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Ut+t~ow Coven~~vt~s. Borrower snd Leoder covenant and a~roe u tollows:
i. h,~e~t ot hi~ciMi a~ INerat. Borrower shall p~omptly psy when due the principal flf and intereat on the
~ndebtednas evidenced by the Note. P~epayment and late cha~gea ac provided in ~he Nde. aed the principsl ot and inte~es~
on wy Futute Adv~nces secyrod by this Morlaase.
2. lhni tor Tu~s a~i I~. Subject to applicabk law ar to a wriiten waiver by Le~der, Bormwer shall pay
to Leader on the Jay moothly i~s~aliments ot principal and mt~rc~t arc {~yable under the Note. until ihe Note is psid in f~ll.
a:um (hercie "Funds") equal to one-twel(th of ~he yearl) ~a~-~~. anJ assessments which may attain priority ove~ ~his
Mortsa~e. and ~round rents on the Prope~ty. if soy, plus one-tweltth of yearly premium iostallmen~s for hazard insurance,
plus one-twel[th of yearly prcmiwn installments tor mortgage insurancc, it any, all as rcuanably estimaled initially and trom
time to time by Lender on the basis of assescmcnts and hills and reaaonable atimata thereot.
The Funds shall be held iri an insti~u~ion ~he deposus o- •rccounts of which are insured or guannteed by a Federal oT
state agen¢y (includi~g Lender if Lcnder is such an institutionl. 1_ender ahall apply ~he Funds to pay said uxa. assessmen~s.
insurance ptemiums and ground rcnts 1 ender may not cha~ge tor so holding and applying ~he Fnndc. analyzing caid account.
or verifyin~ aod compiling uid assessmen~s and bills, unless I_e~der pays Borrower interat on tho Funds and applicable law
permits Lender to make such a charge. Barrower and Lender may agree in writing at ~he time of ezccution of this
Mongage that interest on the Funds shall t+e paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not bo rcquired to pay Borrower any interat or earni~gs on the Funds. Lenaer
shall aive to Borrower, without charge, an annual accounting ot Ihe Funds showing credits and debits to the Funds and the
purpoae for which each debit to the Funds wu made. The Funds a~e pledged u additional ucurity tor ~he sums secured
by this Mottgaae. '
If the amount ot the Funds held by Lender, toge~her w~th the (uture monthly installments of Fuqds payable prior to
the due data of taxes, asscssments, insura~c~ premiums and ground rents, shall taceed the amount required to pay said taxes,
assaunents, insurance premiums and ground rents as ~hey fall due, such excess shall be, at Bor~ower s option, either
promptly tepaid to Borrower or credi~ed to Borrower on monthly installments oE Funds. It the amount oi ~he Funds
held by L.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents u they t:.ll due.
Bormaer shall pay to Lender any amount nocessary to make up the de6ciency within 30 days from the dat~ notice is ma+led
by I.ender to Borrower ~equating payment thercof.
Upoa payment in full of al! sums securcd by this Mortgage, t.ender shall promptly re(und to Borrower any Funds
held by Lender. If under puagraph 18 hercof t!u Propeny i~ sold or the Propeny ~s whervvise acquircd by Lender, Lender
shdl apply. no later than imme~iiately prior to the sale of the Propeny or its acquisition by Lender, any Funds held bv
Lender at th~ time of application as a credit against the sums securcd by this Mortgage.
3. Applicatioe of Payments. Unless applicable (aw provides otherwise, all payments received by Lcnder under the
Note and paragraphc 1 and 2 hereof shall be applied by I.enJer first in payment ot amounts payable to Lender by Borrawer
under puagraph 2 hereof, the~ to interest payable on the No~e, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Cba~ges; Litas. Borrower chal{ pay all ta~es, acsessm~nts and other charges, 6nes and ~mpinitions aurrbutahle to
the Propetiy which may attain a pnority over this Mortgage, and leasehold payments or grouna rents, if any, in the manner
provided under paragraph 2 hereof or. it not paid ~n such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furmsh to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directl~•, Borrower shal! promptly tumish to Lender receipts evidencmg such payments.
Botrower shall promptly discharge any lien which has pnonty over Ihic Mortgage; provid~d, that Borrower shall not be
rcqwred to discharge any such lien x~ long as Borrower shall agree in wnting t~ ~he paymen~ of the obligatiun secured by
such I~en in a manner arceptable to Lender, ar shall ~n good taith contcst such lien by, or defenJ enforcement of such lien in,
legal proceed~ngs which operate to prevent ~he en(urcemen~ ot thc lien or (orfeiwre of the Property or any part thereof.
S. Hazard Insurance. Horrower shall ktep the ~mprovementti nov- e~isting or hereafter ettcled on Ihe Property insured
against loss hy fire, hazards included withm the term "c~tendeJ coverage", and such other hazards as Lender may reywre
and in such am~~unts and for surh periods as l.ender may reyuire; provided, that Ler~der shall not require that the amount of
such corerage excced that amount of coverag~ reqwred to pay the sums ucured ~by th~s Mortgage.
