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UNtFattN CovEH~t+rs. Borrower and Len~ier covenan~ and agrce a~ tollows:
1. P~ymeat ot Priacirsl and latenst. lMrmwcr ~hall promptl~ pay when due the principal ot and interest on the
indebtedness evidenced by the Note. prepayment and late chargr~ a~ proviJed ~n the Note, and the principal ot and in~ercs~
o~ any Futurc Advancec secured by th~s Mortgage.
2. F~ads tor Tues ~d lasurance. Subject ta applicahle law ~~r to a writ~en waiver by l.ender, Borrower sh:.ll pay
to l.ender on ~he day monlhly installments of principal anJ mtr~~~t arr p~yaMe under Ihe Note, until the Note ic paid in tull.
a sum (herein "Fwids") equal to one-tvreltth ~~t the yearl~ ~a~c. ~nd actescmen~c which may attain pnority over ~h~s
Mortgage, and ground rents on Ihe Propeny, if any. ptuc one-~welf~h ol ~•early premium ins~allments tor hazard insurance,
plus one-twelfth of yearly premium inctallmen~s (or mor~gagc ins~~rancc. ~f a~y, all as reasonably estimated initially anJ (rom
time lo limt by Lendcr on !hc basi~ of asscs~mcnl~ ~nJ hilh and reasonablc es~imates thereot.
The Funds shall tx held in an inslitutirn ~ix~ depocu~ or accounts M which are insured or guaranteed hy a Federal or
state agency (including Lender if I_ender i~ ~uch an instuution 1. I.enJer .hall apply ~he Funds to pay iaid taxes, ascessments,
insura~ce premiums and graund ~ents. 1 ender maq not cAarge tar sn holding and applying ~he Fnndc. analyzing caid acc.~unt.
or verifying and compiling said assessments and hilla, unless Lender pays Borrower interat on the Funds and applicable law
permits l.ender to make such a charge. Hormwer and IxnJer may agrce in writing at Ihe time ot executiun of this
Mortgage that interal on the Funds sh•rll t~e paid to Borrower, and unless such agreement is made u~ applicable law
rcquires such interest to be paid. l.ender shall nat he required to pay Borrower any interest or earniog~ ~~n the Fund+. I.ender
shall give to Borrower, without charge. an annual accuunting o[ the f=unJs showing credits and debits to Ihe Funda and the
purpose for which each debit to the Funds was m~de. The Fu~d~ are plecigeci a+ additional security for the sum~ secured
by this Mortgrrge.
lf the amount of the Funds held by Lender, together with ihc luwre monthly inslallments of Funds pa~able prior to
the due data of taxes, assessments, insurance prcmiums and grounJ rent~, shall exceed the amount reyuired ~o pay ~aid t•rxes,
usessments, ensurance premiums and ground rents as they (all due, such excess shall be, at Horroveer's opaon, either
promptly repaid to Borrower or credited to Borrower on monthly ~mlallmcros of Funds. If the amount of thc Funds
held by l.ender shall not be sufficieM to pay taxes, assessments, insur:~nce prem~umc and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is ~nailed
by l.ender to Borrower requesting payment thereof. ~
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly retund to Borrower any Funds
held by [.enckr. lf under paragraph 1R hereof thc Property iti x~ld or ~he Property is otherwise acquired b~• l.ender, I.enJer
sball apply, no (ater than immediately prior to the sale ot the Property or i~s acquisition by I_ender, any I=unds held by
Lender at the time of application as a credit against the sums secured hy this Mortgage.
3. Apptication of Paymenls. Unlecti applicable law proviiies atherwise, all payments received by l_eoder u~der the
Note and patagraphs 1 and 2 herrof shall be applied by I.cnder first in payment af amouots payable to Lender by Borrouer
under paragraph 2 hercof, then to ~ntcrest payable on the No~e,, then to tbc principal of the Note, and then to interest and
pnncipal on any Future Advances.
4. Charges; Liens. Borrower sh~ll pay :~II taxes, atiustmcnts and ahcr charaes, finet and impositions attnbutabie to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, dircctly to the
payce thereot. Horrower shall promptly [urn~sh to Lencier all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrow•er shall promptly tumish to l.ender receipts evidencing such payments.
