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Borrower and Lender covenant and agree sa iollowe:
1. Payment of Principal and Interest. Borrower ahali promptly pay when due the principal of and intereat on the indebtedneae .
evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal of and interest on any ~ture Advancea secured
by this Mortgage.
2. Funde tor Ta:ee and Ineurance. Subject to applicable law or to a written waiver by l.ender, Burrower ahall pay to l.ender on the day
monthly inetallmente of principal and interest are payable under the Note, until the Note ia paid in full, R sum (herein "Funds") equal to one
twelfth of the yearly ta~cea and axseasments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one .
tw~elfth otyearly premium inatallmentn for hazard insurance, plus onetwelfth ofyearly premium instnllmenta for mortgage inaurance, if any,
t~:l aa reasonably eatimated initia!ly nnd from time to tirne by Ixnder on the basie of assessments nnd billa and reasonable estimates thereof.
The ~?nde ahall be held in an inatitution the deposite o~ accounts of which are ineured ~r guaranteed by a Federal or State agency
(including Lender if Lender ia such an institution). Lender shall apply the Funda to p~y said taxea, asaesaments, inaurance premiums and
gi~ound renta. L.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said
asaeeamenis and billa, unleae Lender pays Borrower intereet on the Funds and applicuble law permits i.ender to make euch a charge. Borrower
and L,ender may agree in writing at the time of executi~n of thia Mortgage that intereat on the Funda ehall be paid to Borrowe~, and unieas
such agreement ia made or applicable law requirea such interest to be paid, I.ender ehall noi be required to pay Borrower any intereat or •
earnings on the fi~nds. Lender ahall give to E3orrower, without charge, an annual accounting of the Funde showing credita and debita to the
Funds and the purpoae fot which each debit to the Funde was made. The F~nds are pledged as additional s!ti.urity for the auma secured by this
biortgage. ' ~
If the amount of the Funda held by L.ender, together with the future monthly inataliments of Funds payable prior to the due datea of taxea,
assesamenta, insurance premiuma and gmund rents, shall excred the amount required to pay said taxes, assessments, ineurance premiuma
and ground rents as they fall due, auch excess ahall be, ~t Bo~TOwer's option, either promptly repaid to Bonower or credited to Borrower on
monthly inatallments of ~nds. If the amount of the Funda held by I,ender shall not be sufficient to pay taxea, asseasmente, insurance
premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 daya
from the date notice ia mailed by I.ender to f3orrower requesting payment thereof.
Upon payment in full of all aums aecured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by Ixnder. lf under
paragraph 18 hereof the F'roperty ia sold or the Proper~y is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior
to the sale of the Property or ita acquiaition by Lender, any Funds held by I.er.der at the time of application as a credit against the sums secured
by this Mortgage.
3. Application of Paymente. Unless applicable law provides otherwise, all paymQnts received by Lender under the Note and
paragraphs 1 and 2 hereof ahall be applied by I.ender firr,t in payment of amounts payable to I.ender by Borrow•er 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. Chargee; Liens. F3ormwershall pay ail taxes, assessmenGs and othercharges, fines and impositiuns atiributabie ti~ the I'roperty which
may attain a priority over this ~Iortgage, an~ leasehold payments or Kround rents, if any, in the manner prq~~ided under paragraph `l hereofor,
if not paid in such manner, by Borrower makinK payment, when due, dircrtly to the payee therc~c~f. Burruw•er shall promptiy furniah to I.ender
<ill natices of amounts due under this paraRraph, and in the e~•ent Borrower shall make payment directly, BormK•er shall promptly furnish to
I.ender receipts evidencinK such pa~•ments. I~~rrn~eer sh.~11 promptly diccharKe any lien which has pric~rit~• over this AtortKuge; provided, that
f3uno~er shail not be required to discharKe any such lien so IunK as R~~rruati~rr shaU .~~rc~ in writinK tu the p.~~•ment of the obliKation secured by
;uch lien in a manner acceptable to I,ender, ~u shalt in Ko~xi faith cunte.t ~uch lien b~•, or defend enforcrment of such lien in, legal proceedings
«•hich operate to prevent the enCorcement of the lirn ur furfeiture of tht• !'~~,pE~rh• or an~• part therc~if.
5. Hazard Inaurance. Borrower shall keep the improvements nuK~ existinK ur hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended cuveraKe,° and such uther hazards as Ixnder ma~• require and in such amounts and for such
periods as Lender may require; pro~~ided, that Ih•ndrr shall nut require that the amount of such co~eraKe exceed that amount of coverage
required to pay the sums spcured bp this DtortKaKe. ~
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The insurance carrier providinK thr insur.~nct• .hall be ch~~sen {iy~ ii~~rruti•er subjt~ct t~~ appru~•al b~• Lendrr; pr~,~•idcK1, that such apprnval
,hall not be unreasonably w•ithheld. All premiums ~~n insuranc~• p~~lii•ii:. ~hall tx• p.~ict in th~~ m:~nn~•r pri~v~dtYl under paraKruph 'L hereof or, if
nut paid in such manner, b~• 1i~~rruw~er m:~kin~; p~~~~mt•nt, ~~hrn due, ~limi•tly tn thi• incurance.carrier.