'il~e ~nsurance carner providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
tbat such approval shall not be unreasonahly withheld. Alt prem~ums on insurance polic~es shall be paid in the manner
provided under par:+graph 2 hereof or, if not pa~~i in such manner, by Borrower making payment, when due, dircctly to the
insurance carrier.
All insurance pulicie. and renewals therrot shall tx in form acceptable to LenJer and shall include a standard mortgagt
clauu m fa~•c~r ~f and ~n form acceptable to l.ender_ Lender chall ha~~e the right to hold the policies and renewals thereof,
and Borrov-er sh.~lf promptly fnrmsh to Lender all rencwal nouces anJ all receipts of paid prcmium.. In the event of loss,
Bnrrower ~h:,ll g~~r pr~~mpt noucc to the ~niur.~nce carner and 1_ender_ 1_ender may make prcx~f ot loss if not made Promptly
hy Borrow•er
Unless Lender and Borrower otherw~k agree in w•rit~ng, insurance proceeds shall be applitd to restoration or repair of
the Property damaged, pro~•ided ~uch re,to:at~on or repair is economically feasible and the ucurity of th~s Mortgage is
not thereby impa~red lf such resior:~u~~n or repa~r ~s nut cconomically feasible or it the secunry of this Mortgage would
be ~mpa~red. the insurance pr.~ceeJ. shall be aPplied to the sums SecureJ by this Mortgage. with ihe excess, if an}•, paid
to Borrowcr It the Propert~ i~ ahan~l~~ned by Borrower, or it Borrower ta~ls lo respond ro Lender within 30 days from ~he
Jate noUCe ~c maileJ b~~ l.ender to Borrov-er that the ~nsurance carrier o1Ters to settle a claim for insurance bene6~s, 1_ender
n author~ted a~ c~~Uect anJ ~pply the insurance pr~ceedi at Lender's option either to restoration or repa~r of Ihe Propert~~
or to the sum, xeured hy Ihu Mortgage.
Unlesc LenJer and Borruwer utherv-i.e agree m wntmg, any such ~pplication of pro~eeds to pnnc~pal shall not e~tend
or poslpone the Jue date ~~t the m~~mhh~ .installment~ rc(erred t~- in paragraph~ I and 2 hereo( or change the amount ot
such ~nstallmen~, If under paragraph 18 hereof the Pro~.erty is acyu~red b} l.ender, ali nght, title and interest of Borr~wer
in aad tu an~ Ih~ur~nce policia anJ in and to the proceeds thereot resulung from damage ro the Properry prior to th~ srle
or acyuuit~on ~h,~l! pa~s to Lender ~t.• the eatent of the sums secured by this Mortgage immediately prior to such sale or
uqmsition.
6. Presena~eon 9nd ~tainlen~nce of Propertf: Les~seholds; Condominiums; Planned Unit Developments. Horrowcr
shall keep thc Property in gcwd repair and shall not cvmrpit y-•aste or perm~t impairmem or deterioration of the Property
and shall cc~mpl~ ~ith th~ provisions ot any lease ~f th~s Mvrtgagc is un a leaschold. If this Mortgage is on a umt in a
concio~imum ur ~ pl•anned un,t decelupment. Borrower tih~ll per(orm all of Borrower's obl~gations under the declaraUun
or coveoants creating or guverninF ~he cunduminwm or planned unit development, the by-laws and regulationc of the
conJomin~um or planned unit devel~~~~ment, a~d conslituent Jcxumentti If a condor~in~um or planned unit development
nJer n executed by Burrower and recvrdcd t~~gether with thi~ Mortgagc, the covcnants and agreements ot such ridcr
shall be incorpo~ated ~nta and shall ~mend and supplcment the co.enants anJ agreements of th~s Mortgage as ~t the nder
v-ere a part Fereof.
7. Proteetion o( I,ender's Security. If Barri.wer tails !n Exrturm the covenantc and agreements contained in th~s
Mortgage. i~r ~f any acnun ~~r prcxeed~ng ~~ ~~~mmencal .+hicn ma~rriall} .+fTrcts Lender's mterest in the Propert}~,
including. but n~~t limrteJ tu. eminent domain. ~n«~Ivenr~. a•de enf~~riement. ~•r arrangementc or pn~ceedings invol~ing a
bankrupt or decedent. then LenJer at LenJer', opuon, up~m nouce io Borrower, ma~ m:~ke such appearances. Jishurse such
sums and ~ake soch act~un a~ is nece~tiar~ tu protect Lender's interest, mcluJing. buI not limued to. di~bursement o(
reasonahte at~orney't tre. and eniry uM~n the Propcr~} ~o malc rcpa~r~. If t_ender rcyeiircd mortgage insurance as a
condnsim of -nal~ng thc I~~an .ccurc~l b~ thi~ ~t~~ngagc. B~•rn~wcr sh.dl pa~• thc prcmiums requireJ to mai~~ta~n such
inwrance in rf~e~t untd tiuch time a~ the reyuiremen~ (or ~uch in~uran;e ~erminatrs in :+ccordance w~Ih Borr~•wer's and
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