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Bo~row~r and LeAder oovenant and a~ree u foUow~:
1. Psyaeat o! Principal and Intee~est. Borrowes ahap prompdy ~+ny when due the principal of and interest on the indebtedneaa
evidenced by the Noie, prcpayment and late char~e~ e~ provided ~n the Note, and the principal o[and intereat on any Ebture Advancea ~ecured
by this Mort~a~e.
2. Ftitnda tor Ta=er uid Ia~uraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall ;.ay to I.ender on the riey
monthly lnatallmen4 of principal and inte~R are pqyable ander the Note, until the Note is paid in full, a sum (herein "~nda") equal to onc
t~velRh ot the ya?c13r taxes and assessments which may attaia priority ove~ this Mortgage, and ground reota on the Property, itany, plus ono-
twelRh otyeerly prea?ium installmente for haaard insurance, plua onttwelRh of yearly premium inetallmente fo~ mortgnae inaurance, i[any,
all as n~asonably e~timated initially and frocn time to time by L.er~~eron tt~e basie of aasesaments und biUs ai:d reasonable eatimatea thereof.
71.e P1ind~ sha11 be beld in an in~4tution the depoeita or accounts of which are insured or guarantt3d by a Federa) or State agency
(inciuding Lender if Lender ie such an institution). Lender ahall apply the Funda to pajr said taxes, asaeesments, inaurance premiums and
ground rente. Lend~ may not char~e for w holding and applying the ~nds, anatyzing said account, or verifying and ccmpi:ing said '
asaeesmenta aad bilb. unlesa Gender paya Borrowe~ intereat on She Ftinds and applicable law permita L.ender ta make auch a charge. Borrower
and Laidet may e~ne in r+ritin~ at Ihe time of e:ecution of this Mortgage that intereat on the Funda shall be paid to Borrower, and unleea
sach a~reemeat u made oc applicable law requires such interest b be paid, l.ender shall not be requind ta pay Borrower any interest or
earnin~s on the Flinda. Lender ahall give to Borrower, without charge, an annual acooun•' ig of the Funds ahowing credits and de5its to the
Fundi aad the purpose for ~rhich eac1~ debit to the Funda wae made. The F unda are pledged aa additional eecurity fur t~,; aums aecu~ed by this
Mortgage.
If the amount otthe ~nds tidd by Lender, together with the fnture monthly inetall~enta of Funde payable p~io~ to the due dates of taxes,
esaessmeat~, ineurancr premiuma and ground renta, ehall excx~ the amount required to pay said taYea, asaeesments. inaurance preaeiwna
and ground rents as they ta11 due, ~uc6 e:oesa a}:all be, at Borrower'e option, either promptly npaid to Borrower or credited to Borroweron '
monthly instalmemis of Funds. If the amount of the Funds held by Lender ahall not be sufficient to pay ta~cea, aseeeamer.ts, ineurance
premiums and gtound rents as they fall due, Borrower ehali pay to Lender any amaunt neceasary to make up the deficiency within 30 day~
from the date ac~tice is mailed by Lender to Borrower requenting payment thereot. ,
Upon p:.yment in full of ai1 sums aecured by this Morigage, Lender ahall pmmpdy refund to Borrower any funda held by Lender. If under
paragraph 1$ hc~reof the Property is eold or the Property is otherwiee acquired by I~nder, Lender ahall apply, no later than immediately prior
to tne sele of the Property or ite aoquisition by Lender, any Funde held by I.ender at the time of application as a credit againet the eume secured
by thia Mortgege.
3. Applieation of Payment~. Unlesa applicabte law provides otherwise, a{1 paymenta rnceived by l,ender under t6e Note and
paragraphe 1 and 2 hereof shalt be applied by Lender firet in payment of amoants 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. C6arges; Liene. Borrower ahall pay ali taxea, assessments and oiher charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ~cround rents, if any, in the munner provided under paragraph 2 hereof or, f
if not paid in auch manner, by Borrower making payment, when due, dirertly to the payee thereof. Bormwershall promptly furnish to Lender
all notices of amounts due under this paraQraph, and in the event Borrower shal) mak~ payment directiy, t3ormwer shall promptly fumish to
Lender receipts evidencing such paymants. Borrower ahall promplly discharge any lien which has priority over ihis Mottgage; provided, that
Borrower shall not bereq~ired to dischazge any such lien so long as l3orrower shnll agree in writinR to the payment o[the obligation secured by
such lien in a manner acceptable to Lender, or shal~ in good faith contest such lien by, orde[end enforcement of such lien in, legal proceedinga
whicfi operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereuf.
5. He~ard Insurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured ngainai io6s by ~
fire, hazarda included within the ter?n "extended coverage; ' and such other hazards ss Ixnder may req aire and in such amounts and for such }
periods as I.ender may require; provided, that [xnder shall not require th~t the amount af auch coveragP excee+d that amount olcoverage ~
required to pay the sums secured by this MortRzgP.
