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UNIFqRM COVENANTS. BOffOWCf BDII IRO/ICf Cuvr~l~ni ~n~I agrre a~ faUows:
1. ~Illtpl O~ P~RtIwI sOd IOIt~lSl. Hormwer .hall ~mmp~l~ p~y Nhcn due tfie p~incip~i of a~d mterest on the
~ndebtedness evidenced by the Note. prepaymen~ and late ch.ugr~ a~ pruvided ,n the No~e, and the principal of and ~nterest
on any Futurc Advances secured by th~s Mong~gc.
2. Ruads to~ Tues a~d lasurance. Subject ta appliwhlc law ~?r a vrrit~en warver by l_ender, Bortower shall pay
to Lender on the day monlhly installmenit of principal ai~d inirr~.~ arr payahlc unJc~ ttn: Notc, untii the Note is paid in full.
a sum (herein "Funds") equal to one-tNetfth o( ~he yrarl~ t•r~c. ~nJ acces~ment~ which may aUain prioriry ove~ ~his
Mortgage, a~d ground rents on thc Pr~nperry, if any. ~luc ~.nc-tv?cl(th ~~t ycarly premium ins~allments for hazard insurance,
plus one-twclhh of yearly premium installmen~s (or mortgagc imuranrc. ~f an~~, all ac rca«nably cstimuted initially and from
time to time by I.ender on the basis of astcs.mcn~s and hills and r~awnabfe es~imates thereof. ,
'[t~e Funds shail be held in an institutic~n the depo.u. or arcuun~s ot which are insured or guaranteed by a Federal or
stste agency (including l.ender if Lcnder is wch an ins~~t~uian 1. Lender ~hall apply the Funds to p:?y ~aid taxes, assessments,
insunnce premiums and ground rents 1 ender m•ry not charge ~or ~o hoWing and applying the Fundc. analp~ing ~aid acc.~unt.
or verifying and compiling said assessmeMs and bitls, uniess i.ender pays Borfower interest on the Funds and applicable law
perm+ts C~nckr to make such a charge. B~rrowe~ and Lcndcr may •rgree in writing at thc timc o( cxecution o[ this
Mottgage that interest on the Funds shall he paid t~~ Bor~ower, and unless such agrecment i~ made or applicable law
requires such intercst to be paid, 1_ender shall not be requirecf to pay Borrower an~~ interest or earnings <~n the Funds. l.ender
shall give to Borrowtr, without charge, an annual arcouneing oi the Funds showing rredils and debits to Ihe Fund~ and the
purpo~ for which eaeh debit to the Funds wa~ maJe. The Fund~ are pl~~iged a~ additional security for the sums secured
by this Mortgage. .
If the amount of the Funds held by ~eoder, together with the future mon~hly installments of Funcis payablc prior to
the due dates of taxes, assessments, insurance premiums anJ ground rents, shall e~ceed Ihe amount ~eyuircd to pa~• said taxes,
assesunents. insurance premiums and ground rents as they tall due, such exres~ shall be, at Borrower's option, either
pranptly repaid to $orrower or credited to Borrower on monthly ~nstallmcnts of Funds. I! the amount of thr Funds
held by Leader shall not b~ sutficient to pay taxes, assessmcnts, insurance premiums anJ ground rents as they fall due.
8orrower shal) pay to l.ender any amount necessar}• to make up the deficiency within 30 days [rom the date notice is mailed -
by l.ender to Borrower rcquesting payment ~hereot.
Upon payment in full of all sums securcd by this Mortgage, l.ender shalt promptly refund to Sorrowcr any~ Funds
heid by Lender. I( under paragraph 18 hereof Ihe Propeny sold or ~he Property is otherwisc acquired by I.ender, LenJer
shall apply, no later than immediately preor to the sale a[ the Property ar its acquisition by Lender, any Fundc held by
I..ender at the time o[ application as a credit against the sums secured by this hlartgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by t.ender nnder the
Note and paragraphs I and 2 hereof shaU be appliecl by I.ender first in paymen~ ~~t amounts payablc to LrnJer b~ Borrowcr
under paragraph 2 hereof, then to interest payable on the No~c, then to the principal ot the Notc, and thcn to interest ~nd
principal on any Future Advances.
4. Charges; I3eRS. Borrower shall pay all taxes, assestmcnts and othcr charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee th~reof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph,~ and in the event
Borrower shall make payment directly, Borrower shall prompily furnish to Lender receipts evidencing such payments.
$orrower shall promptly discharge any lieo which has priority over this Mortgage; provid~~,,~hat ~orrower shall not be
requirod to dixharge any such lien so long as Borrower sha!! agree in writing to the payment of the~obligation secured by
such li~n in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or any part thercof.
S. Huud I~raace. Botrower shaU keep the ~mprovements now existing or hercafter erected on the Propeny insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; pmvideJ, that Lender shall not requirc that the am~unt af
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,
tbat such approval shall not be unreasor?ably withheld. All premiums on insurance policies shall be paid in the manner
providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
Al) insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
claase in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts o[ paid premiums. In the event of loss.
$orrower shalt give prompt notice to the insurance carrier and .!_ender. Lender may make pra?f of loss if not made promptly
by Borrower.
Unless Lender and Borrower othervvise agree in wridng, insurance proceeds shall be applied to restoration or repair of
the Property damaged. provided such restoration or repair is economically feasibte and the security of this Mortgage is
not thereby impaired. If such restoration ur repair is not ecunomically feasible or it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if an}, paid
to Borrower. 1f the Properly is abandoned by Borrower, ~r if Borrower fails to respond to Lender within 30 days from the
date notice is ma~led by L.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repaer of the Propett~~
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shail not extend
or postpone the due date of the monthty installmcnts refcrred to in paragraphs 1 and 2 hereof or change the amount of
su~h installments. 1[ under paragraph IS hereof the Property is acyuired by l.ender, all right, title and interest of Borrowcr
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to th~ sale
or acquisidon shall pass to Lender to the extent of the sums secured by this Martgage immediately prior ta such sale or
acquisition.
6. Prtse~ation and ylaintenance of Property; Leasehulds; Condominiums; Planned Unit Developments. Borrowcr
shaU keep the Property in good repair and shall not comtpit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Murtgage ~c un a Icaschold. If this Mortgage is on a unit in a
condominium or a plan~ed unit deve(opment, Borrower shait perfarm all ot BorroNer's obligations under the declaratiun
or covenants creatiag or governing the condominium or planncd unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a conJominium or planaed unit Jevelopment
rider is executed by Bonower and recorded tvgether with this Mortgage, the covenants and agreements of ~uch rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part heroof.
9. Protection of Lender's Security. If Barrower fails to perform the covenants and agreements contained in this
Mortgage, or if any aetion or proceeding is commenced u~hich materially afTects LenJer's interest in the Property.
including, but not limitcd to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
baakrupt or daedent, then Lender at LeQder's option, upon notice to Borrower, may make such appearances, dishurse such
sums and take such aciion as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attomey's fees and entry upon the Property to make rcpairs. I( l.cnder requircd mortgage insurance as a
condition of making the loan secured by this Mortgage. B~rrower shall pay the premiums required to mainta~n such
insurance in eBect until such time as the requirement for such ~nsurance ~crminatcs ~n accordance with Bormwer s and
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~ - R 292 PA~~ 8~7
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