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UNIPOtt~1,t COVHNANTS. BOrrOWer and Loader covenant and ag[oe as follows:
1. Pyrmestt of Ptiic>pai ss;i IsiNs~sst. Borrower shall promptly pay when due tho principal oI and interest on tho
indobtedr>ess evidenced by tlto Noto. prepayment and late charges as provided in tlto Note, and tlto principal of and interest
on any Future Advances secured by thu Mortgage.
lrtiada for 7'asea astiUwes~cw Stitbject to applicable law or to a written waiver by bender. Borrower shag WY
to Lender on the day monthly instaUmenb of principal and interest arc payable under the Not0. until the Noto is paid in fuq.
a :um (herein "Ftutcb'~ equal to otte•twolfth of the yearly taxes and assessments which may attain priority over this
Mortgage. and ground teats on rho Property. if any. plus one-twelfth of yearly premium installmenb for hazard insurance,
plus one-twelfth of yearly premium iastaUmeab for mortgage insurance. if any, all as reasonably estimated initially and from
time to time by Leader on the basis of assessmenb and bills and rcaaonabk estimates thereof.
The Fonds shall be held is an institution the depoaib or accounb of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay staid taxes. assessmenb,
insurance premiums and ground rents. Lender may not charge for so holding and'applying the Funds. analyzing uid account.
or verifying and compiling said assessments and halo, unless Lender pays Borrower interest oa the Fund: and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires such interest to be paid, Leader shall not be required to pay Borrower any interest or earnings oa the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credib and debits to the Funds sad the
purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums sceured
by this Mortgage.
Tf the amount of the Funds field by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground renb. shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rcnb as they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installmenb of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes. aasassmenb, insurance premiums and ground rents as they fall du0.
Borrower shall pay to Lender any amount necesswry to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof. .
Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Fund:
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
shall apply. rlo later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatba of Pgments. Unless applicable law provides otherwise, all payments received b}~ Lender under the
Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Lkas. Borrower shat! pay all taxes, assessments and other charges. tines 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 making payment, when due, directly to the
payee thereof. 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 promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided. that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
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legal proceedings which operate to prevent the enforcement. of the lien or forfeiture of the Property or any part thereof.
S. Hazard Ilasulrance. Borrower shall kcep,the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within tbe term "extended coverage and such other hazards as Lender may Esquire
az?d in such amounts and for such periods as Lender may require; 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 Mortgage.
The insurance carrier providing the insurance shall be chosen. by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All 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.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause 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 of paid premiums. In the event of loss, 1
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly i
by Borrower.
Unless Lender and Borrower otherwise agree in writing, inwrance 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 feasible or if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails 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 benefib, Lender ;
is authorized to collect and apply the insurance -proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds 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 acquired by Lender, all right, title and interest of Borrower ;
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit 1Devebpmeats. Borrower
shall kcep the Property in good repair and shall not commit 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 Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned- unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcemenb of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were apart hereof.
7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender'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 to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall -pay the premiums r•equirYd to maintain such
insurance in effect until such time as the requirement for such insurance termincnates in accordance with Borrowers and
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