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UNtro~M CovBN~Nrs. Borrower and Lender covenant and a~ree u follow~:
l. ?~meot ot Prieclpal a~d laterest. Borrower shall promptly pay when due the principal af and interat o~ the
iodebtedness evidt~ced by the Note, prcpaytnent a~d late chargcs as provided in the Note. and the principal of and interest
on any Futurc Advances socured by this Mortgage.
2. Fbnb for Tuea and lasnrs~ce. Subject to applicable law or to a writtrn waiver by L.ender. Borrower shdl pay
to Lender o~ the day monthly instaliments of principai and intere3t are payabte under the Note, unti! the Note is paid in full,
a sum (herei~ "Funds") equa! to o~e-twelfth of the yeariy taxes and assessmenb which may attain priority over this
Mort~sge, and ground rents on the Property, if any, plus ooe-twelfth ef yearly premit!m installments for hazard insurance, ~
plus one-twelfth of yearly premium iastallm+e~ts for mortgage insurance, if any. all as reasonably estimated initially and from !
time to time by Lender on the basis of assessments and bills and reasonabk eatimates thereof. 1
The Funds shall be held in an institution the dtposits or accounta of which are insured or guaranteed by a Federal or ,
state a~ency (including Lender if Lender is such an iaatitution). Lender shall apply ihe Funds to pay said taxes; assessments. s
insutance ptemiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, ~
or verifying and c~mpiling said asseuments and bilb. unlas Lender pays Bonower interat on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lendtr may agree in writing at the time ot execution of this
Mongage that interesi on the Funds shall be paid to Borrower, and unlas such agrcement is made or applicabk iaw
requira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of ~ne Funds showing credits and debits to the Funds and the
parpose for which each debit to the Fuods was made. The Funds arc pledged u additional security for the sums secured
by this i~i~rt&i8t- - .
If the amount of tl~e Funds held ~by I.ender, together with tbe future monthly installments of Funds payable prior to
the due dates of taxes, assasments, insurance premiums and ground rents, shall exce~.; ~~w amount required to pay said ta~ces,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either ~
promptly repaid to Borrowet or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to L:ender any amount necessary to make up the deficiency within 30 days trom the date notict is mailed ;
by Lender to Borrower rcquesting payment thereof.
Upu~ payment in futl of all sums secured by this Mortgage, l.ender ahall promptly refund to Borrower any Funds
held by l.ender. lf under paragraph 18 hereof the Propeny is sold or the Property is olhenvise acquired by L~nder, iender
shall apply, no later than immediately prior to the sale of the Property or i1s acquisition by L.ender, any Funds held by
Lender at the timt of application as a credit against the sums secured by th~s Mortgage.
3. Applkation of Payments. Untess applicable law provida otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hareof shall be applied by Lender first in payment of amounts payable to Lender by Borrower ~
under paragraph 2 hercof, then to interest payable on the: Notc, then to the principal of the Note. and then to inttrat and
principal on any Future Advances. ~
4. Charges; Lkns. ~ Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to g
the Property which may attain a priority over this Mortgage, and leasthold payments or gmund rents, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such,manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender afl notices of amounts due under this paragraph, aod in the ovent
Borrower shall make payment directly, Borrower shatl promptly fumish ta I.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which haz priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation sec~red hy
such lien in a manner acceptable to Lxnder, or shall in good faith contest such lien by, or defend enforcement of auch lien in, s
legal proceedingc which operate to prevent the enforcement of the lien or forieiture of the Property or any pan thereof.
S. Hazard i~urance. Borrower shall ke~p the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards u Lender may require ~
and in such amounts and for such periods as Lender may require; Provided, that Lender shall not rcqaire that tht amount of ~
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such coverage exceed that amount of coverage required to pay the sums ucured by this Mortgage. 3
"Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, . 3
that such approval shall not Ee unreasonably withhe{d. All premiums on insurance policies shail 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
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insurance carrier.
All insurance policies and renewals thereof shall be in fonn acceptable to LenJer and shall include a standard mortgage •
clause in favor of and in form acceptable to Lender. Lender shail have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and, all receipts of paid prtmiums. In the event of loss,
' -Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy
' by Bortower.
ilnkss Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to cestoration or repair of
the Property damaged, provided such restoration or repair is economically f~asible and the security of this Mortgage is ~
i not theteby _impaired. If such resioration or repair is not economically feasible or if the security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to th~ sums secured by this Mortgage, with the excess, if any, paid ~
~ to- Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the 9
~ date notice is mailed by I.ender to Borrower that the insurance carrier ofiets to seule a claim for insurance benefits, Lender
i is authoriud to collect and apply the insurance proceeds at Lender's option either to ratoration or repair of the Property ~
~ or to the sums secured by this Mortgage. • ~
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend ?
~ or postpone the due date of the monthly instaliments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such instaUments. If under paragraph 18 hereof the Properry is acquired by L.ender, all right, tide and interest of Bor~ower "
~ in and to any insurance policies and in and to the proceeds thereof resulting from dama~e to the Pr~perty prior to the sale
; or acquisition shall pass to Lender to the txtent of the sums secured by this Mortgage immediately prior to such sale or
¢ acquisitiors.
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6. Preservatbn and MAlnfenance oE Property; Leaseholds; Condominiums; Planned Unit De~elopmerets. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or ~eterioration of the Property
: and shall comply with the provisions of any lease if this Mortgage is on a teasehold. lf this Mortgage is on a unit in a
` condominium or a planned unit development, Borrower shall perform al! oE Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit devetopment, the by-laws and regulations of the ;
~ condominium or planned unit development, and constituent documents. lf a condominium or ~lanned unit development
rider is ezecuted by Borrower and recoried together with ~his Mortgagt, the covenants and agreements of such rider
shall be incorparated into and shall amend and supplemer.t the covenants and agreements of this Mortgage as if the rider
were a part hereof. 3
7. Protection of Le~er's Stcurity. If Borrower fails to perform the covenants and agreements contained in this
p Mortgage, or if any action or proceeding is commenced w•hich materially affects Lender's interest in the Propeny, ~
~ including, but nct limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings :nvolving a i
~ bankrupt er decedent, then Lender at Lender's option, upon n~tice to Borrower, may make such appearances, disburse such '
` sums and take such actioo as is necessary to protect Lender's mterest, induding. but not limited to, d~sburxment of •
i reasonable attomey's fees and entry upon the. Property to make repairs. If Lcnder required mongage insurance as a
f condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ,
insurance in tffect until such time as the requirement for such insurance terminates in accordance with Botrower's and •
~ ~ - ~ ~ g~~K 36~ QA~E 980 ~
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