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UNiFMIM COVENANTS. BOf[OWO~ BIId L.C[1dC~ COVC[1aI1t Afld i$ft! tt fOIIOWi:
1. T~ment ot hiocipal ssd Int~ted. Borrowe~ shall promptly psy when due the principal ot and interest o~ the
indebtednas evideaced by the Note, prepayraent and late charges u provided in the Note, and the principal of and interest
on any Future Advances socured by this Mortaate.
2. F~ tor T~a ~od learuc~e. Sbbjoct to applicabb law or to a written waiver by I.ender. Borrowe~ shall paY
to Lender on thc dsy monthly installme~ts of principal and intercst aro payabte under the Note. until the Note is paid in full.
a sum (herein "Funds'~ equat to ~atwel[th oE the yearly taxes and asseuments which may attain priority over this
Mortga~e. and ground reAts oA the P~+nporty. if aay. plus ono-twelfth o[ yoarly prcmiu~n installments fo~ hazard insurauce.
plus onc-twelfth of yeuly premium installments for mo~tgage insurance. if any. all at reasonably estimated initially and from
dme to ttme by Lender oa the basis of assessmenta and bills and reasonabk estimates thereof.
'I~e Funds shatl be 6eld ia an institutioo the deposits or accounts of which are insured or gwranteed by a Federal or
state age~cy (iacluding IJcnder if I.eader is such an iastitution). Lender shall apply the Funds to pay aaid taxa, assessmenta,
insuranoe premiurtu and ground rents. Lender msy not chuge for so holding and applying the Funds. analyziag said accoun~
or verifying and compiling aaid assessme~ta aad bills. unkss Leader pays Borrower interat o~ the Funds and applicable law
permits Lender to make such a ch~rges. Borrower aod Lender may ag~ee in writing at the time of eacecution of this
Mortgage that interat on the Funds shall be paid to Borrower. and unless such agrcement is made or applicabte law
requires wch interest to be paid. Leader shall not be required to pry Borrower any interat or earaings on the Funds. Lender ~
shall give to Bormwer. without charge. an annual accounting of the Funds showing crcdits and debits to the Fu~ds and th~ j
purpoae for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured ~
by this Mort~age.
If t6e amount of the Funds held by Lender, together with the tuture monthly instaUments of Funds payable prior to
the due dates of taxes. auessments. insurance premiums and ground rcnts. shall excced the amou~t requircd to pay said taxes,
assesame~ts, insunnce premiums and ground tents as they fall due. such excess sfiall be, at Borrower s option, either
pranpdy repaid to Bormwer or credited to Bornower on monthly installments of Funds. If the amount of the Funds
held by LeadLr shall not be sut6cient to pay taxes, aasessments, insurance premiums and gmund rcnts ss they fall due,
Borrower shap pay to Ler~der any amount necessary to make up the deficiency within 30 day~s from the date notice is mailed
by Lender to Borrower requesting payment thereof. '
Upon payment in full of all sutns tecured by this Mortgage, I_ender shall promptly refund to Borrower any Funds
held by Lender. If under paragrap6 18 hereof the Property is sold or the Property is othervvise acquired by Lender. Lender
shall apply, no 1atFr t6an immediatety prior to the sale of the Property or its acquisition by l.ender, any Funds held by
Leoder at the time of application as a credit against the sums socured by this Mortgage.
3. Applkatiou of P~ments. Unless applicabte law provides otherwi3e. all payments received by Lender under the
Note and pangraphs 1 and 2 hereof shalt be applied by Lender first in payment of amounu payable to Lender by-Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the princiQal of the Note, and fhen to interest and
principal oa any Future Advances. ' .
4. C6arsex Lieas. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable to
the~Property which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, in the manner
pruvided under paragraph 2 hereof or, i! not paid in such manner, by Borrower making payment, when due. direcdy to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event ~
Borrower shaU make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien N•hich has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrce in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcemeot of such lien ia,
legal proceedings which operate to prevent the enforceme~t of the lien or focfeiture of the Property or any part thereof.
S. Huud lasurance. Borrower shall keep the improvements now existing or hereafter erected on the Propeny insured
against loas by Sre. hazards included within the term "extended coverage", and s~ch other hazards as Lender may requiro
and in such amounts and for such periods as Lender may reqaire; provided, that l.ender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
j 'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided.
~ that ~such appmval shall aot be unc~euonabty withheld. All premiums on insuraace policies shall be paid in the manner
~ provided under puagraph 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 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 pcemiums. In the event of loss.
Borno~ver shall give prompt notice to the insurance carrier and Ltnder. l.ender may make proof of loss if not made promptly
~ by Bonower.
Unless Lender and Borrower othen?•ise agree in writing, insurance procceds shall be applied to restoration or repair of
~ the Property damaged, provided such restoration or repair is economically feasible and tl~e security of this Mortgage is
d aot thereby impaired. If such restoration or repair is not economically Ecasible or if the security of this Mortgage wouid
~ be impaircd. the insurance procetds shall be applied to the swnt secured by this Mortgage, with the excess, if any. paid
to Borrower. If the Pmpeny 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 ti~e insurance carrier offen to uttle a claim for insurance bene6ts. Lender
is author"v~ed 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.
Udess I.ender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installmenu. If under patagraph 18 beroof the Property is acquired by I.ender, all right, tide and interest of Borrower s
~ in and to any insurance policies and in and to the proceeds tlsereof resulting from damage to the Property prior to t6e sale
or acquisition shall peu to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or ~
acquisition. t
~ 6, Preservatbn ~ Maintenance of Property; Leaselwlds; Condominiums; Planned Unjt Developments. Borrower
shall keep the Property in good repair and_ shall not commit waste or permit impairment o~ deterioration of the Property '
~ and shall compl) with the provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a i
~ condominium or a planned unit developmcnt, Borrower shall perform all of Borrower s obligations under the declaration ;
~ ot covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the ;
4 condominium or planned unit development. and constiwent documents. If a condominium or planned unit development ;
~ rider is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider ;
t ahall be incorporated into and shall amend aod supplement the covenants and asreements of this Mortgage as if the rider ~
~ w•ero a part hereof. ~
~ 7. Protectloo of Lende~s 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. ~r arrangements or proceedings involving a ~
~ banlcrupt or decedent, then Lender at Lender's option, upon notice to i3orrower, may make such appearances, disburse such ,
sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
~ roasonable attomey's fees and entry upon the Property to make repairs. If Lender required. mortgage insurance~ as a ~
~ condition of making the loan secured b~• this Mortgage. Borrower shall pay the premiums required to maintain such ~
iasurance in efiect until such time as the requirement for such insurance terminates in accordana with Borrower s and
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