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Unc~aw CovBt+~~a. Bormwer aed Lende- covenant sod aara u iollows:
1. hp~st ot hrc~l aM i~tereN. Bo~rower shall p~omp~ly pay when due the principal o( and interest on the
indeMednest evideaced by the Note. prepayment a~d late chargcc ac provided in the Note, and the principal ot aod interesl
on my Future Advsnces secured by this Mortgate.
2. 14~i tor Taies ~i l~aeuce. Subject to applicat+k law ar to a written waiver by l.eoder. Borrowe~ shall paY
to Lender on Ihe day mo~thly installmeots of principal aM1 imcrc~~ arr paysble under the Note. until the Note is paid io tull,
a aum (herein "Funds'~ eqwl to one-tweltth of the yea~l) ~a~-~~ anJ assessments which may attain priority over this
Mort~a~e. and ~round reots on tbe Pruperty, if s~y, plus one•~welUh of yearly premium installmeots [or hazard insunnce.
plus one-tweltth ot yearly prcmium insullments tor mongage insunnce. if any, all as reasonabty estimated initially and (rom
time to time by Lender o~ the buis of assacoicn~s and hills and reasanable atimata thereof.
71~e Fur~ds slull be held in an institwion ~he depo~~t~ or accounts of wrhich are insurcd or guaranteed by a Federal ot
sbte agency (includina L.ende~ if Lcnder is such an inslitution). I.ender shall apply the Funds to pay said laxa, assasments.
insuranca ptemiums and ground ronts. I.ende~ may nat charge lor si+ holding and applying ~he F~indc. analyzing ~aid actount.
or verifyint and oompilin6 uid assasments and bills, unless I_ender pays Bonowe~ interat on the Funds and applicaWe taw
pernuts Lender to make such a charge. Barrower and Lende~ may agrce in writing at the ~ime oi execution ot this
Mortga~e that interat on Ihe Fut~ds shall be paid to Borrower, and unlas such agreemen~ is made or applicable law
rtquira such interest to be paid. Lendet shall not be rcquired to pay Borrower any intercst or earnings on the Funds. Lender
s6a11 ~ive to Borrower~ without charge, an annual accounting ot the Funds showing credits and debits to the Funds and the
purposa tor which each debit to the Funds was made. The Funds are plodged u additional security for the sums secured
by this Mottpae.
If tbe unount ot the Funds held by Lender, together with ~he future monthly installmcnts of Funds payable prior to
tbe due data of tua, assessments. insurance premiums and g~ound rcnts, shall ezceed the amount required to p~y said tazes.
assatments. insurance premiums and ground renu u they tali due, such exccss shall be, a~. Borrower s option, either
q+anptly rcpaid to Borrower or credited to Bormwer on mon~hly installments ~f Funds. If the amount of the Funds
hdd bp irender shall not be wt6ciwt to pay taxes, asxssments, insurance pnmiums and ground rents u they fall due,
Borm~ve~ shall pty to Lender a~y amount ~ecasary to make up the deficiency within 30 days from ~he date notice is mailed
by I~eader to Borrower requestin8 WYme~t thercof.
Upon paym~nt ia full of dl :ums ~cured by this Mortaage, 1_ender shall promptly retund to Borrower any Funds
held bp Leoder. If under pusaaph 18 hercof the Property ia sold or the Property ~s otherwise acquircd by I_ender, Lender
t6all apply. no later tban immediately prior to the sak of the Propeny or its acquisition by l.ender, any Funds held bv
I.eoder at the time of appliution as a crcdit against the sums secured by this Mortgage.
3. AtplicaRiow ot ~^~eNs. Unless applicable law provides o~hervvix. all payments rcceived by Lender under the
Note aad paragraphs 1 aad 2 hereof shall be applicd by I.enckr 6rst in payment ot amounts payable to Lender by Borrower
under paraaraph 2 hereot. tben to interest payabk on the Nae, then to the principal ot the Nde, and then to interest and
principal on any Futun Advanas.
~. C~es; I.ieas. Borrower shall pay all taxes.~assessments and otbcr charges, fioes and impositions atlribulable to
tbe PropeAy which may attain a priority over ~his Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, i( not p~id in such manner, by Borrower making payment, when due, diroctly to the
payoe therzof. Borrower shall promptly furnish to LenJer all notices o( amounts due under this pangraph, and in tbe event
Borrower shall make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hu priarity over th~c Mortgage: provided, that Borrower shall not be
requircd to discharge any such lien so long as Borrower shall agrce in vvnt:ng to the payment of the obligation securcd by
such lien in a manner acceptabk to Lender, or shall in good fauh contrc~ such lien by, or defend enforcement ot such lien in.
kgal proceodings which operate to prevent the entorcement ot ~he I~en or tor[eiture of ~he Property or any part thereof-
S. Hazard tewnwce. Borrower shall keep the ~mprovements ~ov-• existing or hereafter erected on the Property insurod
against loss by fire, hazards included within the term "exteneied coverage", and such olher hazards u Lender may require
and in such amounts and for such periods as I_ender may require: provided, that IRnder shall not rcquirc that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured ~by this Mort6aae.
