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~ UNt~o~tit Oovat+~r+t's. Borrower aad I.ende~ ooveoant aad a~ree ss folbws:
l. ~y~ed of !~l~ciMl a~i Wetaf. Borrower shall promptlY paY wh~n due the priacipa! oI snd interat on tha
indebtednew evidenced by the Note, prepayaxat aad late char~es ~s p~avided. in the Note. a~d ibe principal ot and interest
oa aay Future Advaaca =ecurod by this Mortsa~. ~
lhisd~ ~or 7~s~s a¦i Irdra~ea Stibjat to applicabk law or to a written waive~ by Lender. Bocrower shap psy '
to Lender on the day raonthly i~utallments o[ principal and interat are payaWe uader the Note, uatil the Nota is paid in tull. !
a tum (heeein "Fuads") equal to one-twelfth of the yea~ly taxes a~d assessments which may attain prioriry over this ~
Mwt~a~e. and gmuad rtnu ou tha Pnoparty. if any. plus.ono-twelfth ot yeuly pnmium inuaUmenb tor hazard insurance.
plus oaatweltth of yearly premium iausllme~ts for monaa~e it~urance. if aqy. all aa nawnabty estimated initially and iram . ;
, time to time by Leoder on tl~e buis of assessments and bills aod rcuonabk estimata thercof. ~
The Funds shali be held in an institution tbe depoaitt or accounta of which an insured or gwranteed by a Foderal or ~
state age~cy (including Leader i[ Lx~de~ is such an institution). Le~der shall apply the Ftiads to pay uid tuu, assessment=,
~ iasurance premiuma aad around rents. l.ender may not chuge for so holding and applying the Funds. analyziag said aoooun~ +
or verifying and compiling said asseuments and bills. ualas I~der pays Borrower interat on the Funds and applicabla law {
petmitt Leader to make such a charge. Borrower and I.eader may agree in writing at the time ot execution of this ~i
Mortgage that i~terest on the Funds shall be paid to Borrowsr. and unless such agrament is made or applicabk law E
requit+es such intercst to be paid. Lender shall not be rcquired to pay Borrower any interest or earnings on the Funds. l.ender
s6a11 give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are plodged as additional security for the sums secured ~
by this Mortgage.
If the amount of tt~e Funds held by Le~der, together with the tuture monthly installments of Funds payable prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments. inaurance premiums and ground rents as they fall due, such excess . shall be. at Borrower s option, either ;
promptly repaid to Borrower or credited to Bormwer on mcnthly installments of Funds. lf the amount of the Funds
held by Lender shall not be sufi'icieat to pay taxes. a~ssessments. insurance premiums and ground rents u they fall due,
Borrower shall pay to L.ender any amount necGSSary to make up the deficiency within 30 days from the date notice is mailed
by I.ender to Borrower requesting payment thereof.
Upon payment in full of all sutns secured by this Mortgage, I_ender shall promptly relund to Borrower any Funds
held by Lender. lf under pazagrapfi 18 hereof the Property is sold or the Property is otherwise acquired by l.ender. Lender
shall apply, no later than immediatcly prior to the salc of Ihe Property or its acquisition by I.ender. any Funds held by
L.ender at the time of application as a credit against the sums socured by th~s Mortgage.
3. Applic~oa of Paymeets. Unless applicable law provicks otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 het~eof shall be applicd by Lender first in payment o[ amnunts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the_ Note, then to ihe principal of the Note, and then to interest and ~
principal on any Fuwre Advances.
4. C6arges; Lkns. Borrower shall pay all taxes, assessments and oth~ charges, fines and impositions attributable to ~
the Property which may attain a priority over this Mortgage, and leasehold payments or gro~nd rents. if any, in the manner 1
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 all notices of amounts due under this paragraph, and in the eveot
Borrower shall make payment directly. Borrower shall promptly fumish to I.ender receipts evidencing such payments.
Borrower shall pmmptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
required to discharge any such lien so long as Borrower shaU agree in writing to the payment of the obligation secured by
sucd lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, or defend enfor~cement of such lien ia, I
legal proceedings which operate to prcvent the enfarcemcnt of the lien or fotfeiture of the Property or any part thereof. - ~
S. Hazard lasuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured ~
against loss by firc. hazards included within the term "cxtended coverage", and such other hazards as l.ender may require I
and in such amounts and for wch periods az Lender may require; provided, that Lender shall not requirc that the amount of ~
I such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. i
The iosurance 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 policies shall 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 '
insurance carrier. '
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage !
clause in favor of and in form acceptable to [.ender. Lender shall have the right to hold the policies and renewals thereof. ~
~ and Borrower shall prompdy furnish to Lender a11 renewal notices and all receipts of paid premiums. In the event of toss. ~
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. 1[ such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shal! be applied to the sums secured by this Mortgage, with the excess, if any. paid
to Borrower. If the Property is abandoned by Borruwer, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by L.ender to Borrower that the insurance carrier ofiers to seule a claim for insurance benefits. Lender
is authorized to coUect and apply the insurance proceeds at Lender's option either to restoration or repair ot the Prvperty
or to t6e sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in wr~ting, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly i~stallmcnts referred to in paragraph+ I and 2 hereof or changc thc amount of
suc6 installments. If under paragraph 18 hereof the Property is acyuired by l.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to the sale
~ or acquisidon shall pass to Lender to ttie extent of the sums secureci by this Mortgage immediatcly pnor to such saie or "
acquisition.
~ 6. Preservatioo aod Maintenance of Property; Leaseholds; Condominiums; Planned Unit De~elopments. Borrower
shalt Iceep the Property in good tepair and shall not commit waste or permit impairment or deterioration of ihe Property
~ and shall comply with the provisions of any lease if this Mortgage is on a Icasehold. lf this ~fortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
( or covenants creating or governing the condominium or planned unit devetopment, the by-laws and mgulations of the
~ condominium or planned unit development, and constituent Jocuments. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
i shall be incorporated into and shall amend and supplement thc covcnants and agreements of this Mortgage as i[ the rider
~ were a part hereof.
7. Protectioa of I.ender's Security. lf Borrower fails to perform the covenants and agreements contained in this
` Mortgage, or if any action or proceeding is commeneed w•hich materially aBects Lender's interest in the Propeny,
including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proctedings involving a 3
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appcarances, disburse such
sums and take :uch action u is necessary to protect [.ender s in~erest, including, but not limited to, disbursement of
reasonable attoroey's fees and entry upon ths Properry to make rcpairs. (f ixnder required mortgage insurance as a
conGition of making the loan secured by this Mortgage. Borrower shall pay the premiums requirai to maintain such
insurance in effect until such time as ~he rcquirement for such insurance terminates in accordance with Borrower's and
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