Borrower sha11 promptly discharge any lien which has pnority over ihis Mortgage; provided, that Borrower shall not be
reqwred tu dixharge any such lien so long as Borrower shall agree in wrihng to the payment of the obligation secured by
such lien in a r:ianner acceptable to Lender, or st~ali in gocxl faith contect such lien by, or defend enforcement of such lien in,
legal proceedmgs which ope:ate to prevent the entorcement of the I~en or forfeiture of the Property. or any part thereof.
S. Hazard l~urance. Borrawer shall keep the improvements now exisling or hereafter erected on the Property insured
against loss by fire, hazards induded within the term "e~tended coverage". and such other hazards as Lender may reyuire
and m such amounts and for such periods as Lender may reyuire; provided, that LenJer shall not require that the amount ot
such coverage exceed that amount of cmerage required ~o pay ~he sums secured by this Mortgage_
"Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by [.ender; provided.
that such approval shal! not be unreawnably withheld. Ail premiumc an insurance policies shatl be paid in the manner
provide~ under paragraph 2 hereot ur, if•not paid in such menner, by Borrower making payment, when due, dircctly to thc
insurance carrier.
AIf insura~ce Ewl~cie, anJ renew~ls thereof shrll br. in form accep~able to Lender and shall indude a standarJ mortgage
clause in favor of and in form accep~able ta Lender. l_ender shat! have ~he right to hold ~he policies and renewals thereof.
and Borrow•er shal! pn~mp~ly furn~sh to I_ender all renewal not~ces and :~II receipts of paid premium~. In the event of locs.
Boruwer ~hall gwc prompt noticc to thc ~naurance carricr and Lender. 1_enJer may make proof of loss if not made promptl}•
by Borrower.
l'nless Lender and BorrowPr otherW ik agree in wnUng, inwrance proceeJs shall be applied to restoration or repair ~f
the Property damaged, provided such re~turahon or repair is economically (easible and the security of th~s Mortgage is
not thereby impa~red. 1f ~u~h recturatmn or rcpa~r is not economically feasible or i( the security of this Mortgage v-•e~uld
be impaired. the insurance proceeds shall bg applied tu the sums secureJ by this Mortgage.` with Ihe ezcess, if an}•, paid
to Borsuwer_ If the Propert}- is abandoncd hy Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notic:: i~ mailed by l.ender to Bormwer that ~he insurance carrier otTers ~o setUe a claim for insurance benefits, Lender
is authonzed to cotlect and apply the ~nwrance proceeds at Lender's option e~ther to restoration or repair of the Propen~~
or to the sums ~ccureJ by this Aturigage.
Unless I.enJer :,nd Borrow•er othen+ix agree in wnting, any such application of proceeds to principal shall not ettend
or postpone the due dat., of the monthly installmcnts rcterred ~o in paragrapht I and 2 hrreof or change the amount o(
such instailmeats. If under paragraph I8 hereof the Properry is acquireJ hy Lender, all right, title and interest of Borr~~wer
in and to any insurance poiicies and in and to the proceeds thereof res~lting irom damage to the Property prior to thc sale
or acquisiUon shall pass to Lender to the extent of the sums securecl by this Mortgage immediately prior to such sale or
acquisition. '
6. Presenatan and 11aiutenance of Property; I.eatieholds; Condominiums; Planned Uuit Dcvebpments. Borrowcr
shall keep th~: Property in good repair and sha!! ~ot comroit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortg:~ge ~t on a leasehold. If this Mortgage is on a unit in a
condominrom or a planned unit development. Borrow~er chall perform all of Borrower's ob6gations under the declaraUon
or covenants creating or governing the condommium or planned unit development, the by-laws and regulations of the
cunJominium or planned unit development, and constituent documents. I( a c~ndominium or planned unit developmept
rider ~s executed by Borrower and recorded together with th~s Mortgage, the covenants and agrcements ot such rider
shall be incorporated into and shafl amend and supplement the covenants and agreements of this Mortgage as if the riJer
were a paR hereof.
7. Protectioo of Leoder's Secudty. If Borrower fails to perform the covenants and agrcements contained in this
Mortgage. or if any action or proceeding is commenced which materially affects Lender's interest in the Proper~y,
including, but not limited to, em~nent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then I.ender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
swas and take such action as is necessary to protect Lender's enterest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make repairs. It Ixnder required mortgage insurance as a
condition of making tne loan secured by this Morigage, 'Borrower stiall pay the premiums required to maintain such
jnturanct in eHect until such time as the rcquirement for such insuran~e terminates in accordanc~ with Bormwer's and
b~,~x349 PA~E2841