The insuranct carrier providing Ihe insurance shall be chesen by Borrower subject to approval by Lendtr. providod,
that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereo( or, ~f not paid in such manner, by &~rrower makmg payment, when due, dir~ectly to the
inwrance carrier.
All insurance pol~cies and renewals therrof shall be in (orm acceptable to Lender anJ shall include a standard mortgage
clause in favor of and in form xceptable to Lender. t.ender shall bave the right to hold the policia and renewals thersof,
and Borrower shall promptly furmsh to Lender all renewal nol~ces and all receipts of paid prcmiums. In the event of loss.
Borrower shall g~ve prompt nouce to the insurance carner and lxnder. Lender may make prcx-f of loss if not made promptly
by Borrower_
Unless Lender and Borrower otherw~se agree in wnt~ng, insurance proceeds shall be applied to restoration or repair of
the Propeny damaged, proviJed such re~tora~~on or repa~r ~s economieally feasible a~d ~he security of this Mortgage is
not thereby impa~rcd. I( such ratoraticx~ or repair is n.~t cconomically feasihle or if the ucurity of this Morigage would
be impaired, the insurance procceJs shall be applied to the sums secured by this Mortgage, w~th the excess, if any, paid
to Borrower. !f the Property is abansioned by Borrower, or it Borrower fails to respond to l.ender within 30 days from the
date notict is ma~led by Lender to Borrov-•er that the msurance carrier otTerx ~o settle a ciaim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds rt 1_ender's optiun e~ther to restoration or repa~r of the Propenv
or to the sums secured by this Mortgage. -
Unless 1_ender and Borrower otherv~ise agree m wrning, any such appli~a~ion uf prcx:eeds to pnncipal shall not extend
or postpone Ihe Jue datt of the mon~hl}' installmenls rcferred 1~~ in paraRraphti 1 and 2 hereof or change Ihe amount of
suc6 installmeots. I( under paragraph 18 hereof the ProNerty ~s acywred by Lender, ali nght, title and interest of Borrower
in and to any ihsurance policia and in and to the proceeds thereo[ result~ng ftom damage to the Propeny prior to thc sale
or acquisition shall pass to Lender tu the extent of the sums secured by th~s :~tor~gage immediattly prior to such sale or
acquisition.
6. Preserva~ion and 4faiotcnance of Properiy; l.easehulds: ( ondominiums: Plsnned Unit Devebpments. Borrowcr
shall keap the Propetty in good repair and shall not comrpi~ yvaste or permit impairmcnt or deterioration of the Property
and shall comply with thc provisions o( any lease ~[ th~s Mortgage i~ on a Icazchold_ If this Mortgage is on a unit in a
condomimum or a planned umt ekvelopment, Borrower chalt per(orm all of Borrower's obligations under the declarat~~-n
or coveoants crcatmg or governing Ihe condominium or planned unrt development, the by-laws and regulationc of the
condominium or planned unit develo;.ment, and constituent J~xumem~. If a condominium or planned unit development
nder is executed by Borrower and rernrded ~i~gether N~th thic Mortgage. the covenantc and agreements of wch riiicr
shall be incorporated into and shall smend and supplcment thc co.enants and agreements of this Mortgage as if the nder
were a part hereof.
7. Protation of l.ender's Security. If N~~rrower fad. a~ per(~~rm the covenants anJ ag~eements contained ~n ihis
Mortgage, or if any act~on ~~r proceeJing ~t cummenced which ma~erially ~fircts Lender's interest in the Propert~~.
includ~ng. but not Lm~ted to, eminent dumain. inW~l~ency, axlr en(~~rcemcn~. ~~r.:~rrangememt or proceedings mvol~~mg a
bankrupt or deceden~, then l.ender at I.ender'~ opuon, u~m notice to Rorrvwer, ma~ make such appearances, d~shurse such
sums and take such action ac is necessary to protect I.ender'c mterest. including. but not limrted to, disbursement of
re~sonable attorney's tcc~ and en~ry u{x~n the Propen}~ to makc repair~. I( Lcnder reyoircJ mortgage in~urance a~ a
condilion o( makmg 1he loa~l ~ecure~l b}~ Ihi~ tilurtRage. B~~rraNCr sh.dl pay Ihr premiums requireJ to mai~ita~n such
insurance in rlfcct unul such ~imc as thc reyoirrmcm tor .uch m,uran;c tcrmmatr~ in accordancc wuh Borrrwcr's and
~ ~ . g~~x346 ~M~E 50~ ~ .
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