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UHtFOa~t CovENaNTS_ Borrovrer and l_enJer cavenant and agree as follaws:
1. lspsett d Tri~cipal a~i l~terat. Borrower shali promptly pay when duc the principal of and interest on the
indebtedneu evidenced by the Note, prepayment and late charges as praviJed in the Note, and the principal of and intercst
on any Futurc Advances secured by this Mortgage.
2. Ftinds tor Tua a~i I~wra~ce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day moathly installments of pri~cipal and interest are payable uader the Note, until the Note is paid in full,
a sum (herein "Funds") eqwl to one-twelfth of the yea~ly taxes and assessments which may attain priority over this
Mortgage, and ground rents oa the Propeny, if a~y, plus one-tweltth of yearly premium installments for h:~zard insurance,
plus one-twYl(th of ytarly prcmium installments for mortgage insurance, if any, all as r~easanably estima~ed initially and from
time to time by l.eader on the buis ot asxsunen~s and bills and reasonable estimates thercof.
' The Funds shaU be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lrnder if Leixier is such an institution)_ I.ender shall apply the Funds to pay said taxes, assessments.
insurance prcmiums aod atound rent;- Lender may not charge for so holding and applying thc Funds, analyzing said account,
or verifying and compiling said assesrmenis and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make wch a charge. Borrower and l.ender may agrce in writing at the time of execution ot ihis
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or appticable law
rcquira such inter~st to be paid. Lender shall not be required to pay Borrower any interest or earni~gs on the Fuads. Lender
shall give W Botrov?•er, w•ithout charge, an annual accounting of the Funcis showing credits and debits to the Funds and the
purpose for which wch debit to thc Funds was made. The Funds are pleciged as additional security for the sums secured
by this Mortgage_
lf tt~e unount of the Fuads held by Lender, together vvith the future monthly installments of Funds payable prior to
the due data of taxes, assessmrnts. i~urance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
usessments, insurance premiums and ground rents as the}~ fall due, such excess shall be, at Borrower's option, either
promp~l~ repaid to BorrowYr or~credited to Borrower on monthly installments of Funds. If the amount o[ the Funds
held by l.eader shaU not be w~t to pay taua, assessments, insurancc premiums anJ ground rents as they fall due,
Borrower shall pay to I.ender any amount nocessary to make up the deficiency within 30 daps from the date notice is mailed
by l,eoder to Borrovrer rcqucsting pay~ment thereot.
ifpon payment in full ot all sums secured by this Mortgage, l.ender shall promptly refund to Borrower anv Funds
he{d hy Lender. If under Quagraph 18 hercof the Properi~• is wld or the Property is otherwisc acquired by Lender, Lender
s6a11 apply, no later than immediately prior to the sale of the Property or its acquisition by [.ender, any Funds held by
Lender at Ihe time of application as a credit against the sums secured by th~s Mortgage.
3. Appiicatio~ oi Payioeus. Unless applicable law proviJes otherwise. all payments recei~~ed b)~ l.ender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrow~er
under patagraph 2 heroof, tben to interest pa~able on the Note, then to the principal of the Notc, and Ihen to interest and
principal on any Future Ad~ances.
4. C~argt~ I3eas. Borrov?er shalf pay all ~axes, asscssmcnts and othcr charges, fines and impcxitions attributable to
the Property which may attain a priority over this 111ortgage. and leasehold payments or ground rents, if any, in the manner
pt+ovided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to ihe
payee thereof. Borrower shall promptly turnish to Lender all notices of amounts due under this paragraph, and in the event
Borrow~er shall make payment direcdy. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrow•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 bng as Borrow•er shall agree in writing to the payment of the obligation secured by
such lien in a manner acoeptabk to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings w•hich operate to prcveot the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Huud Insara~ce. Borrower shall leep the improvements now existing or hereafter erected on the Property insured
against loss by fite, hazuds included within the term "extended coverage", and such other hazards as Lender may require
and in such amounu and fur wch periods as Lender may reyuire; provideJ, that Lender shall not require that the amount of
such co~~erage excced that amount of co.erage required to pay the sums secured by this Mortgage.
The iasuranoe carrier providing the inwrance shall be chosen by Borrower subject to approval by Lender, provided,
t6at such approval sha11 not be unteasonably.withheld. All premiums on insurance policies shall be paid in the manner
provided under paragtaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurancc carricr.
AI? insurance pdicies u~d renewah thereof shall be in form acceptable to Lender and shall include a standard mortgage
t clause in far•or of and in form xceptabk to Ixnder. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrowtr shall promptl~• furnish to Lender all renewal notices and all receipts of paid premium~. In the event of loss,
Borrower shall gi~~e prompt naice to the insurance carrier and I_ender. t_ender may make proof of loss if not made promptly
by Borrower.
Unless Lertder and Borrower otherv?ise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Proptrty damagcd, provided such restoration or repair is economically feasible and the security of this Mortgage is
~ not thereby impairrd. 1: such rrstoration or repair is not economirally feasible or if the security of this Mortgage woutd
be impa;red, ttx ~nwrancx procoods shaU be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrowcr. If the Propert}• is abandoned by Borrower, or if Borrower fails to respond to t_ender within 30 days from the .
date notice is mailed by l.eader to Borrow~er that the insurance carrier otTers to setde a claim for insurance benefits, L.ender
is authorized to colkct and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums socurod by this Mortgage. '
Unless Lender and Borrov?er otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due datt of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments_ It undet paragtaph l8 hereof the Property is acyuired by l.ender, all right, title and interest of Borrower
in and to au) insuraoce policies and in and to the proceeeis thereof resulting from damage to the Property prior to the sale
" or acquisiuon shaU pass to l.cader to the etten"t of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Pnsrr.atiw sd ~laiateaance of Propc~~~; Leaseholds; Condominiums; Planned Unit Derelopments. Borrower
~ shall keep ihe Property in good repair u~d shall not commit waste or permit impairment or deterioration of ihe Prdperty _
a~ shal) comply wiih the provis~oas of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
i~ condominium or a planned unit dcvelopment, Borruwer shall perform all of Borrower's obligations under the declaration
~ or coveoants creating or governing the condommium or planned unit development, the by-laws and regulations of the
condominium or pl~noed unit development, and constituent documents. If a condominium or planned unit development
nder is eaecuted by Borrower and recorded together with this Mortgage, the covenants and agreements ot such rider
~ shall be ~ncorporated into and sball amend and supplement the covenants anJ agreements o[ this Mortgage as if the rider
~ were a part hereaf.
~ 7, protectiq~ o( I,e~dePs Secority, lf Bc~rrow•er fails to perform the covenams and agreements contained in this
Mortgage, or if any x~on or proceeding is commenced v?~hich materially affects Lender's interest in the Property.
- including, but not limited to, em~nent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or docedent. then l.ender at ~eoder's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action is ~s ~ucessary to protect l.ender's interest, including, but not limited to, disbursement ot
~u
~ reasonable attorney's fees and entry upon the Property to makc repairs. If Lender required mortgage insurance as a
condhion o( making the ban sawed by this Mortgage, Borrower shall pay the premiums requireJ to maintain such
~ insurance in effoct until such titne as the requirement for such insurance terminates in accordance with Borrower's and
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