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UNIFORM Govt=N~-NTS. Borrower and Lcndcr covenant anJ agree as follows:
1. Payment of Priaclpsl and lateresl. Horrowcr shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Notc, prepayment and late charges as provided in the Note, and the principal o~ and interest
on any Future Advances secured by this Mortgage.
T. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by 1_cnder, Borrower shall pay
to Lender an the Jay 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-twelfth of the yearly taxes and assessments which ma}• attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-tw•el(th of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by (.ender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
insurance prentiunts and ground rents. I_endcr nta}• not charge for sa holding and applying the Funds, anal},zing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower intcrest on the Funds and applicable law
permits Lender to make such a charge. Borrower and lender may agrcc in writing at the time of execution of this
Mortgage that interest an 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 Burrower any interest cr earnings an 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 pl¢dgc~i as additional security for the sums secured
by this Aiartgage.
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 anJ ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
prompt)}• repaid to Borrower or credited to Borrower on ntanthl}• installments of Funds. If the amount of the Funds
held by Lender shall not be sulricient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pa}• to Lender any amount ncccssar}• to make up the dcticicnc}• within 30 da}•s from the date notice is mailed
by Leader to Borrower rcyuesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
held by Lender. if under paragraph 18 hereof the Property is ,old ar the Property is otherwise acquired by Lender, Lender
shall apply, nu later than immediate)}• prior to the sale of the Property ar its acquisition h}• I.cnder, any Funds held by
Lender at the time of application as a credit against the sum, secure) by this Mortgage.
3. Application of Payments. Unles applicable law provides otherwise, all payments received by 1_ender under the
tiotc and paragraph, I and 2 hereof shall be applied b}• Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the tiutc. then to the principal of the Note, and then to intcrest and
principal on any Future Advances.
4. Charges; Leas. Borrower shall pa}• all taxes, assessments and ather charges, fines and impositions attributable to
the Propert}• which may attain a priority aver this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof ar, if nut paid in such manner, b}• Borrower making pa},merit, when due, directly to the
payee thereof. Borrower shall promptly furnish to ).ender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directh•, Harrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over thi, Mortgage; provided, that Harrower ,hall not be
required to discharge any such lien so long as Borrower shall agr~-¢ in writing to the pa}merit of the obligati+~n secured by
wch lien in a manner acceptable to Lender, ur ,hall in gcxxl faith came,t such lien by, ar defend enforcement nl such lien in,
legal praceedings which aperate to present the enforcement of the I+en or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Horrower shall keep the improvement, now exiting ur hereafter erected on the Property insured
against lass h}• fire, hazards included within the term "extended crn•eragc'". and such athcr hazards a, Lcndcr may reyuire
and in such amounts and far such period, as Lcndcr may reyuire: provided, that Lcndcr ,hall nut reyuire that the amount of
;uch coverage exceed that amount of crn~erage regwred to pa) the win, ,ecured by this Mortgage.
The insurance carrier providing the insurance shall be cha,en by Burrower subject to approval by 1_ender, provided,
that such approval shall not b+; unrea,onahl}• withheld. All premium, on insurance palicics ,hall t+e paid in the manner
provided under paragraph 2 hereof ur, if nut paid in such manner, by Harrower making payment, when due, directly to the
insurance carrier.
All insurance policie, anJ renewals thereof shall Ix in form acceptable to Lender and shall include a ,tandard mortgage
clause in favor of and in form acceptable to Lcndcr. I.~nder ,hall have the right to hold the pdicies and renewals thereof,
and Borrower shall promptly furnish to Lender ail renewal notices and ail receipts of paid premium,. In the event of loss.
Horruwer shall give prompt notice to the incur;nice carrier and lender. 1_ender may make prcxrt of loss if not made promptly
h}• Harrower.
Unless Lcndcr and Borrower otherv-•ise agrcc in writing, inwrance prcxceds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this ~tartgage is
not thereby impaired. If such restoration or repair is not economicalh• feasible ur if the securit}• 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 h:• Borrower. ar it Barrowcr fails to respand to Lcndcr within 30 days from the
date notice i, mailed by Lender to Burrower that the insurance carrier offers to settle a claim far insurance benefits, 1_ender
is autharized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Property
ur to the sums secured by this rortgage.
Unless Lcndcr and Horruwer otherwise agrcc in writing, any such application of pnxceds to principal shall oat extend
or pustpane 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 18 hereof the Propert}• is acquired by Lcndcr, 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 h}• tha Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Propert}: I.easehalds; ('ondominiums; Planned Unit Developments. Borrower
shall keep the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any tease 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 Borrowers obligations under the declaration
or covenants creating or governing the condominium ar 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 i, executed by Horrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated iota and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of (.enders Security. If Harrower fail, to perform. the covenants and agreements contained in this
Mortgage, or if any action or proceeding i, commence) which materially aBects Lender's interest in the Property,
including. but oat limited to. eminent domain. imalvenc}•, cx~de enforcement, ar arrangcmcnts or pnxecdings involving a
bankrupt or decedent. then 1_ender at Lender's aption. upon notice to Borrower, ma} make such appearances, disburse wch
.sums and take such action as is nece„ar}• to protect Lender's intcrest, including, but oat limited (a. dt,bursement of
reasonable attorney', tees and entry upan the Prapcrty ro make repairs. If Lender rcyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage, &~rn,wer shall pay the premiums required to maintain Bach
insurance in efTect until such time a, the rcyuirement far wch insurance terminates in accordance with Borrower's and
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