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U~(FOR:?f COVEKANTS. Borrowcr and ~endc~ covc~ant ~~d agree as foliows:
1. Payment of Pdncipal aod lntrrest. Borrower shall promptly pay when duc ttie p~i~cipal of and intercst on the
indebtcdness evidenccd by thc Note, prepayment and latc cha~ges as provided in thc Nate. and thc principal of and i~teocst
on any Future Advanccs secured by this Mottgage.
2. Funds for 7'axes And Insurance. Subject to applicable law or to a vvrittzn waiver by Lcnder, Bortower shal) pay
to Lende~ on thc day monthly instalimc~ts of principal and intcrest are pay~able under the Note. until the Not~ is paid in Iull.
a sum (hcrein ''Funds") equal to one•twelfth of Ihe ycarly taxes a~J assessments which may attain priority ove~ this .
Mortgage, a~d ground rents on the Pmperty. if a~y. plus oae-twelfth of yearly premium installmcnts for hazerd insurance. ;
plus on~~tx~elfth of yearly premium installments for mongage insurance, if any, all as rcasonably estimated initially and (rom !
timc to time hy Lende~ on thc basis of assessments and bills and ~casonablc estimates thereaf. ~
The Funds shall be held in an institutio~ the deposits or accounts ot which are insured or guarantetd by a Federal or ;
state ag~ncS~ (including Lender if Lender is such an institutio~). !_ender shall apply !he Fu~ds to pay said taxes. as.cessments, t
insurance pr~miums and ground rents. Lender may not charge for so holding and applying the Fur?ds. analyzing said account~ i
or ~•trif~~ing and compiling said asseuments and bills~ unless LenJcr pays Borrowe~ ioterest on thc Funds aad applicable law ;
petmits. Lender to make such a charge. Bo~rower and I.ende~ may ag~ee in writing at the time of exccution ot ihis ;
Mc~rtgage that interest oR !he Funds sha!) be paid to Borrower~ and unless such agreement is made or applicable law ;
rcquirts such intcrest to be paid. Lender shall not be requireci to pa~• Borrower an~• interest or earnings on the Funds. Lender ?
shall gi~•e to Borrower. without charge. an annual accounting of the Funds showing credits and debiti to the Funds and the '
pu~pose for which each debit to the Funds was made. 'I'he ~unds are pledged as additional security for the sums secured ~
by this dtortgage. ~
- If the amount of the Funds held by Lender. together with the [uturc monthly installments of Funds payable prior to i
the due dates of taxes. asscssmeats, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. ~
asseuments. insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option. either
promptly repaid to Borrower or creditod to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sut6cient to pay tates. assessments, insuranc~ premiums and gc~ound rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the de6ciency within 30 da~~s from the date notice is maited
by Lender to Borrower requesting payment thereof. ~
Upon paymeat in fuU of all sums secund by this Mortgage, L.e~der shall promptly refund to Borrower any Fu~ds
held by L.ender. If under paragraph 18 heteof the Property is sold or thc Propeny is othenvise acquired by Lender. I.ender
shall apply, no later than immediately prior,to the sate of tha Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a credi~ against the sums secured by this Mortgage:
3. Applicatton of Payments. Unless applicable law provides othenvise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by i.ender fiat i~ payment of amounts payable to Lender by Borrower
under pacagraph 2 hertof, t6ea to interest payable on the Note, then to thc principal of the Note, and then to interest and ~
principal on any Future Advances. J
4. C6arges; Lkns, Borrow•er shall ~ay a!! taxes, assessmcnts and other chargcs, fines and impositions attributable to `
the Pmperty which may attain a prioriry over this Mortgage. and leasehotd payments or ground reats. if any. in the manner-
p~+avided und~r paragraph 2 hereof or. if not paid in such manner. by Borrower making payment. when due, direcdy to the '
pa)ee thereof. Borrower shall promptly furnish to Lender alt notices of amounts due under this paragraph. and in the evtnt
Borrower sha11 make payment dirertly. Borrower sha!! promptly fumish to Lender receipts evidencing such payments.
