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UNtROx~.t Cov~N~Nrs. 8orrower aad l.eadet covenant and a~ree as tollows:
1. ta~ymeot ot PHacipal aad Werql. Borrower shall promptly pay whon due the principal uf and interest o~ the
indebtedneas evidenced by the Note. prepayanent apo late charges as provided in the Note, and the principal of and i~terost
on any Future Advances sxur+od by thia Mort~a~e.
2. Fnnd~ tor 7'ua u~ Iaweauce. Sbbject to applicable law or to a written waiver by I.ender, Borrower shall pay
to i.ender an the day momhly installme~ts of principnl and i~tercst arc payable under the Note. until the Note is paid in tull.
a suon (henio `•Fu~ds'~ equal to ono-twelfth of the yearly taxes and assessme~ts which may attein priority • over this
Mort~age, and ~~+ound tents oa the Prope~ty~ if any. plus onr~twelfth of ycarly premium irutallments for hazard i~uurance~
plus ono.twelfth ot yeuly premium installmeats tor monga~e inaurancc, if any. all as reuonably estimated initially snd from
time to time by Lender on the basis of assessments and bilis and rcasonable estimates thereof.
The Funds ahall be held in an institution the depoaits or accounts o[ which are insund or guarantoed by • Federal or
state agrncy (including Lender if Lender is such an inslitption). l_ender shall apply the FLnds to pay said taxes, aasessrt?cats,
insurance premiums and ground reats. Lender rinay not charge tor so holding and applying the Funds. analyzing saidacoount,
or verifying and compiling said assessmeots and bills. unless Lender pa~~s Bonower interest on the Funds and applicable taw
permits Lender to make such a ctu~rge. Borrower aad Lender may agree in writirtg at the time of eaerution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agrcement is made or applicablc !aw
requires such interest to be paid. L.cnder shall not be requircd to pay Borrower any interest or earnings on the Fu~ds. Lende~
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debiu to the Funds aad the
purpou for whkh. each debit to the Fuads waz made. The Funds are pledged as additiona! security for the sums secured
by ihis Mortgagc.
If the amount of the Funds t~eld by Le~der, together with~the future monthly installments of Funds payabk prior to
the due data of taxes~ assessments. inturance premiums and ground rents. shatl exceed the arnount roquirod to pay said taxrs,
suiess~nents, insurance pr~miums and gr~vund rents as they fall due, such excess shall be. at Borrower's option~ eithet
promptly npaid to Borrower or credited to Bormwer on monthiy installments of Fuads: If the amount of the Funds
held by Lender shall not be sutScient to pay taxes. assessments, insurance premiums and ground rents u they fall due,
Borrower shall pay to Lender any amou~t aecessary to make up the deficiency within 30 days from the date notiae is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by I.ender. If under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender. Lender
shalt apply. no later than immediately priar to the sale of the Propecty or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums securcd by this Mongage. ~
3. A~plication of P~yments, Unless applicable law pmvides otherwise, all payments received by Lender under the
Note and paragnphs 1 and 2 hereef shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 henof, then to interest pa~rable on the Note, then to the principai of the Note, and then to interest and
principal on any Future Advances.
4• Ch~ges; Lkns. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Propetty which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, ia the manner
provided under paragraph 2 hereof or, i[ not paid i~ such manner. by Borrower making payment, when due. diroctly to the
payee thereof. Bonower shall promptly furnish !o Leader all notices of amounts due under this paragraph, and.in the event
Bormwer shall make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Morigage; pmvided. that Bormwer ahall not be
required to discharge any such lien so long as Borrower shatt agree in writing to the payment of the obligation secured by
such lien in a manner aeceptable 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 enforeement of the lien or forfeiture of the Propeity or any part thereof.
S. Hazard Iasuraace. Borrower shall keep the improvements now. existing or hereafter erected on the Property insured
against loss by fire. hazazds induded within the term "eatended coverage", and such other hazards as Lender may rtquire
and in such amounts ar~d for such periods as Lender may require; provided. that Lender shall not require that the amount of
such coverage excced that amount of coverage required to pay the sums secured b~y this Mortgaga -
'ilie insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender. provided.
t6at such approval shall not be unnasonabty withheld. All premiums on iasuranoe policies shall be paid in ihe manntr
provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, directly to the
insurancx carrier. .
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morfgage
ctause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals therwf.
aad Borrower shall promptly fumish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, -
Borrower shall give prompt notice to the insurance canier and L.endet. Lender may make proof of loss if not made promptly
by Borrowtr. .
Unless Lender and Borrower otherwise agrce in writing, insurance proeeeds shall be applied to restoration or npair of
the Propeny damaged, provided such restoration or repair is economically feasible and tbe security of this Mortgage is
not thereby itnpaired. If such restoration or repair is not economically feasible or if the socurity of lhis Mortgage_ would
be impaired, the insurance procceds shall be applied to the sumS secured by this Mortgage, with the eacess, if any. paid
to Borrower. If the Property is abandaned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notics is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance bonefits, Lender
is authoriud to collect and apply the iosurance proceeds at Lender's option either to restoration or rep~ir of the Property
or to the sums secwed by this Mortgage. _
Untess Lender and Bonower otherwise agree in writing, any such application of proceeds to principal shall not extend
or ,postpone the due date of the monthly installments_referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 6ereof the Property is acquired by Lender, all right, tide and interest of Borrower
in and to any insurauce policies and in and to the procceds thereof resulting from damage to the Property prior to the sak
or acquisitioa shall Fass to I.ender to ilx exteat of the sums secwed by this Mortgage immodiately prior to such sak or
acquisition.
6. Frcservtttion and Maintenance of PropeAy; Leaseholds; Condominiums; Ptnnned Unit Devebpments. Borrower
shall Iceep the Property in good repair and sha[I not commit waste or permit impairment or deterioration of the Property
and ~hal! comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mongage is on a unit in_a
condominium or a planned unit development, Borrower shall perform all of Borrower's obtigations under the declaration
or covenants creating or governing the condominium or p!anned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is ezocutod by Bonower and recordrd together with this Mongage, the covenants and agreements of such rider
shall be incorporated into and s6a11 amend and supplement the covenants and agreements of tbis Mortgage as if the rider
were a part hereof. ~
7• Protectioa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in t~is
Mortgage, or if any actian or proceeding is commenced which materially afiects Lender'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 Lender 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 interest, including, but not limited to, disbursement of
reuonable attoct~r't- ~~-sad entry upon the Property to make repairs. If I.ender required mortgage insurance as a
condition of making t (oan secured by this Mortgage, Borrower shall pay the premiums required to maintain such '
insurance in effect until such time as the t+equirement for such insurance terminates in accordance with Borrower's aad
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