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1. Paymeat ot Princip~l aad laterest. Borrower shal) pramptly pay when duc the p~incipal uf and interest on the
indebtednoss evidenced by Ihe Note, prepayment and late charges as provided in the Note, a~d Ihe principal ot and interest
on any Future Advances secured by this Mortgage.
2. Fuads tor Ts~ca and lasuraace. Subject to applicable law or to a written waiver. by I.ender. Borrower shall pay
to Lender on Ihe day monthly installments of principal and inte~cst are payable umier the Note, u~til the Note is paid in tull,
a sum (herein "Funds") equal to onc-twellth ot the pearly taxes and assessments which may at~ain priority over this
Mortgage, anJ g~ound renta an the Property, if any, plus one-twclf~h ot yearly premium i~stallments for hazard insurance.
plus one-twelfth of yearly premium installmen~s tor mo~tgage i~surance, i( any, all as rcuonably estimated initially and trom
~ime to time by ~ender on the basic ot assessmentt and bills anJ reasonable estimates thereof.
'fhe Funds shall t~e held in-an institulion the deposits o~ accounts o( which are insurcd or guarantced by a Federal o~
state agency (including Lender if l.ender is such an ins~itution). I.ender shall apply the Funds to pay said taxa, asxessments.
insura~ce premiums and g~ound rents. I.ender may not charge for ~a holding and applying the Funds, analyzing said account,
or verifying a~J compiling said asse~sments and bills, uoless Lender E+a}•s Borrower in~erest an the Funds and applicable law
permits Lende~ to make such a charge. Borrowe~ and I.ender may agrce in writing at the time ot execution of this
Nortgage that interest on the Funds shall be paid to Borrowe~, and unless such agreement is made or applicable law
reyuires such interest to be paid, t_ender shall nat he required_ to pay Bormwer any interest or earnings an the Funds. I.ender
shall give to Borrower, without charge, an annual ~ccounting of ~he FunJs showing credi~s and~debits to the Funds and the
purpose (ar which each debit to the Funds was made. The Funds are pleclged as additional securiry for the sums secureJ
by this ~tortgage.
If the amount of the Funds held by I.enJer, together Nith thc futurc monthly mstallments of Funds payable prior to
~he due dates of taxes, assessments, insurance premiums and g~ound rent~, shall exceed Ihe amount reyuired to pay said taaa,
assessments, insurance premiums and ground rents as they fall due, such e±erecs chall be, at B~.rrower'c option, e~ther
promptl~• repaid to Borrower or credit~d to Borrower on manthly inu•rllmems of Funds. 1t the amount of thc Funds
held by Lender shall not be sufi~icient to pay taxes, assessmenls, in~urancc premiumc aml ground rentc as they fall due.
Borrower shall pay to ~enJer any amount neces~ar~• to make up the deficiency within i0 Ja~s from the dale nMicr is mailed
by Leader to Borrower requesting paymcnt ~hcreof.
Upon payment in full of all sums secured by thic Motlgagc. 1 cndcr shall promptly refund to Borrow•er any FunJs
held hy I.enJer. If under parag~aph 1R hcreo( the Propen~ i~ culd or ~hr Propcrty is Mherw•icc acqwrcd by I.rnder, I.ender
shall apply, no later than immedia~cly~ prior to the ~alc oT thc Pro~xny or its acquizition b~• 1_cnder, any f=undc held by
Lender at ~he t~me o[ application as a creJit aga~nst the sum~ cecured b~• thi~ Martgagr.
3. Application oI Payments. Unlets applicablc lav-• pm~•ides othcrwi+c, all paymcnlc rccei~ed by l.cnder o~~dcr the
Notc and paragraphs 1 and 2 hereof sh.ill be appheJ hy Lcndc~ fin~ ~n pa~mcnt of amounts pa~•able ~o Lcndcr by Borrower
under paragraph 2 hereof, then to mterest payable on thr ho~c, then t~, thc priocipal o( the hMr, anJ ~hen to interest anJ
principal on any Futurc Advances. -
4. Charges; Liens. Borrowcr ~hall pay all ~axes, a«rnments and othci chargc~. fineti and im~x,sitionc attnbu~able to
the Propetty which may a~tain a priority over this Mortgagc, and IeasehoW payments or ground ren~s, if any, in the manner
providcd undcr paragraph 2 hereof or. ~f not p•rid in such m~nncr, by Borrowcr making payment, when due. Jirectly to.the
payee thcrcot. Borrower shali promptly furnish to l.ender all noticrs af amounts due under this parag~aph, and in the event
Borrower shall make payment direcUy, Borrower shall prompdy furnish to I.cnder receipts evidenc~ng such payments.
