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Utv1FOltM CovFN.~NTS. Borrower a~J I.end~r a~venant :,nJ :~g~re a~ ~OIION'S:
1. Paymenl of Priacipal aad lnteresl. HorruNer shall prump~ly~ pay vrhen due thr principal of and interest un the
indebtedneu evidenced by the Notc, prcpaymcnt and latc chargrti a. provided in the Na~e, and the pri~cipal of and interes~
on any Future Advaaces secured b~~ thic Mortgage.
2. Fnads tor Ta:a ~nd Intunace. Subject to applicabte law• ur to a written waiver by 1_ender, Borrower shali pay
to l.enckr on the day monthiy installments of principal anJ interes~ are payable under the Note, until the Nate ic paid in luU.
a sum (herein "Funds"') equai to one-twelfth of thc yearly tares and assessment~ w•hich may attain priority over this
Mortgage, and ground rents on the Propcrty, if any. pfus one-t..•clfth of yearly premium installments for hazard insurance.
plus one-twel[th of yearly premium installments for mortgage insu~ance, if any, all as reasonably estimated initiall~ and from
time to time by Lender on the basis of a~sessmc~~s and bills and reax~nable estimates thereof.
'11-e Funds shall l~e held in an institutic~n the deposits or accoun~s of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). I.ender sfiafl appty the Funds to pay said taxes, assessments.
insurance premiums and g~ound rents. I.ender ma~~ not charge for si~ halding and appfyi~g the Funds, analyZin~ said account,
or verifying and compiling said asussments and hills, unless l_ender pa~•s Borrower interest on ~he Funds and applicable law
permits [.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of ihis
Mortgage that i~terest on Ihe Funds shall be paid to Borrawer, and unless such agreement is made or applicable law
requires sucb interest to be paid, l.ender shall not t~c requireJ to pa~~ Borrower ~ny interest ar earnings on the Funds. I_ende~
sfiall give to Borrower, wi/hout charge, an annual aca~unting of the Funds showing credits and debits to the Funds and the
purpose for which each debit t~ the Funds was made. The Funds are ptedged as additional security for the sums secured
by ~his Mortgage:
If the amount of the Funds held by l.enJer, toge~her witb the future monthly installments of Funds pa~•able prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pa~• said taxes,
assessments, insurance premiums and ground rents as the) fal! due, such excess ~hall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds
h~ld by Lender sha11 not be sufficient to pay taxes, assessments, insurance premiums and ground rents as ~hey fall due.
Borrower shall pay to Lender any amount necessary to make up ~he defiriency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. l.cnder shall promptly refund to Borrovver any Funds
held by Lender. If under paragraph I8 hereof the Propeny is sald or the Property ~s otherwise acquired by I.ender, Lender
stiall apply, no later than imntediateiy prior to the salc of tfic Propert} or its acquisition by 1_ender, any Funds held by
Lender at the time ot application as a credit aga~nst the sums secured by- this Mortgage.
3. ApplkMioa ot Payments. Unless applicable law provides otherwise, all payments received by l.ender unde~ the
Note and paragraphs i aad 2 hereoi shall be applicd by Lender first in payment o( amounts payable to Lender by Borrow;r
under puagraph 2 hereof, then to interest payablc on the Note, then to thc principal of the Note, and thcn to interest and
principal on any Future Advances.
4. C6argrs; Lieas. Borrower shail pay all taxes, atiscs~ments and othcr ch:~rges. fines and ~m~sitions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or. +f not paid in sucfi manner, by Borrowcr making payment, when due, diroctly to the
payee thereof. Borrower shall promptly furnish to Lender all_notices of amounts due undes this paragrapfi, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts e~~idencing such payments_
Borrower shall promptly discharge any lien N~hich has priarity o~•e~ this Mongage: provided. that Borrower shall not be
required to discharge any such lien so lon~ as Borrower sfiall agrer in writing ta Ihe pay~ment oi ihe obligation secured by
such lien in a manner acceptable to Lender, or shall in gaxi faith contest such lien by, or defend enforcement oi such tien in,
tegal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof_
S. Hazard lnsurance. Borrower shall keep the improvementt now eristing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", anJ such other hazards a3 l.ender ma~~ req~~ire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage eicceed that amount of coverage reyuired to pa~• the sums secure~l b~• this Mortgage_
"Il~e insurance carriet providing the insurance shall be chosen by Borrow~er subject to approcal by Lender: provided,
that such approval shall not be unreasonahly withheld. Alt premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whe~ due, directly to the
insurance carrier.
Al! insurance policies and reoewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptablC to Lender_ Lender shall have the right to hold the policies and rene~•als thereof.
and Borrower shall prompUy furnish to Lender all renev-al notices and all receipts of paid premiums. In the e~~ent of locs,
Borrower shall give prompt notice t-v the insuranrc carrier and l.ender. I endcr m~y make prcx~f of loss if not made promptly
by Borrower. -
Unless Lender and Borrower othenvise agree in w~riting, insurance procecds shall be applied to restoratinn ot repair of
the Property damaged, provided such restorat~on or repair ic economically feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasihle or if the security of this Mortgage would
be impaired, the insurance proceeds shalt be applied to the sums secured by this Mongage, with the excess, i( any, paid
to Borrower. If the Property~ is abandoned hy Bormwer, or it Borrower faik to respond to I.ender within 3Q days fsom the
date notice is mailed by I.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is authoriud to collect and appfy the insurance proceeds at 1_ender's option ei~her to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in wnting, any such application ot prcxeeds to pnncipal shalt not extend
or posipone the due date oi the monthlv installmc~ts referred to in paragraphs I and 2 hereof or change the amount of
such installme~is. If under paragtaph I8 hereof the Property is acyuired b~• Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent ot the sums sccured by this Mortgagc immediately prior t~~ such sale or
acquisition. ~ ~ '
~ 6. Preservolioa aud Mnintenance of PropeAy: t.easeholds; Condominiums; Planned Unit Derebpments. Borrow•er
• shall keep the Property in good repair and shall not commit waste or permit impairment ot de~erioration of the Property
and shall comply with the provisions of any lease if this Mortgage ~s on a leasehold. 1! this Mortgage is on a unit in a
condominium or a planned unit development. Borrewer shall perform all of Borrower's ubligations under the declaration
or covenants creating or go~rerning the condominium or ptanned unit development, the by-laws and regulations of the
condominium or planoed unit development, and constituent documents. If a condominium or planned unit development
ricier is executed by Borrower and recorded together with ~his Mortgage, the covenants and agreements o( such rider
shall be incorporated into and shall amend and supplement the co~~enants and agreemenls of this Mortgage as if the rider
were a part hereof.
7. Protection of Leode~'s Security. If Borrow~er fails to perform the covenants and agreements coNained in this
Mortgage, or if any action or proceeding is commenced w•hich materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insol~•ency, code enforcement, or arrangements or proceedings involving a
bankrupt o~ decedent, then Lender at Lender's option, upon notice to Borrower, map make such appearances, disburse such
sums and take sueh action as is necessary to protect Lender's mterest, including. but not lim~ted lo, disbursement of
reasonable attomey's (ees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making ifie loan secured by this Mongage. Borrower shall pay the premiums required to maintain such
insurance in eftect until such time as the requirement tor such ~nsurance terminates in accordance with Borrower s and
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