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UNIFaIM CovEN~NTS. Borrower and Lender covenrnt and agree as (uiluws:
1. Pqmeot ot Pcincipal aod loterest. Borrowc~ shall prompUy pay whcn due the principai of and i~terest un Ihe
indebtedness evidenced by the Note, prepaytnent and late charges a~ p~ovided in the Note, and the principaf of and interest
on any Futurc Advances secured by this Mortgage.
2. Fbnds [or T~ses aad Insurance. Subject ta applicable law ar ~o a written waiver by l.ender, Borrower shall pay
to Lender on tln: day mor~thly installments of principal and interest are payable undcr the Note, until the Note is paid in full,
a sum (hercin "Funds") equal to one-twelfth af ~he ye:~rly ta~cs anJ assessmcnts which may attain priority ovcr this
Mortgage, and ground rents on the Pt~operty, if any, plus one-tvvcltth ot yearly premium installments for hazard insurance,
plus oae-twelfth of yearly prcmium installments for mortgage insurancc, if any, all as reasonably cstimated initially and irom
C:me to tems by Lender on the has':s of assessmcn!s as?.d hills and rea.~~nahle e~ctimatet thercof.
7l~e Funds shall be held in an institution Ihe depcuits or accounts of which are insureJ or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). t.ender shall appl)• the Funds to pap said ta~es, assessments,
insurance premiums and ground rents. Lender map not charge tor s~ holding and applying the Funds. anal~•zing said account,
or verifying and compiling said assessments and bills, unless Lender pa~~ Borrower interest on the Funds and applicable law _
permits I.ender to make such a charge. Borrower and Lcnder may agree in writing at the time of execution o[ this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pa)' Borrower ~n~• intcrest or earnings on the Funds. Lender
shall give to Bortower, without charge, :~n annual accounting of the Funds showing credits and debits to the Funds and the
purpcue for which each debit to the Funds was made. The Funds are pledged as additiunal securit}~ tor the sums secured
by this Mortgage. ~
lf the amount of the Fundt held by Lender, together with the fuwre monthly installmcnts uf Funds pa}~~ble prior to
the due dates of ta+ces, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pa)' said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at ~rrov?•er's optiun, either
prompdy repaid to Borrower or credited to Borrower on monthl~~ installments of Funds. If the amount of thc F-unds
held by I.ender shall not be suf~icient to pay ta+ces, assessments, insurance premiums anJ groond rents as thc}• fall due.
Borrower s6a11 pay to Lender any amount necessan• to make up the deficiency v?•ithin 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall prompdy refund to Borrowcr any Funds
held by l.ender. If undet pazagraph 18 hereof the Property i~ sold or thc Propcrty is otherwise acqu~rcd by Lender, LenJcr
s6all apply, no later than immediately prior to the sale of the Propeny or its ~cquisition by l.cndcr, any Funds held by
Leader at the time of application as a credit against the sums secured by th~s Mortgage_
3. Applieatioa of Payments. Unless appiicable law provides otherw•ise. all payments received b~~ Lender under the
Note and paragraphs 1 and 2 hereof shall bc applied by Lender first in pa}~ment a( amounts payable to Lcnder b}• Borrower
under paragraph 2 hereof, then to intcrest pay~able on the Note, then to thc principa: of the Notc, and thcn to interest and
principal on any Future Advance~.
1. Charges; Liens. Borrower shall pay all taxes, asscssments and othcr charges, fines anJ impositions attributable to
the property which may attain a priority over this hiortgage, and lea~ehold payments or ground rents, if aoy, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by B~rrower making payment, w•hen due, directly to ihe
payce thereof. Borrower shall prompUy furnish to Lenckr all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to L.enJer receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mongage: provided, that Borrower shall not be
requited to discharge any such lien so long as Borrower shall agree in v?•riting to the payment of the obligation sec~red by
such lien in a man~r acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
; legal proceedings which operate to prevent the enforcement o( the lien or (orfeiture of the Property or any part thereof.
~ S. Huard lasnraace. Borrower shall keep tFie impro.ements now existing or hereafter erected on the Property insured ~
1 against loss by fire, hazards included within the term "extended coverage", and such other hazardc as Lender may require
f and in such amounts and for such periods as Lender may require; provideJ, that Lender shall not reyuire that the amount of
~ such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
E 'Ibe iasurance carrier providing the insurance shall be chosen by Borrower subjoct to approval by Lender; provided,
i t6at such approval shall not be unreazonably withheW. All premiums on insurance policies shall be paid in the manner
4 provided under pacagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
t All insurance policies and renewals thereof shall be in form acceptable ta Lender and shall include a stanJard mortgage
~ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums_ In the event of loss.
~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
~ by Borrower. -
Unless Lender and Borrower otherw•ise agree in writing, insurance proceeds shall be applied 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 feasible or if ihe security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from the
~ date notice is mailed by L,ender to Borrower that the insurance carrier oliers to settle a claim for insurance benefits, Lender
~ is authorized to collect and apply the insurance proceeds at 1_ender's option either to restoration or repair af the Property
~ or to tlie sums secured by this Mortgage.
Unless I.ender and Borrower otherwise agree in writing, any such application af proceeds to principal shall not extend
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hercof or changc the amount of
such installments. If under paragraph 1 S hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in aod to ihe proceeds thcreof resultiog from damage to the Property prior to the sale
- or acquisition shall pass to L.ender te the extent of the sums secured by this 1Nortgage immediately prior to such sale or
~3 acquisition.
6, p~~eservat~on aad 1liaintenance of Property; I.euehol~k; Condominiums; Pl9nned Uait Devebpments. Borrowcr
- shall keep the Property in good repair and shall not comroit waste or permit impairment.or deterioration of the Property
and shall comply with the provisions of any leace if this Mo~tgage 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 creating or goyerning the condominium or planned u~it development, the by-laws and regulations of the
condominium or planned unit development, and constituent Jocumems. If a condominium or planned unit development
rider is exceuted by Borcower and recorded together with this Mortgage, the covenanLS and agreements of such rider
shall be incorporated into and s6a11 amend and supplement the covenants anJ agreements of this Mortgage as if the riJer
were a part hereof.
" 9, protectioe of Leeder's Sccurity. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if aoy action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
.V_' bankrupt or decedent, tlxn Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take auch action as is necessary to protect l.ender
s interest, including, but not limited to, disbursement of
reasonable attomey's fecs and entry upon the Property to make rcpairs. It I.ender requircd mortgage insurance as a
~ condition of making lbe loan secured by this Mortgage. Borrower shalt pay the premiums requireJ to maintain such
insuranoe in effect until such time as the requirement (or such insurance terminates in accordance with Botrower s anJ
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