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Ut+tFO~tt~ CovaN~nrs. Borrower and Lea~ler covenant and agra u follow::
1. lay~ned of htacl~l asi leterat. Borrowe~ ahall p~omptly pay when due the principal of and inte~st on the
indebtednas evideaced by the Note. prepayment and late charges as provided in the Note. and the principal of and intercst
on aay Futurc Advances secured by this Mort~aa~ee.
2. P~d~ tor Tao~es awi Ir~. Subject to applicable law. or to a written waiqer by I.ende~. Borrower shall pay
to Lender on the day moothly installments of principal and interest are payable unde~ the Note. until the Note is paid in full,
a ~um (herein "Funds") equa) to one-twelfth of the yea~ly taxes and assessments which may attai~ priurity over this
Mon~a~e. and ground rents on the Pc+nperty. if any, pius ot~e-twelfth of yearly premium i~stallments for hazard insurance.
plus one-twelfth of yeuly premium iastallments tor mortQage i~sunnce, if any. all as reasonably estimated initially and from
time to time by l.ender on the basis of assassments and bills and rcasonable estimata thereot. :
The Funds shall be held in an institution the depoaits or accounts of which are insured ~ guaranteed by a Federal or ;
state agency (including Lender if Lender is such ao institution). l.ender shall apply the Funds to pay said taaes, assessments.
insurance prcmiums a~d grout~d rents. l.ender may not charge for so holding and applying the Funds, analyzing said account.
or verifying and rnmpling said assessments and bills, u~less Lender pays Borrowe~ interat on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at ~he time of execution of this
Mortgage that interest on the Funds shall be paiJ to Borrower, and unless such agrcement is made or applicable law
requires such intercst to be paid, l.ender shall not lx required to pay B~rrower any interat or earnings on the Funds. Lender
shall give to Borrower, without charg~, an annual zccuunting of the Funds showing credits aod debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged u additionat security tor the sums secured
by this Mort~e. •
lf the amount of the Funds held by Lende~, together with the future mon~hly installments of Funds payable prior to
the due data of taxa, assessments. insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxa.
assessments, insurance prcmiums and ground rents as they (all_ due, such excess shall be, at Borrower's option, either
promp~ly r~paid to Borrower or credited to Borrower on monthly installments of Funds. If Ihe amount of the Funds
held by Leader shall ~ot be sutt'icieat to pay taxes, assessments, insurance prem~ums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessar~ to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requating payment thereot. •
Upon payment in full of all sums secured b~ this Morlgagc, I.ender shall promptly refund to Borrower any Funds
held by L.e~der. If under paragraph l8 hereof the Propeny ~s ~Id or ~he Property is othenvisc acquired by Lender, l.ender
shall apply, no later than immediately prior to the sale of the Propert~~ or its acquisition hy I_ender, any Funds held by
Leader at the time of application as a credit against the sums securcd by this Mongage.
3. Applicatbn of Payments. Unless applicable laa• proviJes otherwix, all payments received by Lender under the
Note and paragnphs 1 aad 2 hereot shall bc app~icd by I.ender first in payment ot amounts payable to Lender hy Borrower
under pangraph 2 hercof, then to intrrest payable on the Note. then to thc principal of the Notc, and then to interest and
principal on any Futurc Advances.
4. C6arga; Lkns. Borrower sh.+ll pay all taxes, asses~mcnts arid other charges. fines and imp.~sitions au~ibutable to
the PropeRy which may attain a priority over this I?tortgage, 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 promp~ly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment direc~ly. Borrov?er ~hall promptly (urnish to Lender receipts evidencing such paymems.
Borrov?er shall promptly discharge any lien Nhich has prioriry aver this Mortgage: provided, that Borrower chall 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 goal faith conte~t such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or torfeiture of the Property or any part thereof.
