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UNIFORIN COVENAN'i'~. Borrowoc and I.ender covenant and agree as follows: ~ •
1. laymeat ot 1Mncip~l aad lalerpt. Borrowcr shall promptly pay when due the pri~cipa! o[ and inte~est on the
indebtedneu evidenoed by the Note, propayment and Iate charga as provided in the Note, a~d the principal of and intercst
on apy Futuro Advances secured by this Mort~a~es.
Z. F~ad~ tor Tua ani Iswra~ce. Sbbjcet to applicable law or to a written waiver by Lender. Borrower shall pay ~
to Lender on the day monthly installments of principal and interat are payable under the Note. until the Nota is paid in full. ~
s sum (hercin "Funds") equal to one-twelfth of the yearly taxes and asstssments which may attain priority over this
Mortgage. and ge+ound rentc on the Propehy. if any. plus onatwelfth o[ yearly prcmium installmenta for hazard insurance.
plus one-twelfth of yeariy premiiim installments for mortgage iruurance, if any, all as nasonably estimated inilially and from
time to time by Lender oa the basis of assessments and bills and reasonable estimata iheroof. .
'Il~e FLnds shall be t~eld ia an institution the deposits or accounts of which are insurcd or guaranteed by a Federal or
state agency (including Leader if l.endtr is auch an institution). Lender shall appiy the Funds to pay said laxes. asussmenta.
insurance premiums aad ground re~ts, Lende~ may not charge for so holding and applying the Funds. analyziag said account,
or verifying aad rnmpiling said assessments and bills. unless Leader pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Bormwer and Lender may agree i~ writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agroement is made or applicabfe law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earaings on the Funds. l.ender
shall give to Borrower, without charge. an annual accounting of the Funds showing crodits and d~bits to the Funds and the
purpoae for which each debit to the Fuads was made. 'i~e Fu~ds arc pledged as additional security for the sums secured
by this Mortga~e. ~
If the amount of the Funds held by Leader. together with the future monthly installmeats of Funds payable prior to
the due dates of taxes. assessments~ insurance pnmiums and ground rents. shall exceed the amount rbquired to pay said taxes,
sssessnaents. iasurance premiums and ground rents as they fall due. such excess shall be, at Bonower
s option. either
pranptly npaid to Borrower or cndited to Borrnwer oa monthly installments of Funds. If the amount of the Funds
held by L.ender shaU not be su~cicot to pay taxes. assessments. insurance premiums and gmund rents aa they fall due,
Borrower shall pay to Lender any amount nxessary to make up tl~e deficiency within 30 days from the date notice is mailed
by Lender to Borrower requestiag payment theroof.
Upoa payment in full of all sams secur~d by this Mortgage, l.ender shall promptly refund to Borrower any Funda
held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. L.ender ~
s6a11 apply, no later t6an iramediately ptior to the sale of the Property or its acquisition by Lender. any Funds held by
I.eoder at the time of application aa a credit against the sums secured by this Mortgage.
3. Applicatioa ot l~yments. Unless applicable law provides othenvise, all payments received by l.ender under the •
Note aad paragraphs 1 aad 2 t~ereof shall be applied by I.ender ficst 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 Futurc Advances. -
4. C6arEes~ LJeos, Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to , ~
the Property which may attain a priority over this Mortgage, and lessehold payments or ground rents, if any. in the manner ~
provided under paragraph 2 heroof or. if not paid in such manner, by Borrower making payment. when due, direcdy to the ~
payee thereof. Botrower s6a11 prompqy 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 l.ender receipts evidencing such payments. `
Borrower shall promptly discharge any-lie~'which has priority over this Morigage; 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
suc6lien 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 torfeiture of the Property or any part thereof.
S• Aazard Iasnrance. Bonower shall keep the improvements now existing or hereafter erected on the Property insured
againat loss by fire, hazards included within the te~tn "extended coverage". and such other hazards as Lender may require .
and 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 amounc of coverage required to pay the sums secured by this Mortgage. t
T6e inwrance carrier providina t6e insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unteasonably 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, dirrcdy 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 l.ender. Lender shall have the right to hold the policies and renewals thereof,
' and Bonower shall prompdy furnish to Leuder al! renewa! notices an~ all receipts of paid premiums. In the event of loss,
~ Borrower shall give prompt notice to the insurance canier and Lender. Lender may make proof of loss if not made prompdy'
by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance. procceds shall be applied to restoration or repair of
~ the Property damaged, provided such restotation or repair is economically feasible and the security of this Mortgage is
; not thereby impaired. If such restoration or repair is not economically (easible or if the security of this Mortgage would ~
~ be impaired, the insurance praxeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid ~
i to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the ~
s date notice is mailed by I.eader to Borrower that ~he insurance carrier ofiets to settle _a claim for insurance benefits. Ixnder ~
~ is authorized to collect and apply the insurance proceeds at Lender's' option eithe~ to testoration or repair of the Property 3
or to thc sums secured by this Mortgage. #
~ Unless Lender and Bonower otherwise agrce in writing, any such app{ication 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 i
such installments. If under paragrap6 18 hereof the Property is acquired by T.ender, all right, tide and interest of Borrower
~ in aod to any insurance policies and in and to the proceeds t6ereof resultiog from damage to the Property prior to the sale
a or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately ~rior to such sale or
~ acquisition. ~
~ 6. Preservstion and Mainteaance of Property; Leaseholds; Condominiums; Planaed Unit Developmeats. Borrower ~
~ shall keep the Property in good repair and s6a11 not commit waste or permit impairment o~ deterioration of the Property ~
; and shall comply with the provisioos of any lease if this Mortgage is on a leasehold. If this Mc~rtgage 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-laws and regulations of ihe
condominium or planned unit development. and constituent documents. If a condominium or planned unit development
rider is eaecuted 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 ~ ;
were a part hereof. '
7. Protection of Lender's Secnrity. 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, e~ninent domain, inwlvency, code enforcement, or arrangements or proceedings involving a
- bankrupt or decedent, then L.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such •
a sums aad talce such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of 4
~ reasonable attomey'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 required to maintain such ~
~ insurance in effcet until such time as the c~equirement for such insurance terminates in accordance with Borrower's and ~
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