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UNtP~xt?t CovEt~{Nts. Barrower snd Lender covenant ~nd agret as fo!lows:
1. Paymeat ot Priacipal and lutered. Bormwe~ shall promptly Pay when due thc principal of and interest on the
indebtednas evidenced by the Note. prepayment aad late charges as provided in the Note. and the principal ot and interest 4
on aay Future Advaaccs secured by this Mortgage. •
2. Faads ~or Tua aod Iwur~ace. ~bject to applicable law or to a written waiver by Lender, Borrower shall pay
to L,ender on the day monthly instaliments of principal and interest arc payable under the Note. until the Note is paid in full. ~
s:~un (herein ."Fun~") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this '
Mongage. and ground rents on the Property. if any. plus one-twelfth of yeuly pcemium instalimenta for hazard_ insurance. ~
plus one-twelfth of yearly premium iastallments for mortgage insurance, if any, all as ressonably estimated i~itially and fmm !
time to time by Lender on the basis af assessments and bills and reasonable estimates thereof. t
The Funds shall be held ia an institution the depasits or accounts of which are insured or guaranteed by a Foderal or ~
state agency (i~cluding Lender if l,ender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments,
insurance premiums and ground rcnts. Lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law
permiu Le~der to mpke such a charge. Borrower aad Lender may agree in writing at the time of execution of this
Mortgage that inferest on the Funds shall t+e paid to Borrower, and unless such agroement 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. l.ender i
shall give to Bprrower, without ctwrge. an annual accounting of the Funds showing crcdits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'il~e Funds are pledged as additional security for the sums secured
by this Mortgage. '
If the amount of the Funds held by Le~der, 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 taxa.
asse.aments, insurance premiums and ground rents as ihey fall due, such excess shall be, at Borrower s option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by Lender shall not be sufTicieat to pay taxes, assessments, insurance premiums and ground rents u they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days f~om the date notice is mailed
by Leuder to Borrower requesting payment thereof. .
Upon payment in full of all sums secured by this Mortg~.:l:~der.~thq~l ~ro . yefSmd to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or thc Propert ~s ot ~i~ired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or 1h 'a~uin1i011r~ Lender, any Funds held by
Lender at the time of application as a credit against the sumi secured tiy this Mor~ga~e~ ~
3. Applkatlon of Paymeots. Unless applicable law pr~+vides otherwise, aN p~ym,g~ptsYre~cive.~'~~Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender.first in payment of amount~~~3~id~seniler by Borrower
under paragraph 2 hereof, then to interest payablc on the Note, then to the principal of the' Nete, aqd; tt;eA to interest and
principal on any Future Adva~ces.
4. C6arges; Lk~. Borrower shall pay all taxes, asscssmcnts and othcr 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, dirocdy to the
payce thereof. Borrower shall pmmptly furnish to Lenckr all notices of amounts due under this patagraph, aad in the event
Bormwer 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 writ~ng 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 Jefend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o! the lien or forfeiture of the Property or any part thereof.
S. Huud Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
I against loss by fire. hazards included within the term "extended coverage", and such other hazards as Lender may require
i and in such amounts and for such periods as Lender may require; provided, that Lender shall not require thaC the amount of
; such coverage exceed that amaunt of coverage required to pay the sums secured by this Mortgage.
; 'Ihe insurance cartier providing the insurance shalt be chosen by Borrower subject to approval by Lender. provided,
' that such apprm~a) shall not be unreasonabiy withheld. All prcmiums on insurance policies shall be paid in the manner
E provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, direcdy to the
~ insurance carriu.
~i AU 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 tight to hold the policies and renew~als thereof,
; 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 prompdy
~ by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
~ the Property datnaged, provicied 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 the security of this Mortgage would
~ be impaired, the insuranct proceeds shall be applied to the sums securcd by this Mortgage, with the excess, if any, paid
p 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 ofTers to setde a claim for insurance benefits, l.ender
~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
x or to the sums securod by this Mortgage.
Unles~ 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 1 and 2 hereof or change the amount of
~ such installmenu. If under paragraph 18 hereof the Prop~rty is acquired by [.ender, all right, tide and iaterest of Borrower
~ in aod to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to t6e sale
;2 or, acquisition sbal( pass to Lender to the extent uf the sums secured by this Mortgage immediately prior .to such sale or
r~ acquisition. ,
_ 6. Preaerva8oa and Maintenance of Properly; Leaseholds; Condominium~ Pl~nntd Uoit Devebpmenfs. Borrower
E shall kcep the Property ia good repair and shall not commit waste or permit impairment or deterioration of the Property
and shal) comply with the provisions of any lease if this Mortgage is on a leasehold. lf this Mortgage is on a unit in a
~ condominium or a planned unit devetopmen~, Borrower shall perform all of Borrowei s obligations under the declaration
- or covenants creat~ng or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, aod constituent documen~s_ It a condominium or planned unit development
; rider is executed by Borrower and recorded together w~th this Mortgage, the covenants and agreements of such rider -
~ shall be incorporated into and shalt amend'and supplement the covenants and agreements of this Morigage as if the rider
were a part hereof.
' 7. Protecdon of Lender's Security. If Borrow•er fail~ to perform the covenants and agreements contained in this
~ Mortgage, or if any action er Froceeding is commenced which materially aftects Lender's interest in the Property,
~ including, but not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings invol~~ing a -
~ baakrupt or decedent, then Lender at LenJer's opuon, upon notice to Borrower, may malce such ~ppearances, disburse•sueh
~ 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. l( Lender required mortgage insurance as a
~ condition of making the loan secured b~ this Mongage. Borrower shall pay the premiums required to maintain such
? insurance in efiect until such time as the reyuirement for such insurance terminates in accordance with Borrower's and
3.1_. AL~
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