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UN~FOnnt CoveN~NTS. So~mwer a~d 4ender covenant and agra u tollows:
l. la~ment of Priacip~l and 1Meresl. Bo~rower shall promptly pay when due tt~c principal ot and interest on the
indebtedneu evidenced by the Note. prepayment and late charges as proviJed in Ihe Note. and the principal of and intercs~
on any Future Advances secured by this Morlgage.
2. Fuads to~ Tua ~nd lnwnece. Subject to applicabk law or to a written waiver by Lender. Borrowe~ shall pay
to Le~der on thc day monthly i~stalime~ts of principal and inte~ect are payablc under the Note. until the Note is paid in full.
a aum (hercin "Funds") equal to cMC-twelfth at ttk yeariy ~axes and assessments which may attain priority over this
Mortgage. and ground rents on the Prope~ty. if any, plus cu~atw~l(th of ~early premium iostallments for hazard insurance.
plus one-twelfth of yearly premium installmcnts fo~ mortgage insurance, it any, all u reasonably estimated initially and from
time to time by I.ender on thc basis ot assessments a~d bills and reasonablc a~imata thereof.
The Funds shall be held in an institution the depasiu or acrnunts o( which are insurcd or guaranteai by a~cderal or
state agency (including I.ender if Lender is such an irutitution). I.ender shall apply the Funds to pay said taxes. assasments.
insurance premiums and ground rcnts. I.ender may not charge lor sa holding and applying the Funds, analyzing said account,
or verifying anci compiling said assessments and bills, unless t_ender pays Borrower interest on 1he FunJs and applicable law
permits Lender to make such a charge. Bor~owe~ and I.ender may agree in wriliog at the time ot executio~ o[ this
111ongage that interest on the Funds shall t+e paiJ to Borrower, and unless such agreement is made or applicable law
rcquira such interest to be paid. l_cnder shall not tx reyuired to pay Rarrower any inter~st or earnings on the Funds. Lcnde~
shall give to Borrower, without charge, an annual accounting o( the FunJs showing credi~s and debits to the Funds and the
purpose f~r which each debit to the Funcis was made. The Funds are pleclged ~s additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lendcr, togcther with ~he future monthly installments of Funds payable prior to
the due Jates of ~axes, assessments. insurance premiums and ground rents, shall excceei the amouot required to pa~~ said taxes.
assessments, insurance premiums and ground rents as thcy (all due, such exceu shall be. at Borrower's option, either
promptly repaid to Borrower ot credited to Sorrower on mon~hly installmcnts of Funds. 1( the amount uf thc Funds
held by Lender shall not be sufficieM to pay taxes, asses.smcnts, intur~ncc premiums and ground rents as thcy fall .due,
Borrower shall pay to Lender any amount neceawry to make up the dcficienc~ within 30 da~•s from ~he date notice is mailed
by Lende~ to Borrowe~ requesting payment thercof.
Upon payment in full of all sums secured by this Mortgage, l.cndcr shall promptly ref~md to Borrow•er any Funds
held hy I.ender. lf under paragraph 18 hereof ~he Property is sold or the Propert~• is ahervvise acq~iired by l.ender, !_ender
shall apply, no latcr than immediatcly prior ~~ the sale of ihe Property or its acquisition hy Lcnder, any Fundx held by
Lender at the time of application as a creJit aga~~st the aumti secureJ b~~ this Mortgage.
3. Application of Paymeats. Unless applicable law provi~es otherw•ise, all payments recei~~ed by 1_ender unJer the
Notc and paragraphc I and 2 hercof shall be applied by Lendcr first in paymcot of amuunts pa}~able to Lcndcr hy Borrovrer
under paragraph 2 hereof, then to~interext pa~•ablc ~n thc i~iutr, thc~ ~o tM; principal of the Note, anJ then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrow•cr shall pay all taxcs, a~sessments and othcr chargcs, fines anJ im{xnitions auributahle to
the Property w•hich may attain a priority over thic Alortgage, and leasehold paymcnts or ground rents, if any, in the manner
pro~~ided unckr paragraph 2 hereof or. i( not pai.~ in such manner, by BQrrower making payment, when due, directly to the
payce thrreof. Borrower shall promptly furnish to Lencier all notices of amounts due under th:s paragraph, and in the event
Borrow•er shall make papment direclly. Borrower shall promptly fumish to l~nder receiptc c~•idencmg such pa~ments.
Borrower shall promptl~ discharge any lien which has priority over this Murtgrge: prov~ded, that Borrower ~hall not be
required to Jixharge any such licn so long as Borrov-•er shall agree in Kriting to Ihe paymcnt uf the obligation secured by
such lien in a manner acceptable to Lender, or shall in gaxl faith conte~! soch lien hy, or defend enforcement of such lien in,
legal proceedings which oper~te to prevent the enforcement o( ~he lien or torfeiture of the Propert~• or am• part thereof.
