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UNIF(1RM COV8NAN78. Borrower aad Leader covenant and agra u follows:
1. l~meat ot hisclp~l ~d Lt~rest. Borcowe,~ shall promptly pay when due the principal ot and interest on the
iadtbtedckss evidenced by the Note. pr~paymeat ud late cbarges as ptovided in the Note. and the principal of and intercst
on any Future Advaaces secuc~ed by tl~~s Mottta~e.
1 1h~ tw~ 7'~a~~s a~i Ir~e~wee. Stibjoct W applicabk law or to • written waiver by i,ender. Botrower shall WY
to Lender oa the dsy monthly inttallments of principal and interest ue payabk under ttK Note. untit the Note is paid in [ull. .
a sum (herein "Fund:'~ equal to oac-twelfth of the yeariy taxes and assasmenis which may altain priority over this
Mort~age. and ~mund re~b on the Property. if any. plus ono-twelfth of yearly prcmium installments for hazard ir~sursnce.
plus one-tw~ifth of yeuly pnmium iastaliments for mortgage insurance, if any. all as reasonably estimated initially and from
time to time by Lender on the basis of aasessmena and bills aod reasonable estimatcs thereof.
'ilie Funds ~hall be 6eld tn an institution the deposits or accounta of wbich are insured or gwrantad by a Federal or
state a~ency (including Lender if Lendar is such an imtitution). Lender shall apply the Funds to pay aaid tues, as:asmenb.
ir~suranoo premiums and goound tents. Lender may not churgo for so holding and applying the Funds. analyzing uid accoun~
or verifyin= aad compilin` said sssessmeats and bilb. unteu Leader pays Borrower interat on the Funds and applicable law
permits Lencfer to mAlce such a charse. Borrowar and I.ender may agree in writing at the time of execution of this
Mortgage that ioterat on the Funds shall be paicl to Borrower, and unless such agnement is made or applicable law
requires such interest to bt paid. Leoder shall not be required to pay Borrower any inte~eat or earaings on the Funds. Lender ;
shaU pve to Borrower, without charge, an annual acoounting of the Funds showing credits and debits to the Funds aad the ,
ptvpose Eor which each debit to the Funds was made. The Funds arc pledged u additionai socurity for the sums sccurcd
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by this Mort~age.
If the amount of the Funds hetd by Lender. together with the future monthly installments of Funds paysble prior to ~
the due datea of tsuces. aasessmenu, insurance Qremiums and g~ound rents. shali exceed the amount required to pay said taxes.
assassments. i~urance premiums and goound rents as they fall due. such excess shall be, at Borrower
s option, either
ptomptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
t~eld by Leader shall not be sut6cient to pay taxes. assessments, insurance ptemiums and ground rents as they fall due.
Borrower shall pay to Lender any amount nxessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requating payment thereof. _
Upon paymtnt in full of all sums ~curod by this Mortgage, t_eader shatf ~f!lK,~ ~`und to Borrower any Funda
held by I.ender. If under paragraph 18 hercof the Property is sold or tha p~q~ry"1VAi~~'?u acquired by Lender. I.ender
shall apply, no later than immediately prior to the sak of the Propecty, q~[ its. ~c4yj'it~ 1~r. any Funds held by
Leader at the tiene 'of applicadon as a credit against the sums secured' by_ th~s Ff~~ age. ~
3. ApPlicatloa of P~ymests. Unless applicable Iaw provides othe~'wise a`ICip'~y~fle`~~s''~rec~i`e Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender flrst in payinent of arha~lM~U'~tyifbld ~n~ender by Borrower
under paragraph 2 heteof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. ClwRes; Lkos. Borrower shall pay all taxes, assessmenu and other charges, fines and impositions attributable to
the F~operty 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, diroctly to the
payce theroof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shaq make payment directly. Borrower shall promptly furnish to I.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 discharge any such lien so.long as Borrower shall agree in writing to the payment of the obligation secured by
suc6 lien in a manner acceptabk to Lender. or shall in good faith contest such lien by. or defend enforcement of such lien in.
legal ptnceedings which opetate to prevent the enforcement of the lien or fodeiture of the Property or any part thercof.
S. Har~rd lmnrnece. Borrower shall keep the improvements now existing or hercafter erected on the Property insured
against los~ by lire, haurds included within the term "extended coverage", and such other hazards as I.ender may requirt
~ and in sucb amouats and for such periods as Lender may require; provided. that Lender shall not require that the amount of
` such coverage excYed that amount of coverage required to pay the sums secured by this Morlgage.
~ T6e insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender. provided,
i that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
! providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
E insurance carrier.
~ All inwrance policies and renewals thereof shall be in form acceptable to L,ender 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 Borcower shal! promptly furnish to Lender all renewal notices and all roceipts 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 prompily
~ 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 restotation or repair is economicaUy feasible and the security of this Mortgage is
not thereby itnpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impsired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excxss, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from tbe
date notice is mailod by l.ender to Borrower that the insurance carritr.offers to settle a claim for insurance benefits, Lender
is authorizod to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or W the sums securod by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
~ or postpont the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 t~eroof the Property is acquired by I.eader, all right, title and interat of Bottower
~ in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tbe sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
fi acyuisition.
~ 6, pn~ervaNoo and Mainteoance of Property; Leaseholds; Condominiums; Planned Unit Devebpa~ents. Borrower
;
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Properiy
~ and shall comply with the provisions 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 by-laws and regulations of the I
condominium or planaed unit development, and constituent Jocuments. 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 incotporated into and shall ameod and supplement the covenants and agreements of this Morigage as if the rider
~ were a part hereof.
~ 7, protectioo of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if any action or procetding is commenced which materially aflects Lender's interest in the Propeny, ~
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 ~
sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disburaement of ~
reasonabie attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a ;
condition of making the loan secured by this Mortgage, Borcow~er shall pay the premiums required to maintain such ~
insurance in effect until such time as the requirement for such insurance terminates in aecordance with Borrower s and
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