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UHt~s?~ CoveN~Hrs. Borrower and Leo~ier covcaant and agree as foliows:
1. ly~oeiet of Pri~rlp~l se~ Isdtrrsf. Bcrr~wer shal! p~~+mpt1Y paY wl~n duc thc prinr.ipal oE and i~tereu o~ thc '
indebtodness eviJenceJ by the Note. prepaytnent and Iate cha~ges as provided in the Note. aod the'nrincipal ot and iQtercst
or~ aay Futurc Advances socured by this Mongage.
3. Fssds tor Ta:es aed lasrra~ce. Subject to applicabk law or to a written waiver by l.ende~. Borrower ahall pay
to l.ende~ o~ the day mc+n~ly iostallments of principal and intcrest ate psyable under the tiote. until the Notc is paid in full.
a tum (herein "FuRds") equal ta onatwelfth of the yea~ly tarec and assa~ments whicb m~y attain priority over this
Mortgago. and ground rents on the Pmpeny. if aoy, plus onc~twelf~h of yearly premium installments for hazard i~surance.
ptus one-twellth of yearly pcemium installmcnts for mongage insurance. if a~y, all u reasanably estimateJ initially and from
time to time by Lender on the basis of asscssmc~ts and bills and masonabk estimatcs thereof. .
'Il~e Fuods shall be held in an institution the dep~sits o~ accuunts of which arc iruured or guaranteed by a Fe~ieral or
state ager~cy (including Lender if Lende~ is such an institutio~). I.enJe~ shall apply the Funds to ~y said laaes. assessments.
insuranco premiums a~d ground rents. I_ender may not charge For so holding and appl~•ing the Funds, analyzing said account,
or verifying and compiling said assessmenu and bills, unless Lender pa~~s Borrowe~ interat on the Fum1s and applicable law
permits Lende~ ta make such a charge, Borrower and Lender may agree in wciting at the time of execution of this
Mortgage that interest on the Fu~ds shall be paid to Borrower, and unless such agreemer~t is made or applicable law
requires such interest io be paid. Lender shall not be re~uirecl ta pay Borrower a~y interest or earning,s on the Funds. Le~der
shall givc to Borrower, without charge, an annual accounting of the FunJs showing credits and debit~ to the Funds and the
purpos~ for which each debit to the Funds was made. The Fu~ds are pledged as adciitional security for the sums securcd
by this Morigage.
If ihe amount of the Fuc~ds held by l.ender, together with the future monthly installmcnts of Funds payable prior to
the due dates of taxes, asxssments. insurance premiums and ground rcnts, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option. either _
promptly repaid to $ormwer or credited to Borrow~er on ~non~hly installments af Funds. If the amount of the Funds _
hetd by Lcader shall not be sufficient tu pay taxes, assessments, insurance prer.iiums and ground rentc as they fall due,
Borrower shall pay to Lender any amou~t ne~.-tssary to make up the deficiency within 30 da~~s trom the clate notice is mailed
by Lender to Borrower requesting payment thereof. ~ _
Upon payment ~in full of all sums securcd by this Mongage, l_ender shall p~omptly refund to Borrower any Funds
heW b~ Lenckr. lt unde~ parag~aph 18 hereof the Property is sold or the Propert~• is otherwise acquired by Lender, l.ender
sball ~pply, no later than immediatcly prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lende~ at ~he time o( application as a credit lgainst the sums securecl by this Mortgage.
3. Applicatioa of Payments. Unlcss applicable Iaw.pr~viJes othcrwise. all. payments received by Lender under tho
Notc and paragrtphs 1 and 2 hereof shall bc appl~ed by Ixncier first in payment uf amounts payable to Lcnder by Borrower
under paragraph 2 hercof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and
princepal un any Future Advances.
4. Charges; I.kas. Bc~rro~ver shall pay all ta~es~ asses.sme~ts anel othrr charges. fines and impositions attributable to
tht Property which may attain a priority over this Mortgage, and leasehold paymcnts or ground rents, if a~~y, in the manner
pro~i~ unJer paragraph 2 hereo[ t~r, if not paid in such manner, by Borrower making payment, when due, direcUy to the
payee the~of. Bor~o~a~r shail promptly furnish tc+ Lencler all notices of amounts due under this paragraph, and in the event~ •
Borrower shall m:.ice payment directly, Borrower shall promptly furnish to Lencier receipts evidencing such payments.
Borrow•er shatl prompUy dischargc any lien Nhich has priarity uver this Mortgage; proviJ~d, that Borro~•er sha{l not t~e
reyuircd to disr.harge an~~ such lien so long as Borrewer shall agree in w~riting to the pa~~:!~ent of tbe obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such licn by, or defend enforcement of such lien in,
leg~! procecdings which operate to prevent the enforcement of thc lie~ or forfeiture of the -Propert)~ or an~ part thereof.
