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UNtratM CoveN~NTS. Borrower and L.enJer covenant and rgrre a~ tolk~ws:
1. ta~e~t ot lti~cipl ~ lafenst. t3c~~~i~wet chall prump~l~• p~y v-hcn due the pr~ncipel at and ~nte~at cx~ the
~ndeMadnas evidenced by ~he Nae. Prcpayme~t and late charge. r. pruvided m the Nae. and the principal ot aod interes~
on aor Future Advances secured by this Morta.ge.
_. tht~ tor TuM ~ai lawr~ee. Subject to applicabk law a~ ta a writ~en waiver by l_ender. Botrower shall paY
to Lender on Ihe day monthly installmenls of principal and ~nt~~r~~ a~c p:-Yahle under ~hc Note, until the Note is psid in tull.
a sum (herein "Funds") equa) to one-twel(th ot 1he yea~l)~ ta~c. anJ acxs~men~s which miy attain pno~i~y over this
Mort~age. and ground rents on the Pt+operly, if any, plus one-~welf~h o! yea~ly premium insullments tor hazard insurance.
plus o~e-tweltth of yearly prcmium installmcros tor mc~Mgage insurancc, ~f any, all as rcuonably estimated initially and t~om
lime to time by Leader on the buii of asxscmcnls and hills and reax~nablc estimata thercot.
The Funds sitall be held in an institution the depotit~ or accaun~s ol which a~e insured or guarantced by a Federal or
state a~ency (including I.ender if I.enJer ia such an institutionl. I.ender ~hall apply the Funds to pay said taxes. assessmenls.
inwrance premiums and g~aund rents. l.ende~ may not charge tor sr- holding and applying the Fundc. analyzi~g xaid account.
or veritying aod compiling said assessments and hilh, unless I.ende~ pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. Hc~rrower and t.ender may agree in writing at the ~ime af executiuo ot this
Mortga=e that interest on the Funds shall hc paid to Borruwer, and unlas such agrecment ~s made o~ applicabk law
rtquires such interat to be paid. l_ender shall not be rcquired 1o pay Bo~rowe~ am interat or earninEes on the Funds. t_cnder
sdall ~ive to Botrower, without charge, an annual accounting of the Funds showing credits and deb~ts to the Fu~ds and the
purpose for which eaeh debit to the Funds waa made. The Funds are pledged as addi~ional security for ~he sums secured
by this Monpge. ' '
lf the unount of the Fu~ds held by Lenckr, togelher with 1he tuture monthly installments of Funds payabk prior to
the due dates of taxa. assessments. insurance prcmiums and g~ound rents, shatl exceed ~he amount required to pay said taxa,
saseatnents, insuranoe premiums and ground rmts as they fall due, such excess shall be, at Hor~ower's op~ion, either
pranptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. It the amount ot the Funds
held by Lender shdl not be sufficieat to pay taxes, assessments, insurance premiums and ground rcnts u they fall due.
Borco~-er shall pay to Lender a~y amount necessary ta make up the deficiency within 30 days trom the date notice is maikd
by Lender to Borcower requesting payment ~hereof.
Upoa payment in full of all sums secured by this Mortgage, l.ender shall promptly rcfund to Borrower any Funds
held by L.ender. if under paragraph 18 hercof the Propeny is sold or the Property is aherwise acquired by l_cnder, Lenck~
s6aU apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit agamst the sums secured by th~s :~tortgagg.
3. ApQlicatioe of Payments. Unless applicable law provides, ot6er~.i~e, all payments received by Lender under the
Note and pangraphs 1 and 2 hereof shall be applied by I.ender first in peymen! of itmounts psyabie to Lender by Borrower
uuder paragraph 2 hereof. then to interest payable on the.No~e, then to the principa) of the Note, and ~hen to interest anJ
principa) on any Future Advances. ~• . '
4. C6arzee; [Jeas. Botrower ~shall pay all taxcs, assessmcnts and other charges, fines and irinpositioas attributatsle to
t6e Property which may attain a priority over this Mortgage, and le~sehold payments or ground rents. if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrovrer making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all not~ces of amounts due under this paragraph, aod ia the Fveat
Bornowe~ shall make payment directly, Borrower shall promptly fumish to l.ender receipts evidencing such paym~nts.
