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UHIFOItt~ CovEN~N7's. Bomower arxl LenJcr covenant and agr~~c as foUuws:
l. h~~ntat of Ptincipal aod lnteresl. Borruwer shall p~umptl~• puy Khcn duc the principal of and interest un thc I
indebtedt~eas evidcnceJ by the Note. prepayment and late ch:?rge. a~ pravided in the Note, and thc pri~cipal of and intcn:s~ ;
on sny Future Advat~ces secuted by this Mortgage. ~
2. Fbadi for Tues aad lawraece. Subject to applicable law or lo a written waive~ by Lender, Bortower shall pay ~
to I.ender on the day monthly installments of principal and mic~r.t arc payablc under the Note, until the Note ic paid in full, 'i
s sum (herei~ "Funds") equal to one-twelfth af the yrarly ~a>c. anJ as~cstiments which may auain priority over thic
Mortgage. a~d grou~d rentt on the Property, if any. Fllli OflC-lwclith of ycarly premium installments for hazard insurance,
plus one-twelfth of yearly prcmium installments for mortgage insurancc, if any, all ax reasonably cstimated initially and from
time to tims by l.t~der on the basis of assessmcnts and hiils an~3 rrax?nable estirnates thereo(.
'I~e Funds shall t+c held in an instituti~~n thc depos~u or a~raun~s af which arc insureJ or guarantcecl by a Federa3 ar
slate agency (including Lt~der if Lender is such an institution). LcnJer shall apply the Funds to pay s~id taxes, asscssments. ~
insuru~ce premiums and grout~d rcnts. l.ender may not charge lor so holtiing and applying ~he Fnnd~. analy~ing caiJ account,
or verifying and compiling said assessments and hills, unless 1_ender pa~~ Barrawer interest an the Funds and applicable lav?•
permits Lender to make such a charge. Bt?rrower and t.ender may agr~-e in writing at thc time of executiun o[ this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is maJe or applicable law
rcquires such interut to be paid. Lender shall not be required to pay Borrower am~ intcrest or earnings on the Funds. Lender
shalt give to Borrower, without charge, an annual accaunting of the Funds showing creciils and dehits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pled~.•c1 as additional securit}• for the sums secured ~
by this Mortgage. ~
lf the amount of tht Funds held by Lender, together with ~he luture monlhly installments of Funds pa~~ablc prior to
the due dates of taues, assessmeats. insurance premiums and ground n:nts, shall exceed ttx~ amount reyuired to pa~• said taxes,
assestments. insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, cither
protqptly repaid to Borrower or creditcd to Borrower on monthly installmcnts of Funds. If the amoum of thc Funds
held by Lender shall not be sul~icieat to pay taxes, assessments, insurance premiums and ground rents as thcy fall due.
Borrower shall pay to L.ende~ any amount nocasary to make up Ihe deficiency within 30 days from Ihe date nolice is mailed
by Lender to Borrower requesting payment thercoi.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly :efund to Borro~•er any Funds
held by Lender. If under paragraph 18 hereof the Propeny i~ sold or the ProE+erty is otherwise acquimd by Lcndcr, Lcndcr
shall apply. no later than immediately prior to the sale of the Property or its acquisition by I_ender, any Funds held by
Lender at the time of application as a credit against the sums secured b~ this Mortgage.
3. Applicatioa of Paymeots. Unless applicable law provides otherwise, all payments reccived by I_ender undcr thc
Note and paragraphs l and 2 hcreof shall be applied by l.ender first !n payment of amounts payablc to Lcnder by Borruwer
under patagrFph 2 hereof. then to intcrest payable on the Note, then to the principal of the Note, and then to interest and
principal on :.ny Future Advances.
4. CLarges; Lkas. Borrower- shall pay all taxes. assessments and othcr charges, fines and impositions atlributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ihe _
payce thereof. Borrower shall promptly furnish to Lender all notices of amou~ts due under this paragraph, and in the event ~
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Borrower shall make payment directly, Borrov?er shall promptly fumish to Lender receipts evidencing such payments_
Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to thc payment of the obligativn secured by
suc6lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or Jefend enforcement of such lien in,
legal prceeedings which operate to prevent the enforcement of thc lien or [orfeiturc of the Property or any part thereof.
S. Hazard Imvrance. Borrower shall keep the improvements now• cxisting or hereafter erccted on the Propcrty in~urcd
agairLtt loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may requirc; provided, that LenJer shall not require that the amoimt of €
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. f
'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, ;
tbat such approval shall not be unreasonably withhetd. All premiums on insurance policies shail be paid in the manner ~
~ provided uncier paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ihe ~
! insurance carrier. . ~
~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ~
E clause in favor ~f and in form acceptable to l.ender. I_ender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly fumish to Lender all renewal notices and all receipts of paid premiums. Irt the cvcnt of loss,
~ Borroy+er shall give prompi notice to the insurance carrier and I_ender, Lender may make proof of loss if not made promptlp
by Borrower.
~ Unless Lender and Borrower othervrise agree in writing, insurance proceeds shall be appjied 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_ !f such rcstoration or rcpair is not economically feasible or if the security of this Mortgage vrould
be impaired, the insurance proceeeis shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower_ If the Propertp is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the #
date notice is mailed by Lender to Borrower that ~he insurance carrier oiTers to settle a claim for insurance benefits, 1_ender 3
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is aut6orized to collect and apply the insurance proceeds at t_ender's optiun either to restoration or repair of the Pmpert}• :
or to the sums secured by this Mortgagc. s
Unless Lender and Borrower otherwise agree in v?riting, any such application of prcx:eeds to principal shall not e~tend ~
~ or postpone the due date of thc monthly installments referred !o in paragraphs I anJ 2 hercof or change the amount of
~ such installments. If under paragraph 18 hereof the Property is acyuired b~ Lender, all right, tide and interest of Borrower
in and to any insurance policies and in and to the proceeds thereo[ resulting from damage to the Property prior to th~ sale i
~ or acquisition shall pass to l:ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition. - ~
6. Preserva6oa and Maintenance of Property; Ltaseholds; Condominiums; Planned Unit De~elopments. Rorrowcr
a shall keep the Property in good repair and shall not com~pit waste or permit impairment or deterioration of the Property ~
and shall comply with the provisioos of any leace it this Mortgage is on a leasehold. If this Mortgage is on a unit in a #
~ condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration ~
or covenants creatiag or governing the condominium or planned unit development, the by-laws and regulations of the ;
~ condominium or planned unit development, and constituent documents. If a conJominium or planned onit development _
~ rider is eaecuted by Borrower and recorded together with ~his Mortgage, the covenants and agreements of such rider
~ shall be incorporated into.and shaU amend and supplement the covenants and agreements of this Mortgage as if the rider +
~ were a part hereof. ~
~ 7, Profectioo of Leoder's Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage. or if any action or proceeding is commenced which materially alTects I.ender's interest in the Property.
~ including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then [.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such action as is necessary to protect Lender s in~erest, including, but not limited to, disbursement of
~ reasonable attorney's (ees and entry upon the Property to make repairs. If Lcnder requircd mortgage insurance as a
~ condition of making the loan secured by this Mortgage, Borrower shall pay the premiums requireei to maintain such
~S inwrance in effoct until sueh time as the req~irement for such insurance terminates in accordance with Borrower s anJ
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