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UNitoet?1 CoveN~H7s. Borrower and 1_enJer coveoa~t and agr~.e as ic~ll~ws: ,
1. P~ymept ot Pdncipsl aod Inleres4 H~~rruNCr shall promptly pay when due lhe principal ot and inter~st un the
inciebted~eu evide~ced by the Note, pro~ayment and late charges as provided in the Noie, and the principal of and intrrest
on any Futurc Advances securcd by this Mo~tgage.
Z. Funds for Ta:a and I~unace. Subjcct to applicable !aw or to a written waiver by 1_ender. Bortowe~ shall pay
to Lender oR ~he day monthly installments af principal and i~terest are J~ayAble undcr the Note, until the Notc is paid in tull,
a sum (herein "Funtls") equal to onatwelfth of Ihe ycarly tax~.c and assasments which may attain priority ove~ this
bfongage, and ground rents on the Pmperty. if any. plus one-twclfth ot yearly premium installme~ts for hazard insurance,
ptus one-twelfth of yearly premium installments for mo~tgage insurance, if any. all as reasanably estimated initially anJ tmm
time to time by 1_ender on the basis of asscssments and bills a~d reasonable cstimates thereof.
The Fl~nds shall be held in an institution the deposits or sccounts af which are insured or guaranteeci by a Federal or
state agency (including I.ender if Lender is such an institution). I.enJer shatl apply the Funds to pay said taxa, assessments.
insurance pr~emiums and ground ren~s. l_ender may not charge for so halding and applying the Funds, anal~zit~g said accou~t,
or ve~if~ing and compling said assessments and bills, uoless l_ender pays Borrower interest on the Funds and applicable law
permits Lender to mako such a charge. Borrower and Lcnder may agrce in writing at the time of executian of this
Mortgage that interest an the ~unds shall he paid tu Borrower, and unles3 such agreement is made or applicable law
requires such interest to be Q~aid, Lender shall not be reyuire~l t~~ pay Borrower any interest or earnings un the Funds. 1_ender
shall give to Borrower, without charge, an annual accounting of the Funds shawing cr~dits and debit`s to the Funds and the
purpose tor which eaeh debit to Ihc Funds was made. The Funds are .pledged as additiunal xcurity for the sums seeured
by lhis Mortgage.
If the amounl of the Funds held by l.endcr, ~ogcthcr H~ith the futurc monthly installments of Funds payable prior t~
the due dates of taxes, assessments, insurance prcmiums and ground rerits, shall exceed the amount reyuired to pay said taxes,
assessments, i~surance premiums and ground rents as they fall due, such eccess shall be, at Borrower's option, either
prompdy repaid to Borrow•er or credited to Bcurower on monthly installmcnts of Funds. !f the amount of the Funds
held by Lender shsll not be sufficient to pay taYCS, assessmeots, insurance pceraiums and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary ~o make up the deficicncy within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment io full of all sums secured by this Mortgage. I.cnder shall promptly ref~md to Borro~~~er any Funds
held hy l.ender, lf under paragraph 18 hereof the Propeny is wld or the Propert}• is otherwise acquired by Lcnder. l.ender
shall apply, no later than immediately prior to the sale. of ~hc Property or its acquisition by [_ender, an}' Funds held by
Lender rt the time of appliration as a cr~dit against the sums secured by this I~fortgage.
3. Application of Paymeats. Unless applicable law• pro~ides othcrwisc, all payments recci~cd b~ 1_cnder unJer the
Note and par:~graphs 1 and 2 hercof shall be applicd bx I.ender fitst in payment ot amounts payable to l.ender by Borrower
under paragraph 2 hcreof, then tu interest payable on the Nute, thcn to the principal of the Notc, and thcn to interest and
principal on any Futurc Advanccs.
4. CharRes; Liens. Borra«~e~ shaH pay all taxcc, a.s~:ssnzents and othcr chargcti. fines anJ im~xitiuns attrihutable to
the Propert~~ w•hich may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any, in the manner
ptovided under pa~agraph 2 hereof or, if not paid in such manncr, by Borrower making payment, Hhen due, directly to the
payee thereof. Borrowcr shall promptly furnish to Lender ait noticcs o[ amounts due under this paragraph, and in the event
BorroH•er shall maice pa}•ment directly, Borrow•er shal! prompily furnish to l.ender teceipts cvidencing such payments.
Borrower shall promptty di~charge any lien which has prioritp over this Mortgage; provideJ, that Borrower shall not be
required tu discharge any such lien so long as Borroµ•er shall agree in w•riting to the payment of t6c obliga~iun secured by
such lien in a manner aceepiable to Lender, or shatt in good faith contest such lien by, or defend enforcement ot such lien in, •
iegal pn~eedings N~t~ich opcrate to prevent thc cn[urccmen~ of the lien or• forfeiturc of the Property or an} part thereuf.