S. Haurd Insarance. Borrower shall keep the impruvements now existing or hereafter erected on the Property insured
against loss by 6re, hazards included within the term "extendeJ coverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the am~unt uf
such coverage eiceed that amount of coverage required to pay the sums secured by this Mortgage.
'I1~e insurance carrier providing the insurance shall be chosen by Borrov?er subject to approval by Lender, provided,
' that such approval shall not be unreasonably withheld. All premium~ 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, Jirectly to the
i insurance curier.
~ All insurance policies and renewals thereof shall be in form acceptablc to LeaJer and shall include a~tanJard mortgage
~ ciause in favor of a~d in form acceptable to Lender. Lender shall ha~•e the right to hold the policies and renev?~alc thereof,
r and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the e~ent of loss.
! Borrower shall give prompt notice to the insurance carrier and Lender. t_ender may make proof ot loss if not made promptly
~ by Borrower. -
E Unless Lender and Borrower otherwise agree in w•riting, insurance proc:ceds shall be applied to restoration or repair of
` the Property damageJ, proviJed such restoration or repair is economically feasible and the security of this Mortgage is
~ not thereby impaired. lf such restoration or repair is not economically (easible or if the security of this Mortg:+ge would
~ be impaired, the insurance proceeJs shall be applied to the sums sccured by this Mortgage, w~ith the excess, if any, paid
to Borrower. If the Property is abandoned M Borrower, or if Borrower tails to respond to Lender within 30 days from the
E date notice is mailed by Lender to Borrower that the insurance carrier ofTers to set~le a claim for insurance benefits, I_ender
~ is authoriud to collect and aPpty the insuranre proceeds at Lender's option either to restoration or repair of the Property
~ or to the sums ~ecured by this Mortgage.
~ Unless Lender and Borrower otherv?ise agree in writing, an}• such appli~ation of proceeds to principal shall not extend
~ or postpone the due date of the monthly installmcnts rcferred to in paragraphs I and 2 hereot or change the amount of
~ such installments. If under paragraph 18 hereof the Propert~~ is acyuired b~~ Lender, all right. title and interest ~f Borrower
~ in and to an}~ insurance policies and in and to the proceeds thereuf resulting irom damage to the Property Prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Afortgage immediately prior to such sale or
~ acquisition.
6. Presenalioa and :~laintenance of Propert~; I.easeholds: Condominiums: Planned Unit Developments. Borrower
~ shall keep the Property in good repair and shali not commit waste or permit impairment or deterioration of the Property
; and shall comply Nith the provisions of any lease it this Morigage is on a leasehold. If this Mortgage is on a unit in a
~ condominium or a planned unit devclopment. Borrower shall pcrform all of Borrower's ob6gations under the decl•rration
or covenants creating or governing the condominium or planned unit developmrnt, the by-laws and rcgulations of the
~ condominium or planned unit development, ~nd constituent Jocumems. If a condominium or planned ?mit development
~ rider is executed by Borrower and recorded together v?ith ~h~t Mortgage. ~he covenants and agreements ot such riJer
! shall be incorporated into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
£ we~e a part hereof. '
7. Protection of Leader's Security. If Borrower fails to pcrform the covenants and ag~eements cuntained in this
~ Mortgage, or if any action or proceeding is commence~ w•hich materially •rBects LenJer's interest in the Property.
~ including, but nM limited to, eminent domain. ~nsolvency. code enforcement, or arrangements or proceedinEs involving a
~ banlcrupt or decedent, then Lender at I_ender's option, upon notice to Borrower, ma~• make such appearance~. disburse such
~ sums and take such action as is necessary to protect l.ender's ~n~erest, including, but not limited to, disburxment of
~ reasonable attorney's fees and entry upon the Propcr~y to make repairs. If Lcnder required mongage insurance as a
condition of making the loan secureJ by this hfortgage. Borrower shall pay the premiums required to maintain such
~ insurance in effat until such time as ~he requirement for such insurance terminates in accordance with Borrower's and
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