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UNtFaw CoveNertTS, Bomower and 1.cnJer covenant and agree as foUuws:
1. h~e~t ot M~clpl a~d laferat. Borrower shall p~amptly pay whcn due thc pri~cipal of and interest an the
indebtodnat evide~ by the Note. prepaytnent and late charges as proviJcd io the Notc, and the principal of and intercst
oa any Future Advances securod by this Mortgage.
l4~ for T~a~a s~i l~ce. Subject to applicable law or to a written waiver by l.ender. Borrower shall pay
to Le~der on the day mon~hly installments of principal aod interest arc payable under thc Note. until the Note is paid in tull,
a tum (herein "Fuads'~ oqual to ar~-twelfth of the yca~ly taxes and assessmentx which may attain priorily over this
Mottjage, and around rents on the Prnperty. it any, plus o~e-twelfth ot ycarly premium installmcnts [or hazard insurance.
plus one-tweltth of yearly premium installments tor mortgage insurance, if any. all as reasonably es~imated initially and from ~
Nme to time by I.eoder on the buis of assessments and bills and reaso~able ~.ttimates thereof.
7Le ~nds shall be held in an inuitution the depoaits or accounts of which are insurcd or guaranleed by a Federal or
~ state sgency (includina Leader if L.ender is such an institution). I.ender shall apply the Funds~to pay aaid taxes. assasmeats.
i~uranoe p+emiums and ground rcnts. Lende~ may not charge for u~ holding and applying the Fund.c, analyzing said account,
or v~rifying aad oompiliag said assessments and bills. unless Lender pays Borrower interest on the Funcic and applicable law
permits Leade~ to make such a charge. Borrower aad Lcnder mzy agree in writing at the time ot execution of this
~ Mortp~e tbat interest o~ the Funds shall be paid to Borrower. and unless such agreement is mado or applicable law
requires such intercst to be paid. [.eoder shall ~ot bc rcquircd to pay Borrower any interest or earnings on the Funds. I.cnder
s6a11 aive W Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpoae for whicA eae6 debit !o the Fu~ds was made. The Funds arc pledged as additional security [or the sums secured
' by this Mort~e. . .
If tht amount of the Funds held by Lender. together with ~he future mon~hly installments of Funds payable prior to
tbe due dates of tues. assessments, insurance premiums and ground rcnts, shall cxceed the amount reyuired to pay said taxes,
, asses~e~ts. insutanoe premiums and ground rcots as they fall due, such excess shall be, at Horrower's option, either
! pmmptly repaid to Borrower or credited to Borrower on mo~thly installments of Funds. If the amou~t of thc Funds
bdd by Lender shall not be wfliciwt to pay taxes, assessmcnts, insurance premiums and ground rents as thcy fall due,
Borrwver s6a11 pay to Lender any ama.u~t noce.ssary te make up the deficiency within 30 days from the date notice is mailed
by I.eader W 8orrower rcquatia8 p~yment the~eof.
Upon payanent iq fuU of all :utns socured by this Mongage, l.ender shall prompily refund to Borrower any Funds
held by Lender. If under puagraph 18 hereof tAe Property ia sold or the Property is othenvise acquircd by I_ender, I_ender
shall apply. ~o later than immediately prior to the sale of the Propeny or its acquisition by I~nder, any Funds held by
I.eader at the time of application u a credit against the sums secured by this Mortgage.
. 3. A~catio~ ot Pa~aeas. Unless applicable I~w provicies otherwise, all payments received by Lender under the
Note and paragraphs ! and 2 hereof ahall be applied by I_ender first in payment of amounts payable to l.ender by Borrower
under puagraph 2 heroof. then to interest payable on the Note, then to the principal of ihe Note, and then to interest and
principal on any Future Advances.
' 4. (.'ra~gefi Lkas. Borrower shall pay all tazes, assessments and other charges, fines and impositions attributabk to
the Property which may attaia a priority over this Mortgage. and kssehold payments or ground rents, if any, i~ the manaer
~ pruvided undcr puagraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. direcdy'to tl~e
payee tlnreof. Bornower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borruvrer shall make payment directly. Borrower shall promptly tumish to l.ender receipts evidencing such payments.
Bomower shall pranpUy discharge any lien which has priority over this Mortgage; providod. that Borrower shall not be
roquired to discharge any such lien so bng as Borrower shall agree i~ writing to the payment of the obligation securod by
such liw in a manner acceptabk to Lender. or shall in good faith contest such lien by. or defend enforcement of such lien in,
kgal proceedings which operate to prevent the en[orcement of the lien or forfeiture of the Properiy or any part thereof_
S: Hmrd Isst~rance. Borrower shall keep the improvcments now existing or hereafter erected on the Property insured
agaiast loss by 6[e, hazards induded within the term "extended coverage", and such other hazards as l.e~der may reyuiro
and in such amounts and for such periods ac Lender may require; provided, that LenJer shall not roquire that the amount of
such coverage exooed that amount of coverage required. to pay the sums secured by this Mortgage.
'ibe iowranoe carrier pmviding the inwrance shall be chosen by Borrower subjoct to approval by Lender, provided,
tbat such appmval sball not be unreasonably withheld. Al) premiums on inwrance policies shall be paid in the manner
providod under paragraph 2 hereof or, if not paid in such maoner. by Borrower making payment, when due. directly to the
iasurance curier.
All insurance policies and renewals thereof shall be in form acceptable to Lencier and shall include a standard mortgage
elause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Bormwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borraver.
Unlea~ Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or npair of
the Property damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is
not thercby impaired. If such restoration or repair is not economically feasible or if the security of ihis Mortgage would
be impairod. tbe insurance proceeds shall be applied to the sums secured by this MoRgage, with the excess, if any, paid
to Borrower_ If the Pt~opehy is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from !he
date notice is mailed by L.ender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits. Lender
is authorizod to colkct and apply t6e insurancc proceeds at Lender's option either to restoration or repair of the Property
or w the snms securod by this Mortgage.
Udess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or p~ostpone the due date of the monlhly installments referred to in paragraphs I and 2 hereof or change the amount of
such i~utallments. If under paragraph 18 hereof the Property is acquired by I.ender, all right. title and intercst of Borrower
in and to any insurance policies and in and to the procceds thereot resulting from damage to tbe Property prior to the sale
or acquisition shall pass to Lender to t6e extent of the sums socured by ihis Mortgage immediately prior to such sale or
ac9uisition-
f. lneserratbo and Maiete~wace of Property; I.ea9elwlds; Condominiums; Planned Uoit Devdopmeats. Borrowcr
shall koep the Property in good repair and shall aot comtpit waste or permit impairment or deteriocation of the Property
and shall comply with the provisions of any kase if this Murtgage is on a)casehold. If this Mortgage is on a unit in a
coadominium or a planned unit development, Borrov?er shall periorm all of Borrower s obligations under the declaration
or covenantt creating or governing the condominium or planned unit development, the bylaws and regulations of the
coodotninium or planned unit development, and constituent documents. 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
s6a11 be inoorporsted iato and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Profectio~ of Le~de~'s Sec~rity. If Borrow~er fails to perfarm the covenants anJ agreements contained in this
Mortgage, or if any ution or Proceeding is commenced which materially af[ects Lender's interest in the Property.
ineluding, but not IimitC~ to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
brnkrupt 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
~+eatonable attorney's feu aad entry upon the Property to make repairs. 1f Lcnder required mortgage insurance as a
condition of making the loan secureci by this Morigage, Borrower shall pay the premiums requirec) to maintain such
iasuiaace in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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