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Unrpoalt CoveneNTS. Borrower and Lender covenant and agree u follows:
1. ltiytwent of )rtrirtclMl ttri iMereq. Borrower shall promptly pay when due the principal of and interest on the
indebtedtteas evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
an soy Future Advances securod by this Mortgage.
FtHb for 'I7ttiSaa star IawtarnY. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a saran (herein "Funds'q equal to one-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly- premium instaiuxrrts for ftasa:3 incurs::=t,
plus one-twelfth of yearly premium installments for mortgage instrrancc, if any, all as reasonably estimated initially and from
time to tithe by Lender on the buts of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed 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 may not charge for so holding and applying the Frrndc, analyzing said account.
or verifying and compiling said assessments and hills, 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, attd 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 Furtds and the
purpose for which each debit to the Funds was made. The Funds are 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 saxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrowtir on monthly installments of Funds. If the amount of the funds
held by Lender shall not bts sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender 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 Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs 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 the time of application as a credit against the sums secured by this Mortgage.
3. A~plicadion 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 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 Advances.
4. Charges; Liens. Borrower shall pay all rates, 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 nut paid in such manner, by Burrower 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 drrectly, 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 hen 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 haw e<isting or hereafter erected on_the Property insured
against toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and fur such periods as Lender may reyuirc; provided, that (.ender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. Aq 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 shalt be in form acceptable to Lender and shah include a standard mortgage
clause rn 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 houses and all receipts of paid premiums. In the event of loss.
Borrower sh.il! give prompt notice to the insurance earner and Lender. lender may make proof of toss if not made promptly
by Borrower.
Unless Lcndcr and Borrower othcrw•isc agree in writing, inwrance proceeds shall be applied to restoration or repair of
the Propert~• damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restorauun or repair is not economically feasible or if the security o[ this Mortgage would
t,P imCia~red. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, pa?d
to Borrower If the Property is abandoned by Burrower, or if Borrower fails to respond to Lender within 3l) days from the
date notice i; marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized a~ collect and apply the inwrance proceeds at I_endrr's option either to restoration or repair of the Property
or to the sums secured by this ~lorigage.
Unless Lcndcr and Burrower otherwise agree in wriung, an~~ such application of proceeds to principal shall not extend
ur postpc:~e the Jue date of the monthly installments referred tc+ in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph IK hereof the Property is acywred by Lender, all right, title and interest of Borrower
in and to ans• Insurance policies and in and to the proceeds thereof resuhing 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. Preservation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit Developments. Borrower
shalt keep the Property in good repair and shat! not comrtiit 3+aste or permit impairment or deterioration of the Property
and shall oomph with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a
condominnim ur a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creasing or governing the condr~mrmum or planned unit development, the by-laws and regulations of the
condomirnim or planned unit development. ;end roristituent dixuments. It a condominium or planned f?ni1 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 Lender's 4curfty. If Be~rruwer fails tip perfr~rm the covenants and agreements contained in this
Mortgage. or if any acticm ur prt>Leeding n commenced vvhich materialh ,rtlects Lender's interest in the Pmpert~,
including. heel mH hmUed to. eminent domain. risrlsenc~. code enforcement. ur :urangements or proceedings involving a
bankrupt or decedent. then lender at I ender's option, upon notice to Borrower, mss make such appearances, dishurse such
sums end take such acnun as rs neces.arti to protect Lender's interest. including. but not limited to, disbursement of
reasirnah)e anrimey's fees and entry upiai the Pmpertc to make repair. II I ender reynired mortgage insurance as a
amditinn .•1 m.rking the loan secured br this Mirrtc.ige. &~rrrvvsrr shall pay the premiums required to maintain such
insurance in effect until such time as the reynucnicnt fur wch inwrance tcrminafes in .iccordance with $urrovccr's and
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