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I1ttIFORM Covuv~tat~s, gotrower and Lcnde~ covenant a~d a~ee as totbws:
1• Pay~nent oE Prindpal and lntereu. Borrower shall promptly pay when due the principal ot and interest on the
indcbtedntss evidented by the Note. prcpayment and late charges as providcd i~ tht Notc, and the principal o[ and inter-
est on any Futun Advances secured by this Moitgage. -
2 fl~AC4 for Tasa and Iusunnce. Subject to applicablc law or to a wsitten waiver by I.eoder, Borrower shall par
to Lender on the day monthly iasullments of principal and interat are payablc under tl?e Note, u~cil the Note is paid in -
tull, a sum (herein "Funds") equa! to one-twel[th o[ the ytatly taxes and assesunents which may attain p~ioritr ovcr this
Afortgage, and ground rents on the Propertr, it any. plus onc~twel[th o[ rearlq premium installments tor hazard insunnce.
plus onatwd[th ot yearly premium installmcnu tor mortqage insurancc, i[ any, all as reasonably atimated initiallr and itom
timc to time by Lender on tht basis ot assesstnents and bills and reasonable estimates thereo(.
The Funds shall be held in an i~stitution the depcxits or accounts of which arc insured or guaranteed by a Fcden) or
statc agency (induding Lender i[ Lender is such an institution). Lendet shall apply the Funds to pay said taxes, assessmenu.
insunnce premiums and ground•rents. L.ender may not chuge tor so holding and applying the Funds, a~alyzing said at-
cou~t, or ~•eritying and compiling said assessments and bills, unleu I.ender pays Borrower interest on the Funds a~d ap-
plicabte law permits Lender to make such a charge. Borrower and Lender mar agrer in wri~ing at thc time of execution of
thi~ 1ltortgage that interest on the Funds shall be paid to Bonower, and unless such agreeme~t is made or applicable law
requires such intcrest to be paid, Lender shall not be required to pay Borrowcr any intetest or earoings on the Funds. I.ender
shall give to Borrower, without charge, an annual accounting o! the Funds showing crcdits and debits to t~e Funds and the
purpose [or which each debit to the Funds was made. The Fands are pledged as addi~ional secvrity for the suma secured
by [his `fortgage. ~
If the amount o[ the Funds held by Lender, together with the [uturc monthly installme~u of Funds payabte prior to
the due dates oE taxes, ass~ssments, insurance premiums and ground rents, shaU exceed the amount required to par uid
taxes, assessments. insurance pttaeiums and grourx! renu as ther fall due, such excess shall be, at Borrower's option. either
promptly repaid to Bortower or credited to Borrower on monthly installments of Funds I( the amount o[ the Funds held
by I.ender shall not be sutficient to pay taxes, assessmenu. insurance premiums and ground rents as they fal! due, Bonower
shall pay to Lender any amount necessary to make up che deficiency wichin 30 days [rom the date notice is mailed by I.endtr
to Borrower requesting payment thertoL
Upon payment in [ull oE all sums securcd by this Mortgage, Lender shall promptly refund to Borrower any Funds .
held by I:ender. IE under paragraph 18 hereo[ the Property is sold or the Propetty is otherwise acquireci b} Lcnder, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition br l.ender. ~ny Funds held by
Lender at the time of application as a credit against ehe sums secured by this \tortgaqe.
3. Application of Paymeats. Unless applicable law provides otherwise, all pa~~ments recei~•ed by Lender under the
Note and paragraphs 1 and 2 hereo[ shall be applieci by L.ender first in payment of amounts pa}able to Lender by Borrower
under paragraph 2 hereo(, then to interest payable on the Note, then to t6e principal of the Note, and then to interest and
principal on any Future Advancts.
4. Cha~ges Liens. Borrower shall par all taxes, assessmrnu aod othtr tharges, fines and imposicions attributable co
the Property ~rhich may attain a priority over this ~iortgage, and leasehold pa}~menu or ground rents, if any, in che man-
ner provided under paragtaph 2 hereo[ or, it not paid in such manner. b} BottoNer making payment. Nhen due, directly to
the payee thereof. Borrower shaq ptomptly furuish to Lender ait nocices oE amounts due under this paraqraph, and ~n the
e~•ent Borrower shalt make paj~me~u directly, Borrower shall prompdy turnish to I.ender receipts e~idencing such payments.
