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UNIFORM COVEN.\NI~. Bormwer and Lender covenant and agree as follows:
l. Psyment ot Priacipat aod lalerat. Borrower shall promptly pay when due the principal of and interest on the
indebtedneu evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and intercst
on any Futurc Advances stcured by this Mortgage. ~
2. Fbads tor T~a aad lowraace. SLbject to applicabie law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly instaUments of principal and interest are payable under the Note, until th~ Note is paid in full,
a:um (herein "Funds") equal to one-twelfth ot the ye#rly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Propeny. if any. pius one-tweltth o( yeariy premium i~stallments for haz.ard insurance.
plus one-twelfth of yearly prcmium installme~ta tor mo~tgage insurance, if any, all as reasonably estimated initially and from
time to time by Lendcr on the basis ot assessments anJ bills and reasonablc estimates thereof.
'i~e Funds shall be held in an institution the deposits or accounts of which are insurcd or guaranteed by a Fedenl or
state agency (including Lender if Lender is such an instituti~n). I.ender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. Lender may oot charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unlas I_ender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on !he Funds shall be paid to Borrower, and unless such agrecment is made or applicable law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. I.ender ~
shall give to Borrower, without charge, an annual accounting of the ~unds shawing credits and debits to the Funds and the
purpox for which each debit to the Funds was made. The Funds are pledged :u additional security for the sums secured
by this Mortgage.
If tht amount of ihe Funds held by Lender, together with thc fulure monthly installments of Funds payable prior to
the due dates of tazes, assessments, insura~ce premiums and ground rents, shall exceed the amount rcquired to pay said taxes.
assessments, insurance premiums and ground re~ts as they fall due, such excess shall be, at Bor~ower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Fuhds. lf the amount of the Funds
held by Lender shall not be sutficieat to pay taxes, assessments, insurance premiums and ground rents u they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in [ull ~of all sums secured by this Mortgage, t_ender shall promptly r~hmd to Borrower any Funds
held by l.ender. If under paragraph 18 hereof the Property is sold or the Propert}• is otherwisc acquired by Lender, [.ender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time uf apptication as a credit against the sums secured by this Nortgage.
3. Application of Paymeats. Unless applicable law proviJes otherw•ise, all payments received by 1_ender under the
Note and paragraphs 1 and 2 hereof shall !+e applied by Lcnder first in payment of amounts payable to Lcnder by Borrow~er
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Cbarges; Lkas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Atortgage, and leasehold payments or ground rcnts, if any, in the manaer
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making paytnent, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall prumptly fumish to Lender receipts evidencing such payments.
Borrower shall promp~ly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required tu discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manncr acceptable to Lender, or shall in good [aith contest such lien by, or defend enforcement of s~ch lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Husrd Insurance. Borrower shall keep the impro~ements no~ existing or hereafter erected on the Property insured
against loss by fire. hazards included within the term "e~tended coverage", and such other hazards as Lender may require
and in such amounu and [or such periods as Lender may reyuire: 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.
, The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by l.ender, provided,
that such approval sha11 not be unreasonably withheld. Al! premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. wheo due, directly to the
~ insurance carrier.
~ All insurance policies and renev?als thereof shall be in form acceptable to Lender and shall include a standard mortgage
; clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew•als thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
, Borrower shall gi~~e prompt notice tu the insurance carrier and Lender. Lender may make proof of loss if not made promptly
! by Borrower.
Unless Lender and Borrow•er otherwisc; agree in writing, insurance proceeds shall be applitd to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasibl.: or if t#~e security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Moctgage, with the excess, if any, paid
to Borrower. If the Propert~• is abandoned b~~ Borrower, or if Borrower fails to respond to I_ender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier oHers to settle a ciaim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless l.ender and Borrow•er otherwise agree in wnting, an}~ such applica~ion of proceeds to principal shall not extend
or ~stpone the due date of the momhly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph I8 hereof the Property is acquired by L.ender, all right, tiQe and interest of Borrower
~ in and to any insurance poiicies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acquisitiun shall pass to Lender to the extent of the sums secureci by this Mortgage immediately prior to such safe or
acquisition.
6. Presenation and itaiatenance of Propert?~; [.easeholds; Condominiums; Planned Unit Devebpments. Borrower
shalt keep the Property in good repair and shall not commit wazte or permit impairment or deterioration of the Property
F and shall comply w~ith the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
~ condominium or a planned unit devclopment, Borrower shall pcrform all of Borrowers obligations under the dedaration
; or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ conJominium or planned unit development, and constituent Jocuments. If a condominium or planned unit development
: rider is executed by Borrow~er and recorded together with this Mortgage, the covenants and agreements of such rider
; shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
t wcre a part hereof.
~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceed~ng is commenced which materially aRects l.ender's interest in the Property.
~ including, but. not limited to. eminent domain. insolcency, code enforcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, map make such appearances, disburse such
~ sums and take such action as is necessar}' ta protect Lender's interest. including. but not limited to, disbursement of
~ reasonable attorney's fees and emry upon the Property to make repairs_ If Lcnder required mortgage insurance as a
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~ condition of making the loan secured b}' this Mortgage. Borrower shall pay the premiums required to :naintain such
~ insurance in eBect until such time as the reyuirement for such mwrance terminates in accordance with Borrower's and
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