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UntratM Covtet+~rors, Borrower and Lender covenant and agree ss follows:
1~ hU'~ of hiaeiNl tttati ItMarpt. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Kota. prepayment and late charges as provided in the Note, and the principal of and interest
err any Future Advances secured by this Mortgage.
2. IEtit~tls ter Tts:ea tttrstl Itwneee. Subject to applicable law ssr to a written waiver by Lender. Borrower shall pay
to Letxkr on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a sum (herein "Funds' equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage. and ground rents on tba Property, if any, plus one-twelfth of yearly premium installment: for haurd insuratxe,
plus oao-tweltth of yearly premium installments for mortgage instrrancc, it any, all as reasonably estimated initially and frrom
lima to lima by Lender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposiu or accounts of which arc insured or gwranteed 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 ants. lender may not charge for sn holding and applying the Funds. analyzing said account.
or verifying and compiling said asxssmenu and bills, unless Lender pays Borrower interest on the 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 a 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 acrnunting 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 sceurity 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 premiums and ground rents, shall exceed the amount required to pay said taxes.
a::psments, ir>:urance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
Promptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be strJficient to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borro~?er shall pay to Leader any amount 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~Moiigage, t_enf(er,~h>}It promptly refund to Borrower any Fund:
held by Lender. If under paragraph 18 hereof the Property is sold or t'h'e •Propeny rs otherwise acquired by Lender, Lender
shaA apply, no later than immediately prior to the sale. of the propdity or it: acquisition by L'erider, any Funds held by
Lander at the time of application as a credit against the sums secured by this Mortgage. '
3. A~pBcatio~ of Prpnstlests. Unless applicable .law provide otherwise, all payments received by Lender under the
Note sad paragraphs 1 and 2 hereof shall be applied by fender 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 Advatrce.
4. Cranes; Liens. 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 hereof or, if not paid in such manner, by Borrower making payment. 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 shat! promptly fumish 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 hen or forfeiture of the Property or any part thereof.
S. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
E against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
and in such amounts and [or 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 sums secured Eby this Mortgage.
71re irssurance 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.
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 give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
y not thereby impaired. It such restoration or repair is not economically 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. If the Property is abandoned by Borrower, or if Borrower tails 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
n is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
h 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
t or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of ~
~ such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right. title and interest of Borrower
- in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
`N or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
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6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall kcep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage 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 by-laws and regulations of the
condominium or 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 and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Leader's Security. 1f Borrower fads to perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commenced which materially affects 1_ender's interest in the Property, 1
including, but not limited to, eminent domain. imolvency. code enforcement. or arrangements or proceedings involving a i
bankrupt or decedent, then !.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such J
sums and take such action ac is necessary to protect Lender's interest, including, but not limited to, disbursement of
reasonable attorney's ices and entry upcm the Property to make repairs. If 1_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiwns required to maintain such
insurance in effect until such time as the requirement for such insurance terminates to accordance with Borrowers and
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