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UNitoR~~ CQ~'fN.1NTS. BOffOWCf an~I ~.Cf1dC~ covenan~ and agree as follows: ' ~
1. Paymenl of Principa! aad Inte~esl. Borrow~er shall promp~i}• pay «~hen due the principal of and interest an the ~
indehcedness evidenc~d hy Ihe Nate, prepayment and lat~ rharges ac nmvidcd in the Note, and thc p~inripal af and i~terest
on any Future Rdvances ,ecured by this Mortgage.
2. Fun~is tor Taaes and Insur~nce. Subject to applicable law or to a written waiver by l.ender, Borrower sfiall pay
to 1_ender on the day monthly installments of principal and interest are payahle unde~ the Note, until the Notc is paid in full.
a sum Cherein "Funds"} equal to one-l~~etfth of the yearly taYec and assccsments u•hich may attain priority o~er this
Mortgagc, and graund rents on ~he Properry, if any, plus one-twelfth of ~~carly premium installments for hazard insurancc,
plus one-twelfth of }•early prcmium installments for mortgage insurancc, if any, all as reasonably estimated initialty and from
time to time by l.ender on the basis at ass..ssments and bills and reasonable estimates thereof.
"ihe Funds shall he held in an institution the deposits o~ accauMs of which are insured or guaranteed by a~cderal or
state agency (including Lender if 1_ender is such an institution). l.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. l.ender may not charge lor so holding and applying the Runcis, analyzing said account,
or verifying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable law
• permits i.ende~ to make such a charge. Borrower and l.ender ma~~ agret in writing at the time o( execWion of this
Mortgage that interest on the runds shall hc paid to 8orrower, and unless such agreement is made or applicable law
requires such interest to be paid, I.ender shall not t?e requireJ to pay Borrower an}~ interest or earnings on thc Funds. I.ender
, shall give to Borrower, without charge. an annuai accounting a( the Funds showing credits and debits to the fiunds and the
purpose for which each debit to the Funds was made. The Funds are pledgc,d as additio~al securiry fur the sums secured
6y this I~~ortgage.
. If the amount of the Funds held by Lende~, ~oge~hcr µ~ith Ihe fuwre mon~hly instaltmeMs of Funds payable prior to
thc due dates of taxes, assessments, insurance premiums :+nd ground rents, shal! exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall duc, such excess shall be, at Borrower's optian, either
promplty repaid to $orrower or credited to Borro~ver un monthly ins~allments of Funds. lf the amount of the Funcis
~ held by Lender shall not be sufficient to pay taxes, assessmems, insurancc premiums anJ ground rents as they fall due,
~ Rorrower shall pay to Lender any amount necessary• ~o make up the Jeficiency within 30 da}•s trom the date notice is mailed
by t.ender to Borrower requesting payment thereof. '
Upon payment in full of all sums secured by this Mor~gage. l.ender shall promptly refund to Borro~~~er any Funds
` held by Lcnder. If under paragraph }8 hereof the Propcrty is sold or the Propcrty is otherwisc acquired by~ Lender, I_ender
~ shall apply, no later than immediatel}~ prior to the sale of the Property or its acquisition by I.ender, any Funds held by
# L~nder at the time of application as a credit aga~inst ~he sumc securecl by this Mortgage.
3. Appltcation of Paymenls. Unless applicahle laH• pro~~iJes otherw~ise, a!I payments received by l.ender under the
~ Note and paragraphs i and 2 hercof shall be applied by Lendcr first in pa~~ment of amounts payabtc to Ler~dcr by Barrawer
under paragraph 2 hereof, then to interest payabte on the Notc, then to the principa! of the Note, and then to interest and
~ princi~al on any Future Advanc~s.
~ Charges; Llens. Barrower shall pay all ia~~~, a~,~ssmcnts and othcr charges, fines and impositions auribulable to
the Property which may attain a priority over this Mortgagc, and leasehald paymenis or ground rents, iF any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Borraw•er making payment, when due, directly to tht
payee thereof. Borrower shal! promptly furnish to Lender a!! notices of amounts duc under this paragraph, and in the event
~ Borrower shall make payment directly, Borrow•er shall prompUy turnish to l.ender receip~s e~~idenc~ng such payments.