5. Hazard Insurance. Bqrrower shall kcep the impro~•ements now cxisting or hereaftcr erccted on the Propcrty insured
against locs hy firc. ha~ards included within the term "~~tended coverage", and su.h other hazards as Lender m:~y reyuire
and in such amounts and tor su~h pcriods as Lender may rcyuirc; pmvided, that (.enJer shall not reyuire that thc amount of
such co~•cragr excecd that ~mount of co~•erage required to pa~ the ci~ms urured hy this Mortgage.
The insurance carrier providing ~he insurance shall be chosen by Borrower subject to approval h}~ Lender, pro~ided,
that such approval thall not be unreasonably withheld_ All pttmiume on insurance palicies shall tH: paid in the manner
providcd undcr paragraph 2 hercuf or, if not paid in such n~anner, by Borrower making paymeni, when due, directly to the
insurance carner.
All ins~rance policies and rene~~als thereof shall b~ in form rcceptable to Lender and shall includc a standarJ mortgage
clau~e in favor of and in form acceptable to Lender. Lender shall have ~he right to hold the polici~:s and reneveals thercof.
and Borro~~er shatl promptly futnish to Lcnder atl renea~al notices and all rec*eipts of paid premiums. 1n the c.~cnt ot loss.
F3orrou~er shalt g~vc ~?rompt noticc to ihc ~nsurancc carrier and Lender. Lender ma~• make proof of loss if not made prompUy
by Borrower.
Unless 1_ender and Borrowcr otherv?~sc agrce in w~riting. insuraoce proceeds shall be applied to restoration or repair of
the Yroperty damaged, proYi~d such res~orat~on or repair is economically ieasible and ~he security of this lNortgage is
not thereby impaired. If such restor~ti~~n or repair is not econumica{I~~ feasible or iF the security of this Mortgage would
be ,mpaired, the insurance pra.eeJs shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Propert~• is abandoned b~ Bc?rrovrer, or if Bormwer faifs to respond to Lender withirt 30 days from the
date notice is maitzd by Lender to E3orrower that the insuranee carrier ofiers to settle a claim for insurance benefits, I_ender •
is uuthoriud ta collect and apply~ the insurance proceeds at Lenrier's optian either to restoration or repair of the Property
o~ to the sums ~ccured by this :~iorigagc.
Unless I_ender and B~~rrower otherv?ise agree in wridng, an~~ sucf~ application of proceeds to principal shal! not extend
or postpone the duc date of the munthl}• installments referred ta in paragraphs 1~nd 2 hereof or change the amount ot
such instaNments. If under paragraph 18 hereof the Property~ is acquired by Lender. all right, tide and interest of Borrower
in and to an}' insurance policies and in and to the proceed~ thcreot resulting from d:?mage to the Propeny prior to the sate
or acquis~tion shall pass to l.eoder to thc eatcnt of thc-sums securai b~• this rtnrtgage immed'+ately prior to such sale or
acquisition.
6. Presen~atioa and ~taintenancc of Properly; Leaseholds; Condominiums; Planned Uuit De~elopments. Borrower
shall keep the Propeny in good repair and shall not commit w~aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this htortgage is un a teasehutd. If this titortgage is on a e~nit in a
condominium or a planned unit devclopment, Borrower shal! perform al! of Bwrower's obligations under the declaration
or coveaants creating or governing the condom~nium or planned unit development, the by-laws and regulations of the
condominium or planned unit deYelopment, and constituent documents. If a condominium or planned unit Jevelopment
rider is executed by Borrower and recorded ~ogether with this Mortgage, the co~enants and agreements of such rider
shall be incorporated into and shalt amen~ and supplement the covenants and agreements ot this Mortgage as if the rider
were a part hereof. "
7. Proteetion of Lender's Security. If Borrow~er fails to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeJing ~s commeneed ahich materially affects Lender's interest in the Properiy,
including, but not limited to. eminent domain, insoi~~cncy, code enforcement, or arrangements ar proceedings involving a~
bankrupt or decedeet, then Lender at Lender's option, upon notice to Borrower, ma~- 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
reasonable attorney's iccs and entry up~m the Property to makc rcpairs. If Lender reyuired mortgage insurance as a
cundition ot mal:ing the foan secureJ by this Mortgage, 8e~rrower shal! pay the premiums require~t to maintain such
insurance in ctiect unte! such time as the requirement for such ~nsurance terminates in accordanco ~with Borrower s and
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