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Ut~~FOK~t CovExaNTS. Borrowe~ and Lcu~tr c~vcn.~nt anJ agice a~ (ollaws:
1. Fayment uf Pdnclpal pnd inle~esf. 13o~rrnver sh:?II promptly pay when due th~ principal of :u~d i~tcrrst on the
indebt~dn~ss evidenccJ by th~ Notr. prepayment and late charge+ as proviJecl in the tinte, and ~he prin~ipal of and iniercst
o~ any Future Advances secured by this Martgage. ~
2. ~Fuuds for Taxes and Insurance. Subject to applicable law or ~o a N•ritten waiver by L~nder, [3orrower shall pay ;
to l.cnder on the day monthly installments o[ principal and interrst arc payahle under thc hote, until thc ~ote is paid in tull. ;
a sum (hcrcin "FunJs") equal to onatwclFth ot the yearly ta~cs and ;,sccssments which ma)~ attain prioriry ove~ this ~
I~lortg:?g~, and gruund rents on the Pn~pe~ry. if uny, plus onatwelfth r[ yearly premium installme~tc for haza~d insurence. ~
plus onc-twelfth of yearly premium installments for martgage insuranc~, if any, all as reasonat~l)~ c.timat~d initially and !mm ~
time to time by Lender on the basis ot a~sessmcnts and Uills anJ reasonable estimata thereof.
The Funds shall tx: held in an institutio~ the deposits or acc~~unts of which a~c insured or guaranteed by a Federal or
state agency (including 1_ender if I.ender is such an'institutio~). Lender shall apply the Fuads ta pay said tax~~s. assessments,
insurance premiuais and R~ound rents. Lencler ma~ not charge for so holding and applying the Funds, analj~zing said account.
or verif~~ing and compiting said assessments and bi!!s, unless l.ender pays Borrowe~ interest on the Funds and applicable law
. permits Lend~r to make such a charge. Borrower and Lender may agrec in writing at the time of eaccution of this
Mortgage that interat on the Funds shall be paid tu Borrower. and u~less such agreement is made or applicable law
requires such intcrest to be paid. Lcnder sha(1 not be required to pay Qorraw~er any inter~;st or earnings on the Funds. Lender ;
shall gi~•e 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 a~e pledged as additional security fot the sums secured
by this ~tortgage. '
If the amount o[ the Funds held by Lender. together with the tuture monthly inctallments of Funds payabte prior to
tho due dates of taxes, assessments, insurance premiums and ground rents, shall eaceed the amount required to pay said tazes.
assessments, insurance premiums and ground reots as they fall due, such excess shall be, at Borro~.~er s option. either
promptly repaid to Borrower or credited to Borrower on monthty installments of Funds. If the amount of the Funds
held by Le~der shall not be sufl'icient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shatl pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums securcd by this Mortgage, I.ender shall promptly refund to Borrower any Funds
held by l.cnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of appiicaiion as a credit against th~ sum: ~:uie.i uy i~is Aiartgagc.
3. Application oE Payments. Unless applicable law provides otherwise. all payments received by Lender t~nder the
Note and parag~aphs 1 and 2 hereof shall be applieJ by 1_endcr first in payment of amounts payab!e to 1_ender by Borrower
under paragraph 2 hereof. then to interest payable on the Note. then to the principal of the I`ote, a~d then to interest and
principal on any Future Advances.
4. Cha~es; Liens. Borrower shall pay all taxes, asses~~ments and other charges, fines and impositions attributable to
the Property which may attain a priority over this 141ortgagc, and leaschold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making pa}~ment, when due, directly to the
pa}•ee thereof. Borrower shall promptly furnish to l.ender all notices of amounts due under ihis paragraph, and in the cveat
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
BotroN~er shall promptly 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 shall :tgrce in writing to the payment ~f the obligation secured by
such lien in a manner acceptable to l.ender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Haznrd lnsurance. Borrower shall kecp the improvements noW existing or hereafter erected on the Property insured
against loss b} fire, haza~ds included within the tcrm "cxtended coverage", and such other hazards as Lende~ may require
and in such amounts and for such periods as Lender may require; provided. that LenJer shall not require that the amount of
such co~•erage exceed that amount of co~•erage required to pay the sums secumd by this Mortgage.
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'il~e insurance carrier rovidin the insurance shall be chosen by Barrower subject to approval by Lereder. pro ided.
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~ that such approval shall not be un:easonably withheld. All premiums on insurance policies shall be paid in the manaer
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 [.ender and shall includz a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall 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 premiums. 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 promptly
by Borrower.
Unless Lender and Borrower otherwise agree in a•riting, insurance proceeds shall be applied to restoration or repair of
the Propert~~ damaged. provided such restoration or repair is economically feasible and the security of this biortgage is
not thereby impaired. lf such restoration or repair is not economically feasible or if the security of this lliortgage would
be impsired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid
to Borrawer. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 da}s from the
date notice is mailed by Lender to Borrower that the insurance carricr ofTers to settle a claim for insurance benefits, Lender
is authoriaed to collect and apply the insurance proceeds at Lender's option eit6er to restoration or repair of the Property
or tu the sums sccured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principat shall not extend
or postpone the due. date of the monthly ins~allments referred to in paragraphs 1 and 2 hereof or change the amount~of
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest ot Borrower
_ in and to any insur.mce policies and in and to the procee.is thereot resulting from damage to the Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this hlortgage immediatety prior to such sale or
acquisition.
6. Presenation and tifaintenance of Property; I.easehulds; ConJominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the PropeRy
and shall comply with the provisions of any leas~: if this hiortgage is un a Icasehold. It this Diortgage is on a unit in a
conctominium or a planncd unit dcvclopment, Borro~•er shall pcrform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned ~~nit development. the by-la~vs and regufations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is esecuted by Borrower and recorded together with this Mortgage, the covenanis and agreements of such rider
shall ~e incorporated into and shall amend and supplement ihe co~~enants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of I,endePs Security. If Borrower fails to perform the covenants and agreements contained in this
I?iortgage. or if any action or procceding is commenced which materially attects l.ender's interest in the Prope~ty,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, Ihen 1_en~er at Lender's option~ upon notice to $orrower, may make such appearances, disburse such
sums and take such action as is necessary to protect l.ender's interest, including, but not limited to, disbursement of
rcasonablc attorney's fccs and cniry upon-thc Property to makc rcpairs. If Lender required mortgage insurance as a
conJition of making the loan securea by this rtortgage, Borro«~er sh:+ll pay ihe premiums required to maintain sach
~ insuranc~ in ei~ect until such time as ~he requirement for such i~surance terminates in accordance with Borrowe~s and
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