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UNIFO~M COVENANTS. Borrower and Lencicr c~?vcoant aod :1Q,fCC 3S FOUOWS:
l. tiymed ot P~iacipal ssd lMeresl. Borrower shall promptly pay vnc~n duc ~he principal of and interest on the
indebtcdneu evidenced by the Note, prepaymenl and late chargr. a. provided ~n the Nate, and the principal of and interest
on aay Futurc Advances secured by this Mortgage.
t Fyeds ior Ta:es aa~ l~rauce. Subject to applirahle !a?+ ~+r to a w~ritten waiver by t.ende~. Borrower shall pay *
to Lender on ~he day monthly installmeots of principal and ~iu~ rc.t .~rr payahlc unJe~ thc Note, until the Note is paid in full. ;
a sum (hercin "Funds") equa) to one-Iwelfth of 1he yearl~ ta~~. anJ a~cessmen~s which may attain priority over this
Mortgage. and ground nnts on the Pc~operty, if any, plus one•twclfth af yearly premium insta!lments for hazard insurance.
plus ork-tweltth of yearly premium installmen~s tor m~~rtgage insurancc, if any, all as reasonably es~ima~ed initially and irom '
time to time by Lender on the basis of asscs~mcnls and hills and rea~unable estimates thercoL `
The Funds shall tx held in an institwi~~n thc deposit. or accounts al which are insured or guaranteed by a Fcderal or
state agency (includina Lende~ if Lender is ~uch an insti~ution). I.ender shall apply the Funds to pay said taxes, assessmenis.
insutanee prcmiums and g~ound rents. t.ender may not charge tor ~c? holding and applying the F~mdc. analyzing ~aid account,
or verifying and rnmpiling said assessments and bills, unless Lender pa~~ Borrower interest on the Funds and applicabk law
pa'mits Lender to make such a charge. F3orruwer and LenJer may agree in writing at the tinie of exec:utiun of this
Mongage that intertst an ~he Funds shal! he paid ~a Borrower, and unless such ag~eement is made or applicable law
requires such ioterest to be paid. l.cnder shall not he required to pay Borrower any interest or earnings on the Funds. !_ender
shall gtire to Borcower. without charge, an annual accaunting af the FunJs showing credits and debits ta the Funds and the
purpose fot which each debit to the Funds was madc. The Funds are pledged as additiona! security for the sums secured
~y ~h;: Mo~.
If the amount of the Funds held by Lende~, together with the future monthly installments of Fiinds payablc prior to
the due dates of taxes~ assessments, ir~surance premiums a~d ground rents, shall excecd the amount requircd.to pay said taxes,
asse~ments. insurance prerniums and ground rents as they fall due, such excess shal! be, at Borrower's option, either
pranptly tepaid to Borrower or credited to Borrower on monthly installments of Funds. tf the amount of the Funds
held by Leoder shall not be suf6cient to pay laxes, assessments, insu~ance premiums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by I.eader to Borrower r~equesting payment thereof.
Upon payme~t in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrow•er any Funds
heW by [.ender. If under pazagraph 18 hereof the Property u sold or t6e Property is othervvise acquired by Lcnder, LenJer
s6d1 apply, no later than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by
I.rader at tho time of application as a credit against the sum~ secured by this hlortgage.
3. A~plieatiou of Payments. Unless applicable law~ provides otherN~ise, all payments received by Lender unJer the
Note and paragraphs 1 aad 2 hereof shall bc applied by Lendcr first in payment oi amounts pa~able to Lender by Borrower
under paragraph 2 heroof. then to interest payablc on the Note, then to ihe principal of the Note, and thcn to i~terest and
principa! on any Future Advances. _
4• Cbar~e~ Lieas. Borrower shall pay all taxes, assessmcnts 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 hereof or, if not paid in such manner, by Borrower mak~ng payment, when due, directly to the
payee theneof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aad in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shal) not be
tequired to discharge any such lien so long az Borrower sha!! agree in writing to the payment of the obligation secur~d by
such Gen in a manner acceptable to Le~der, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of ihe lien or [orfeiture of the Property or any part thereof.
S. Huard Iasorance, Borrower shall keep the improvcments noN• existing or hereafter erected on the Property insurod
againat loss by fir+e, 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 requirc; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage requ~red to pay the sums secured by-this Mortgage. '
~'Ibe in.wrance carrier providing tt~e insurance s6all be chosen by Borrower subject to approval by Lender. provided, .
that such approval shall not be unreasonably withheld. A!1 premiums on insurance policies shall be paid in the manner
provided under pa~agraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
inwrance carrier.
All insurance policies and renewats thereof shall be in form acceptable to Lender and shall include a standard moRgage
clause ir~ favor of aod in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
and Bortower shall prompdy furnish to Lender all renewal notices and all re~eipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and ~ender._ Lender may make proof of loss if not made pror~ptly
by Borrower.
Unlesa I.ender and $orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
ihe Property damaged, providec! such restoration o~ repair is economically feasible and the security of this Mortgage is
not ~bereby impaired. If such restoration or rcpair is not economically feasible or if the security of this blortgage would
be impaired, tht Snsurance proceeds shalt be applied to the sums serured by this Mortgage. with the excess, if an}. paid
to Borrower. If the Prope~ty is abandonec! by Borrower, or if Borrower failc to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, l.ender
is authorized to collect and apply the insurance proceeds at Lender's option eithe~ to restoration or cepair of the Propertr
or to t6e sums secured by this Mortgage.
Unless L.ender and Borrower otherwise agree in writing. any such application of pra:eedc to principal shall not extend
or postpone the due date of the montfily installmcnts referred ta in paragraphs 1 and 2 hercof or change the amount of
such installmeats. If under paragraph IS hereoi the Property is acquired b~• l.ender, alt right. title and interest of Borrower
in and to ar~y insurance policia and in and to the 8roceeds thereof resulting from damage to the Property prior to th~ sale -
or acquisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. .
6. Preaervslioo aad Maintenance of Property; Leaseholds; Condominiums; Planntd Unit Dereiopments. Borrow•cr
shali kcep the Property in good repair and shall not comrr~it waste or permit impairment or deterioration of the Propeny
and sball comply with the provisions of any lease if this Mortgage is on a leaschold. 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 condominium or planned unit development, the by-taws and reguiations of the
candominium or planned urtit development, and constituent documents. If a condominium or planned unit development
rider is eaecuted by Borrower and recorded together w?th lhis Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreemcnts of this Mortgage as if the rider
were a part hereof.
- 7. Protecfion of I.ender's Secarity. If Sorrou-er fails to perform the covenantx and agreements contained in ihis -
Mortgage, or if aay action or proceeding is commence.l which materially aflects l.ender's interest in the Pmperly,
including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements o[ proceedings involving a
bankrupt or daedent. then l.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
swns and t~ce aueh action as is necessary to protect l.ender
s interest, including. but not limited to, disbursement of ~
reafonsbk attorney's tees and entry -upon the Propcrty t~ makc rcpairs. I( I.cnder required mortgage insurance as a
conditioa of making the loan secured by this Murtgage. Borrower shaU pay the premiums requireJ to maintain such
inwra~iee in eHect until such time as ~he requirement for such insurance terminates in accordance with Bortower
s and
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