Borrower shall promptly discharge any lien w•hich has priority o~•er Ihis ?~lortgage: pmvided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in w rit~ng to ~he pa~•ment of the obligation secured by
such iien in a manner acceptable to Lender, or shall in good faith contest such licn by, ar dPfend enforeement of such lien in,
legal proceedings which operate to prevent the en(orcement of the I~en or forfeiture of the Property or any part thereof.
, S. Hazard Insurance. Borrower shall keep the impravcment~ noH cxiuing c~r hereafter erccted on the Property insured
~ against loss by fire, hazards included wilhin the term "e~tendeJ coverage", anJ such other hazards as l.ender ma}~ require
and in such amounts and for such periods as Lender may rryuire; pro.~ideJ. that Lender shall not require that the amount of
t such caverage exceed that amount of coverage required to pay the sums secured bp this hlortgage.
"Ihe insu~ance carrier providing the insurance shall be chosen by Borrow•er subject to approva( by Lender; provided,
i that such approval shall noi be unreasonably withheld. All premiiims on insurance policies shall be paid in the manner
provided under paragraph 2 hereo( or, if not paid in such manner, by Borrower making payment, when due, directly to the
i
~ insurauce carrier.
All insurance policies and renewals thereof shall be in form accept:ible to Len~cr and shal( include a standard mortgage
~i clause in favor of and in farm acceptable to Lender. Lender shall ha~e the right to hold the policies and renewals thereof,
~ and Borrow•er shatl promptly furnish to Lender all renewa! notires and al! receipts oF paid premiums. In the event of loss,
Borrower shall gi~•e prompt notice 1o the insurance carrier and Lender. l_ender may make proo( of loss if n~t made promptl}~
~ by Borrower.
! Unless Lender and Borrower otherK•ise agree in ariting. insurance proceeds shafl be applied to restoration or repair of
~ the Property Jamaged, proviJed such restorahon or repair ~s economically feasible and the securiry of this Mortgage is
not thereby impaired. If such restoration or repair is not ecunomirally fcasihte or if the securit~• of this Mortgage would
be impaired, the insurance proceeds shall be applied to ti~e sums secured by this Mortgage, w~ith the excess, if any, paid
to Borrower. If Ihe Property is abandoned by Borrower, o~ it Borrower fails to respond to 1_cnder within 30 da~•s from the
date notice is maited by Lender to Borrower ~hat the insuranre carrier ofTers to settle a claim for insurance benefi~s, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Aropeny
or to the sums secured by this Mortgage.
~ Unless Lender and Borrower otherwise agree in w•riting, any such applieation o! proceeds to principal shall not extend
or postpane thz due date of the mon~hl}~ ins~allments referred to in paragraphs 1 and 2 hereof or change ~hc amount of
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrow~er
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propert~~ prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
. acquisitian.
~ 6. Prestrvatlon aad bfaintenance of Propert~; Leaseholds; Condominiums; i'lanned Unjt De~•elopmenls. Borrower
~ shall kee the Pro rt in ood re air and shall nct commit •Haste or rmit im airment or deterioration oi the Pro rt
~ P Pt Y & P~ Pe P p~ Y
and shall comply with the provisions of any lease if this hlor~gage is on a leaschold. If this Mortgage is on a unit in a
condominium or a ptanned unit development, Borrower sha!! pcrtorm all of [3orrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulationc of the
condominium or planned unit dtvelopment, and constituent documents. It a condominium or planned unit de~•elopmeni
rider is executed by Borrower and recorded together with ~his Mortgage, the covenanis and agreements ot such rider
shal( be incorporated into and shall amend and supplement the co~•enan~s and agreements of this Mortgage as if thc rider
were a part hereaf.
7. Protection of Gender's Stcurity. lf B~rrower fails to pertorm ihe covenants anJ agreements contained in this
Mortgage, or if any action or proceeding is commenced which materialty aRects Lender's interest in the Propersy,
including, but not limited to, eminent domain, insolvency. code enforcemen~, or arrangemenis or proceedings involving a
bankrupt or decedent, ~hen Lender at l.ender's oplion, upon notice to Borrower, may~ make such appearantes, disburse such
sums and take suefi action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and zn~ry upan the Property to make repairs. If Lender required mortgage insurance as a
condition of making the toan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in efTect until such time as the requirement (or such insurance terminates in accordance with Borrower's and
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