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UNIFORM COVENANTS. BOffOWt~ An~I I~Cndc~ CuvCnanl a;id agr~ti a~ f~~Uuwc:
1. P~ymest oE Priacipal wd laferest. Hormucr .hall prun~p~l~ pay Nhcn duc thc princip.~i ~~f ~nd interest on the
~ndebtedr?as evidencxd by the Note. prepaymr~t and latc chartr. ~r.~v~.ied in ~he rvo~e, and the principat of and interes~
o~ aay Futurc Advanccs socured by th~s Martgagc.
2. Fbad~ to~ Tues and lawraace. Subjcci ~a appli: ~hh l.~u io a writtcn w•river by 1_ender, Borrawer shull pay
to Le~der an the day monthly installmC~~ts of principal :uid int~~rr.~ .~rc p,~yaMc umh:r the Nate, unti) the Nole is paid in (ull.
a sum (herein "FunJs") equal lo one-tw~lith M thr ycarl~ :a~~. anJ :nu:s+mcnts which may attain pria~iry over ~hi~
Mortgage, and gtound rents on the Property, if any, pluc c~~c-tw•cl(th of yearly premium installmenls for hazard insurance,
plus one-twelfth of yearly premium installments far mortga~r insurancr, if any, all as rcasonably estimated initially and t~om
UmC to time by Le~de~ on the basis o( a~sc~timcnls anJ hi~ls and r~a~onabl~ estimates thereof.
"Il~e Funds shall be held in an institwiun thc dep.ni:~ ~?r .~ccounls ol which are insured or guarantecYl by. a F~~eieral ot
state agency (including Lende~ if Lcnder i~ ~uch art imtituteon). Lender ah~ll apply the Funds to pay aaid laxes, asc~ssmcnts,
insurance premiums and g~ound rents. 1 enJer may n~i charge tor so h~Wing and applying the Funei~, analyzing said a:c. unt,
or verifying and compiling said asses..mcnts .ind hilk, unlccs I.endcr pa}~~ Burmwer interest on thc Funds and appticabte law~
permits Lender to make such a char~e. K~~rr~~wrr and f.endcr m:~y agree in writing at the time at cxrruiiun uf lhis
Mortgage that interest un the Funds sball h~ paid to Botrowcr, ~nd unl~s ~uch agrecment is madc ~~r applicable law
requires such interest ta be paid, 1_endcr shall no~ tx rcyw:ed to pay Borrower any interesl or ea~oing~ on thc Rund.. I.ender
shall give to Borrower, without eharge, an annual accounting of the FunJs ~howing credits and debits to the f~und~ ~nd !he
purpose for which each debit to tht Funds w~s mack. The Funds arc pleJgeJ as additional securit~~ for the sunu s~tiured
by this Mortgage.
If the amount of the Funds held hy LenJer, togethcr with thc futurc monthly in~tallmenls of Fund~ payablc prior ta
the due dates of taxes, assessments, insurancc premiums and ground r4nts, shall exrcec! the amount reyuired to ~y .aid taaes,
assessments, ir~surance premiums and ground rents as they fall due, such excecc shall be, at Borrow~er's opti~~n, ~ither ~
promptly repaid to Borrower ot crcdited to Borrower on monthly installmcnts of Funds. If the amount of thc T•unds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums anJ ground rcnts as thcy fall due,
Borrowe~ shall pay to Lender any amount necessan• to make up the deficiency within 30 da~•s from the datc notice is mailcd
by l.ender to Borrower requesting paymcnt thercof.
Upon payment in full of all sums se~:uced by thic Mortgage, t_ender shall prompUy refund to Borrower any Funds
held by Lenckr. If under paragraph 18 hereoF the Property~ ia sold or thc Propcrt~• is othenvise acquired by l.ender, I.endcr
sha11 apply, no later than immediately prior to the sale of thr Propcrty or its acquisition hy Ixnder> any Funds held by
Lender at the time of application as a crcdit against the sums secured by thic Mortgage.
3: Application of Psymeots. Unlecs applicable !aw proviJes otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by l.ender first in payment of amounis payable to Lcnder by~ Borrower
under paragraph 2 hereof, then to intcrest payablc on the Note, lheo to thc principal ot the Notc, and then to interest and -
principal on any Future Advances.
