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UNIPOUM COVBNANT3. Bormwer and l.endor covenant and agra u follaws:
1. la,yme~l oE P~faciptl aad lnferaf. Bor[ower shall promptlY paY when due tho principal ot and interest on the
iadebtednes: evidenceJ by the Noto. prepayment and lale charges as proviikd in the Note. aod tho principal of and i~te~st ;
o~ aay Future ~?dvances securtd by this Mo~tga~e.
2. I~~s ior Ta:cs aua lu~uraece. Subject to applicabk law or to a written waiver by l.ende~. ~Borrowe~ shall pay
to Lender on the day monlhly installments of principal and intc~est arc payible under the Note. until the Note is paid in [uli.
a sum (hercin "Funds") equal to one-twelfth ot the ycarly taxcs and assasmcots which may attain priarity over this
Mongage. and ground ren~ on the Pmperty. if any. plus one-twelfth of yearly premium installments tor hazard insurance.
plus ooc-twellth of yearly premium installments (or mongages insurance. if a~y. all as rcswnably estimatecf initially and [rom
time to timc by Lcadcr on thc basis of assessments and bills and reasonabk estimates thereof.
71~e Funds shall be held in an institution the deposits oa-accounts of which arc insural or guara~tetd by a~ederal or
state agency (including Leader if Leode~ is such an institution). 1_ender shall~p ply the Funds to pay said tanes. assessments.
insurance premiums aad ground rents. Lender may not charge for so holding ~d applying the Funds. analyzing said account.
or verifying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lende~ may agree in writing at the time of executio~ of this
Mortgnge that interest on the Funds shall be paid to Borrower. and unless such agroement is made or applicable law
reyuires sucfi interest to be paid. Lender shall not be rcyuircd to pay Borrower any interest or earniags on the Funds. l.endcr
shall give to Borrower. without charge, an annual accounting of the Funds showing crcdits and debits to the Funds and the
purpuse (or which each debit to Ihe Funds was made. The Funds are pledged as additional security for the sums secured
by this I~lortgage.
If the amount of the Funds held by [.ender, together with the future monthly installments of Funcis payablc prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amouM required to pay said taxes.
assess~aents, insurance premiums and ground rents az they fall due, such excess shall be. at Borrower
s option. either
promptly repaid to Bormwer or credited to Bormwer on monthly installments of Funds. If the amount of the Funds
held by Le~de~ shall not be sufficieat to pay taxes, assessments. insurxnce prcr.iiums and gmund rents as they fall due,
Borrowe~ shall pay to Lender any amount ~ary to make up the deficieacy within 30 days irom the date notice is mailed
by l.end~:r to Borrower requestiog payment thereof.
Upon payment in full of all swns secured by this Mortgage, I.ender shall promptly refund to Borrower any Funds
held by I.ender. I[ under paragraph 18 hcreof the Property is sold or the Property is othervvise acquired by t.ender. Lender
shall apply. no latcr than immediately prior to the sale of the Property or its acquisition by l.cnder. any Fundc held by
Leader at the time of application as a credit against the sums socured by this Morlgage. ~
3. Appucation of Paymeats. Unless applicable law provicks otherwise. all payments received by Lender unJer the
Note and paragraphs 1 and 2 hereof shall bc applied by 1_ender first in paymcnt of amounts payable to Lender by Borrower
undc~ paragraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note. and then to interest and
principal on any Futurc Advances. :
4. Charges; Lkas. Borrowcr sh:+ll pay all tax~~s, assessments and other charges, fines anJ impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold paymcnts or ground rcnts, if any, in the manner '
provided under paragraph 2 hereof or. if not paid in such manner, by Bonower making payment. when due. direcdy to the ~
payee thcreof. Borrower shall promptly furnish to Lender all notices of amouats due under this paragraph, and in the event ~
Borrow•er shall make pa~•ment direcUy. Borrower shall promptly furnish to I.ender receipts evidencing such payments- y
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that $orrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of ihe obtigation secured by
such lien in a manner acceptable to Lender, ar shall in good faith contest such lien by, or defend enforcement of such lien in,
legal pr~keedings which operate to prcvent the entorrement of the lico or forfeiturc of the Property or any part thereof. .
