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Borrower arid I.tader oovenant and a~ree a~ folbMn: !
l. P~yaaent of Principal u~d Iateres~ Sorro~vrr dhsU prompt~y pay whea due the prind~al of and interest on the indebtedness ~
widenced by the Note. pe~ep~yment sad late char~es es provided in the Note, and the principal of and inte~est oa sny PLtare Advenc~ secured
by this Most~a~e. . ,
2. F~nd~ forTsses and Insur~nce. 3ubjed to applicable law or to a written waiver by Lender. Borrower ahall pay to l.ender on the day
mo~thly install~ne~ts of principal and interest ere payable under the Note, until the Note ia paid in full. a aum (herein "Fl~nd~'h equal to oas
twdith of the yearly t~es and asscssments which may attain priority over this Mortgage. and ground rente on the Property. if any. plue o~e~ '
twelflh of yearly p~emium installme~b for hasard insurance, plus onetwelfth ofyearly premium inatallme~ts for mortgage inaurance~ if any, ~
all s~ reasonably aatimated initially and fmm time to time by Lender on the basis of aaseasments and billa and reasonable ea4iinates thereoi ~
~ 1Le Fbnds shaU be heW in an inatitutioa the depoaita or accounta of which are insured or guaranteed by a Federal or State ageacy ~
(including LeAder if Lend~ is euch an institution). Lender ehaU appiy the Ftinds b pay said taxea, asseasments. inaurance permiums and
g[ound nats. Lender may not cherge for so holding and applying the P1~nds. analyzing said aocount, or vesifyin~ and oompiting ~aid
~a~aaneats and biUs. unles~ I.~nder pays Hotmv?e~ intenat on the ~nds and applicable law peanits Lender to make such a charge. Borro~ver
and Lend~ may agree in writing at tbe time of e:ecution of thia Mortgage that intereat on the Phnds ahall be paid eo Borrower~ aud unlew i
snch agreemeat is made or applicable lew requires such iatereat to be paid. Lendrr shall not be reqnired to pay Borrowa any intenst or !
earnings on the I~nda. Lender shall givs to Borrower. w~ithout charge, an annual acoounting oithe Funda ahowing credita and debita to the ~
Pbnds and the purpose for which each debit to the ~nds vyas made. The Funds are pledged as additional aecurity for the sums secured by thi~ .
Morigage. ~ ,
If the amount oithe P1~nds held by I.ender. together with the tuture monthiy installments of FuAda payable prior to the duedates of tazea,
es~eesments. insnranoe preaaiums and ground renta, ahal! e:caed the amount required to pay esid tazea. aaseeamenta. insurance premiums `
and ground rents as they fall due. auch exceas shell be, at BorrQwer
a option, either pmmptly repaid b Borrower or credit~ed to Borroweron
monthly installmenta of Fhnda. If the amount of the Runda held by I.ender shall not be aufficient to pay ta~ces. eseeasments~ inenrance
premiums and gronad rents as they fall due, Bormwer ahall pay to I.ender any amount necessary to make up the deficiency within 30 days '
from the date notioe is taailed by Lender to Borrower requesling payment thereof. -
Upon payment in fnll a~all suma secured by this Mortgage, Lender ahall promptlyrefund to Borrower any fiinda held by I.ender. If under
paragraph 18 hereof the Propesty ia eold or the Propetty is otherwiee acquired by I.ender; Lender ahall apply. no later than immcdietely pri~ '
to the sak af the Ptoperty ar its aoquiaition by Lender, any Ftrnda held by Lender at the time of application as a credit against the sums secared
by this Modgage.
3. Application o! Payments. Unless applicable law provides otherwiee. all paymenta received by Lender under the Note and
paragrephs 1 and 2 hertof shall be applied by Lender first in payment of amounts payable to I.ender by Bormwer under paragraph 2 hereof,
then to intereet payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances.
4. Charges; Lieas. Borrower ahall pay all taxes, assessments and other rharges, fines and impositions attributable to the Property which
m~y attain a priority over this Mortgage, and teasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofos,
if not paid in auch manner. by Borrower making payment, when due, directly to the payee thereof. Borrower sha1) promptly furnish to Lenda
aU noticea of amounts due ~nder this paragraph, and in the event ~3orrower shall make payment directiy, Borrower ahall promptly fumiah to
( Lender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided. that i
Borrower shall not be required to discharge any such lien so long as Eiorrower shall agree in writing to the payment of theobligation secured by ;
I such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, ordefend enforcementofsuch lien in, legal proceedings
which operate to prevent lhe enforcement of the lien or forfeiture of the Property or any pari thereof.