Borrower shall promptly Jischarge any lien which has pnoriry ~~ver thic Mortgage: provided, ~hat Borrower chall not -be
reqwred ~o discharge any such lien so long as Borrower shall agrer in writing to ~he pay~ment of the obliga~ion secured by
such lien ~n a manner acceptable tn 1_ender, or ahall in good f~ith conte,t wch lien by, or defend tnforcement ot such lien in,
legal proceedingc which operate to, prevent the enforcement of the hen or torteiture o( the Property or any part thereof_
S. Hazard Insuranee. Borrower shall keep the improvemenh n~~N r~icung or hereafte~ erected on Ihe Pruperty incured
against loss by 6re, haza:ds included wi~hm Ihe term "~tlendeJ coverage", and such other hazards ati 1_ender may reyuire
and in such amounts and for such periods as Lender may reyuire; prc~videJ, that LenJer shall not reyuire that the amount of
such coverage exceed that amount of coverage reqwred to pay the tiumti cecured by this Mortgage_
The insurance carrier providing the insurance shall be chusen by Borrower subject to approval hy l.ender, provided.
that such approval chall not be unreasonably wi~hheld. All premiume on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, ~f not p•rid in such manner, b~ B~~rrower makmg payment, when due, directly to~the
insuraoce carrier.
All insurance policie~ anJ renewals thereof shall be in ~0~I11 JCl'C(113bI1 to Lender and shall ~nclude ~ S~anJard mortgage
dause in favor of and in Corm arcept~ble tu I_ender. Lrnder ,hall have thc right tu hold the M,licies ~nd reqew~als thereof.
and Borrow~er shall prompU~• furnish tci LenJer all rcncwal notices and all receipts of paid premiums. In the event of loss,
Borrower ~hall gi~•e prompt notice to the insurance carrier and t_ender. 1_enJer ma~~ make proc.f of lou if not made promptly
by Borrower.
Unless Lender and Borrow~er otherw~k agree in vrriting, insurance pmceedc shall be applied to restoration or repair ot
the Properry damaged, proviJed such restoration or repa~r ~s economically teasihle and the security of this Mortgage is
not ~hereby impaired. 1f such reitoration or repair is not economic•rlly (easiMe or ~f the secority of this blortgage would
be impa~red, the insurance proceeds shall be applied tu the sums secureJ by this Mongage. w~~~h the etcess, if any, paid
to Borrower. If the Property is abanJoned by Borrower, or it Bormwer fails to responJ to 1_ender within 30 days from ihe
Jale notice is mailed by Lender to Borrower Ihat the insurance carrier offen t~ settle a claim for in~urance benefits, I~nder
is authorized to collect and apply the insurance proeeeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless I_ender and Borrower otherwise agrec in writing. any such application oi proceeds to principal shall not extend
or postpone the due date of the monthly installmcnts rcferred to in paragraphs 1 and 2 hereof or change the amount of
such installments_ If under paragraph 18 hereof the Properly is acquired by Lender, all right, title and interest of Borrower
in and to any insurance pc~licies and in and to the proceeds thereo[ resul~ing from damage to the Propeny prior to the sale
or acquisition shall pass to Lender to the exteot of the sums secured by this Alortgage immediately prior to such sale or
acquisition.
6. Presenation ~nd :~itinfenanct of Property; I.easeholds; Condominiums: Planned Unif Derelopmenls. Borrower
shall keep the Property in good repair and. shall not commit was~g or permi~ impairment or deterioration of the Propeny
and shal) comply with the provisions of any lease it this Mortgagc is on a Icasehold. If this Mortgagc is on a unit in a
condominium or a planned unit development, Borrower shall perform-all of Borrower's obligateons under the declarat~on
or covenants creating or governing the condommium or planned uni! development, Ihe by-laws and regulations of the
conJominium or planned unit development, and constituent do:uments. If a condominium or planned un~t Jevelopment
nJer is executed by Borrower and recorded together w~th thi~ Mortgage, ~he covenants and agreemenls of such nder
shall be incorporated into and shall amend and supplement .the co~enants and agreements of Ihis Mortgage as if the rider
were a part hereof.
7. Protection of I.ender's Securify. If Borrower failc to pertorm the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s ~commenced which materially sfiects 1_ender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, ~hen Lender at (_ender's option, upon notice to Borrower, ma~~ make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reuonable a~torney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as ~he requirement for such insurance terminates in accordance with Borrowei s ind
' ~ - Soox346 PacE 39 --
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