~ All insurance policies and renewals thereof shall in form acceptai~le tu I.ender and shall include a standard mortgaQeclause in favor of
and in form acceptable to Lender. I.ender shall ha~•e the riKht t~~ huid th~~ pulicies and renew.~ls thereof, and 13onoµ•er shall promptly furnish tn
~ i.ender all renewal notices and all receipts of oaid premiums. In the e~•ent of loss, iiorruw•er sha11 Ki~•e prumpt notice to the insurance carrier
and Lender_ Lender may make proof of loss if not made promptly b~~ Korrow•er.
~ Unless Lender and &~rrower otherwise akree in K~ritinK, insurance prcx•eedc shall F~ applied to restoration or repair of the Property
~ damaged, pro~~ded such restoration ur repair iti ecnnumically feasible and the securit}• of this A1ortQaQe is not therehy impaired. If such
restoration or repair is not economically feasihle ur if the security~ uf this 111ortKaKe w~ould be impaired, the insurance proceeds shall beapplied
to the sums secured by this MortKaQe,.+~th thc~ exce~~, if ~?ny, paid to Korrow•er. If the Pruperty is abandoned by Borrower, or if E3orrower fails to
i re~pond to Lender within 30 days from the date n~~tice is mailyd b~~ I,ender tu Borruwer that the insurance camer offers to settle a claim for
~ insurance benefitx, I.ender is authorized to collect and apply the insurance pr~~ceeds at I,ender's option eithet to restoration or repair of the
F Property or the sums secured by this ~lortKaKe.
R Unless I.ender and F3orrower otherwiae aKrc~ in writinK, <~ny such application of pmceeds to principat shall not extend orpostpone thedue
~ date of the monthly installments referred tu in par.ikraphs 1 and'L hereuFor change the amount of such installments. If under paragraph lfi
~ hereof the Properiy is acquired by Lender, all right, title and interest of Burrower in and tu any insurance policies and in and to the proceeds
thereof reaulting from damage to Yroperty prior to the sale or acyu~sitiun shall pas; to I.ender to the extent of the sums secured by thia
~tortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenanceof Property; I,easehold,; Condominuma; Planned ['nit Developments. Borrowershall keep
the Property in good repair and shall not commit w~a~te or permrt impairment or deterioratinn nf the Property and shall camply with the r
~ prrivisiona of any lease if this Mc,rtKaqe is on a leasehuld. If this :~iort~;aKe is on a unit in a coni~ominium or a planned unit development, N
E~c~rrower shall perform all of Borruwer.s obliKatiuns under the declaration ur co~-rnants ~•re:~t~n~or RovermnK the condominium or planned
~ unit development, the by-laws and reKulations of the conduminium or pianned unit development, and constituent dcrcuments. If a ~
~ undominium or planned unit derelupment rider is f%CCUfE'd }l)' ~;I~fYOWf'C ~~nd rec~~rdecl toKether w•ith this Mortgage, the covenante and
~ :+~reements of such rider shall be inc~~rpurated int~~ and sh,+lf amend and suppirment thecu~~rnant~s and aKreements of this Mort~a~eas if the
? r,der were a part hereof.
F 7. Protection of Lender'e Security. If Borrower fails to perform the covenante and aRreementa contained in thie Mortgage, or if any
~ actian or proceEding ia commenced which materially affects [.endei s interest in the Property, including, but not limited to, eminent domain,
~ inaolvency, code enforcement, or arrangements or proceedings imolving a bankrupt or decedent, then Lender at Lender's option,upon ~
r notice to Borrower may make auch appearancee, disburse auch sume and take auch aciion as ia neceasary to protect Lender's intereat, ~
~ including, but not limited to, dieburaement of reasonable attorney's fees and entry upon the Property to make repaire. If Lenderrequired ~
~ :nortgage ineurance as a condition of making the loan secured by this Mortgage, Borrower ahall pay the premiums required to maintain
E euch insurance in effect ~ntil euch time se the requirement for auch inaurance terminatea in accordance with Borrower's and Lender'a
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w-ritten agreement or applicable Law. Aorrower ahall pay the amount of all mortgaKe insurance premiums in the manner ptovided under
~ paragraph 2 hereof.
~ Any amounts diaburaed by Lender persuant to this paragraph 7, with intereat thereon, shall become additional indebtednesa of
, f3orrower secured by thie Mortgage. Unleas Aorrower and I.ender agree to other terms of pa'yment, such amounta ehall be payable upon
~ notice from Lender to Aonower requeating pa~•ment thereof, and ahall bear intereat from the date of diaburaement at the rate payable from
~ time to tirne un outstandinq principal under the Note unleas payment of interest at such rate wnuid be contrary to applicable law, in which
e+•ent auch amounts shall bear intereat at the higheat rate permissible under applicable law. Nothing contained in thia paragraph 7, ehall
~ re uire I.ender to incur an ex
~ q y pense or take any action hereunder.
~ aooK ~acE ~65
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