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UNIFORM COYENAN73. Borrower and Lender covenant and ague as follows: w •
1. Payment o~ Priaclpal sad Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage. .
Z. Funds for Tara and Insttnace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a stun (herein "Funda'~ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly premium installments [or hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
71te Funds shall he held in an institution the deposits or accounts 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 said taxes, assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unless Lender pays Borrower interest on tha Funds 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 interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
' requires 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 (or which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. insurance prentiunu and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall -due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender an}• amount necessar}• to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower reyuesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Ixnder. 1t under paragraph 18 hereof the Property is xld or the Proper[}• is otherwise acquired by Lender, lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition b}• Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by 1_ender under the
Note and paragraph. 1 and 2 hereof shall be applied by Lender first in pa}•ment of amounts payable to l.endcr by Borrower
under paragraph 2 herrof, then to interest payable on the Notc, then to the principal of the Notc, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shat) pay all taxes, assessments and other charges, fines anJ impinitions attributahle to
the Property which may attain a priority over this lllortgagc, and leasehold payments or ground rents, if any, in the manner
provrded under paragraph 2 hereof or. if not paid in such manner, by Borrower making pa}•ment, 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: proyiJecj, that Borrower. shall not be
required to discharge any such lien so long as Borrower shall agree in writing to-the'paj•rrient of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defeiid'chfori~cment of such lien in,
legal proceeding. which operate to prevent the enforcement of the hen or for[eiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the rmpruvements now v>,isting or hereafter eructed on the Property insured
against loss by fire, hatards included within the term "extended coverage'. and such other hazards as Lender ma)• require
and in such amounts and fur such periods as Lender may require: pnwideA. that Lender shall not reyuirc that the amount of
such coverage exceed that amount of rnverage reyuired to pay the sums secured h}' this Mortgage.
The insurancrcarrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonahly withheld. All premiums on insurance policies shall he paid in the manner
provided under paragraph 2 hereof ur, if not pail in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall Ix in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Under. Lcndcr shall have the right to hold the polirics and renewals thereof,
and Burrower shalt prompt)}• furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Burrower shall give prompt notice to the insurance carrier and Lender. Lender ma}' rnake proof of loss if not made promptly
by Burrower.
Unless Lender and Borrower othcn+rse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such rcstoratwn or repair is economically feasible and the security of this Mortgage is
! not thereby impaired. If such restoration or repair is not ecunomi~all}• feasible 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. 1( the Property is abandoned h}• Burrower, ~~r if Borr.~wer fails to respond to Lender within 30 da}•s from the
~ date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums ~ccured by this Mortgage.
Unless Lender and $orrowcr otherwise agree in writing, any such application of pnxeeds to principal shall not extend
i or postpone the due date of the monthly installments referred to in parrgraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acy?rired by Lender,rll right, title and interest of Borrower
in and to an} insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
q or acyuisition shall pass to Lender to the eaten[ of the sums Secure) b}• this Mortgage immediate)}• prior to such sale or
acquisition.
~ 6. Presen~ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit Haste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage rs un 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 the condominium or planned unit development, the by-laws and regulations of the
condominium ur 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 anJ supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of i.tnder's Secerity. 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
s bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disbutx 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. !f [xnder 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 eBect until such time as the reytrirement for such insurance terminates in accordance with Borrowers and
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