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UNIFORM COYteNANTS, Borrower anJ Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced 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. Frtads for Taxes and Insurance. Subject to applicable law ur to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") equal to one-t++•elfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of },early prcmitrm installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably, estimated initially and [rom
time to time h}• 1_ender on the basis of assessments and bills and reasonable estimates thereof.
,life Funds shall he held in an institution the deposits or acrnunts of which arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an instiuttion). Lender shell apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender prys Borrower intcrest on the Funds and applicable law
permits Lenckr to make such a charge. Borrower and Lender may ague in writing at the time of execution of this
Mortgage that intcrest on the Funds shall he paid to &uruwer, and unless such agrccmem is made or applicable law
requires such interest to be paid, lender shall not he required to p:q• 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 arc ph~lged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by I_cnder, 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,
assessments, insurance premiums and ground rents :rs they fall due, such excels 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
held by Lcndcr shall not be sufficient to pay Iaxcs, asscssutcnts. insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessarv• to make up the deticienc}• within 30 Jays from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage I.cndcr shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise: acquired by Lender, Lender
shall apply, no 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 as a credit against the sums secured h}• this :1lortgage.
3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be appficd by Lender fist in payment of •rmounts payable to Lender h}• Borrower
under paragraph ?.hereof, then to interest payable on the Note. then to the principal of the Note, and then to intcrest and
principal on any Future Advances.
4. Charges; Liens. Burm+ccr sh;dl pay all taxes, assessments and other charges. fines and imp.nitiuns attributable to
the Property which may attain a priority over this Mortgage. and leasehold payments or ground rents, if an}•. in the manner
provide) under paragraph 2 hereof or, if not paid in such manner, by &:rrower making payment. when due, directly to the
payee thereof. Borrower shall promptly furnish to Lendei all notices of amounts due under this paragraph, and in the event
Borrower shall make payment dirc~aly, Borrower shall promptly furnish M Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien ++hich has priority over this Mortgage; provided. that Borrower shall not be
required to discharge any such lien so long as Barrow•er shall agree in writing to the payment of the obligation ucured b)•
such lien in a manner acceptable to Lender, or shall in gex-d faith contest such lien hy, or .Iefend enforcement of such lien in,
legal proceedings which operate to prevent the enforcernent of the lien or furferture of the Property ur an}• part thereof.
S. Hazard Insurance. Borrower shall keep the rmpro+•cments now existing or hereafter erected on the Property imured
against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may rcyuirc
and in such amounts and for such periods as Lender ma}• require: provided. that 1_endrr shall not rcyuirc that the amount of
such coverage exceed that amount of crnerage required to pa) the sums secured by thrs \lortgage.
'Cite rnsurance carrier providing the insurance shall Ixc chosen by Borrower suhject to approval h}• Lender; provided.
that such approval shall not bee unreawrahly withheld. :VI premiums on insur;utce policies shall he paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. b}• Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewah thereof shall t-e in form acceptable to Lender rind shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shah 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 e+•ent of loss,
Borr-w•er shall give prompt notice to the insur:utce carrier and Lender. Lender may make prc-of of loss if not made promptly
b}• Borrower.
Unless Lenderrnd Borrower otherwise agree in writing, insurance pnxeeds shall be applied to restoration or repair of
the Property damaged, provided Bach restoratwn or rep:ur is ecunumically feasible and the security of thrs Mortgage is
not thereby impaired. If such restoration or reparr is not ecunumic:rlh• feasihle or if the security of this Mortgage would
be impaired. the insurance proceeds shall t-e applied to the sums ucured by this Mortgage. with the excess, if any, paid
to Borrower. It the Property is ahanduncd h~ Borrower. or it Borrower faih to respond to Lender within 30 days from the
Date notice is mailed by Lender to Burrower that the inwrance carrier Mfers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Property
ur to the sums secured b+• this Mortgage.
Unless Lender and Burrower utherwix agree in writing,rm~ such application of proceeds to principal shall not extend
or peo,tponc the due date of the munthlc installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph t8 hereof the Property is acquired h} Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting (rum damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured b} this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and ~taiatenance of Property; Leaseholds; ('ondominiums; Planned Unit Ue+•elopments. Borrower
shall keep the Property in gcx-d repair and shall not commit waste or permit impairment or deterioration of the Propcrt}•
and shall comply with the provisions of any lease if the Mortgage r. un a leasehold. 1( this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall performrll of Borrower's obligations under the declaration
or covenants creating or governing the condominium c-r planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and rernrded together wrth this Mortgage, the covenants and agreements of such rider
shall be incorporatcei rnto and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of tenders Security. If Borrower faih to perform the covenants and agreements contained in this
Mortgage, ur if any action or proceedrng rs a-mmenceJ which materiall}• affects Lender's intcrest in the Property.
indudrng. but nut limned to. eminent domain. in.olvency. code enforcement. or arrangements or prexeedings involving a
bankrupt ur decedent. then Lender at Lender's option, upon notice M Borrower, may make such appearances. dishurse such
sums and take such action as is necessary, to protect Lender's rmerest. including, but nut limited to. disbursement of
reasonahlc auomey's tees and entry upc-n the Property to make repair.. If Lender required mortgage insurance r+ a
condgion of making the loan secured b} this Mortgage, Burrower shall pay the premiums required to maintain such
insurance in eBect until such time as the requirement for such insurance terminates in accordance with Berruwer's and
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