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UNIFORrd COVBNANT3. Borrower and Lender covenant and agree u follows:
1. tgtweN oI hinclNl ttittti Iwlered. Borrower shall promptly pay when due the principal of and interest on the
indeMedttess evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and intertst
on any Future Advances secttrod by this Mortgage.
2. Rtui tote Ttua ttrnti Utarancs. Subject to applicabk law r~r 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 atom (herein "Funds") equal to one-twelfth of the year!} tart. and assessments which may attain priority over this
Mortgage. and ground rcntt 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 :ny, all u reasonably estimated initially and from
time to time by Lender on the buts of assessments and hills and reasonabk estimates thereof.
The Funds shall be held in an instituticxt the deposits or accounts of which arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. Lender may 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 t>'e 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 Fords and the
purpose for which each debit to the Funds was,made. The Funds arc pledged u 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 data of toes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 1( the amount of the Funds
held by Lender shall not be sttfficient 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 from the date notice is mailed
by Leader to Borrower tegteesting payment thereof.
1i1€r?n Payrrrent in full of all :tiros secured by this Mortgage- 1_ender 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
sball 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. Application of Paytatents. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hertof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
Charges; Lkns. Borrower shall pay all taxes. 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, b}• Borrower making payment, when due, directly to the
payee thereof- Borrower shall promptly fore:sh 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 su long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or sFiall in g«xl faith contest such lien hy, or defenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvemenu now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
' and m such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage regwred to pay the sums secured Eby this Mon6age.
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. All 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 career.
€ All insurance policies and renewals thereat shall Ix in form acceptable to Lender end 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 shat! prompth• furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt nuUce to the insurance earner and Lender. Lender may make prop( of loss if not made promptly
by Borrower.
1 Unless Lender and Borrower other~+i.e agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property Damaged, provided such restoration ar reparr is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or reparr is nut ccunumically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
R to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date notice is mailed b}• Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at I_cnder's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower uthersvise agree in s?riting, am such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to m paragraphs I and 2 hereof or change the amount of
such installmenu. If under paragraph Ix hereof the Pruperh is acywred by Lender, all right, title and interest of Borruv.er
in and to any Risurance policies and in and t.~ the prcxeeds thereof resulting from damage to the Property prior to the sale
~ or acgwsition shall pass to Lender to the extent of tht sums secured b}• this ~fortgagc immediately prior to such sale or
acquisition.
6. Presenatioo and Maintenance of Propert}: Leaseholds; Condominiums; Planntd Unit Developments. Aorrower
_ shall keep the Property in ga?d repair and shall not commit y.astc ur permit impairment or deterioration of the Property
- and shall comply with the provisions of ary lease it this `lortgage +s tin a Icaschold. 1( this Mortgage is on a unit in a
condominium ur a planned unit development. Borrower shall perform all of Borrower's obligations under the declarahan
or covenants creating or guvernmF the a?nd+rmimum or planned unit development, the by-laws and regiilations of the
condominium ur planned unit development..+nd cn~stitiient d+kuments. If a condominium or planned unit development
rider rs executed by Borrower and recorded tr~gether with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shell .!mend :ui.t supplement the covenants and agreements of this Mortgage as rf the rider
were a part hereof.
Protection of Lenders Securffy. It Barn+~er Earl. t++ perform the covenants and agreements contained in this
Mortgage. ur if any action or proceeding :ommrnce.l which materially :+ffects Lender's interest in the Property.
includinK. but not hmrted so. eminent domain. ni~ohenc~. code enforcement- ur arrangements ur proceedings involving a
banknipt or decedent, then Lender at 1 ender's upturn, ulx~n notice to Borrower. may make such appearances. disburse such
sums and take such action as rs necessary nr prote.i Lender's interest. including. but not limited to. disbursement of
reasonable auomey's tees and entry upon the 1'nrfxrn to make repairs. I_rnder required mortgage insurance as a
condition .~f makuiR the loan secure) M this \t~rrtc.+ee. Bor?o.+cr shall pay the premiums regtnred to maint:un such
insurance in etfe.t until such tune as !tic reynin•nient for ,uch insurance termmalrs rn ac.ordanee with Borrower's and
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