S. Hazard lusurance. Horrower shall kcep the improvements now• e~isting or hercafter crected on the Pr.~perty insured !
against loss by firr, hazards included within the term "~xtended coverage". and such other hazards as Lender may require ~
and in such amounts and for such periocls ac !_ender may reyuire: provideJ, that LenJer shall not require that ehe amount of
such co~~erage exce~:d that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subjecl to approva! by Lender. providod.
that such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower malcing payment, when due, direcdy to tht
' insurance carrier. ~
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clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and rcnewak thereof.
and BurroM•er shall promptly furnish to i_ender all renewal notices and all receipts of paid premiums. In the evcnt of Ioss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proc~f of loss if not made prnmptly =
~ by Borrower. ~
t Unless Lender and Bocrower otherv?•ise agree in writing, insurance proceeds shall be applied to~restoration or repair of ~
~ the Propeny damaged. provi~kJ such rcstoration or repair is economicallv [easible and the security of this Mortgage is
~ not thereb~ impaired. 1[ such restoration or repair is not econumicaUy fcasible or if the security of this Mortgage would
~ be impaired. the insurance proceeds shaif be applied to the sums secureJ by~ this Mortgage, vrith the excess, if any, paid
to Borrower. lf the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice ?s mailed by Lender to Borrower that the insurance carricr often to settle a claim for insutance benefits. Lender
is authorizec! to collect and apply the insurance proceeds at Le~er's option either to restoration or repair of the Property
er [o the sums ae.:ured b~• this ~iortgagc.
~ Uuless Lcrxkr and Borrow~er otherwise agrec in :s•riting, any such apalicadon of proceeds to principal ~hall not extend
or postpune the d~ic date of the monthl~~ instaiiments referred to in paragraphs I and 2 hereof or change the amount of
such installments. Jt under paragraph 18 hereof the Property is acqu~recl by Lender, all right, title and interest of Borrower
in and to any ~nsurance policies and in anel to ihe proceecis thereut resul~ing from damage to the Property prior to the sale
or acquisition ahall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
aequisition.
6. Presenalion and Mainteaaace of Property; I.ease6olds; Condominiums; Planned [iait Devebpments. Borrower
shall keep thc Property in good repair and shall not commit a~aste or permit impairment or deterioration of the Property
and shail comply with the provisions of any lease if this Martgagc is on a leasehold. If this Mortgage u on a unit in a
~ condominium or a planned unit development. Borrower shall perform all of Borrower s obligations under the declaration
or covenants creating or gove~ning the condominium or planned unit development, the by-laws and regulationc of the
co~Jominium or planned unit development, end constituent documents. If a condominium or planned unit development
riJer is executed by Borrower and recordeci tagether with this Mortgage, the covenants and agreements ot siich rider
shall bc incorporated into and shall amend and supplcment the covenants and agreements of this Mortgage as if the rider
were a paR hereof.
7. Protectjoa of La.der's Sec~rity. I( Borrow•er fails to perfurm the covenants and agreements contained in ihis
Mortgage, or if any action or proceeciing is commenced wh~.h materially affects Lender
s interest in the Property,
including. but not limited to, eminent domain, incolvency. code enforcement, or arrangements or proceedings involving a
baol~rupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make sucfi appearances, disburse such
wms aad take sach a.:tion as is necessary to prutect Lender s interest, including, but not limited to. disbursement of
reasonable attome)•'s ices and entry upon the P~operty to make repairs. If l.cndcr rcquircd mortgage insurance as a
condition of mal:ing the loan secureci b} this Mortgage. Borrovver shall pay the premiums requirod to maintain such
insuranee in etTect until such time as the reyuircment for such insuranee terminates ia accordance with Borrower s and
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