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UNlFO1ts1 CoVeN~t+TS. Borrower and Lender covenan~ and ag~ec as follows:
1. t~ed ot !'~iaciNl a~d IMerest. Bturower shaU prumptly pay v?hcn due the pri~cipal of and interost on thc
indebtednas evide~ced by the Note. prepayment and late shargc~ a~ provided in the Nate, and the principal of and intercs~
on aay Future Advances secured by this Mortgage.
2. Frads tor Tua aad Iaainaee. Subject to applicabie lav?• or ta a written waive~ by I.ende~. Borrower shall pay
to L.ender oo the day monthly installments of principal anJ ~nicr«i .~rc payable under the NMe, until the Note is paid in tull.
a sum (hercin "Fu~ds") equal to one-twel(th o( the yrarl~~ ta~c~ ;~nd ascessments which may attain priarity over this
Mortga~e. and gmund rents on the Pruperty, it any, plus cu~e-tv?~elhh ot yearty premium ias~allments for hazard insurance,
ae
Mtus one-twelFth of yearly premium installments tor mortgage insurancc, it any, all as reasonably cstimated initially and from
timo to time by l.ender on the basis o[ asscssmcnts and hi!Is and rea~onable estimatcs thereuf.
'i1~e Funds shal) be held in an institution the de~+osiu or arcoun~s al which are insured or guaranteed by a Federal or
state tgeocy (including Lender if I.cnder is such an inslitutiunl. I.cnder shall apply 1hc Funds to pay said taxa. assessments.
i[uurance premiums and ground rcnts. I.e~der may no~ charge lo~ so holding and apE+lying ~he Furntc. analyzing caid account.
or veritying and compiling said assessments •rnd bill~, unless l.ender pays Borrawer interest on the Funds and applicable IavY
permits Lender to make such a charga Borrowe~ and IxnJer may agree i~ writing at the time ot execu~ion o[ this
Mortgage that interat on the Funds shall be paid to Borrower, and untess such agreement is made ar applicable law
requires.such intercst to be paid, Lender shall not he'rcquired to pay Barrowe~ any interest or earnings on the Funds. Lender
sha11 give to Borrower, without charge, ara annual accou~ting of the Funds showing credits and debits to the Funds and the
purpoae tor which each debit to the Funds was made. The Funds are pledged as additi~nal security for ~he sums secured
by this Mortgage.
If the amount of the Funds held by t.ender, together with the future monthly installments of FunJs payablc prior to
the due d~ta of taxes, assessmen4t, insurance premiums and ground rents, sball exceed the amount required to pay said taxes,
asseasments. insunnca premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
prompQy repaid to Borrower or credited to Borrower on monthly installments of Fu~ds. If the amount of thc Funds
tuld by Lender shall not be sut6cient to pay taxes, assessments, insu~ar~ce premiums and ground rents as they fall due,
Borrowershall pay to Lender any amou~t ~ucessary to make up ~he deficiency within 30 day~s from the date notice is mailed
by Lender to Borrower ~equesting payment thereof.
Upon payment in full of all sums aecured by this Mortgage, l.ender shall promptly re[und to Borrower any Funcis
held by Lender. lf under paragraph 18 hereof the Property i~ sold or the Property is otherwise acqu~red by Lender, Lender
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 ticne of application as a credit agai~st the sums secured by this Mortgage_
3. Appiicatios of Pa,ymeets. Unless applicablc law provides otherwisa. all paymems received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrow~er
under puagraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on aay Future Advances.
Charse~ Litos. Borrower shall pay all taxes, assescments and other charges, fines and impositions attributable 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 hercof or, if not paid in such manner, by Borrower making payment, wt~ due, directly to the
psyae theroof. Borrowec shall promptly furnish to Lender all notices of amounts due under this paraaraph, and ia the event
Bornower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Botrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall Rot be
requirod to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptabk to Lender, 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 forfeiture of the Property or any part thereof.
S. Hazard Insorance. Borrower shall keep the improvements now existing or hereafter erected on th~ Propcrty insured
against loss by firo, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require
wd in such amounts and for such periods as Lender may requirc; provided, that Lender shall ~ot require that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured by this Mort6age_
~ 'ILe iusurance carrier providing t6e insurance shall be chosen by Borrower subject to approval by Lender, providod,
that such approva! shall not be unreasonably withheld. All premiums an insurance policics shall be paid in the manner
' provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeat. when due, directly to the
~ insurance carrier. •
All insurance policies and renewals thereof shall be in form acceptahle to l.ender and shall include a standard mortgage
~ ctause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
~ and Bonower 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 Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unksa Lender and Borrower othervr-ise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provided 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 feasihle 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, ~f any, paid _
to Borrower. If the Properiy is abandoned by Borrower, or if Borrower fails to respond to Lender within 3Q days irom the
date ootice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, LenJer
is authorizod w collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propen~
or to the sums secured by this Mortgage.
Unlas I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpont the due date of the monthly instaUments referred to in paragraphs I and 2 hereof or change the amount of
such installmeuts. If under paragraph t8 hereof the Property is acquired by I.ender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceecis thereof resulting from damage to tbe Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisitan. ,
~ 6. Ptratrvatioa and Maintenance of Property; Leaseholds; Gondominium~ Planned Uuit Derelopments. Borrowcr
~ shall koep lhe Property ia good repair and shall not comrpit waste or permit impairment or deterioration of the Property
~ and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 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 crcating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planoed unit development, and constituent documents. If a condominium or planned unit developmeni
~ rider is executod by Bonower and recorded together with this Mortgage, the covenants and agrcements of such rider _
~ shall be incorpotated into and shall amend and supplement the covenants and agreements of this Mortgage as if the riJer
~ were a part hereof.
~ 7, protectioe of Lender's Securfty. If Borrower fails ro perform the covenants and agreements contained in this
Mongaae. or if any action or proceeding is commenceJ which materially afiects Lender's interest in the Proper~y,
including, but not limitod to, eminent domain, i~~solvency, code enforcement, or arrangements or proceedings involving a
~ banicrupt or decedent. then Lender at Lender's option~ upon notice to Borrower, ma}• make such •appearances, disburse such
sums and take tuch action u is necessary co protect Lender's interest, including, but not limited to, disbursement of
~ teasonsbk attomey's fces and entry upon the Propcrry to make repairs. If Lcnder required mortg~ge insurance as a
~ condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requireJ to maintain such
~ iasurance in ef~ect until such time as the requirement for such insurance terminates in accordance with Borrower s and
. . ~`eRK ~95 PaCE 42~
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