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UN~Fau?~ Cov~NANTS. Borrowe~ and l.ender cuvenant and aRrre ai foliows: ~
l. Tf~~t of P~incipal ana latertsf. Borrowrr .hall pr~?mpil~ pay Nhcn duc ihe p~incipal of and intcrest o~ ihe
~ndebtednas evidenctd by the Note. prepayme~t and late ch:~rge. a. provi.led m ~he Note, and the ptincipal ot and interrs~
on aay Futurc Advances xcurcd by this Mortgage.
2. Fnsds tor Tua aad losnrance. Subject ~a applir~hlc IaM ~~1 S~ w~itten waiver by l.ender, Borrower shall pay
to l.ende~ on ~he day monthly intullments oi prinripal anJ ~nirrr.t .~rr p.?yahk under the NMe, until the Note is paid in fuU.
a sum (herein "Funds") equa) to one-twelfth ot the ~•rarl~ ta~~. and ~scessmc~ts which may attain pnority over this
Mortgage. and ground rents on the Property, if any, plus one-twclfth ot yea~ly premium ins~allments for hazard insurance.
pl~s one-twelfih ot yearly premium installmen~s (or m~~rtgage insurancc. any, all as reasonahly ectima~ed initially and trom
time to time by Lender on the basis o( a~ses`mcnts ~nJ hills and rrawnablr atimates thcrea(.
The Furtds shall be held in an insti~ut~o~ ~he de{x~cu. or ~rcuunts ot which are insurcd ar guararttetd by a Federal or
state agtncy (including i.ender if Lender is such an instite+tionl. LrnJer shaU apply the Funds tc~ ~ay said taxes, as~essments,
insurance prcmiums and ground rents. t ender may no~ charge Ior ~n holding and applying ~he F~~ndc. analyzin@ caid account.
or v~rifying and compiling said assessments and billa, unless l.ender p:~ya Borrawer interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and lxnder may agree irt writing a1 ~bc ~ime o[ cxecution ot this
Mortgage that interest on the Funds shall he paid to Borrowcr, and unle~s such agreement is made or appficable law
requires such intercst to be paid, 1_eoder shall not be required to pay Bo~rower a~y interest or earning+ on the Funds, t_ende~
shall give to Borrower, without charge, an annual accounting of the FunJs showing credits anJ dehrts to the Fund~ and the
purpox fo~ which taeh debit to the Funds w•rs made. The Funds are plecl~d a~ addi~ional security for ~he sums secureJ
by this Mortgage. ~
If the amount oi the Funds held by LenJer, toge~her with Ihe future monthly installmen~s of Funds payablc prior to
the due dates of taxes, assessmeots, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assesuaents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
pranpdy repaid to Borrower or credited to Burrow•er on m~nthly installments of Fu~ds. If the amount of thc Funds
t?eld by Lender shall not be sufficient to pay taxes, assessments, insurance prem~ums a~d ground rents as they lall due.
Borrower shall pay to Lender any amount necessart• to make up ihe deficiency within 30 days from Ihe date notice is mailed
by Lender to $ortower requesting payment thereof.
Upoa payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borro~•cr any Funds
held by I.ender. If under paragraph 18 hereof the Propeny i~ sold or the Property is Mherwise acquired by I.ender, 1_enJer
shall appty. no iater than immediately prior to the sale of the Property or i~s acqu:sition by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applie~loa of Paymeats. Unless appiicable law provides otherwise, all payments received by [_ender under the
Note and paragraphs 1 and 2 hereot shall be appGed by LcnJcr first in payment o( amuunts payable to LcnJer by Borrower
under paragraph 2 hecrnf, then to interest payable on ihe Note, then to the principal of thc Note, aod then to interest and
principal on a~y Future Advances. ~
4. C6~raes; I3ens. Borrow~r shall pay all taxes, assessmcnts and other charges, fines and impositi~ns attributable to
We Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the man~er
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the
payce ther+eof. Borrower shall protnptly furaish to Lender all notices of amounts due under this para~rsph, and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evideocing such payments.
Borrower shall promptly discharge any lien which has priorrty over this Mortgage; provided. that Borcower shall nw be
requirat to discharge any such lien so long as Borrower shal! agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defenJ enforcement of such lien in,
legal proceedings which operate to preveat the enforcement of ~he lien or forfeiture of thc Property or any part thereof.
S. Huud Insu~aoce. Botrower shall keep the improvcments now existing or hereafter erocted on the Property insnred
agaiaat loss by fire, hazards induded within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender 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 Mort6age.
'It~e insurartce carricr providing the insurance shail be chosen by Borrower subject to approval by Lender, provided.
t6st wch approva! shal! not be unreaconably withheld_ All pmmiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
insurance carrier.
All insurance poticies and renewais thereof shali be in [ortn acceptable to Lender and shall include a standard mottgage
clause rn favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furaish 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 l.ender. Lender may make proof ot loss if not made promptly
by Borrower. •
Ualesa Lender and Borrower otherwise agree in writing, insura~ce proceeds shall be applied to restoration or repair of
the Property damaged, provided such restotation or repair is economically feasible and the security of this Mortgage is
not ~hereby impaired. 1t such restoration or repair is not economicalty feasibte or if the security of this Mortgage wouid
be impaired, the insurattce proceeds shall be applied to the sums srcureJ by this Mortgage, with the excess> if any, paid
to Borrower. If the Property is abandoned by Borrower, or if 13orrower fails to respond to Lender within 30 days from the
date notice is maited by L.ender to Borrower that the insurance carrier ofiers to senle a claim for insurance benefits, Lender
is authorized to collect and appty the insurance proceeds at ~ender's option either to restoration or repaer of the Propem•
or to the sums secnrod by this Mortgage.
Unless I.ender and Bo~rower otherwise agree in writing, any such applica~ion of pra:eeds 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 18 hereof the Property is acqu~red hy Lender, all right, tide and interest of B~rrowcr
in aod to any insurance policies and in and to the proceecis thereof resulting from damage to the Property prior to th~ sale
or acquisition shall pass to L.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Pr~aervatioo and Maintenaace of Property; Leacehutds; Condominiums; Planoed Unit Devebpments. Borroucr
shali keep the Propetty in good repair and shall not comipit waste or permit impairment or deterioration of the Prooerty
and shall comply with the provitions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perfarm all uf Borrower's obtigations under the declaratiun
or covenants creatiog or governing the condominium or ptanned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent da:uments. 1( a condominium or planned unit development
rider is executed by Borrower and recorded together with ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplcment the covcnants and agreemenis of t6is Mortgage as if the rider
were a part hereof.
7. Profectioo ot Leoder's Secu~fty. If Borrower fails to perform the covenants and agreements contained in this
Mortgagt, ot if any action or proceeding is commenced which materially afiects I_enJer'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 ~o Borrower, may make such appearances, disburse such
wms and taice such actan as. Is ~cessary to protect Lender s interest. including. but not limited to, disbursement af
' reasonable atlomey's fea and entry upon the Property to make repairs. If 1_cnder rey?iircd mortgage insurance as a
condition of making the loan secured by this Mortgage. Bormwcr shell pay the premiums required to maintain such
insurance in effect unti~ such Ume as the requirement for such insurance terminates ~n accordance with Borrowers and
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