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UH~FOan~ CoveH~Nrs. Borrower and I.cnJer c~~venant and agree as (allows~
1. P.ymeoe of Pdnc~al aoa lo~e~~. Hc~rrowe~ ~hall prunt~U) pay v-hcn duc the principal of and ~ntercst on thc
~~debtedoess evideoceJ by the Note. prepayment and late charge~ a. provided ~n the Note, and the ptincipal ot and ~nterest
on any Fulu~e Adva~cec sccured by th~s Mortgage.
2. Fnads tor Tua tad losoraaee. Subject to applicahlc law ar ~o a wri~ten waiver by l.ernler. Botrower shall pay
to l.cnckr on ~he day mot~lhly ipstallments o( principal anJ mu•rc.i arr payahlc undrr ~he Nott, until 1he No1e is paid in (ull,
a sum (hercin "Funds") equal to ane-twelfth ~~( ~he yearl~ t•r~~~ and as~cstimentc which may attai~ priarity over thit
~lorigage, anJ ground rents on the Pmperry, if any, plus onc twcltth ~~I yearly prcmium installments [or hazard insu~ance.
plus one-twelfth of ytarly ptemium installment~ for mortgage insurance. ~t any, all ac reasonably cctimaled initiatly and trom
time to time by 1_ender on the basis ot acsescme~~c anJ hills and rra~onable es~imates therr_of.
7?~e Funds 3hall t+e held in an ins~i~wi~.n thc dep.xn, or arcounts o1 which are insureci or guarant~ed by a F'cderaf or
state agency (including Lender if l.ender is ~uch an inst~tu~~onl. 1 ender ~hall apply ~he Funds to pa)' aaid taxes, assessments,
insunnce premiums and ground rcnts. 1 ende~ ma~~ not charge lor ~o holding and applying ~he F~~nd~. analy~ing said account.
or veritying and compiling said asse~sme~ts and bilb, unless l.ender pa~•~ Borrower interest o~ the Funds and applicable law
permits 1_ender to make such a charge. [ic-rrower and Lender may ag~ee in writing at ~he time o( execution at this
Mortgage that ioterest on the Funds shall be paid to Borrower, and unless such agreemen~ i~ made ~~r applicahle law
requires such interest to be paid, l.ender shall not he required to pay Rorrowe~~am• interest or carnin~ ~~n the Funds. 1_ender
shall give to Borrower, without chargt, an annual acc~~uming ot the F=unds shovving credits and debits to thr (~unds and the
purpou for which each debit to the Funds w•rs made. The Funds are pledged as additional secu~ity. for ~he sums cecured
by this Mortgage.
lf the amount of the Funds held by 1_ender, toge~her wi~h thc futurc mon~hly installments of Fun:ft payablc priar to
the due dates of taxes, ass~ssments, insurance premiums and ground rents, shall exceed the amount reyuired to p:+y ~aid taxes,
assessments, msurance premiums and ground trnts as they t:~ll doe, such ezcess shall be, at Horrower's oplion, either
promptly repaid to Borruwer or credited to Borrower on mon~hly inctallmcnts of Fund~. If the amount of thc Funds
htid by Lender shall ~~ot be sutficieat to pay taxcs, assecsments, insurancc premiumc and ground rents as thcy tall duc,.
Borrower shall pay to Lender any amount nocessary to make up the deficiency within 30 days trom the date notice is mailed
by Lender to Borrower nquesting paymcn~ therco(.
Upon payment in fulS of all sums secured by this Mor~gage. I.ender shall promptly re(und to liorrowc~ any Funds
held by l.ender. If under paragraph 18 hereof the Propeny i~ sold ar ~hc Propcrty is otherwicc arqwred by I.ender, I.enJer
shall apply, no later than immediatcly prior Io the sale o( the Pro~eny or its acquisition by l.ender, any Funds held by
Lender at the time of application as a credit aga~nst the sums securcd by this Mortgage.
3. AppUcation of Payments. Unless applicable law proviJes otherwise, all payments received by 1_ender under Ihe
Note and paragraphs 1 aad 2 hereof shall be appl~ed by I.ender fint in pa)ment ~~f amounts payable to l_cnder by Borruwer
under paragraph 2 hercof, then to mterest payablc on the Notr, then to thc principal o( the Notc, and thcn to interest and
psincipal on any Future Advances.
4. Charges; I.ieas. Borrower chall pay ail t~xr~, a«essmcnts and othcr charges, finec and ~m~wsitions attributable to
the Propecty which may attain a peiority over this Mortgage, and leasehold payments or ground rent~, if any, in the manner
provided under paragraph 2 hereof or. if not pa~d in such manner, hy Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to t_ender all notices ot amounts due under this paragraph, aad in the svent
Borrower shall make payment direcUy, Borrower shall promptly fumish to l.ender rcceipts evidencing such payments.
