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UNtFORM COVENANTS. Borrowtr and Lenclrr covenant and agrrt as folbws:
1. P~au~t of Pri+~clpl a~d latcrat. Norruwer shap promptly~ pay when due thc principai ot and intcrest ~~n the
ind~btedness evidenced by the Note, prepaytnent and late charges a. proviikd i~ the Note, and the principal of and interes~
on rmy Futuro Advances securaf by this Mortgagc.
Z. F'aads tor Tatea sad lapu~~ce. Subject ro applicable law or to a written waiv~r by l.ender, 8orrower shall pay
to L,ende~ on ~he day mo~thly installments of principal and intercct .~rc payablc unJer Ihc Note, until the Notc is paid in full,
a=um (hereio "Funcis'7 equal to one-twelfth of the yearly taxcc and a.ssessments which may attain priority over this
Mortgage. and ground rents on ihe Property, if any, plus c~r?e-twelfth of ycarly premium inslallmcnts for hazard insurance,
ptus anc-twelfth of yearly premium installmcnts for mortgage ins~~rancc, if any, all as reasonably estimated inilially and from
time lo time by Letider on !hc basis of assessmcnts and hills and reasonable estimatcs thercof.
'I~e Funds shall be held in an institutian the deposits or accounts of which are insurcd or guaranteeci by a Federal or
state agency (including Let~der if Lender is such an institotion). l.ender shall appl} the Funds to pay said taxes, assessments,
insuranop pt+amiums and ground rcnts. 1_endtr may not charge for ~o holding aod applying ~hc FunJc. analy2ing caid account,
or verifying and rnmpiling said assessments and bills, unless Lender pays Borrower interesl on the FunJs and applicable law
p~rmits Leoder to mxke such a charge. Ba~rowe~ and [.ende~ may agrce in writing at the time of execution of this ~
Mortgage that interest on the Funds shalt t+e paid to Sorrower, ancf unless such agreement is made or applicable law
requit~es seuh interest to be paid. Lender shall not he required to pay Borrower any interest or earnings an the Funds_ lxnder
shaU give to Batrower~ without charge, an annual accounting of the Funds show•ing credits anJ debits to the Funds and the
purpose for which each debit to th~ Funds was madc. The Funds arc pleclgcd as additional securit~• for thc sums securecl
by this Mortgage.
lf the amount-of the Funds held by l.ender, together with the future monthly installmcnts of Fundx payablc prior to
ihe due dates of tazes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pa~~ said taxes,
asseavnents. insurance premiums and ground rents as they fall due, such excess shaU be, at Borrower
s option, cither
protnptly repaid to Borrawer or crediled to Borrower on monthly insla!lmems af Funds. I[ the amount oi thc Funds
held by Lender shall not be.suR'icieot to_pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficieney within 30 days from the date notice is mailed
by Lende~ to Borrower roquesting payment thereoL
Upon payment ia full of a!! sums secured by this Mongage. I.ender shall promptly refund ta Berrav?~cr any Funds
held dy I.ender. If under paragraph 18 hereof the Property i~ sold or thc Property is othenvisc acquired by l.endcr, I.endcr
shall apply. no later than immediately prior to. the sale of the Property or its acquisition by Lender, _ any Funds held by
Lender at the time of application as a creJit against the sums secured by th~s Mortgage.
3. Applic~~ of Paymeafs. llnless applicable law proviJes otherwise, all payments received by Lcnder unJer the
Note and paragraphs ~1 and 2 hereof shall be applie~l by !_ender first in payment of amounts payable to ~enJer hy Barrower
under paragraph 2 hereof. then to i~tcrest payable on the No~e, then to the principal of the Note, anJ thcn to interest and
principal on any Future Advances.
4. C6~traes; Lie~, Borrower shall pay all taxcs, assessments and arbcr charges. fines and impositions attributable to
t6e Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner
pmvided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payce the[eof. Borrower shaU promptly furnish to Lencter all notices of amounts due under this paragraph, aad in the event
Borrnwer shal! make payment directly. Borrower shall promptly furnish to L.ender receipts evidencing such payments.
~ Borrower shall promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be
requirod to discharge any such lien so long as Borrower shall agree ia writing to the payment of the obtigatiun secured by
such lien in a manner acceptable to L.ender. or shall in good faith contest such liert by~ or defend enfbrcement of such lien in,
Itgal proceedings which operate to prevent the en(orcement of the lien or forfeiturc of the Propeny or any part thereof.
S. Nuard_Iasurxnce. Borrower shall keep the improvements now• existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "ezteoded coverage"; and such other hazards as [.ender may require
and in such amounts and for such periods as ~.ender may requirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"Ilie insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender, provided.
that such approval sha11 not be unreasonably withheld. All premiums on _insurance policies shal[ be'paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeai, when due, direcdy to the
insurance carrier.
All insurance policies and renewals thereof shall be in form arceptable to Lender and shall include a stanciard mortgage
clause in favor of and in form acceptable to I.ender. Lender sha(1 have the right to hoid the policies~and renewals tt~ereof,
and Borrower shall promptly furnish to Lender a!! renewal notices and al! receipis of paid premiums. In the event of loss,
Barrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptl~
by Borrower. ~
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, providecl 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 the 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 aband~ned by Borrower, or if Borrower fails to respond to Lender within 30 days lrom !he
date notice is mailed by Lender to Borrower lhat the insurance carrier ofTers to settle a claim for insurance benefits, I,ender
is aut6orized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to t6e sums secured by this Mortgage. .
Untess Lender and Bonower othecwisc agree in writing, any sach application of proceeds to prencipal shall not extend ~
or pcuipone ihe due date of the monthly installments referred to in paragraphs 1 and 2 hereof or chang,e the amount of
such installments.. If under paragraph 18 hereof the Property is acquired by I.~nde~, all right~ title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulUng from damage to t6e Property prior to the sale
or acquisition shatl pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservatloo and Maintenaact of Property; Lcaseholds; Condominiuais; Planned Uoit Devdopments. Borrower
shall keep the Property in good repair and shall not comipit waste or permit impairment or deterioration of the Property
and shall comply witti ihe provisions of any lease i[ this Mongage is on a teasehold. If this Mortgage es on a unit in a ~
condominium or a planr~ed unit development, Borrower shall perform all ot Borrower s obligations under the dcclaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or ptanned unit development. and constituent documents. If a condominium or planned unit eievelopment
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shal! be incorporated into and shall ame~d and supplement the covenants and agreements of this Mortgage as if the rider
wen a part hereof.
7. Protectioo of Leoder's Security. If Borrower fails to perform the covenants and agreements contained in ihis
Mortgage, or if any action or proceeding is commenced which materially affects Lendcr's interest in the Propeny.
including. but not lim+ted to, eminent ~domain. insolvency, code enforcement, or arrangements or proceedings involving a ~
banlcrup or doredent, then [.ender at l.ender's option, upon notice to.Borrower, may make such appearaaces, disburse sach
wms and take such action ac is necessary to protect Lender's interest, i~cluding, but not limited to, disbursement of
reasonable attocney's fas and entry upon the Property to make repairs. If Lender required mortgage irtsurance as a
conditiaa of makiog the ban secured by this Mortgage. Borrower shall pay Ihe premiums requireei to mayntain such
iawranct in etfect unW such time as the requirement for such insurance terminates in accordanre with Bormwers and
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