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UN~FORM CovEN~N~'s. Horrower and Lende~ covenant and ~~ree as follows:
l. hytse~t W hiwcl~al ari INerat. Bor~ower shall promptly pay when due the principal ot and inte~at on the
~ndebtedness evidenced by the Note. prepayme~t and late charges as p~ovided in the Note, and the principal of and i~~tercst
on my Futurc Advances secured by this Morttage.
2. lhr~dt tor Tues asd l~sura~ce: Subject to applicabk law or to a written waiver by Lender. Borrower shall pay
to Lende~ on Ihe day moothly instaliments of principal and interest are paysbl~ under the Note, until the Note is paid in full.
a sum (herein "Funds") equal to one-twe:tth at the yearly taxes and assessments which may attain priority over this
Mongsge, and ground re~~ on the Property, if any, plus one-twel[th ot yearly premium installments fo~ hazard insurance.
plus one-twelfth of yearly premium inshllmeots tor mongage insu~ance, if any, all ~s reasonably estimated initially and trom
time to time by Lender on the buis of assessments and bills a~d reasonable estima~es thercof.
The Funds shall be held in an institution the deposits or accounts of which are insure~l or guaraoteed by a Fede~al or
state agency (including Lender if I.ender is such an insti~ution). l.ender shall apply the Funds to pay said taxes, auessments.
insurance premiums and ground rents: l.ende~ may not charge tor~so holding and applying ~he Funds, analyxing said account.
or verifying and compiling said ass~ssments and hills unles~ 1_ender Raj~~ Borrower imerest on the Funds and applicaMe law
permits Lender to make such a charge. Borrower and Lender may agree in writing at ~he time of execution ot this
Mortgage that interest on the Funds shall t~e pa~d ~o Borrower, aod unlcss such agrcement is made or applicable law
requircs such interest to he paid, Lender shall not he req~ired t~• pay Borrov?•cr ~ny inlerest nr earnings on the Funds. Lender '
shall give to Borrower, wi~hout charge, an anoual accounting ot the Funds showiog credits ahd debits to the Funds aod the
purpose far which each debit to the Funds was made. The Funds are pledged as additional ucu~i~y tor the sums secured
by this Mortgage.
If the amount o[ t:~e Funds held by l.ender, togcthtr wilh thc fulure mon~hly installmenls of FunJs payable prior to
the d~e data of ~axes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
asuuments, insurance premiums a~d graund rents ac thcy (all due. such exces~ shall be, at Borrower's option, either
promptly repaid to Borrower or creditcd to B~rrower on monthly inc~allments of Fundc. If the amount of the Funds
held by Lender shall not be suflicie~t to pay ~axes, assessments, in.urance premnims and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary make up the defic~ency within i0 days from ~he date notice is mailed
by Lender to Borrower reques~ing payment ~hercot. -
Upon payment in full of all sums sewred by this Mor~gagc. I cndcr shall prompUy rcfund 1o Borrower any Funds
held by LenJer. If under paragraph 1R hcreof ~hc Propc~ty ic cold or ~hc Property ~s othervvicc acqicired by I.ender, l.ender
shall apply, no later than immediatcly prior to the calc of the Propcny or i~s acquish~nn by l.ender, any Funds held by
Lender at Ihe time of application as a credit aga~n~t ~he sumc cecured b}• th~c Mortgage.
3. Applicafion uf Payments. Unlecs applicahle law pro~•ides Mherwise, all payments received by I.ender unJcr the
Note and paragraphs I and 2 hcreof ~hall bc appUrd `.+y I.cndcr fir.t m p~}ment ot am~~unts payable to Lcndei by $orrower
under pangraph 2 hereot, then to enterec~ payablc un ~he i~ote, then iu the principal a( the Note, and ~hen to interest and
principal on any Future Advances.
C6ar~es; Lkos. Borrower shall pay all ta~cc. a.sescmenls and oiher ch: rges, finec and impositions attributahle to
the Property which may attain a priority over thic Mortgagc, and leauhold paymen~s or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not. paid m such manner, by Borrower making payment, ~vhen due, dircctly to the
payee thercof. Borrower shall promptly furnish to 1_ender all n~•~~ccs of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrowrr tihall prompuy (urnich to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien w•hich has pnor~ty over thic Mortgage; provided, ~hat Barrower shall not be
rcquired to discharge any such lien so long as Borrower shall agrec in w•riting to the payment. ot the ohligalion secured by
such lien in a manner acceptable to Lender, or shall in good faith conte~~ s:ich lien by, ar defend enforcement of such lien in.
legal proceedingc which operate to prevent ~he•entorcement of the I~en or [orfei~ure of the Property or any part Ihereof.