5. Hazard Intiurance. Borrower shall kcep tlx: ~mprovements now cxisting or hercaftc~ erccted on the Property insured
against loss b~~ fire, hazard~ in:lu.leci within the terni "extended coverage". aaJ such other hazards as Lender may require
and in s••x:h amounts and for su. h periods as Lcnder ma~• reyuire: pruvidcJ, that Lcnder shall not requirc that the amount of
such co~-eraee esceed that amount of coverage reyuircd to pay the sums ;ecured by this biortgage.
The insu~ znce carrier providing the insurance shall be chosen by Rorrowcr subjecr to approval by Lencler, provided,
that wch approva! .hall not be unreawnably withheld. All premiums on insurance policies shall be paid in the manner
pro~ided unJcr paragraph 2 hereo[ or, if not paid in such manner, by Borrow•er making payment, when due, directly to the .
insurance carner.
All insurance policies and renew•als thereof shati be in fornt acceptabfe to Le~der and shall include a stanJard morigage
•neW~als ihereof,
~ ul the licies and n
c s i v r of i f - tab to Lender. L~:nder shall ha~e the ri ht tc h d
lau c n fa o and n orm a~:~e le
p 8 P~
and Borrower shall promptly furnish to ~ender all renewal notices and all receipts of paid premiums_ In the event of loss.
Borrower shall give prompt notice to the msurance carrier and Lender. LenJer may make pror[ of loss if not made prompQy
b} Borrowcr_ ~
Unless Lende~- and Borru~rer otherw•ese agree in v?•riting, insurance proceeds shall be applied to restoration or repair of ~
thc Property damaged, pm~ided suci~ restoration or repair is economically feasible and the security of this Mortgage is ~
not ~hereb}~ impaired. If surh restoration or repair is not economically feasible or if the secs~rity of this Mortgage would
be impaired, the insurance proceeJs shall be applied to the sums secured by this Mottgage, with the excess, if any, paid :
to B~rrcr~ver. lf the Propetty is ab. ndoned by~ Borrower, or if Borrower fails to respond to Lende~ within 30 da~^s from the =
date nc?tice is mailed by Lender to Borrower that ~he insurance carrier ofTen to sef~le a claim for insurance benefits, Ixnder ;
il authorized to collect and apply the insurance pr~ceeds at Lender's option either to restoration or repair of the Properly :
~~r to the sums sccured by this Mortgage. i
Unless Lender and Borrower otherwix agree in w•riting, anp such ap~~lication of Proceeds to principal shall not extend -
or pos~pone the due date of the monihly installments rcfcrred to in paragraphs 1 anJ 2 hcreof or change the amount of ~
such installmenu. It under paragraph 18 hertof the Property is acy~~ired h~~ Lender, aU right, tide and interest o[ Borrower
in and to an~ insurance policies and in a~~d to the pr~xeeds ther~of resulting from damage to the Property prior to the sale
or acquisition shall pass to L.cader to the extent of the sunu secured by this ~lortgage immediately prior to such sale or
acquisitiun.
6. Presenation aed ~laintenaace of Property; Leasehulds; Condomiaiums; Ptanned Unit De~elopmeots. Borrower
shall kecp thc Property in good repair and shall not cor.~mit wastc or permit impairment or deterioration of ihe Property
and shall comply with the provisioas of any lease if this Mortgage ss on a kasehold. !f this 111ortgage is on a unit in a
condomir.ium ur a planned unit development. Borrower shall perform aU of Borruwer's obiigations under the declaration
or covenants creating or governing the condomioium or planned unit development, the by-laws and regulatic~ns of the
conJominium or planrw_d unit developme~t, and constituent da:umems. If a condominium or planned-unit development ~
riJer is eaecuted b} Bo:rov?er and recorded together w~ith this Me~rt¢age. the co~enants and agrcements o! such rider ~
shall be irtcarporated into an~ shall amcnd and supplement the covenants and agreements of this Mortgage u if the rider ;
were a part hereof. ?
7. Prottctioo of I.eaders Secrrity. If Borrower fails to perf~~rm the covenants and agreemertts contained in this ~
Mor~gagt, or if any actian or proceeding is commenced w~h:ch materially aBects [.ender's interest in the Propetty. f
including, bin not limitai to. eminent domain, insolvency, code cnforcement, or arrrngements or proceodings involvins a
b~akrupt or decedenf, ~hen Lender at Lender's option, upon notice to Borrower, may malce such appearancss, disburx such -
sums u~d take such ution u is nocessar~' to prutect Ltnder
s mterest, ~ncluding, but not limite~~ 40, drlburseme~t of
rtasonable attomey's fees and entry upon the Property to mal?e repalFs. (f Lender requirc~d" morc~e insurance u a
rnndition of making the loan secured by this Mortgage. Borrower shali pay thc premiums requircd to mai~tain such .
insurance in effect until such time u the requirement for such insurance terminates in accordar.ce with Borrower's and
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