BorroW er shall promptly discharge any lien which has priority over this Mortgage; pmvided. that Borrower shall not be ;
required to discharge any such lien so long as Borrower shall agcee in writing to the paymeet of the obligation secured by ~
such lien in a manner acceptable to i.ender, or shalt in good faith contest such lien by, or defend eeforcement of such l'een in, ~
. legal proceedings which operate to prevent the enforcement of the lien or fodaitun of ttie Property or any part thereof. ;
5. Nuard Iraurance. Borrower shall kecp the improvements now existing or hereafter erected on ihe Property insured
against loss by•Sre. hazards included within the term "extended rnverage", and such other hazatds as I.ender may require
and in such amounts and for such periods as Lender may requic+e; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
1be insurance carrier p~oviding the insurance shall be chosen by Borrower subject to approval by Lender, pmvided.
that such approval shalt not 1ie unreasonably withheld. All premiums on insurance policies s6a11 be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Bocrower making payment, when due~ directly to the
insurance carrier.
All insurance policies aad renewals ihereof shall be in form acceptable to Lender and shall includc a standard mortgage
clause in favor of aad in fprm acceptable to Leader. I.ender shall have the rig6t to hold the policies and renewals thsreof.
and Borrower shall promptly furnish to Lender all renewal notices and ali ~+eceipis of paid premiums. In the event of loss.
Borrower shall give pmmpt notice to the insurance carricr and Lender. Lender may make praof of bss if not made prompdy ~
by Borrower. .
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or reQair of
thc Property damaged, provided such restoration or repair is economicatly feasible and the security of this Mortgage is
noc thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any. paid
to Borrower. If the Propeny is abandoned by Bornower, or if Borrower fails to respond to Lender within 30 da}^s from the
date notica is mailed by I.ender to Borrower that the insurance carrier o(~ets to settle a claim for insurance benefits. Lender
is authorized to collect and apply t6e insurance proceeds at Lender's option either to restoration or repair of the Properiy
or tu the sums secured by this Mortgage.
Unless l.ender and Bonower otherwise agree in writing, any such application oE proceeds to principal shatl not extend F
or postpone the due date of the monthfy instaitments referred to in paragraphs 1 and 2 hereof or change the amount ~of
suc6 instaNments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower ~
in and to any insurapce policies aad ia and to the proceeds the~eof resulting from damage to the Property prior to the sale ;
or acquisition shall pass to I.eoder to t6e extent of the sums secured by this b'tortgage immediately prior to such sale or '
acquisition.
6. Presenatiop sad i~fs~intenance of Properfy; Leascholds; Coudaminiums; Planaed Unjt Developments. Bormwer t
shall keep the Property in good repair and s6a11 aot commit waste or permit impairment or deterioration of the Property
aad shall compljr with the provisions of aay lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit developmtnt. Borrower shall perform all of Borrow-ers obligations under the declaration
or covenants creating or governing the candominium or planned unit development, the by-]aws and regulations of the
coadominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded toaether with this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall ameod and supplement the covenants and agreements of this Mortgage as if the ridei '
were a part hereof.
7. Protectioa of Leader's Securify. If $orrewer fails to perform the covenants and agrcements' rnntained in this f
Mortgage, or if any action or procceding is rnmmenced which materially affects Lender's interest in the Property, ;
including, but not limited to. eminent domain. insolvency, code enforcement, or arrangeme~ts or praceedings invoiving a
bankrupt or decedent. then [.ender at I.ender's option~ upon notioe to Borrower, may make such aQpesranre.a, disburse such ~
sums and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement ot
reasonable attomey's fees and entry upon the Property to make repairs. lf Lender required mortgagt insurance as a
condition of making the loan secured by thii Mortgage. Borrower shall pay the premiums required to maintain wch ~
insu~ance in ef~ect until such time as the requirement for such i~surance terminates in accordance with Borrower's and ~
Bo~?z7~ PA~~ s,