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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. 1Paymeat of Pdncipd atad Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Notc, prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. 1[htnds for Taxes and insurance. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
to Lendcr.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 rent: on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by Lender en the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or giaranteed 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 rents. Lender ntay not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments 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 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. 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 arc pledged as additional security 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,
assessments, insurance premiums and ground rents as thc}• fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds
held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and 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 requesting payment thereof.
Upon pa}•ment in [ull of all sums secured by this Mortgage, Lender shall promptly .refund to Borrower any Funds
held by Lender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at [he time of application as a credit against the sums secured by thts Mortgage.
3. Application of Payments. Unless applicable law• provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by 1_ender 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 an}• Future Advances.
-t. Charles; Liens. Borrower shall pay all taxes, assessments and other charges, fines and imlx~sitions attributahle to
the Propert}• which may attain a priority over this 1?iortgage, and leasehold payments or ground ants, 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 shat! 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 pnx-ecdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the impros•cmcnts row cxisting•or hereafter erected on the Property insured
against loss b}• fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
anJ in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of
such cover,~ge exceed that amount of coverage required to pa}• the wms secured b}• this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval h}• Lender, provided,
j that such approval mall not be unreasonahly withheld. All premiums on insurance policies shall t?c 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 career.
i 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,
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 pro.~f of loss if not made promptly
~ by t3urrower. '
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
not thereby impaired. If such restoration or repair is nut econumicall}~ fcasihle or if the security of this Mortgage would
be impaired, the insurance proceed. shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. If the Propcrt}• is abandoned by Bormw•cr, 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 offers to settle a claim for insurance benefits, Lender
i~ authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums ~ecurcd by this ~1ortgagc.
Unless I.cnder and Borrower othensi~c agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthl}• 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 b}• 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
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presen~stion and 1laiatenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit de~•elopment, 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 am~:nd and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding ~s 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 Ixnder at Lender's option, upon notice to Borrower, ma}• make wch appearances, disburse such
sums and take such action as is necessary to protect Lenders interest. including. but not limited to, d~s¢t~neRlFt>{ >~f
reasonable attorneys fees and entry upon the Property to make repairs. If Lender required mortgage ~surence as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the reytiirement for such insurance terminates in accordance with Borrowers and
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au~ix 315 PacE 1~6