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Borrower and Lender oovenant and a~ree a~ folbw~: •
l. Pa,~-meat ot Pr.laclpwl at~d Interest. Borrower shall pmmppy pay when due the prinrtpal of a~d interat on the indebtednea
evidenoed by the Note. prepayment and lete charges as pmvidcd in the Note, a~d the principal oisnd intereaton a~y I~ture Advance~ ~scured
by thu Mort~a~s.
2. F~ads for Tue~ and Insurance. 3ubject to applicable law o~ to a written waive~ by I.ender. Borrower shall pa~y to Ltnder on the d~y
monthly uuteillmenta of principal and inte~+est are payable under the Note, until the Note ia paid in full. a aum (htrein "Fl~nd~") equal to ona
twelfth of the yearly ta=ea and assessmenta which may attain priority over this Mortgage, and ground rents on the Property. if any, plw oae~
tweltth olyearly pnmium installaaenta [or haaard insurance, plus onetwelRh of yearly premium inatallments for morlgage insurance, itany.
aq as reasonably estimated irtitially and from time to time by Lender on the basis of asaesamenta and bills and reaaonable estimate~ thereo!
11~e FLnds shal) be heW in en institutioa the deposita or accounts oi which an insured or guaranteed by a Federal or State a~eacy
(includin~ Lender if Lender is ~uch en institution). Lender shall apply the Funda to pay said taxe~, aa~eesments. in~uranee pnmiuma apd
ground rents. Le~der may not char~e to~ w holding a~d applying the Funde, analysing said account, or verifying and compilite~ ~sid
awawmeAfa and bilb. unl~se Lender pays Borrower i~tereat on the ~nds and applicable law permita Lende~ to make such a char~e. Borrow~
and Lende= may agree in wniting at We time oi e:ecutioa of this Mortgage that intereat on the ~-nds shall be paid to Borrower. snd ualew
snch a~reement u made or applicable law rsquires ~uch interest to be paid. Lender shall not be required to pay Horrower any intere~t or
earnin~e on the P1u-ds. Lender ~hall give to Borrower. without charge. an annual accouating of the flrnds showing credib and debifa to We
Ftinds and the purpoee for which each debit b the FLnda vyas made. The Funds are pledged aa additional security for the aums kcured by thi~
Mortgage. .
If the amount of the F1nds held by Lender. together with the future mo~thly instalimenta of Funde payable prior to the due datea of ta~ce~
assessmeats. insuranoe praniums and ground renes. shall excred the amount required to pay said taxes, aaaessments; insurance premi~ma
and ground rents a~ they fall due. such exceas ahall be, at Bo~mwer s option, either promptly repaid to Borrower or credited to Borroweron
monthly installmenta of ~nds. I[ tl~e amount of the Funds held by Lender shall not be sutficient b pay taxes. asacssmeats. in~uranoe
premiums and gronnd rents as they fall due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 day~
from the date notioe is mailed by I.ender b Borrower requeeting payment thereot.
Upon payaaent in full of all ~ums sacured by this Mortgage, Lender ahall prompdy refund to Borrower a~y funda held by Lender. Uunder
pare~rap618 hereof the Property ia wld or the Property is otkerwise acquired by I.ender. Lendrr shall apply. no later than immediately prioc
to the sale of the Property or its aoquieition by Lender. any Funds held by L.ender at the time of application as a credit against the sums iecured
by thu Mortgage.
3. Applteation of Pwymeab. Unless applicable law provides otherwise. all payments nceived by Lender under the Note and
paragraplu 1 and 2 benof ahall be applied by I.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 intereat and principal on any Future Advanoea.
4. Chargea; I1en~. Borrower shall pay all taxea, aseessmenta and other chargea, finea and impositions attribntable to the Property which
m~y attain a priority over this Mortgage, and leasehold paymenta or qround rersts, if any, in the manner provided under paragraph 2 hereofor.
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnish to I.ender
all notices of amounta due under this paragraph, and in the event Borrower shall make payment dirertly. Borrower shall promptly furnish to
Lender receipta evidencing auch paymenta. Borrower ahall promptly discharge any lien which haa priority over thip Mortgagr, provided, that
Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation ~ecnred by
auch lien in a manner acceptable to Le~der, or sliall in goc,d faith contest auch lien by, or defend enforcement of such lien in, legal proceedit~s
vrhich operate to prevent the enforcement of the lien oT lorfeiture of the Property or any part thereof.
