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UNtFORta CoveN~?Nrs. Borrower and Lendu covenant and agrce as follows:
1. P~yment ot Princlpal aod Interat. Bor~ower shall p~omptly pay when due the principal of and interest on the
i~debtednesa evidenced by the Note. prepayment and late charges as provid~d in the Note, and the principal of and intercst
on aay Futurc Advances secured by this Monga~e.
2. Fand~ to~ Tua aad Im~uasce. Subject to applicable law or to a writtea waiver by l.ende~. Borrower shall pay '
to Ltnder on ~he day monthly installments of principal and interest arc payable under the Note. until the No~e is paid in full,
a sum (herein "Funds") equal to one•twelfth ot the yearly taxes and asxssments which may attain priority over this
Mort~age, and ground rents on the Property. if a~y. plus one-twelfth o! yearly premium installments for hazard insurance.
plus one-tweltth oi yearly premium installments (or mongage insurance. it any. all as reasonably estimatcd initiaUy and from
time to time by Lender on the basis ot assessme~ts and bills and reasonable estimates thereof.
The Funds shall be.held in an institution the deposits or accaunts of which are insured or guara~tced by a Federal or
state agency (including Le~der if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assasments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said asxssments and bills. unless Lender pays Borrower interest on she Funds and applicable law
permits I.ender to make such a charge. Borrower and Lender may agree in writi~g at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requira such interest to be paid. Lender shall not be rcquired to pay Borrower aoy interest or earnings on the Funds. l.ender
shall give to Borrower, without charge, an annual accounting of the Funds shawing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'Il~e Funds are pledged as additional socurity for the sums secured
by this Mortgage.
lf the amount of the Funds held by Lender, together with the future monthly installments af Funds payable prior to
the due dates of taxa, auessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
protnptly repaid to Borrower or credited to Borrow~er on monthly installments of Funds. If thc amount of the Funds
held by Lender shall not be sufficient to pay taxas, asussments, insurance premiums and ground rents as they fall due,
Borrower shall pay to L.ender any amount necessary to make up the deflciency within 30 days from the date notice is mailed
by Lender to Borrower requating payment thereof.
Upon paymtnt in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by [.ender. If under paragraph 18 hereof the Property is sold or the Property is oiherwise acquired by Lender, Lender
shall apply. no lattr than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hold by
Leader at the time of application as a credit against the sums secured by this Mongage. .
3. Applkation of Payments. Unless applicable law provides otherwise. all pa~ments received by Lender under the
Note aad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payablc on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C6arges; Lkns. Borrower shall pa} all tates, assessments and othe~ charges, fines and impositions attributable to
~ the Property which may attain a priority over this 1?lortgage, 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 paytnent. whtn due. directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph~ and in the eveat
Borrower shall make payment directly, BorroN•er 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 ot the obligation secured by
suc6lien in a manner acceptable 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 fodeiture of the Property or any part thereof.
S. Huud Insuraace. Borrower shall keep the improvements now existing or hereafter erected oa the Property insured
against loss by fite, halards included within the term "e~tended coverage", and such other hazards as Lender may require _
and in such amounu 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 i~nurance 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, direcdy to the
insurance carrier. .
All insurance policies and renewals thereof shall be in form acceptable to Leneier and shall include a standard mortgage
I clause in favor of and in form acceptable to l..ender. Lender shall~have the right to hold the policies and renewals thereof,
~ and Borrower shall promptly furnish to L.ender all renewal notices and all reoeipts of paid pnmiums. 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 Bonower. ~
~ Unless Lenderand BorroK•er otherv~~ise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property damaged, provicied 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 vvould
s be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with ihe 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 L.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration 9r repair of the Property
~ or to the sums secured by this Mortgage.
~ Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not ertend
~ or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amuunt of
sucb installments. If undet paragraph 18 heroof the Propeny is acquired by L.ender, 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 Propeny 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.
~s - 6. Preservation and ~taintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
~ and shall comply with the ptovisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
~ condominium or a ptanned unit develbpment, Borrower shall perform all of Borrower's obligations under the declaration
~ or coveoants 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 agreements of such rider
~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
w~ere a part hereof.
~ 7. Protection of Lende~s Security. If Borrower fails lo perform the_ covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest . in the Property,
including. but not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
~ bankrupt flr 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 (ees and entry upon the Properry to make repairs. If Lender required mortgage insurance as a
~ condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
~n insurance in effect until such time as the requirement for wch insurance terminates ~n accordance with Borrowei s• and
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~ ' ' • ' 600K W~ FAGE 87
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