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Ut+~FO~tM Cov~N~Nn. Borrowcr and l.en~er cuvcnam and a~~re a~ foUuws: , ~
1. l~ya~eaf ot PrWc~al aed lale~est. Hurrower ~hall prumptl~ pay when due the principal ot and inte~est un the
~ndebtedness ewdenced by the Note, prepayment and latc char~c. a~ pr~~vidcd ~n ~hc N~~~e, and the principat of and ~nterest
or? any Futurc Ildvances secu~ed by th~s Mortgage.
2. Fhads tor Tua aad iRtunuce. Subject to applic:,hlc la++ ~~r u? a written waiver by I.ende~, Borrower shall pay
to i,ender on ~he day monthly inslallmen~s of p~incipal anJ in~~•re.~ arr ~ayahle unJer the Ni.te, until the Nol~ is paid in tull.
a sum (herein "Funcls") equal to une-twelfth o( the yrarl~ ta~c~ ~nJ accescmenlc vvhich may attain priority over th~t
Mortgsge. and ground rents on the Properly, if any, ptuc one-twrlfth c?f }~early premium installmenls tar hazard insurance,
plus one-twelfth of yearly prcmium installmems for mc~r~gagc rosi~ranrc. if any, all a~ rcasonably estimated initially and trom
time to time by I_ender on the basit oi a~scs.mrnt~ anv hilh and rea.onahle est~matcs therco(.
The Funds shall be held in an institutiun thc de{x~~u~ or arc.~unu ot which are insured or guaranteed by a Frderal or
state ageacy (including Lender if l.cnde~ is aurh ;sn inst~~uti~n). Lender ~hall apply !he Funds to pay said ta~es, asseuments,
insurance premiums and ground rents 1 ender may nc.t cha~ge tur sn holding and applying the F~indc. analyzing said aecount.
or verifying and compiling said assessments anJ hilh, unless l.ender p•ry~ Borrower inte~est on the Funds and applicable law
permits Lender ta make such a charge. Borrower and I_ender may agrce in writing at ~he ~imc ot execu~ion ot this
Mortgage that interest on the Funds shall he ~aid to Borruwer, and unless such ugreement i~ made or applicahle law
requircs such interest to be paid. I.endcr shall not bc required to pay Borrower any interest or earnings on the Funds. 1_ender
shall give to Borrower, without charge, an annual acc~~unting ot ~he Funds showing credits and debits to the Funds and the
purpose for which each debit to the FunJs Ka~ made. The f=unda -rrr pleciged as additiunal scti:urity tor the sums secureJ
by ihis Mortgage.
If the amount of the Funds held by Ltn~er, together with the iuwre monthly installments o[ FunJ~ payablc prior to
the due dates of laxes. as.tessments, insurance premiums and ground rents, shaU c~reed the amaunt reyuircd to pa~~ said taxes,
assess~nents, insurance premiums artd ground rents as they fall due, such excecs shall be, at B~rrower s upt~on, either
promptly repaid to Bormwer or credited to Borrower on month~y insiallmcnts of Funds. I( the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assescments, insurancc prcmiums anJ ground rents as they faN due,
Borrower shall pay to Lender any amount necessary to make up the deficiency wilhin 30 da}s from ~he date notice is mailed
by Leoder to Borrower rrquesting payment thereof.
Upon payment in full of all aums secured by this Mongage, l.endcr shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hercof the Propeny is sold or ~he Propcrty is Qtherwisc acquired by Lender. Lender
shall apply. no later than immediately prior ta the sale of the Property or iis acquisitian by l.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by th~s ?~lortgage.
3. Application of P~ymeots. Unless applicable law• provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by LcnJcr firxt in payment o( amuunts payable ta l.cnder by Borrow~er
under paragraph 2 hertot, then to interest payable on the Note, then to thc principal of ~he Note, and then to interest and
principa! on any Fuwre Advances. •
4. Charges; Liens, Borrower shall pay all ta?ces, asses~ments and other charges. fines and impositions attributabk to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, i( not paid in such manner, by Borrower making payment, when due, directly to the
payoe thereof. Borrower shall prompUy furnish to Lender all notices of amounts due under this paragraph, and in the event
Bormwer shall make payment directly, Borrower shall promptly furnish to l.~nder receipts evidencing such payments.
Borrower shsill prvmpQy discharge any lien which has prionty over this Mortgage; provicied, that Borrower shall not be
requircd to discharge aay such lien so long as Borrower sha!! agree in writ~ng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contrst such lien by, or defend enforEen~ent of such liea in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiwre of the Propertyu~r any part thereof.
S. Hazard Insu~ance. Borrower shall keep the improvements now existing or hereafter erected~the. Property insurcd
against loss by 5re, hazards inctuded with~n tt~e term "extended coverage", and such other hazards as 1_ender may require
and in such amounts and for such periods as Lender may reyuirc; provideJ. that LenJer shall not require that the amoont of
such coverage eaceed that amount of coverage required to pay the sums secured by this Mortgage.
"Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided.
that such appr~nval shall not be unreasonably wiihheld. AI! premiums 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.
AU insurance policies and renewa(s thereof shali be in form acceptabfe to Lender and shall include a standard mortgage
ctause in favar of and in form acceptable to Lender. I_ender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly 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 l_ender. Lender may make proof of ioss if not made pro:nptly
by Borrower.
Unless Lender and Borrower othen+~•ise agree in writing, insurance proceeds shall be applied ro restoration or repair of
the Property damaged, proviJed such restorat~on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. lf such restoration or repair is n~~t eronomically feasible or if the security of this Mortgage would
be impairtd, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid
to Borrower. If the Propert}• is abandoned by Bormwer. or if Bormwer fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is aut6oriud to cotlect and apply the insurance proceeds at I_ender's option either ro restoration or repa~r of the Propem~
or to the sums secur~ed by this Mortgage.
Unless I.ender and Borrower othervrise agree in vvriting, any soch application uf proceeds to principal shall not extend
or pcutpone the due date of the monthly installmentc referred tc. in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by Lendcr, a~t right, title aod interest ~f Borrowcr
in aad ta any insurance policies and in and to the proceeds thereot resulting from damage to the Property prior to thc sale
or acquisition shall pass to Lender to the extent of the ~ums secureci by this ~lortgage immediately prior ta such sale or
acquisition.
6. Presen•ation and ~taintenance of PropertY; Leasehulds; Condominiums; Planned Unit Derelopments. Borrowcr
shal( 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 lease if this Mortgage is on a Icaschold. 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 governing the condominii:m or planned unit development, the by-laws and regulatior~s of the
condominium or planaed unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together w~th this Mongage, the covenants and agreements of such rider
shall be incorpotated into and shall amend and supplcment the covcnants and agreements of this Mortgage as if the rider
were a part hereof. .
7. Profection of Leode~'s Securitr. If 8orrouer fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially atiects I.ender's interest in the Property,
including, but not limited to, eminent domain. insnlvency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then I.epder at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sutat and take such actioA as is necessary to protect Lender's interest, includirzg. but not limited to, disbursement af
rtasonable attomey's fees and entry upon the Proper~}• to naakc rcpairs. !f I_cnder reyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. B~~rrowcr shall pay the premiums requireJ to maintain such
insurance in effect until such time as thc reyoirement f~r ~uch insurancc terminates ~n accordance with 8ormwer's and
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