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UNtPOItlrt COYlNANTS. Borrower and Lender covenant and a~~ee u follow::
1. l~rneat ot P~ctpd ~ Iatcnst. Borrower shal{ prorr~pt{y pay wfien due the principal of and i~terest on the '
iadebtedneu avidenced by the Note. pre~ayme~t aad late char~a as provid~d in the Note. and the pcincipal of snd '+ntercst
on aay Future Advances secured by this Mortgase.
2. Fnn~ tor Ta:a aai Iawrs~ce. Subject to applicable law or to a written waiver by Lender. Bortower shall pay
to L~e~der on thc day monthly installmenta of principal'nd interest are paysble u~der the Note, until the Note is paid in fuQ.
a:um (herein "Funds'~ equal to one-twelfth of the yearly taxes and assessmeots which may attain prioriry over thu
Mortaage. and ground ronts on the Property~ if any. plus onatwelfth of yearly premium installmentt fot hua[d inwrance,
plus oae-twelfth of yeariy premium installmenu for mortga~e insurarue. if any. all as nuonably estimated jnitially and trom
dme to time by Lender on the basis o.f assessments and bilk and reuonabk eseimata thereof.
71~e ~nds shall be 6eld ia a~ institution the deposits or accounts of which aro insured or guaranteed by a Ftderal or
state ageocy (i~cluding I.ender if I.ender is such an iastitution). I.ender shall apply th~ Fundi to pay said tues, aueumeats,
insurance premiums and ground rents. I.ender msy not chuge for so holding and applying the Fupds, analyzing uid accouat,
or verifying and compiling said assessments and bills. unless Lender pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. Bo~rower aad Lender may agree in writing at the timt Qf execution of this
Mortgage that intercst on the Fuads shall be paid to Borrower. and unlas such agrcement is made or applicable law
requires such interat to be paid; Lender shall not be required to pay Borrower any interest ot esrnings on the Funds. Lender
sha11 pve to Borrower. without cbarge. an annual accounting of the Funds showing credits and debits to the Funds apd the
purpoae for which ucb debit to the Fuads wu made. Tbe Funds s~e plaiged as Additionaf security for th= sums socured
by this Mortgage.
If the amount oE the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dales of taxes. assessments. insurance pnmiums and ground rents. shall exceed the amount required to pay said taxa.
assessments, insurance premiums and ground rents as they fall due. such ~ excess shall be. at Borrowers option. either
prompdy repaid to Bormwer ar cndited w Borrawu on monthly installmenu of Funds. If the amouat of the Fun~
heid by Lender shall not be wf6cieat to pay taues, assessments, insurance pnmiums and grou~i rents ss they falt due,
Borrower shall pay to Lender any amouat nocGUary tn make up the de6ciency withia 30 days from the date notia is mailod
by Lender to Borrower requating payment thereof.
Upon paymeat in fuU of all swns secured by this Mortgage, Lender shall promptly nfund to Borrower any Fun~
held by Lender. It under paragraph 18 hercof the Property is soW or the Properry is otherwise acquired by Lender. Lender
shall apply. no later than imm~diatciy prior to tfie sate of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a cndit against the sums secured by this Mortg:ge. i
3. Applicafioo of Payments. Unless applicable law provides otherwix. all payments receivod by [.ender under tht ,
Note and paragraphs 1, and 2 hereof shall be applied by Lender first in payment ot amounts payable to i.cnder by Borrower
-under paragraph 2 hereof. ibea to interest payabk on the Note. thea to the principal of the Note. and then to iMerut and
principal on any Futuce Advanoes.
4. Charges; Lkas. Borrower shaq pay all taxes. assessments and atker cfiarges. fines and impositions attributabk to .
the Property which may attain a priority over this Mottgage, and leauhold payments or gmund nnts. if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manncr. by Borcower making payment. when due. diroctly, to the
payee ther~of. Borrower shail promptly fwnisfi to i.ender all notices of amounts due under this pangraph. and in the event
Borrower shall make payment directly. Borrower shall promptly furnisfi to I,tnder rceeipb evidencing such paymtnts.
Bonower shall prompAy discharge any lien which h~ priority ovcr this Mortgage; provided. that Borrower shalt not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligatio~ securod by .
such lien in a mannor acceptabk to Lender. or sfia11 in good faith contest such lien by, or defend enforcement of :uch lien in,
legal proceedings which operate to prevent the enforeement of tfie tien or forfeiture of the Property or any part thereof.
S. Huud I~urance. Borrower shall keep the improvements now existi~g or hereaftec erectod on the Propecty insured
against loss by fire. hazards included within the term "extended coverage". and such other haurds u L.ender may requin
and in such amounts and for such periods as Lender may require; provided. that Lender shall not requirc that the amount of
such coverage exceed that amaunt of coverage required to pay the sums securcd by Ihis Mortgage.
'il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approva) 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. dircetly to t6e
insurance car~ier.
All insurance policies and rcnewals thereof shall be in form acceptable 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 policia, and renewals ihereof.
and Borrower shall proroptly furnish to Lender all renewal notices and all receipts of paid ptemiums. In the event of loss,
~ BoROwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof o[ loss if not made promptiy
~ by Borrower.
Untas Lender and Borrower otherwiu agree in writing, insurance procceds shall be applied to testoration or repair of
the Property damaged. provided such restoration or repair is economically [easible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasibte or i[ ihe security ot this Mortgage would
be impaired. the insurance proceeds shall be applied to the 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 rupond to Lender within 30 days from the
~ date natice is mailed by Lender to Borrovver that the insurance carrier oRers to settle a claim for insurance.benefits. Lender
is authoriud to collect and app{y the insurance proceeds at Lender's option eith=r to ratoration or repair of ttu Property
_or to the sums secured by t6is Mongage. ~
~ 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 monthiy installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by L.ender, all right. title and interat o[ Borrower
~ in a~d to any insurance policies and in and to the proceeds thereof resultiag from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ aequisition.
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6. Presen~alion and i?ttintenance of Properiy; Leaseholds; Condominiums; Planned Unit De~•elopments. Borrower ,
~ shalt keep thc Propecty in good repair and ahall not commit waste or permit impairment or detcrioration of the Property
~ and shall comply with the provisioas of any lease if this Mortgage is on a leasehold. If ihis Mortgage is on a unit in a
~ condominium or a planned unit development. Borrower shall perform all of Borrower: obligations under the declaration
or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
condominium or planned unit development. and constituent documents. If a condominium or pfanned unit developmrnt
' rider is executed by Borrower and recorded together with this Mortgage. the coveoants and agreemcnts of such rider
~ shall be incorporated into and s6a11 amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereot.
; 7. Pretection of Lendcr's Sccurity. lf Borrower fails to perform the covenants and agreements contained in this
` Mortgage, or if any actioa or proceeding is commenced which materially aHects Lender
s interest in the Property.
~ iacluding. but not limited to, eminent domain, inwlvency, code e~forcement. or arrangements or proceedings involving a
' banlcrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appeannca, disburse such
; swns and take such action u is ncce.ssary to protoct L.ender s interat. including. but not limited to. disburxment of
~ reuonable attorney's (ees and entry upon the Property to make repain. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Bonowet shall pay the premiums required to maintain such
; insurance in etiect until such time u ~he requirCment for such insurance terminates ia aecordance with Borrower's and
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