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1. Paymenl aI P~inclpal aad Inlerest. BOffOwer shall promptly pay when due thc principai o( and interest on Ihc
indcbtedness evidenced hy thc Nate, prepayment and late charbes :-+ p~uvided in the Na1c, aod the p~i~cipal ot and inlerost
o~ any Futurc Advancc~ secured by this Mor~gage.
2. Runds for Ts:es and I~urance. Subject to applicable law or to a written waiver by I_ender. Barrower shall pay
ta I.enJer an the dap monthly inslallmenls of pri~cipal and interest arc payable under the Note, u~til Ihe Note is paid i~ full,
a sum (he~ein "Fu~ds") equal to o~e-tw~elfth ot the yearly laxes and ascessmcnts which may attain priority over lhis
Mortgage, and ground rents on thc Property, if any, plus ane-twelith af ycarly premium installments for hazard i~surance,
plus one-Iwelfth of yearly premium instal~ments for mortgage insurancc, if any, all as reasanably cctimated i~itially and trom
timc to time by l.ender on the basis of asseuments and hills and reasonable estimates thereot.
The Funds sFiall t+e held in an institu~ion Ihe depcuits or accau~ts of which are insure~l or guaranteed by a Fede~al or
state agency (including Lender if Lender is such an institutian). t.ende~ shall apply the Funds to pay said taxes, assessments.
insurance premiums and grour~d rents. 1_ende~ may not charge (ar sa halding and applying the Funds, analyzing said accaunt,
or veri[ying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable !aw
permits Lender to make such a charge. Borrower a~d Lender may agree in writing at ~he time of executio~ of this
1lfortgage that interest on the Funds shall he paid to Borrower, and unless such agreemenl is made or applicable law
requires such interest to bc paid. l.ender shall not hc requircd to p:+y Borrower •rny interat ~r earnings on the Funds. I.ender
shall give to Borrower, without charge, an annual accountiog of the funJs showin~ credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledgecl as additional security for the sumx secured
by this Mortgage. -
lf the amount of the Funds held by Lender, ~ogether wi~h thc tuture monthly installmenls of Funds payablc prior to
the due dates of taxes, assessments, insurance premiums anJ ground rents, shall exceed ~he amount required ~o pay said taxa.
assessments, insurance premiums and ground rents ac they fall due, such excess shall be, at Borrower s option, either
promptly repaid io Borrower or crcdited to Borrower on monthly installments af Funds. If the amount of the Funds
held by Lender shall not be sufTicieat to pay taxes, assessments, insurance premiumc and grc2und rents as they fall due,
Borrower shall pay to l.ender any amount necessa~~~ to make up the deficiency within t0 da~~s from the date notice is mailed
by Lender to Borrower requesting payment ~hereof_
Upon payment in full of all sums secured by this 111ortgage. 1_ender shall promptly re(und to Borrower any Funds
held by 1.enJer. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender. t_ender
shall apply, no later than imrmdiately prior to the sale of Ihe Propeirty or its acquisition by I.ender, any Funds held by
Lender al the time of application as a credit against the sums secured by this Mongage.
3. Application of Payments. Unless applicable law proviJes otherwise, all payments received. by I:ender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment ot amounts payable to [_ender by Borrower
under paragraph 2 hereof, then to interest payable on the No~e, then to the principal of the Note, and then 1o interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrower shall pay all ta~~s, astcssments and other charges, fines and imp~xitions attribulahle to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided uader paragraph 2 hereof or, if not paid in such manner, by Borrowe~ making payment, when due, diroctly to the
payce 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 (urnish to Lencier receip~s evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree io writmg Io the payment of the obligation secured by
such lien in a manner acceptabk to Lender, or shall in good faith contest such lien by, or defend enforcement ot such lien in,
legat proceedings which operate to prevent the enforcement of the I~en or torfeiture of the Property or any part thercof.
S. Hazard Insurann. Borrower shall keep the improvements now• existing or hercafter 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 as Lender may reyuirc; provideJ, 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.
The insuranca carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providod.
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid ~n the manner
providM under paragraph 2 hereof or, if not paid in such manner, by Burrower making payme~t, when due, directly to the
insurance carrier. •
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall ha~•e the right to hold the policies anJ renew•als thereof,
and Borrower shall promp~ly furnish to Lender all renewal notices and all receipts of paid prcmiums. ln the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. LenJer may make proof of ioss if not made promptly
by Borrower.
Unless I_ender and Borrowe~ otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is ecoriomically feasible and the security of this Mortgage is
not thereby impaired. lf such restoration or repair is not econamically feasible or i( the security of lhis Mortgage would
be impa~red, the insurance proceeds shall be applieJ to the sums secared by this Mortgage, with ~he excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower [ails to respcmd to t_ender within 30 days from ihe
date notice is mailed by Lender to Borrower that the insurance carrier o(iers to se~tle a claim for insurance benefits, I.ender
is autho~ized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless [.ender and Borrower otherwise agree in writing, any such aFplication of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred tn in paragraphs I and 2 hereof or change zhc amount ot
suct~ installments. 1f under paragraph 18 hereof the Property is acquired b~~ Lender, all right, title and interest o[ Borrower
in and to any insurance policies and in and to the proceeds thereof resulting (rom damage to the Propeny prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this blortgage immediately prior to such sale or
acquisition.
6. Pnsenallon aud 1laiotenance of Property; t.easeholds; Condominiums; Plsnned Unit Developments. Borrow•er
shall keep the Property in good repair and shall not commi~ waste or permit impairment or deterioration of the Propeny
and shall comply with the provisions of any lease if this Mor~gagc is on a.Icasehold. li this Mortgage is on a unit in a
condominium or a planned umt developmen~, Borrower shall perform all of Borrower s obligations under ~he declaration
or covenanls creating or governing ihe condominium or planned unit development, the by-laws and rcgulations of the
condominium or planned unit development, and constituenl Jocuments. If a conJominium or planned unit Jevelopment
rider is executed by Borrower and recorded together w•~th thi~ Mortgage, the covenants and agreements o( such rider
shall be incorporated into and shall amend and supptement the co~•enants and agreements of this Mortgage as i( the rider
were a part hereof.
7. Protection' of I.ender's•Seeurity. If Borrower failc to per(orm the covenan~s and agreements contained in this
Mortgage, or if any ac~ion or proceeding ~s commenced w~hirh materialiy afiects LenJer's interest in ~he Propert~~,
including, but not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings inv~lving a
bankrupt or deceden~, then l.ender at I_ender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to pro~ect IRnder's ~nterest. ~ncluJing, but not limited to, disbursement of
reasonable attorney's (ces and entry upon the Property to makc repairs. I( Lender required.mortgage insurance as a
condition of making the loan secured by this Mongage: Borrower shall pay the premiums requireJ to maintain such
insurance in effect until such time as the requirement for such msurance terminates ~n accordance with Borrower s and
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