Borrower shall ptotnptty discharge any lien which has priority over th~s Mortgage: provided, that Sorrower shall not be
nequired to discharge any such lien so long as Borrower shall agrce in w~nting to tht payment of the obligation securod by
suc6lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of such liea in.
tegal proceedings which operate to prevent the enforcement of the lien or forfeiture of thc Property or any part therouf.
S. Harard Iaarance. Botrower shall keep the ~mproverieents noM~ existing or hereafter erected on the Property insurod
against loas by fire, hazards included within the term "extended coverage", and such other hazards as I~nder may require
and ia wch amounts and for such periods ac Lender may require; provided, that [.e~der shall not requirc that the amount of
such coverage exceed that amount of coverage required to pay the sums securcd by this Mortgaga
"Ibe insurance carrier providing the insurance shall b~ choxn.by Bonower subject to approval by Lender. provided.
tbst auch approval shall not be unrcasonably withheld. All premiums on inw~ance policies shall be paid in the maaner
provided under paragraph 2 hercof or, i[ not paid in such manner, by Borrower making payment. when due, directty to th~
insurance carrier.
All insurance policies anel renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clauu in favor of and in form acceptable to Ixnder_ Lender shall have the ~ight to hold the policia and renewals thercof.
and Borr~wer shall promptly furnish to Lender all renewal notices and all receipts of paid prcmiums_ In the event of loss.
Borrower shall give prompt notice to the insurance carrier and l~nder. Lender may make proof of ioss i[ not made prompUy
by Borrower.
Ualetts l.ender and Borrower otherw~x egree in writing, insurance procceds shall be applied to restoratan or rcpair of
the Property Ja~naged, provided such res~orauon or repair is economically teasible and the security of tb~s Mortgage ic
not thereby impaired. lf such restoration or repair is not eronomically feasible or it the securiry of th~s Mortgage would
be impaired, the insurance proceecis shall be applied tu the sums secured by this Mortgage, with the excess, if any, pa~d
to Borrower. If the Propen~~ is abandoned by Borrower, or it Borrower fails Io respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower tha~ the insurance carrier offers to settle a claim for inturance benefits. Leoder
is authoriud to collect and apply the insurance precceds at l.ender's option eit6er to restoratiou or repair of ihe Propenr
or to t6e sums securod by this Mortgage_
Unless Lender and Borrower otherwisc agrce in writing, any such application of pra:eeds to principal shall not extend
or postpone the due date of the monlhly installmcnts referred to in paragraphs I and 2 hereof or change Ihe amount of
suc6 installmeots. If under paragraph I S hereof the Property is acqu~reci by Lender, all right, tiUe and intercst of Borrower
in aad to any insurance policies and in and to the procceds thereof resulting from damage to tt~e Property prior to th.~ sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Pre~erratbo and Maintenance of Properly; Lea9ehnlds; Condominium~ Planaed ti~il Devdopo~e~ts. Borrovrer
shall keep the Property in good repair and shall not com~pit waste ar permit impairment or deterioration of the ProQerty
and shall compty with the provisions of any lease i( this Mortgage ~s on a Iraschold. If this Mortgage a on a uoit in a
condominium or a planned unit cievelopment, Borrower.shall perform all ~f Borrower s obligations under the declarati~u~
or covenaats creating or guverning the condominium or planned unit development, the by-laws and regulations of the
condominium or planoed unit development, and constituent Joc:uments. I( a condominium or planned ~mit development
rider is executed by Bonower and recorded together with this Mortgage, the covenants and agrcements of wch rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage u if the riJer
were a part heroof.
7, protectioo ot Leader'~ Security. If f3orru~~er tails to perf~rm the covenants and agreements contained in Ihis
Mortgage. or if any action or procecding is commenceJ wh~ch materially aficct=_ I_enJer's interest in the Property.
including, but not limited to, em~nent domain, insolvency, code en(orcement, or arrangements or proceedings involving a
baakrupt or decedent, then Lender at Lender's option, upon no~ice to Borrower, may make such appearances, disburse such
wms and take such action as ia aecessary tu protect [xnder's interest, including, but not limited to, disbursement of
rea~onsble attomey's (ees and entry upon the Property to make repairs. If Lender reyuircd mortgaae insurance as a
ca~dition of making lhe loan sexureci by Ihis Mortgage. Botrower shall pay the premiums required lo maintam such
insuranee in etfcet until such time as ~he reyuirement for such msurance terminates ~n accordance with Borrower s and
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aa~K 347 P~Cf 198`7
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