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Ur+ttoturt COVlNAtVTi. Borrowsr and Lender covenant and agree as follows:
1. lT~y~wast ai hiac~l tt~ti InMreal. Borrower shall promptly pay when due the principal of turd interest on the
indebtedness evidetroed by the Note. prepaymatt and late charges as provided in the Nae, and the principal of and interest
ast any Futuro Advances stxttr+ed by this Mortgage.
lEri [e+r Toes ttati IMOrree. Subject to applicable law ~x to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest err payable under the Note. until the Note is paid in full,
a start (herein "Fuads'~ egwl to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. it any, plus otte-twelfth of yearly premium installments for hazard inwrarrce.
plus ot>ttweltth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and frown
,time to lima by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Futtd: shall be held in an institution the deposits or accounts of which are insured or gwrantoed by a Federal of
state agency (including Lender if lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
irrsursoce premiums and ground rents. lender may not charge for u+ holding and applying the Fttnds. analyzing said account,
or verifying artd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permit: Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement a made or applicable law
require such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by the Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assesaauents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower of credited to Borrower on monthly installments of Funds. I[ the amount of the Funds
held by Lender shall not be wtlficieat to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days teem the date notice is mailed ,
by Leader to Borrower requesting payment thereof.
Upon payment is full of all sums secured by this Mortgage, tender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply. ra 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. Applicattiots of trtyttaewb. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad 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. Chases; Liiens. 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 leasehold payments or ground rents. if any, in the manner
provided under paragraph 2 berm[ or, if not paid in such manner, by Borrower making payment, when due, dit~octly to the
payee therm[. Borrower shall promptly furnish to Lender all notices of amounts due under this paragrsph, 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
such lien in a manner acceptable to Lender, or shall in good faith contyst such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Instrrauct:. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "e><tended coverage", and such other hazards as Lender may require
and fn such amounts and for such periods ac 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 iruurance 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.
j 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,
i and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
' Borrower shall gyve prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoratron or repair is economically feasible and the security of this Mortgage is
` not thereby impaired. If such restoration or repair is not economically feasibly or if the security of this Mortgage would
be impaired, the insurance proceeds 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 it Borrower fails to respond to Lender within 30 days from the
{ date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at i.endyr'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 monthl}• installments referred to in paragraphs I and 2 hereof or change the amount of
j such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in and to any fttsurance 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. Presen~ation sad ~laiotenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit y~aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if thu Mortgagy is on a leasehold. 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 Ibe 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
s rider is executed by Borrower and recorded together with this Mortgagy, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement thy covenants and agreements of this Mortgagy as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower faik to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding rs commenced which matyriall} affects Lender's intyrest in the Property,
including. but not limned to. yminent domain. insolvcnc}. axle enforcement. or arrangements or proceedings mvoh~ing a
bankrupt or decedent. then Lender at I ender's option, upon notice te• Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protyct Lender's mtyrest. including. but not limityd to. disbursemynt of
reasonable attorneys tees and entry upcm the Property to make repairs. 1( Lersder required mortgage insurance as a
conditu,n of making the loan secured by this Mortgage. Borrower shall pay the premwnn rygwred to maintain such
insurance in elfect until wch dmy as the requirement for such mwrance terminates in accordancy with Borrower's and
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