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UNIlGR1~! COYBNAtiTi. Hotrower and Lcade- covenant and a~rce u follows:
1. ~we~t ol hi~c}~I a~i Ide~eN. BorroMrer shall ~uomptl) psY when due the principal ot and i~terest on the
indebtedness evideaoed by the Note. p~epaymeM aod lale chargec ac provided in Ihe Note, and tl~ principal ot and ~n~e~st
cn anr Future Advances secured by this Mongate.
2. Fti~i tor Taa wi l~ars~c~e. Subject to applicabk law u~ to a written waiver by I.ende~. Borrowe~ shaQ PaY
to Lendw on the day mon~hly installments of principal and intcrcst are payable under the Note. until the Note is paid in full,
a sum (hereio "Fw~dt'7 equal to one-twelfth ot the yea~l~ tax~~ an~! assasments which may attain priority ove~ this
Mortjaje. and =round re~ts on tbe Property. if any, plus one-twelfth ot yearly premium install~nents for hazard inwrance.
plus oae-tweltth of ywrly prcmium instaltmen~s tor moMgsge insurance, it aoy. all u rcuonably estimated initially aod tt~om
time to time by Leuder on the buis ot assasmcots and hills and rcasp~abk estimata thereof.
'Ibe Funds shall be held in an institution the depaits or accounts of ~rhich are insured o~ guaranteed by a Federal ot
state age~cy (includina Leodet if Lender is such an institution). I.ender shall apply 1he Funds to pay said taxa. assessments.
it~suranoe premiums atid grouod rcnts. I_ender may not charge for so holding and applYinB the F~~odc, analyzing said account.
or veritying sod rnmpilin6 uid asxssments a~d bills, unkss l.ende~ pays Borrowe~ interest on the Funds and applicable law
permits L,ender to make such a charge. Borrowe~ and Lender may agroe in writing at the time ot execution ot this
Mortgaae that interat o~ the Funds shall !+e paid to Borrower, and unlas such agrcement a made or applicabk law
requires such interat to be paid, Lender shall not be rcquired to pay Bo~rower any intercst or earnings on the Funds. Lende~
shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Fuods and the
purpose for which eae6 debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortaa~e.
If the amount of the Fur~ held by l.ende~, together with the future munthly installments of Funds payabk prior to
the due dates of taxes. assessments. insunnce prcmiums and ground rcnts, shatl exceed the amount required to pay said taxa.
asse~ments, insunnce prcmiums and ground rents u they fall due, such eacess shall be, at Borrower's option, either
prompily repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of ~he Funds
held by Leader shall not be suificieat to pay taxes. assessments, insurance premioms and ground rents u they (all due,
Borm~ve~ shall pay to Lende~ a~y amou~t ~ecesury to make up the deficiency within 30 days trom the date notice is mailed
by Lender to Borrower requating payment thereof.
Upon pay~neat in full of dl sums securcd by this~+Mnrtg~Q ~Leude~ ~p~omp~~g rcfund to Bo~rower any Funds
heW by Lender. If under parsgraph 18 hercof the PropeAy i~ sold or 4he Pro rty ~ otfitfwise acquired by Lender, Lender
s6d1 spply, no later than immediately prior to the sale o[ the Propeny~or'~~'Cqyis~tion by Lender. any Funds held bv
Leader at thc time of application as a credit against the sums secured~ by tnis ~{ortgase. ,.
3. Applicatio~ of P~~ewfs. Unless applicabk law provida otherwiu. all payments received by Lender under the
Note aad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. t6en to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Futun Advances.
1. Cbarta; Lkas. Borrower shall pay all ~axes. assessmc~ts and othcr charges, fines and impositio~s attributable to
the PropeRy which may attain a priority over this Mortgage, and leasehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when ~ue, dircctly to the
payee tlureof. Borrower shall promptly furnish to LenJer all notices of amounts due under this paragraph. and in ihe event
Borrower shall make payment directly, Borrower shall promptly turnish to Lender receipts evidencing such paynxnts_
Borrower shall promptly discharge any lien which has priority over th~i Mortgage; provided, that Borrower shall not be
reyuired to discharge any such lien so long as Bo~rower shall agree in v-•ritmg to the payment of the obligation secured by
such lien in a manner acceptable lo Lender, or sh:~ll in good faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement o( the lien or torfe~wre of the Property or any part thercof.
