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Un~ro~ Cove.t+~rm. Borrowu and Leode. covenant snd a~ra u tollows:
1. lqwe~t _ot hM~ciMl a~i 1Nerat. 8orrowe~ shall p-omptl~ psy when due the principal ot and intetest on the
indebtednest evide~ced by the Note, prepayment snd late chargcc ac p~ovidcd in the No~e, and the principal ot and ioterts~
on aay Futuoe Adv~nces securod by this Mongase.
2. lhiwi tor Tup s~ I~we~c~. Subject to applicabk law ~~r to a written waiver by I.ender, Borrowe~ shall pay
to Lender on the day monthiy iostallments ot principal and intorcc~ ~~r ~yahle under the Note, unt~l the Note is paid in tull,
a tum (herein "Fundt'~ eqwl to one-tweltth ot the yea~l~ u~-c. and assessments which may attain priority ove~ this
Mortja~e, and tround re~ts on the Pmperty. if any. plus one-twel(th of yearly prcmium insullments tor huard i~surance.
plus oae-twel(th of yeuly prcmium installments (or mongage i~~sunncc, if any. all as rcasonably estimated initially and trom
time to time by Lender on the buis of asses~mcnts and hills and reasonable estimala thereof.
The Fnnds shall be held ie an ins~itution ~he depocia or accounts of which are insured or guaanteed by a Fcderal ot
:tate agency (includina Lender if Lender is such an institutionl. 1_ender ahall apply the Funds to pay said uxa, assessments.
iruursnee pnemiums and ground rents. 1 ender may no~ charge tor so holding and applying the F~~ndc. analyzing caid account.
or verifyin~ and complina said assessments and Aills, unless t.ender pays Borrower intercst on the Funds and applicable law
petmits Let~der to make such a charge. Barrower a~d l.e~der may agrce in writing at ~he time of execu~ion o[ this
Mortgaje that intercst on the Funds shall t+e paid to Borrower. and unless such agreement is made or applicable law
requirea such interest to be paid. I.ender shall not be requircd to pay Borrowe~ any interest or earnings o~ the Funds. 1_endrr
shall give to Borrower~ without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which eaeh debit ~o the Fu~ds wu made. The Funds are plodged as additional security tor the sums secured
by this Mortpde.
If the amount of the Funds held by Lende~, togelher with the (uture monthly installmeots of FunJs payable prior to
the due dates of taxes, aueuments. insura~ce prcmiums and ground rcnts, shall exceed the amount required to pay sa~d taxes,
audsments. insuratwe premiums and g[ound rents as they (all due, such excess shall be. a~ Borrower's op~ion, either
promptly repaid to Borrower or credited to Bormwer on monthly instaflments ot Funds. If the amount of tlx. Funds
held by Lender shall not be sut6cieat to pay ~axes. assessments, insurance prcmiums and ground rents as they fall due,
Borro~ver shall pay to Lender any amount necasary to make up the deficiency within ~30 days trom ~he date notice is mailed
by Lender to Borrower req~esting payme~t ~hereof.
Upoa payment in full of all sums Kcured by this Mortgage, t_ender shall promptly retund to Borrower any Funds
held by Lender. If under pusgraph 18 hercot the Property i~ sold or the Property ~s othervvise acquircd by !_ender, t.ender
s6a11 apply, no later thaa immediately prior to the sale of the Properiy or i~s acquisition by l.ender, any Funds held bv
I.eoder at the time ot application as a crcdit against the sums secured by ~his Mortgage.
3. Appiicatio~ ot pa)rments. Untcss applicable law provides otherwise, all payme~ts received by Lender under the
Note and pangnphs I and 2 heteof shall be applied by I.enJer 6rst in payment of amounts payable to 1_ender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to in~erest and
principal on any Futurc Advanva.
1. C6ar~a; Lkas. Borrower chall pay all ~axee. assessments and other chargec. 6nec and impositions atlnbutabk to
tbe Property which may attain a priority ovcr this Mor~gage, and leasehold payments or grouna rcnts, if any, in the mann~r
pmvided under paragraph 2 hereof or: i( not paid in such manner, by Borrower making paymenl, when due, Jirectly to the
payee thet+eof. Borrower shall promptly furn~sh to LenJer all notices of amounts duc under this paragraph, and in the event
Borrower shall make payment directly, Borrowcr shall promptly (urn~sh to I_ender rereipts evidencing such payments.
Bonowet shall promptly discharge any lien which has pnonty over thic Mongage; prov~ded, ~hat Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in Nrrting ta the p:ryment of the obl~gatiun xcured by
such lien in a manne~ acceptable to Lender, or ~h~ll in gc~d (aith conte~i such lien hy, or defenJ entorcement of such lien in,
legal proceedings which operate to prevent the enfurcement of .he I~en or forfe~ture of the Property or any part thereof.
S. Hazud Insura~ce. Horrower shall kap the ~mprovemen~~ now erist~ng or hereafter erected on the Property insured
against loss by 6re, hazards included within the term "rxtended c~werage". a:~d ~uch other hazards as l.ender may reyu~re
and in such amounts and for such periods as Lender may reyuirc: provideJ, ~hat l_cnJer shall not reyuire that the amount of
such coverage ezceed that amount oPcoverage reqwred to pay the sums ucured ~by th~s Mortgage.