I 5. Hazard Iasurance. Borrowrer shall keep the improvements now existing or bereafter erected on the Property inaured againatloea by
fire. hazarda included within the term "extended coverage," and such other hazards as l.ender may require and in such amounts and f~anch '
periods ae Lender may require; provided. that Lender ahall not require that the amount of auch rnverage ezceed that amount of rnverage ;
required to pay the sums secured by this Mortgage.
'11~e insurance carrier providing the insurance shall be chosen by Korrower subject to approval by l.er~der; provided, that sach appmval
ehall not be unreasonably withheld. All premiums on insurance policies shal) be paid in the manner provided under paragraph 2 hereof or. if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. • '
All insurance policies and renewala thereof sha11 be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form accepLable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower ahall promptly farniah to
~ i.end~ all renewal noticea and all receipts of paid prnmiuma. In the event of loss, Borrower shall give prompt notice to the inaurance carrier
' and Lender. Lender may make proof of loaa if not made prompUy by Borrower.
Unlesa Lender and Borrower otherwiee agree-in writing, insurance proceeric ahall be applied to restaration or repair of the Property
damaged, provided such restoration or repair is economically fefsible and the~security of this Mortgage ia not thereby_ impaired. If such
restoration or repair is not economically feasible or i[ the security of this Mortgage would be impaired, the insurance pmoeeda shall be applied
to the auma secured by thia Mortgage, with the excess, if any, paid to I3orrower. Itthe Property is abandoned by Borrower, orif Borrower fails to
j reapond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier offera to eettle a claim for
~ insurance benefita, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or the suma eecured by this Martgag~.
( Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not e~ctend or poetpone thedue
date ot the monthly inatallments referred to in paragraphs 1 and 'l hereof or change the amount of such installments. If under paregraph 18
~ hereof the Property ia aoquired by Lender, all right, title and interest of Bormwer in and to any insurance policiea and in and to the prooeeda
thereof reeulting from damage to Piroperty prior to the sale or acquisition shall pass to Lender to the extent of the awns secured by this
~ Mortgage immediately prior to such sale or acquisition. ~ :
6. Preeervation and Maintenanceof Properiy; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep
~ the Property in gaod repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the
i proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development,
~ Borrower aha11 perform all of Borrower e obligations under the declaration or rnvenants creatingor governing the condominium or planned
~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent documente_ If a
~ rnndominium or planned unit development rider ia executed by Borrower and recorded together witk thie Mortgage, the oovenente and
agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementaofthis Mortgageasifthe
~ rider were a part hereoL '
~ 7. Protection of Lender's 3ecarity. If Borrower fails to perform the covenants and agreemenee contained in thie Mortgage, or if any
~ action or prooeeding is commenoed whieh materiapy affecte Lender e interest in the Property, including, but not limited to, eminent domaia,
( iasolvency, oode enforcement, or arrangements or proceedinge involving a bankrupt or deoedent, then Lender at Lendd~ option,apon
~ noticx to Borrower may mal[e such eppearanas. disbnree auch eiuns and take such action aa is neceseary to protect I.a?der'~ intere~t,
including, but not I~mited to, disbursement of reasonable attorney's fees aad entry upon the Property to meke repain. [f Lenda reqaised
I mortgage insarence es a condition of making the loan secared by thie Mortgage, Borrower ahell pay the premium~ requieed to meint~in
wch insnrance in effect nntil such time as the requirement for auch inaurance terminatee in accordance with Borro~rer'~ snd Lendd~
written agreement or appiicabk Law. Borrower shall pay the amount of all mortgage inaurance premiums in the manner provided unda
paragraph 2 hereof.
My amounts disbursed by Lender persuant to~ this paragreph 7, with interest thereon, ehall beoome additional indebtednea~ of
~ Borrowet secnred by this Mortgage. Unleas Borrower and Lender agree to other terma of payment, such amounb ~ball be payabk npon
notice from Lendrr to Borrower requeating payment thereot, and ahall bear intereet from the date of diebunement at the rate psyabk trom
time to time on outstanding principai under the Note unless payment of intereat at such rate would be aontrary b applicabk law, ip which
event such amounta shall bear intereat at the highest rate permissible under applicable law. Nothing oopta'v~+n~b~ paregraph 7. ~ha11
, require I.ender to incur eny ~pense or tal~e any action hereunder.
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