S. Haiard Insnrance. Borrower shall keep the ~mprovements now• eaisting or hereafter erected on tha Property insured
agtinst loss by fire, hazards included withm the term "extended coverage", and such o~her hazards as Lender may require
wd in such amounts and for such periods as Lender may requirc; provided, that Lender shall not rcquire that the amount of
such rnverage eaceed that amount of coverage required_ to pay the sums secured ~by this Mortgage.
"Ihe 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 premiums on insurance polic~es shall be paid in the manner
provided uoder parag~aph 2 hereof or, if not paid in such manner, by Borrower mak~ng payment, when due, directly to the
insurance curier.
Alt insuranee policies and renewals thereof shall be in form accept:~ble to Lender and shall include a standard mortgage
clauu in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew~als thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts ot paid prcmiumc. In the event of loss.
Borrower shall give prompt notice to the insurance carner and l.ender. Lernler may make pr«-t of loss if not made prompUy
by Borrower.
Unless Lender and Bonower otherwise ag~ee in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restora~ion or repair is economically (easible and the security of this Mortgage is
not thercby impaired. tf such rcstorat~on or tepair is not economically (easible or if the security of this Mortgage would
be impaired, the insurance procteJs shall be applied to tt~e sums secureJ by this Mortgage, with the eacess. if any, paid
to Borrower. If the Properry is abarxioned by Borrower, or it Borrower fails to respond to 1_ender within 30 days (rom the
date notice is maded by l.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is'authoriud to collect and apply the insurance proceeds at 1_ender's option either to restorat~on or repaer of the Propertv
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree ~n wntiog, any such application of prxeeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphti 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the ProE,e[ty is acywreci by Lender, ali nght, title and interest of Borrower
in and to any insurance policies and in and to thc proc:eecis thereof resulung from damage to the Propeny prior to thc sale
or acquisition shall pass to Lender tu the extent of the iums aecured by this Mortgage immediatFly prior to such sale or
acquisition.
6. PreSer.vatan and ~taintea~nce of Property; I.easehulds; Condominiums; Pl~nned Unit Devtlopmenls. Borrowcr
shall kcep the' Property~ in good repair and shall nat comrpit y~aste or permit impairment or deterioration of the Property
and shall comply with the provis~ons of any lease if this Mor~gage ~c on a leasehold. If this Mortgage is on a unit ~n a
condominium or a planned unit cievelupment, Borrower shal[ per(orm all of Borrower's obligations under the declaraaun
or covenants creatiog or governmg the condominium or planned imit development, the by-laws and regulations of the
condominium or planned unit develo~,ment, and constituent documem~. If a cundominium or planned unit Jevelopment
rider ~s execuled by Borrower and recorded together w~th thi~ Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplcment the covcnants and agreements of this Mortgage as if the rider
wcre a part t~ereof.
7. Protation of I.ender's Security. If Borrawer fa~k t~~ per(orm the covenants and agreements contained in this
Mortgage, or if any action or proceeJing ic commenced which materially~ aficc~s Lender's interest in thc Proper~}~,
including, but not hmited to. eminent domain. inw•lvenc~. cocie enfurrement. ~~r arrangements or proceedings invol~~ing a
bankrupt or deceden~. then I.ender at I.ender's op~ion, upon not~ce to Borrowe~, ma~~ make such appearances, disburse such
sums and take such ac~ion ~s is nececsary tu prolect I.ender's ~nterest, including. but not limrted to, disbursement ~f
rcasonable attorney'~ fees and entry u~xm ~hc Propcr~y ~o makc rcpain. I( I.cnder reyuircd mortgage in~urance as a
cond~tion of making the loan ~ecured by th~s Ator~gage. Borrower sh.dl pay the premiums requ~reJ to mainta~n such
insunnce in efTect until such time as the reyuiremem (or wch insuran,e terminatcs in accordanee with Borrower'S and
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