$orrower shall promptly dixhary,e an}'.lien which has priority ocer this ~iortqaqe: pro~~ided, that Borrower shall not be ra
quired to dixharge any such lien so louq as Borrower shall agree in w~riting to the payment of the obliqation secured by such
lien in a ma~tner acceptable to [.ender, or shalt in ~ood faich coniest such tien by, or defetid enforcement of such lien in, le-
({al proceedings which operate to prevent the tnforcement of the lien or forfeiture ot the Property or any part thereoE.
5. Harud Inaunna, Borrower shall keep the improvemcnts now existing or herea[ter etected on the Propett' in-
sured against loss by fire, hatards induded within the term "extended co~~erage", and such other haiards as Lender may re-
quire and in such amounts and (or such periods as i.ender ma} rcquire: pro~idecl, that Lender shall rwt require that the
amount of wch coverage exceed that amount o( co~erage required to pay the sums securecl by this ~[ortgage.
The insttrance carrier providing the insurance shall be chosen by Borror+er subject to appro~al by Lender: pmvided. - 3
that such approval shall not be unreasonably Nithheld. all prrmiums on insurance policies shall be paid in the manner
provided under parap,raph 2 hereo( or. it not paid in such manner, by Borrower making paymenc. Mhen due, directly to
the insurance carrier.
All insurance policies and renewals thereo( shall be in torm acceptable to Lender and shall include a standard mort-
gage clause in faror ot and in form acceptable to Lender. I,ender shall have the right to hold the policies and rene~+rals
thereof, and Borrower shall prompcly furnish to L.cnder alt renewat notices and ail receipts of paid premiums. In the event
of Ioss. Borrower shall give prompt notice to the inserance carrier and I.ender. Lender may make proof of loss iE not made
promptly br Borrowet,
Unless Lender and Borrower otherwise a~ree in writing, insurance pr«eeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economicalh feasibte and the securiey oE this ~(ortgage is not
thereby impaired. IE such restoration or repair is aot economically feasible or if the securit~ of this ~tortgaRe Mould be im-
paired, the insurance proceeds shall be applied [o ehe sums secured by this ~iortgage, with the excess, i[ any, paid to Bor-
ror.er. If ehe Property is abandoned by BorroNer, or if Botror.er fails to respo~d to Lender within 30 days from the date
notice is mailed by Lender to Borrower thae the insurance tarrier.offen to settle a claim for insurance beneFits, Lender is
autfiorized to collect and apply the insurance proceeds at I.ender's option either to restoration or repair oE the Property or
to the sums secured by this ;~iortqaqt. '
Unless Lender and Borrower otherwise apree in writing, any such application of proceeds to principai shall not extend
or postpone the due date of the monthly instaltments reietrM t~~ in ParaRraphs I and 2 hereof or change the amount of such
installments. I( under parap,raph 18 hereot the Property is acquired by Lender, all right, title and interest of Borrower in
and to any insurance policies and in and to the proceeds thereo[ resultinR trom damage to the Property prior to the sale or ~
acyuisition shall pass to I.ender to the extent of che sums secured bv ihis ~fortqage immediately prior to snch sale or ;
acquisition. ,
6. Presrrvation and Maintmwce of Property; Lea~eholds; Condominiumr. Planned Unit Dexdopments. Borrower ;
sleall ktep the Property in good repair and shaU not commit waste or permit impairment or deterioration ot the Property :
and shall comply with the provisior?s o[ any lease iF this ~fortqaqe is on a leasehold. If this ~fortqaqe is on a unit in a
condominium or a planned unit de~~elopment. Borrower shall per[orm att of BorroMer's obligations under che dedantion
or covenanrs creating or governing the condominium or planned unit development, the by-laws and regulations of the condo-
minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is
executed by Borrower and recorded together with this ~fortgage, the covenants and agreemenu ot such rider shall be in-
corporated into and shall amend and supptement the covenanu and aqreements of this ~Iortgage as if the rider K•ere a part -
hereof. . -
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7. Protection of Ltnder'a Security. If Borrower lails to ~erform the covenants and aqreements contained in this ~
:~lortgage, or if any aaion or proceeding is commenced which materially a[(ecu Lender's interest in the Property, including. ~
but not limited to, eminent domain, insoicency, code en[ortement, or arrangements or proceedinqs im•olving a banktupt .
or decedent, then L.ender at I.ender's option, upon notice to Borrower. may make such appearances, disburse such sums
and take such action as is necessary to protect Lender's interext, including, but not limited to, disbursement of reasonable
attorne,v's fees and entry upon the Properey to make repain. If I.ender mquired mortgage insurance as a condition oE -
making the loan secured by this ~iortgaqe. Borrower shall pay the premiums required to maintain such insurance en e[- _
tecc until such time as the requirement (or such insurance terminates in accordance with Borrower's and I.ender's wrieten
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