'I~e msurar.ce carrier providing ~he insurance shall be chosen by Borrower subject to approval by Lender. provided.
that such approval shall not be unreasonably withheld. All premwmc on insurance policies sha11 be paid ~n the manner
provided under paragraph 2 Fiereof or, if not pa~d in such manner, by Borrower mak~ng payment, when due, dircctly to the
insurance carrier.
All insurance policiet anJ renewals therrof shall be in forni ~cce~~able to Lender and shall mclude a standard mortgage
clause in [avor of and in form acceptable to l.ender. l_ender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly turoish to ~ender all renewal nohces and aU receipts o( paid prcmium~. In the event of loss.
Borrower shall grve prompt nobce ta the insurance carner rnd I.ender. Lender may make proot of loss if not made promptly
by Borrower.
Unless Lender and Borrower othervv~k agree in wnt~ng, imurance proceeds shall be applied to restoration or repair of
tht Property damaged, prov~Jed such re.turat~on or repair is economically (easible -rnd the ucurity of th~s Mortgage is
not thereby impa~red. lf such reetoratiun or repair is nut econom~cally feasible or ~( the secunty of this Mortgage would
be impaired, the iasurance proceeds shall be applied to the sums secureJ by this Mortgage, wnh the ezcess, if anp, paid
to Borrower. If the Property is abanJoneci by Borrower, or il Borrawer ta~ls tu responJ to Lender within 30 days from the
date notice ~s mailed by Lender to Borrower ~hat the insur~nce carrier otfers to ~eute a claim for insurance txnefits, l.ender
~s authorized to collect and apply the insurance proceeJs ~t LenJer's ophon either to restorauon or repaer of the Propem•
or to the sums secureJ by this Mortgage.
Unles~ l.ender and Borrower otherv-ise agree ~n wnting, an}• such application uf prckeeds ~o pnnc~pal shall not extend
or postpone ~he due date of ~he monlhlv inatallmcntc re(erred t~• in paragraph~ I and 2 hereot or change the amount of.
such installmeots. If under paragraph IS hereof thc Prof,erty ~s a~yuireJ by l.cndcr, ali nght, tiUe and inrerest of Borr~~wcr
in aod to any fnsurance policies and in and to thc proceeds thereot resul~ing (rom Jamage to the Properry prior to thc s:+le
or acquisition shall pass to Lender tv the eatent o[ the ~ums ucured by th~~ Mortgage imrnediately pnor to wch sale or
acquisition.
6. Preservalion aod ~ltintenance of Properiy; [.easeholds; ('ondominiums; Planned Unit Developmenls. BarroHCr
shall keep thc Property in good repair and shall not comroit yvaste or permu impairment or deterioration of the Property
and shall comply with the provisions o( any lease ~f thn Mortgagc i~ on a IeasehulJ. I( this Mor~gage is on a~mit in ~
condomimum or a planned umt devcloPmcn~. Borrov-~er ~hall ~xrform all of Borrower's obligations under the dcclaratiun
or covenants creatmg or govermng the condc~min~um or planned umt develupment, the by-laws and regulationc of ~he
cond~minium or planned unit develo~~ment, end rnnstituent ducument~ If a cundominium or planned unu detielopment
nJer ~s executed by Borrower and recorded t~~geiher w~th thi~ M~,rtgaqe, the covenantt and agreements of ~uch rider
shall be incorporateJ imo and shall amend anJ supplcment thc cu.cnants anJ agreements of this Mortgage as ~( the n.icr
were a part Fereof.
7. Proteclion of I.ender's Secu~ity. li N~•rmv-er (a~l. t~~ Exr(~~rm the coven.~ntt and agreements conta~ned ~n thi~
Mortgage, or if any achon ~~r prcu-eeding i~ a~mn~rnre~l Hh~ch ma~erially afTccts I.enJer'~ mterest in Ihe Pn~~rt~•,
including, bul n~~t limi~ed to, cmincnt domain. ~si«~hcncy. axlc rnt~~rremrnt. ~,r arr.~ngcmcnts or pr~xccdings invohing a
bankrupt or Jecedent. then LenJer at Lender'~ ~p~~on, up~m n~~tice to Aormv-•er, ma~ make such appearanceti, Jnhurse ~uch
sums and ~aMe such actiun a~ is necee.ar} n~ protect I.ender'. ~mrrest. mcluding. but not lim~ted to, dnbursement of
reasonable at~orney'~ tces and emry u~x~n the Proper~~• 1~~ makc repeir~. If I.rnder reyuircd martgage in~urance a~ a
condiUUn of mak~ng Ihc .loan ~ccured h} thi~ ~t~~rt~agc_ B„rrr•w~r ~h d) pa~• Ihc prcmiumti rcqwreJ to mai~ttam tiuch
insuraAce in rliect untd tiuch t~me :~l Ihe reyu~remeiu (~r tioch m,uran;c Irrmin:~te~ m:~ccordance with Borrower'. and
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B~~ 46 ~~s~E 49~. . .
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