5. Hazard Iheurance. Borrow~er shell keep the improvements now existing or bereaRer erected on the Property insnred against loss by
fire. hazarde included within the term "extended rnverage," and auch other hazarde as I.ender may require and in such amounts and forsuch
periods as Lender may require; provided, that Lender ehall not require that the amount of auch ooverage exceed that amount of cpveraQe
required to pay the sums eecared_ by this Mortgage.
The insurance carrier providing the inaurance ahall be choaen by IiorroN er subject to approval by I.ender; provided, that such approval
ehall not be unreaeonably withheld. All premiuma on i~surance_policiea shall be paid in the manner provided under paragraph 2 hereof or. if
not paid in auch menner, by Borrower making payment, when due, directly to the inaurance carrier.
All inaurance policiee and renewals thereof ahall be in form acceptable to Lender artd shall include a rtanderd mortgaQe clauk in favorof
and in form acoepfable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowrr shall pmmptly furnish to
i.ender all renewal noticee and all receipte of paid premiuma. In the event of losa. Borruwer shall give prompt notice to the iniunnca carriar
and Lender. Lender may make prooi of loss if not made promptly by Borrower_ . .
Unlees Lender and Borrower otherwise agree-in writing, insurance proceeL~ ahall be epplied to restoration or repair of the Property
damaged.. provided such restoration or repair ia economica113r fetaible and the~security ot this Mortgage is not thereby i~npeired. If ~nch
restoration or repair ie not economically feaeible or it the eecurity of thia Mortgage would be impaired, the insurance ptoceeda ~hall be epplied
to the sums secured by thie Mortgage, with the excesa, if any, paid to Borrower. Itthe Property is abandoned by Borrower. or if Borrower faib to
respond to Lender. within 30 days from the date notice is mailed by l.ender to Borrower that the insurance carrier offera b setde a claim fa
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration oi repair ot the
Property or the sums secured by this Mortgage.
Unlesa Lender and Borrower othetwiee agree in writing, any auch application of proceeds to principal shall not extend or poetpone thedue
date of the monthly inatallments referred to i~ paragraphe 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof the Property ia acquired by Lender, all right, title and intereai of Borrower in and to eny insurance policies and in and to the proceeds
thereof teaulting from demage to Property prior to the sale or acqu~sition shall pase to Lender to the eztent of the sums secured by thi~
Mortgege immediately prior to euch eale or aoquisition.
6. Preservation and Maintenance otProperty; l.easeholde; Condominums; Planned Unit Developmeats. Botrower ~hall keep
the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the
provisione of any leaee if thie Mortgage is on a leases~old. If this Mortgage is on a unit in a rnndominium or a planned unit development.
Borrower shall perform all of Borrower's obligationa under the declaration or covenante creatingor governing the rnndominium or planned
unit development, the byIaws and regulationa of the condominium or planned unit development, and rnn~tituent documenta. If s
rnndominium or planned unit develupment rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and
agreementa of auch rider ahai) be incorporated into and shall amend and supplement the covenants and agreements otthia Mortgege ai i[the
rider were a part hereof.
?. Protection of I.ender's 3ecurity. If Borrower fails to perform the rnvenants and agreements rnntained in thi~ Mort~a~e. ot if any
action or proceeding is commenccd which materially affecte Lender's intereat in the Property, including, but not limited to, eminent domain,
inaolvency, oode enforcement, or arrangements or proceedings involvisg a bankrupt or decedent, then Lender at Lender'~ optioa,apon
notice to Borrower may make such appearances, disburse such sums and tske ~uch action a~ u neceWery to protect L,endd~ int~rw~
including, but not l~mited to, disburaement of reasonable attorney's fees and entry upon the Property to make repain. If Lender raqoird
mortgage insu~ance es a condition of ineking the loan secured by thie Mortgage, Borrower shall pay the premium~ required W maint~in
such insurance in effect until ~uch time as the requirement for euch insurance terminates in accordance with Borrowrer'~ end Lende:'~
written agreement or appGcable Law_ Borrower shall pay the amount of all mortgage insurance premiums in the manner provided unde~
peragraph 2 hercot.
My amounts disbureed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedne~a of
Borrower secured by this Mortgage. Unless Bonower and Lender agree to other terms of payment, such amount~ shell be payable npon
notice from [.ender to Borrower requesting payment thereof, and ahall bear interest from the date of d'u+bursement at the rate paysbk fiom
time to time on outstanding principel under the Note unlesa payment of interest at such rate would be oontrary to applicable law. in whi¢h
event such amounte shall bear interest et the highest rate permiesible unde~ applicable law. Nothing contained in this paragraph 7. shdl
requue Lender to incur any expenee or teke any action hereunder_
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