~ The insurance cartier providinR the in~urance shall be chosen by ~~rrow•er subject to approval by I.rnder; p~~~•ided, that such approval
~ sha11 not be unreasonably withheld_ All premiums un insuranc-e p~dicies sh.ill be paid in the manner provided under paraRraph'L hereof or, if
{ not Qaid in such manner, by Borrower makin~ payment, vrhen due, directiy tn the incurance carrier.
! Ali inxurance policiee and rrnewals thereof shall be in forn~ acceptable to l.ender and shall include a standard morLgage cta~.se in favor of
and in form acceptable to Lender. Lender ahall nave the right to hold the po:icies and renewals thereoi, and f3orrower shall promptly furnish to
I ixndet all renewal noticee and all receipts of paid premiums. In the event of loss, E3~rn>wer shall give prompt notice to the inaurance carrier
and Lender. Lend~r may make proof of loss if not made promptly by Aarrower.
Uniese Lender and Bortower other~+ise agree in writinR, insurance proceeds shall be apolied to reatoration or repair of the Property
damaged, provided auch reistoration or repair is economically feasible and the security of this Mortgage is not thereby impaired_ If auch ;
reatoration or repair is not economically feasibie or if the securily of tfiis Mor~.gage would be impaired, the inaurance proceeda shall be applied ~
to the eums eecured by this Mortgage, with the excess, if any, paid to f3orrower. If the Praperty is abandoned by Borrower, or if Bnrrower fails to :
respond to Lender within 30 days from the date notice is mailed by I.ender to E3orrower that the insurance carrier offers to settle a claim for ~
ineursnce benefits. Lender is authorized to collect and apply the insurance proceeds at [.ender'a option either to reatoration or repair of the
Property or the suma secured by this Mortgage. i
Unlc~-e Lender and Borrower otherv?ise agree in writing, any such application of procee~ to principal shall not extend or postpone the due
date of the r~onthly inaiallmente referred to in paraqrapha 1 and 2 hereof or change the amount of auch inatalimenta. [f under paragraph 18
hereof the Properiy ia acquired by Lender, ali right, title and interest of Borrower in and to any insuranre policies and in and to the Droceeda
thereof rnaulting from damage to Property prior to the sale or acyuisition shall paxs to Lender to the eztent of the sums secured by this
~ Mortgage immediately priot to auch sale or acquiaition.
6. Preaervetion and Maintenence of Property: Leaseholda; Condominums; Plenned Unit Developmente. Borrower snall keep
the Propetty in gocrd repair and ~hall not commit •.vaste or permit impairment or deterioration of the Property and shall comply with the
provieiona of sr~y leaar ~f this Mortgage is on a leasehold. If tliis 19o~gaKc is on a unit in a condominium or a planned unit development,
Bonower ehall prrform a11 of Fionower's obligations under the derlaration orcovenants creatinKor govern~ng thecondominium or planned
unit develnpment, the by-lawa and regula:iona of the condominium or planned un~t development, and conetituent documente. If a
condominium ar planned unit developinent rider is executed by Borrower and recorded toRether with this Mongage, the covenante and
agreements of auch rider shall be incorporatrd into and shal l amend and supplement the co~•enartts and aEtreementa of this Mortgage as if the
rider were a part hereof. .
7. Protccfion of Lender's Security. If Bonowe* fa~le to p~rfarm the covensnte and agreer~ente rnntained in this Martgage, or if any
i action or prw, eeding ie commenczd which materialiy affects i.ender'a iatereet in the Property, including, t~ut not limited to, eminent domain,
~ ineolvency, oode enforcement, or arrangemente or proceedinga involving e bankrupi or decedent, then Lender at L.ender's option,upon I'
I noace tc? Borrower may make such appearances, diaburee euci~ aume and take ench acti~n ae is neceaeary W protezt Lender's intere~t,
, including, but not limited to, diebursement oi reaaonable attorney'e feea und entry upon the Property :o r,iake repairs. If Lender required
I morigage ineurance sa a candition of making the loan eecured bg this Mortgage, Borrower ehall pay thE prer~iucr.a required to maintain
euch inaurance ir~ etfect until auch time ae ihe requirement for euch inaurance terminates in accordance with Borrower'e and I.ender's
H.Titten agteement or applicable Lnw. Barrower ehaU pay the amount af all mortga8e ineurance premiumr in the msnner provided under
' paragraph 2 hereof.
~ My amounta diebursed by Lender perauant to tnie paragraph 7, with intereat thereon. ehali become additional inaebtedness of
~ Borr~wer aec~uted by thie Morigage. Unleae Borrower and I.ender agree tu other ternns of payment, auch smounte shall i~e payable upon
~ notice from i,endet to Sorr~vrer requeeting payment thereof, and aball bear intereat from the date of diaburaement at the rate payable from
time to time or, outetanding principal undst the Note unlesa payment of interest at such rate would be contrary to spplicable iaw, in which
' e,vent euch amounte shall bear ir_terest at the highest rate permiaeible under applicable iaw. Nothing cantained in thie paragraph 7, ehall
' require Lender to incur any expenee or take nny action hereunder. .
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