaseholds; ('ondominiums; Planned Unit Devebpmenfs. Borrower
i shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any (case if thiti Mortgage n on a leasehold. If this Mortgage is on a unit in a }
t condominium or a planned unit development, Borrower shall perform all of Borrower's ob~igations under the declaration J
or covenants creating or governing the condominium or planned unh development, the by-laws and regulations of the
condominium or planned unit development. and constituent drxuments. 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 anJ agreements of this Mortgage as if the rifer
were a part f-,ereof. '
7. Protection of Lender's Security. If Borrower fain to perform the covenants and agreements contained in this e
Mortgage, or if any action ur. proceeding i< commence) which materially aBectc Lender's interest in the Property,
including. but not 5mited to. eminent domain, uiu~lvenc~, code enforcement, or arrangements or proceedings involving a
bankrupt or etecedent, then Lender at Lender ~ option, upon nonce to Borrower, ma} make such appearances, disburse such ;
sums and take such action ac is necetisary to protect Lender's interest, including. but not limited to, disbursement of
t reasonable anorney.c (eec and emry upon the Property to make repairs- If 1_ender required mortgage insurance as a
condition of making the loan secure) h}• this Mortgage. Born:wer shall pay the prcmiumc require) to maiitta~n such
insurance in elfect until such time as the reyuiremeni for wch imuran:e terminates in accordance with Borrower's and
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