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UNIFORM COVeNANTtt. Borrower and Lender covenant and agree u follows:
1. )1'~twetN ~ hi•clNl ttta~ INereti. Borrower shall promptl~• 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. 14tai tar TRtta aai tttaraace. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments o[ principal and intcrcct arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds") egwl to one-twelfth of the yearl} taxc. 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 one-twelfth of yearly premium installments for mortgage -nst-rancc. 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 institution the deposits or -accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. lender may not charge for so holding and applying the Frrnds. analyzing said account,
or verifying and compiling said assessments and hills, 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 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 [or which each debit to the Funds wu made. The Funds are pledged u additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of farces, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents u they fall due, such excess shall be, at Borrower's option, either
praaptly 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. assessments, insurance premiums and ground rents as they fall due,
Borrower 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 stuns secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs othervvise 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 tune of application as a credit against the sums secured by this Mortgage.
3. A~Ikatioe of Pttymewts. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender 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.
1. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a prtority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, i( 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 furnsh to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not bt
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 enforcement of such lien in.
legal proceedtngs which operate to prevent the enforcement of the Iren or for(e+ture of the Property or any part thereof.
S. Hazard insurance. Borrower shall keep the -mprovements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods ac 1_ender 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 ~by this Mortgage.
'fire insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that wch approval shall not be unreasonably withheld- All premiumc on insurance polices shad be paid in the manner
provided under paragraph 2 hereof or, if not pa- i in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall ere 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 renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiumc_ in the event of loss,
Borrower shall give prompt nonce to the +nsurancc career and Lender. 1_ender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in venting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair -s economically feasible and the security of this Mortgage is
not thereby impaired. if such restoration or repair is not cconumicaily feasible or i( 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 an}•, paid
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to tender within 30 days from the
date notice is mailed by Lender ro Borrower that the insurance carrier oilers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at (_ender's option either to restoration or repair of the Pmpetty
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in venting, any such application of pnx:eeds to principal shall not extend
or postpone the uue 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 Property is acywred by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the pra;eeds thereof resulting from damage to the Property prior to the sale
or acgtusition shall pass to Lender to the extent of the sums secured h}• this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit Ikvebpments. Borrow•cr
shall keep the Property in good repair and shall not commit y-aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. Ii 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 regulations of the
condominium or planned unit development. and constituent dcxuments. 1(a condominium or planned unit development
rider is executed by Borrower and recorded together with the 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 rider
were a part Fereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding +~ commenced which materially selects Lender's interest in the Property,
including. but nut limited to. eminent domain. imolvency. aiKle enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action ac is necessary to 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 rcyuired mortgage insurance as a
condition of making the loan secured by this Mortgage. Born:wer shall pay the premiums required to mainta+n such
inuurance in effect until such time as the requirement for wch msuran.e terminates in accordance with Bormwer's and
afi~'JIK 34~ P~GEGe~74