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UNIFMIM COVENANTS. Borrower and l.ender covenant and agra as follows:
1. ~eat ot ~ip~l imi Idee+nt. Bo~rowe~ aha~~ PmmPtly pay when due the principai ot and inte~est on thc
iacbbtedne:s evideaced by the Note. prepaymeat ~ad lata chugw as provided in the Note. and the Principal of ~nd i~te~+est
on any Futu~e Advaaces securod by t6is Mactsa~e. .
2. Ih~ds tor 'hua aai Lwe+~ee. Subject to applicabb law or to a writtea waiver by Leader. Borrower il~all pay
to Lender on the day monthiy inttallments of principal and interest are payabk under the NMe, uatit the Note is paid in full.
a aum (hercin "Funcb'~ oqual to ono-twelfth of the yearly taxes and assessments which may sttai~ priority over this
Mort,~a~e, and ground renb on tbe Propetty. if any. plus oae-twelfth of yearly prcmium installmeots for hazard insurance.
plus ono-twelfth of yearty premium installments fbr mortgage in:urance, if any. dl as ressonabty estimated initially and from
time to time by Leader on tbe buis of assessment: and bills and reaw~abk estimates theroof.
'Iba Flinds shall be held tn aa inatitution the daposits or accounts ot which are insured or ~uaranteed by a Federal or
atate agency (including I.eadu if Lender ia such an institutio~). Leoder shaii apply the Funds to pay said tauces, aaaasmepts.
iiuurance premiums and ground nnts. Lender may not charge for so holding and applying the Funds, analyziag said account,
or verifying aod compilin~ aaid asse.stments and bilb. unless Lender pays Borrowe~ interest on the Funds aad applicablt law
permits Lender to make such a char~e. Borrower and Lender may agree ia writing at the time of ea~ecution of this
Mortgage that interest on the Fliads shall be paid to BorroweF. and unless such agreement is made or applicable law
requira such interest to be paid. Lender shall not be roquired to pay Bo~rower aoy interest or earning~ on the Fuads. Lende~
s6all give to Bomower, without charges, an annual aocounting of the Funds showina credits and debits to the Funds and the
purpoae for which each debit to the Funds was made. The Funds are plcdged as additional security for the sums secured
by this Morigage.
If the amount of the Fuads held by Lender. together with the future monthly instatlments of Funds payabk Prior to
the due dates of taxes~ assessments. iniura~ce premiums and ground rents. shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground renh as they fall due. such excess shall be, at Borrower s opiion, either
prompdy repaid to Borrower or credited to Borrower oa monthly inslallments of Funds. If the amount of the Funds
held by Lender shall not be suiflcient to pay taaes. assessments. iasurance premiums and gmund rents as they fall due,
Borrower shall pay to Leader any amount nxessary to make up t6e deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting paymcnt thereof.
Upon payment in full of all sums securcd by this Mongage. I.ender shall promptly refund to Borrower any Funds
held by I.ender. If under paragraph 18 hereof the Property is sold or the Property..is.othenYise acquired by Lender, Lender
s6a11 apply, no later than immediately prior to the sak of the Propecty or its acquisition by Lender, any Funds held by
Lender at tbe time of application as a credit against the sums secured by this Mortgage.
3. Applicadon of P~meats. Unless applicable law provides otherwise. all payments roceived by Lender under the
Note and 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 payable on the Note, thert to the principal of the Note, and then to interest and
principal on any Future Advances.
4. C~ar`a; Lens. Borrower shall pay all taxes, assessme~ts and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortg~ge, and leasehold payments or gmund rents. if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Bonower making payment. when due, dirocdy to ti~e
payee thereof. Borrower shall promptly fumish to Lender all aotices 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 lien which has priority over this Mortgage; provided. that Borrower shall not be
required to diaclfarge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
such liea in a manner acceptable to I.ender, or shall in good faith contest such lien by. or defend enfonement of such tieo in,
legal proceedings which operate to pnveat the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insnrance. Borrower shall keep the improvements now existing or hereafter erected on the Property iosured
against loss by fire. hazards included within the term "extended coverage", and such other hazards as i.ender may require
and in such amounts and for such periods as Lender may require; provided, that L.ender shall not crquire that the amount of
such coverage excced that amount of covenge required to pay the sums secured by this Mortgage.
'Ibe insurance carrier providing tl~e iasurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreuonably withheW. All prcmiums on insurance policies shall be paid in the manaer
providod under paragraph 2 hereof o~, if not paid in such manner. by Bonower making payment, when due, directly to the
irauraaoe carriet.
' All insurance policies and renewals thereof shall be in form acceptabk to Lender and shall include a standard mortgage
= clause in favor of and in form acceptable to Lender. I.ender shall have the right to hold t6e policies and renewals thereof,
~ and Borrower shall promptly furnish to Leader all renewal notices and all receipts oE paid promiums. in the event of loss,
~ Borrower shall give prompt notice to the insurance carrier and L.ender. Lender may make proof of loss if not made promptly
t by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ . the Property damaged. pcovided such restoration or repair is economically feasible and the secutity of this Mortgage is
~ not thereby unpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
~ be impaired, t6e i~uranoe prooeeds shall be applied to the sums secured by this Mortgage, with the exceu, 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 maited by Lender to Borrower that the insurance carrier ofTets to settle a claim for insurance benefits, I.ender
is authorized to collect and apply t6e insuraoce proceeds at Lender's option either to ratoration or repair of the Properiy
or to the stuns 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 monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such iastallments. If under paragraph 18 bereof tt~e Property is acquired by Lender, all rig6t, tide and interest of Bonower
in and to any insurance policits and in and to the.proceeds thereof resultiag from damage to the Property prior to the sale
~ or aequisition shall pass to Lender to the extent of the surtLS secured by this Mortgage immediately prior to such sak or
~ acquisition.
~ 6, prsservadon and Mainteoaact of Properiy; Leaseholdt; Condominiums; Planoed Uoit Devdopments. Borrower
~ shall keep the Property in good repair and shaU not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisiona of any lease if this Mortgage 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 the condominium or planned unit development, the bylaws and reguladons of the
~ condominium or planued unit development, and constituent documents. If a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Morigage, the covenants and agreements of such rider
shall be ~ncorporsied into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
K were a part hereof.
'k 7, Protectioo oE I.eade~s Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mottgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
~ including, but not limited to, eminent domain, insol~ency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender s option, upon notice to Borrower. may make such appearances. disbuc~ such
~ sums and take such action as is necessary to protect Lenders interest, including, but not limited to. disbursement of
~ reasonabk attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insunnce as a {
~ condition of making the loan secured by this Mortgage, Borrovrer shall pay the premiums required to maiqtain such
~ insuranee in eHect until such time as the requirem~nt for such insurance terminates in accotdance with Boriowet~4~ an~
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