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UNIFORM COYHN~NTS. Borrower and Lender covenant and agree as follows:
1. Ptlymeat of Prlacipal aad laterest. Borrower shat! promptly pay when due the principal of and interest on the
indebtedness evidenxrl by the Note. prepayment and late charges as provided in the Note. and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Ihtnds for Tana aad lasurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to [.ender on the day monthly installments of principal and interest are payable under the Note, unfit the Note is paid in full,
a stun (herein "Funds") equal to ane-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any, plui ane•twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institutiim the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for sa holding and applying the Funds, 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 Funds shall he 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 nn the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the f=unds showing credits arnf debits to the Funds and the
purpose iar which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
6y this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
[he due dates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground ants :[s they fall due, such excess shall be, at Harrowers 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 sufficient to pay taxes, asscssntcnts, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}•s from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Martgagc, 1_ender shall promptly refund to Borrower any Funds
held by i.cnder. If under paragraph 18 hereof the Property is u~ld or the Propcrt}• is otherwise acquired by I.cnder, 1_ender
shall apply, no later than immediately prior to the sale of the Property ar its acquisition by I.cnder, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application 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 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 Nate, and then to interest and
principal an any Future Advances.
4. Charges; Lkas. Harrower shall pay all taxes. asscssincnts and other charges, fines and impositions attributable to
the Property which may attain a priority aver this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in stx:h manner, by Barrowcr rocking payment, when due, directly to the
payee thereof. Borrower shat) promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Horrow•er shall make payment directly, Borrower shall promptly furnish to Len[kr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided. that Hormwer Shall not be
required to discharge any such lien so long as Barrowcr shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shat{ 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.
5. Hazard Insurance. Horrower shall keep the impmvcments now ceisting or hereafter cry-sled on the Property insured
against lass by fire, hazards included within the term "extended coverage". and such other hazards ac Lender may require
and in such amounts and for such periods as Lender may require: provided, that 1_ender Shall not require that the amount of
such coverage exceed that amount of coverage requirc~l to pay the wmc Secarcd by this Martgagc.
The insurance carrier providing the insurance shall be chosen by Barrowcr subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premium> on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Harrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to 1_ender. I_endcr 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 ma}• make proof of loss if not made promptly
~ by Horrower.
Unless 1_ender and Borrower otherj+•isc agree in writing, insurance proceeds shall be applied to restoration or repair of
' the Properly damaged, provided such restoration or repair is economically feasible and the security of this Martgagc is
l not thereby impaired. If such restoration or repair is nt~t 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 Horrowcr. ar it Borrower faits to respond to i_endcr within 30 days from the
Jate notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, lxnder
is authorized to collect and apply the insurance proceeds at i~nder's option either to restoration or repair of the Property
ar to the sums secured by this Mortgage.
Unless lender and Borrower otherwix; agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred ro in paragraphs 1 ar~d 2 hereof or change the amount of
i such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
E 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.
t 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ihvelopments. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Martgagc is on a leasehold. If this Mortgage is on a unit in a
i condominium ar 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 regulations of the
condominium ar planned unit development, and constituent documents. li 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 and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of lender's Security. U Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding iS commenced which materially affects Lender's interest in the Properly.
including, but not limited to. eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
banknrpt or decedent, then 1_ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to pn~teet Lenders interest. including. but not limited to. disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. U Lender required mortgage insurance as a
condition of making the loan secured h}• this Mortgage. 6orruwcr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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