4. C6arges; Ue~. Borrower shall pay all taxes, asscssments and othcr chargcs, fines anJ im~wsitions attributable 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 the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Bornower shatl make payment directly, Borrower shall promptly turnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lie~ which has priority ovc~ this Mor[gage: provided, that Borrowe~ sAall not be
nequired to discharge any svch lien w long ss 8orrower shall agree in wriiing to the payment of the obligatiun secured by
such lien in a manner acceptable to Lender, or shall in good faith contc~t such lien by, or defend enforcement of such lien in,
legal proceedings whieh operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hau~rd insurance. Borrower shall keep the improvements now• cxisting or hereafter erccted on the Property insured
against toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as l.ender may requirc;. pmvided, that Lend~r shall not requirc that the amount of
such coverage exceed that amount of coverage required to pay the sums securcd by this Mortgage.
'I~e insurance carrier providing the insurance shalt be chosen by Borrower s~bject to approval by Lender. provided,
t6at such approval shall rtot be unreasonably withheld. All premiums ~n insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to thc
insurance carrier.
All insuran~e policies and renea~ats thereof shall be in fomi acceptable to Lenckr ;~nd shall irtclude a standard mortgage
clause in favor of and en form acceptable to Lender. Lender shall hare the right to hold the policies and renewals thereof,
and Borrow•er shall promptly furnish to Lender all renewal natices and all receipts of paid premiums. In the event of lo~s,
Borrower shall give prompt notice to the insurance carrier and l.ender. Lender may~ make proof of loss if not made promptl~•
by Borrower.
Ualess Lender and Borrower otheru•iu: agree in w•riting, insurance procecds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage i~
not thereby impaircd. lf such restor~tion or repair is not economicrl(y fcasible or if the security of this Murtgage woutd
be impaired, the insu:ance proceeJs shall be applied to the suttu secured by this Mortgage, with Ihe excess, if an)•. pa~d
to Borruwer. !f thc Property is abandoned b}' Borrower, or if Borrower fails to respond to l.ender within 30 days from ihr
Jate notice is mailed by l.ender to Sorrower that the insurance carrier otTers to settle a claim for insurance benefit~, Ixe~~-
is authorized to collect and apply the insurance proceeds at [_ender's option either t~~ restoration or repair of the Prnperi~:
or to the sums secured by this Mortgage.
Unless I.ender and Borrower otherwisc: :~grce in writing, any such applicauon of prckeeds to principal shall not c..~c~;d
or postpone the due date of the monthly installments rcferred to in paragraphs 1 and 2 hercof or change thc amount ~~t
such installments_ If under paragraph 18 hereof the Property is acyuireJ hy Lender, aN right. title and interest of Bnrr~~u•er
in and to any insurance policies and in and to tbe pr,oceeds thereof resulting from damage to the Property prior to thc aaic
or acquisition shall pass to Lender to the extent of the surru secured by this Mortgage immediately prior to such s:+lc or
acquisition. _
6. Pnsenatioa .~nd 11~intenance of Property; I,ease6otds; Condominiums; Planned Uait Devdopments. Rorro«rr
shall keep the Property in good repair and shall not comroit wastc or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i[ this Mortgage is on a Ieaschold. 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 declarati.m ;
or covenants creating or governing the condominium or planned unit deveiopment, the by-laws and r+egulations of thr ;
condominium or planned unit development, and constituent Jocuments. If a conJominium_ or planned unit development i
rider is executed by Borrower and recorded tngether with this Mortgage, the covenants and agreements of such ri~t,:r
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ri.ter
were a part hereof.
9, Protecfioa of Lende~'a Security. If 8orrower fails Io perform !he covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially afiects LenJer's interest in the Propeny. .
including, but not limited to, eminent domain, insolvency, codc enForcement, or arrangements or proceedings involving a
bankrup or decedent, then l.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and fatce such action as ia cecessary to proiect L.ender's interest, including, but not limited to, disbursement of
reasonable attorney's fces and entry upon the Propcrry to makc repairs. If I.ender requircd morigage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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