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UNIFIIRM COYENANTS. Borrower and Letlder covenant and a.*ce as follows:
1. h~nneat ot Priucfpd and Int~rat. Borrower shall promptly pay when due the principal of and interest on the
indebted~e:s evidenced by the Note. propsyment and late charges as provided in the Note, and the pri~cipst of and interest
on any Futuro Advances secured by this Mortgage.
2. Frnd~ tor T~u[a tad Iea~raace. Sbbject to applicable law or to a written waiver by I.ender. Bor*ower s6a11 pay
to Lender on Ihe day monthly installments of principal and interest aro payable under the Note. until the Note is paid in full.
a sum (herein "Funds") equat to ono-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage. and grouod nnts on the Praperty. if any. plus onc-twelfth of yearly premium installments for hazard insurance,
plus onatwelfth of yearly premium installments for mortgage insoraoce, if any, all as reasonably estimated initially and from
dme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the depoaiu or accounts of which are insurod or guaranteed by a Fedenl or
state agency (including Lender if Lender is such an institution). Le~der shall apply the Funds to pay said taxa~ assessments.
insurance premiums and ground re~ts. Lender may not charge for so holding and applying the Funds, analyzing said account,
or veritying and compili~g said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make'such a charge. Borrower aad Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Botrower. and unless such agreement is made or applicable taw
requires such interest to be paid. L.ender 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 are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with thc 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,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option. either
pcomptly repaid to Borrower or credited tu Borrower on monthly installments of Funds. If the amount of the Funds
held by Leader shall not be sufFcient to pay taxes. assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amouM necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. I_ender shall promptly refund to Borrower any Funds
held by l.cnder. If.under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply. no latlr than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Appliestion of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lcnder by Borrower
under paragraph 2 hereof, then to interest payablc on the Note, then to the grincipal of the Note, and then to interesl and
principal on any Future Advances.
4. C6arges; Lk~. Borrower shall pay all taxes, assessments and other charges, fines anJ impositions attributable to
the Ptopecty which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any. in the manner
pmvided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower st~all 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; 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 contest 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 Insuraace. Borrower shall keep the improvemcnts now existing or hereafter erccted on the Property insured
against loss by fire, hazards included within the term "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 amount of coverage required to pay the sams secured by this Mortgage.
T6e insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender. provided,
that such approval shall not be unreasonably ri~ithheld. All premiums on insurance policies shall be paid in the manoer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
j insurance carrier. _
i All insurance policies and renewals thereef 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 I.ender all renewal notices and all receipts of paid premiums. in the event of loss,
! Borrower shall give prompt aotice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
'E by Borrower.
~ Unless Lender and Borrow•e~ otherwise agree in w•riting, insurance proceeds shall be applied to restoration or repair of
~ the Propetty damaged, provided such restoration Or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if ihe security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if aqy, paid
F 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 mailed by Lender to Borrower that the insurance carrier ofTets to settle a claim for insurance benefits, Lender
~ is authorized 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. '
3 Unless L.ender and Borrowerothervvise 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 1 and 2 hercof or change the amount of
~ such installments. If under paragrap6 18 hereof the Property is acyuired by I.ender, all right, title and interest of Borrower
y in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to l.eoder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
~ 6. Preservatlon and ~taintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
g shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propeny
and shall comply with the provisions of any lease if this Mortgage is on a leasehold_ If this Mortgag~e 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-Iaws and regulations of the
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 tho covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lende~s Security. If Borrovrer 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
_ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
• ~ums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of
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 b} this Mortgage. Borrower shall pay the premiums required to maintain such
* insurance in effect until such time as the reyuirement for such insurance terminates in accordance with Bormwer s and
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