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UN~FOUN Cov~NeNTS. Borrowe~ and I.enJer covenan~ and agree as tollows:
1. h,rmeat of Priacipal aod lat~nsl. Barmwet chall pmmptl~• pay when due the principai ot and interest oo the
indebtedness evidenced by the Note. prepaymeot a~d late chargec az provided io the Note. aod Ihe principsl of and interest
on any Futurc Advances securod by this Mortgage.
2. Fdads tor Tua aad lns~raace. Subjecl to applicahk law ~~r to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly inslallments of principal aiid mt~rcc~ rre payahlc unJer thc NMC, until the Note is paid in full.
s sum (herein "Funds") equal to one-twelt~h of thc yearl~ ta~~. anJ acussmeMs which may attain priarity ovcr this
Mortgage, and grouod rents on the Prope~ty, if any, plus cu~e-twclfth of ycarly premium installments for hazard insurance,
plus one-twelfth of yearly premium instaNments for mongage insurance, it any, all as reasonably estimated initially anJ from
time to time by i.ender on the basis of ~sscssments and hiqs and ~ca~onable eslima~es thereof.
The Funds shall be held in an ins~itutii~n ~he deposu~ or accounts ot which are insurcd or guaranteed by a Federal or
state agency (i~cluding Lender if Lcndcr is such an institution). I.cnder ~hali apply Ihe Funds to pay said taxes. assassments.
insurance premiums and gnwnd rcnts. I.ender may not charge lor so halding and applying ~he Fundc. aoalyzing said account.
or verifying and compiling said assessments and bills, unless t_ender pays Borrower intsrest o~ the Funds and applicable law
permits L.ender to make such a charge. W~rrowe~ and l.ender may agree in writing at the time af execution of this
Mortgage that interat on the Funds shall he paid to Borrower, and u~less such agreement is made or applicable law
rcquires such interat to be paid. t.ender shall no1 t+e required to pay Barrower any interest or earnings on ihe Funds. l.ender
shal! give to Borrower, without charge, an annual accounting of the Funds showing credits a~d debits ta the Funds and the
purpoae for which each debit to the Funds was made. The Funds are Pledged a~ additional security for the sums secured
by this Mo~tgage.
lf the amount of the Funds hetd by LenJer, together with the future monthly installments of Funds payablc prior to
the due dates of taxes. assessments, insurance premiums and ground ~eots, shall exceed the amount requircd to pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or credited to Borrower on momhly installments of Funds. If the amount of thc Funds
held by Lender shall not be sufficieat to pay taxa, assessments, insur:~nce premiums and ground rents as ~hey fall due,
Borcower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower rcquesting paymcnt thereof.
Upot~ payment in full of all sums secured by this Mortgage, I.ender shall promptly refu~d to Borrower any Funds
heW by I.ender. lf under paragraph 18 hereof the Property i~ sold or thc Property is othetwisc acquired by I_ender, Lender
s6a11 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 against the sums secured by this Mongage. _
3. Applic~loe of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amaunts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Cbar~es; Liens. Borrower shall pay all tases, assessments and other charges, fines and impositions attributable to
the Property which may attain a priocity over this Mortgage. and ieasehold payments or ground rents, if any. in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shalt make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly dixherge any lien which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligatiun secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or ciefend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Ha~rd tasurance. Borrower shall keep the improvements now• existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as l.ender may reyuire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage_
'I'he insurance carrier providing the insurance shail be chosen by Borrower subject to approval by Lender. provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or. if not paid in such manner. by &-rmwer makin~ payment; when d«e, directly t~ the
insurance carrier.
All insuraace policies anJ renew•als thereof shall be in form aceeptable to Lencier and shall include a standard mortgage
clauu in favor of and in [orm acceptable to Lender. Ixnder shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prumpt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompUy
by Borrower. -
Unless [.enekr and Borrower othen-•ic~; agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such rc~torat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. lf ~urh restora~ion or repair is no1 ea~nomically feasible or if the security of this Mortgage would
be impaired, tl~e insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid
to Borrower_ If the Propert~• is abandoned by Borrower, or i( Borrower fails to respond to Lender within 30 days from the
date notice is mailed by l,ender to Borrower that the insurance carrier ofiers to setile a claim for insurance benefits, Lender
is authorized to coiieci :.nd apply the imurancr procceds at Lender's optiun either to restoration or repair of the Propert~-
or to the sums secured by this Morigage.
Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installmeua. If under paragraph 18 hereof the Property is acquired by l.ender, 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 thr sale
or acquisition shall pass to i.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. •
6. Preservation a~d 111aintenance of Property; Leasehulds; Co~dominiums; Planned Uoit Devdopmeots. Borrowcr
shall keep the Property in good repair and shall not com~pit waste or permit impairment or deterioration of the Property
and shall comply with the provisions ~~f any lease if this Mor~gage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declarat~vn
or covenants creating or governing the condommium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or pianned unit development
riJer is executed by Borrow•er and recorded together w~th this Mortgage, the covenants and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protectioa of Lende~'s Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if aay action or proceeding is commenceJ which materially affects Lender's interest in the Property.
including. but not limited to, eminent domain, inu-Ivency, code enforcement, or arrangements or proceedings involving a
bankrupt or dec4dent. then I.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take sueh action as is necessary to protect Lender's interest, including, but not li~ited tR. ~lisbursement of
reasonable attomey's txs and entry upon the Property to make repairs. If Lender required mort~age insurance as a
condition of making the loan secured by this Mortgage. Borrowcr shall pay the premiums requirai to maintain such
insutance in eftect until such time as the requirement for such insurance terminates in aecordancP with Borrower s and
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