5. Hazard Insunnce. t3orrower shall kcep ~he ~mprovement. n~w cti~ung or hercaftcr crcrted on thc Propcrty insured
•rgainst Icxs b~~ fire, hazards included within the tern~ "ertended L'OYCf:IRI", anJ such other hazardc ac I.ender may reyuire
and in such am~~unts and for surh periods as Lender may reyuirc; ~rovided. that I.cnJcr thali n~~t require that ~he amount of
such co~•crage cticccd thal amount ~f rn~~cragc rcquircd to pa}• thc sum~ cccorcd b}• ~hi~ ~for~gagc.
The insurance rarrier providing tFx: insurance shall be choun by Borrowcr si~bject to appro~•al b}~ t_ender, provided,
that surh approval tihall not be unreawnably withhcld. All premwm. on insurance policies .hall lx paiJ in the manner
provided under paragraph 2 hercuf ur, if not p:~id in such manner, b} B~~rrower making payment, when due, JirecUy to the
insurance carrier.
All insurancc policics an~f rcnc~als thcrc~f ~hall tx: in fomi .+rccpt~blc to LcnJcr and shall in~ludc a stanJarJ mortgagc
clause in favor of and in form accept~hle to I.endcr. Lrnder ~hall ha~e the right ta hold ~he pelicies and reneMals thereof.
and Borrow~er shafl promptl~• furnish to Lender all ren~wal notices anJ aU receipts of paid premium+. In the event of loss.
Borrower shall give prompt notice tu the inwrance rarner :~nd Lender. LenJrr may ma1:e proof of loss if n~t made prompU~~
by Borrower.
Unless 1_ender and Borrov-~cr othen.~x agrcc in ~nting, intiuranre prorecds shall be applied to restoration or repair of
the Property Jamaged, proviJed such restoration ur repair ~s econamically feasible and the security of this Mortgage is
not ~hereby impaired. If such restoratiun or rep:+ir is n~~t cc~-numicallp fcasible or if the security of this 111ortgage vvould
be impaired, the insurance proceecls shall be •rpplied to the sums secured by this M~rtgage. w•ith the eacess, if any, paid
to Borrowcr. 1( the Propem• is abandoneJ hy Born.wer. or it Borr~~wcr fails to respond to !_endcr within 3U days trom the
date notice ic mailed by l.ender to Borrower that the inwranee carrier ofiers ~o settle a claim for insuranee benefits, l.ender
i~ authorizeci to collect and appl}• the inwrance proceeds at Lender's option either to restoration or repair of the Property
or to the sum~ sccured by this Mortgagc_
Unlesc LenJer and Borruw•er othen+itie agree in v-riting. an~• such appliration of pnkeeds to pnncipal shall not extend
or p~xtponc ~he due date of thc m~nthl~• imtallments referred a~ in paragraphs I anJ 2 hercof or chanRe the amount of
such installments. If under paragraph l8 hereof the Property is acywred b}~ I.ender, ali nght, tidc and interest of Borrower
in and to any iasuran~e poficies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acyui~ition shall pass to Lender to the e~tent of the sums secured by thii Mortgage immediately prior to such sak or
acquisition.
6. Preser~ation and ~iaintenance of Propert~; I.easeholds; ('ondominiums; Planned Unif Ik~elopmenls. Borrow~er
shall I:eep ~he Property in gooci repair and shall not commit waste or permit impairmen~ or deterioration of the Property
and shall comply~ with the provisions of any lease if this Mortgage is on a Icau:hold. If this Mortgage is on a unit in a
conJominium ur a planncd unit devclopment, Borrow•er shall pcrfurm all of Borrower's obl~gauons under the dcclaration
or -ovenants crcating or govermng thc condominium or planned unit development, the by-laws and regulations of the
con m~nium or planned unit development, and constituent documents. If a conduminium or planned unit development
nde is executed by liorrower and recorded tugether w•i~h this Mertgage, the covenants and agreements ot such rider
shall be incorporateJ into and shail amend and supplement the covenants anJ agreements o[ ~his Mortgage as if the rider
-+cre a part hereof.
7. Protection of I.ender's Security. 1f Borrow~er (ails to perform the covenants and agreements contained in this
Mongage. or i( any action ur proceeding ~c commcnced which materialh• aBec~s 1_enJe~ s interest in ti~e Property.
includmg. but ncH limited to, eminznt domain, insc-h'Cncy, codt eniorcement, or arrangements or pruceedings invoh~ing a
bankrupt or Jecedent, then Ixnder at !_enJer's option, upon notice to Borrower, may make such appearances. Jisburse such
sums and ttke sueh action as is neces~ar}• to proteet l.enders mterest, incl:zJing. but •ryu~ ~imiled t~ disbursement o(
reasonable auorney S fces and entry upon the Property to makc rcpairs. It Lcnder required mArtgage insurance as a
condition of malcing the loan secured b}~ ~his Mut7g:~Rc. Borruuer shall pay the premiums required to mainta~n such
insurance in effect until soch time as the reyuirement for such msurance Ierminales ~n accordance w~th Borrower s and
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