S. Haza~d Insurance. Borrower shall keep'the ~mprovcmcnt~ now c~i.unR or hercafter erccted on the Propeny insured
against loss hy 6re. hazards incluaed withm the term "rttendeJ coverage'". anJ such other hatards a~ Lender may require
and ~n such amounts ancl for such perials ac I.ender may require; provided, Ihat Lender chall not rcquire that the amount of
such coverage exeeed that am~~unt ol coverage required to pa~~ the sumc cecured by this Mortgage_
i The insurance carrier providing the insurance chall be chocen by Borrowcr suhject to approval by Lender: provided.
~ that such approval shall not be unreasonably withheld. All prem~umc on insurance policies shall be paid ~n the manner
f prov~ded under paragraph 2 hereof or, if not p:+ic1 in such manner, by Borrower making payment, when due, dirccUy to the
~ insurancc carrier.
~ All insurance poficies and renewals ~hereM shall he m fc?rm :~ccepiable t~~ LenJer and shall include a standard mortgage
~ clause m favor of and ~n form acceptahle iu I.ender. I_endrr .hall have the right ~o hold ~he policies and renewals ~hereof,
and Borrower shall prompUy furnish to LcnJcr all rcncwal notire~ and all receipts of paid premium~. In the event of loss.
~ Borrower shall gh~c prompt nouce to ~he imur:~n~c carncr and I endcr. 1_ender may make prcx?f of Ieu if not made promptl}
~ by Borrower.
Unless Lender and Borrower o~herwi.e agrrc ~n wnting, imurance pn•ceeJs shall be applied to restoration or repair of
the Property damageJ, pmv~ded such r~.torat~on or repair ic economicaUy feac~ble and ~he securi~y of this Mortgage is
not ~hereby impaired. If ~uch restor~ti~~n or r~pa~r ic n~~t ecimi~mically feacihle or ~f ~he securiry of this Mortgage would
be ~mpaired, the insurance proceeds shall be~pplied to the sums cecured by this Mortgage, w~ih the ezcess, if any, paid
to Borrower. If the Property is abandoncd h~ B~rruwer, or it Borrower (ail~ ~o responJ to Lender within 30 days from the
da~e notice is mailed by Lender to Borrower ~hat ~hc insurance can~rr ofierx to seulr a claim for ~nsurance benefits. Lender
~ is authoriud to collect and apply the imurance proceeds at l.enJer's option either to restoraNon or repair ot the Property
~ or to the sums sccurcd by this Mortgagc.
Unlesc Lender and Borrower otherwi?c ~gree in wnt~ng, any such applira~ion of proceeds to principal shall not extend
~ or postpone the duc date of the monthly insiallmcnis refer~ed t~ ~n paragraphc 1 and 2 hercof or change the amount of
y such ~nstallments. I( under paragraph 1 t? hereof the Property ~s acyuired hy Lender, all .~ight, title and in~erest of Borrower
~ in and ro any insurance policies and in and ~o thc proceeds thereof result~ng from damage to the Properry prior to the sale
~ or acquisition shall pass to Lender to thc extent ot ~he sums secured by th~s Mortgage immediately prior to such sale or
~ acquisition. ,
~ 6. Presenalion aod Maintenance of Properly; Leaseholds; Condominiums; Planned Unit Developmenls. Borrower
shall keep the Property in good repair and shrll not commi~ waste or permit impairmen~ or deterioration of the Proper~y
~ and shall comply with the provitions of any lease il this Mortgagc i. on a leasehold. If this Mortgage is on a unit in a
condominium or a planned un~t developmcnt. Borrow•er shall perform all ot Borr~wer's obligations unde~ the declaration
~ or covenan~s creating or govern~ng. the condominium or pl:snned unrt development, the by-laws and regulations of th~ .
_ conJomin~um or planned unit developmeni, and c~nstituent Jocumem~. It a condominium or planned un~t Jevelopment
rider ~s executed by Botrower and recorded together whh ~his Mortgage. ~he covenants and agreements o( sueh rider
~ shall be incorporated into and shall amend anJ supplement the covenan~s and agreements of this Mongage as if the rider.
~ were a part hereof.
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~ 7. Protection of Lender's Security. I( Borrower fails ~o perform the covenants and agreements contained in this
~ Mortgage, or if any act~on or proceeJmg is commeneed wh~ch ma~erially affects Lender's interest in the Properry.
~ includmg, but not limhed to, eminent domain, insolveney, code enforcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
~ reasonable at~orney's (ees and en~ry upon the Properly to make repairs. if Lender required mortgage insurance as a
~ condit~on of making the loan secured by th~s Mortgage. Borrower shall pay the premiums required to maintain such
insur Hect untjl.~ time as the reqoirement for such insurance terminates in accordance with Borrowei s and •
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