Borrower shall prompUy dixharge any lien which has prionty over this Mortgage; provi~kd, that Borruw~r shall not be
rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of tht obligation secured by
such lien ~n a manner acceptable to Lender, or shall in goud faith contect such lien by, ~r defend enforcement of such lien in,
legal proceeding~ which operate to prevent the enforcement o( the lien ~r torfeiture of the Property os any part thercof.
S. Hazud lnsurance. Borrow~er shall keep tFie improvements now etiisting or hereafter ereued on the Property insured
against loss hy fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may reyuire
and ~n such amounts anJ for such periods as Lender may reyui.-e; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage reywred to pay the sumti secured by this Mortgage_
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided;
that such approval shall not be unreasonably withheld. All premium~ 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, when due, dircctly to the
insurance carner. ~
All insurancr poGcies anJ renewals thereof shaU be iA form accept~ble to Lender a~d shall include a standard mortgage
clause in ta~or of and ~n (orm acceptable to Lender. I.ende~ shall have the right to hold the policies and renewals thereof,
and Borrower shal; prompdy furnish to Lender all rencw•al notice~ and all receipts of paid premiumc. In the event of los,.
Borrower shell give prompt notice ~o the ~nsurance carner and t.ender. Lender ma}• make proot of loss if not made promptl~~
hy lfurruwer. ~
linless Lcn~er anJ Borrower othcrvrik agrec in wnling, inw~ance pnxecdc shall bc applied ro restoration or rePair of
tht Proper(} damaged, provided such re~torauen or repair is econon:ically feasihle and the securiry of this Mortgage is
not ~hereby impaired. !f such re~torat~on ~or repa~r is not economically feasible or i( the secunty of this Mortgage uoulJ
be impaired. the ins„rance proceeds shall be applied to the sums secured by this Mortgage, wnh the excess, if an}~, paid
to Borrower. If the Yroperty ic abandoned by Borrower, or ii Horrc.wer Eails ti~ respond to I.ender within 30 days from the
date n~tice ~ti ma~led by Lender to Borruwer that the insurance carrier ofTen to ~enle a claim for insurance benefits, Lender
is authunzed ~u collect anJ apply the imurance proceeds at LenJer's option e~ther to restoration or repair of the Propertc
or to thc sum~ ,~c~~red by ~his Mortgagc.
Unless Lender and Borrower Mherwice agree in wnUng, any sixh applicalion i~f prckeeds to pnncipal shall not extend
or pc~stpcme :h:: ~iue date of the monthly intitallments referred t~- in paragraphti 1 and 2 hereof or change the amount o(
such inataUments. lf under paragraph IK hereof the Property is acyuired hy Lender, ali nght, tiUe and interest of Borrowe~
in and to any msur~nce policies and in and to the proc:eeds thereot resul~ing trom damage to the Property prior to thr aale
or acyws~Uon shall pass to Lender to the eatent of the sums secured b} thii Mortgage ~mmediately prior to such sale or
acyuisition.
6. Prcsenation and tNaiotenance of Property; i.easeholds; Condominiums; Planned Unit Devebpmeots. Borrowcr
shall keep the Property in good repair and shall not comroit waste or permit impairment or deterioration of the Property
and shal! .cc~mply with the provisions of any lease it -his Mortgagc i~ on a leasehold. If this Mortgage is on a unit in a
condomin~um ur a planned unit developrr~nt, Borrower shall per(orm atl of Borrower's obl~gations under the declarat~on
or covenants creating or governing the condominium or planned unit develupment, ~he by-laws and regulations of the
condorninium or planned unit development, ~nd constiwent doc:ument~. I( a condominium or planned unit development
nJer is eaecuted by Borrower and recorded togeiher vr~th thi~ Mortgage, the covenants and agreements of such riJrr
shall be incorporateJ into and shall amend and supplement the covenants and agreements of th~s Mortgage as if the ri.ler
w•ere a part hereof. ~
7. Proteclioa of Leader's Securfty. If Borrow•er fails t~ perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced w~hich materially affiects I.ender's interest in Ihe Propen}•.
includ~ng, but not limited to, eminent domain, incolvency, ccxle er.forcement, or arrangements or proceedings involving a
bankrupt or decedent, then I~nder at l.ender's option, upon natice ti~ Rorrowcr, may make such appearances, Jisburse such
sums and take such action as is necessary to protect Lender's interest, mcluJing, bot nrn limited to, disbursemeM o(
re~sonable attorney's fees and entry upon the Yroperty lo make repairs. !f Lender reyuircd mortgage inwrance as a
cond~tion of making the loan secureJ by Ihis M~~rtgage. Borrvwcr shall pay the premiums required to mainta~n such
inturance in efiect unt~l such time as the reyuirement for wch inwrance tcrminates m:~ecordancr with Borrower's anJ
~ ~ s~~R 349 P,~~f 285~