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LINIFOttW CovenaNrs. Borrower and Lender covenant and agree u follow::
1~. r4r~t offi lTrioclMt ttrti INeeesf. Borrower sh:ll promptly pay when due the principal of and interest on the
indebledrtess evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
an any Future Advances secured by this Mortgage.
li+~i for TntM ant Iawrsrree. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest .ter payable under the Note. until the Note is paid in full,
a sum (herein "Funds' equal to one-twelfth of the yearly oar. and assessments which may attain priority over this
Mottgttge. and ground rents on the Property, if any, plus one•tweltth 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 on the buffs of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal of
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. fender 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 interat 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 interat 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 wu made. The Funds are pledged as additional security [or 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 taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assetnrnents, insurance premiums and ground rents u they fall due, such excess shall be. at Borrowers option, either
pranptty repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sut6cient to pay taxes, assessments, insurance premiums and ground rents u they (all due,
$orroaer 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 Lenckr. 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. Application of Payotents. 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 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; Lkras. Borrower shall pay elf taxes, assessments and other charges. fins 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 not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furn,sh to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directl}•. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lieq which has priority over this Mortgage; provided, that Borrower shall not lx
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,
?egal 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 improvements now• existing or hereafter erected on the Property insured
against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured Eby 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. All premiums on insurance policies shaft be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dot, directly to the
insurance carrier.
Afl insurance policieY 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 shalt promptly [urnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
$orrower shall g,ve prompt notice to the insurance carrier and lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherw,se agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such rc~storat+on or repair is economically feasible and the security of this Mortgage is
not thereby impaired. if such restoration or repair is not economically 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
to Borrower. If the Propert}~ is abandoned by Borrower, 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
is authorized to collect and apply the insurance proceeds at lender's option either to restoration or repair of the Propert~•
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eaend
or postpone the due date of the monthly installments referred to in paragraph. 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Proferty is acyuired by 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 ettent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit l~evebpments. Borrower
shall keep the Propert}• in good repair and shall not comrpit K~aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ,s 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 condom+nir,m or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and constituent dcx:uments. If a condominium or planned unit development
rider is executed by Borrower and recorded together with th+s Mortgage, the covenants and agreements of such rider
shall be +ncorporated +nto and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
were a part hereof.
7. Protection of Lenders Security. If Borrower fails t,~ perform the covenants and agreements contained in this
Mortgage. ur if any action ur proceednng c,~mmenced which materially affects Lender's interest in the Property.
inctudmg, but n,~t limited to. eminent domain. +m<~l~enc}, code enforcement. or arrangements or proceedings invoh~ing a
bankrupt or decedent, then Lender at Lender'. option, upon notice to Borrower. may make such appearances. dishurse such
sums end take such action as is necessan to protect Lender's interest. including. but not limned to. disbursement of
reasonahle attorney's Iecs and entry ulxm the Property to make repairs. If Lender reyuircd mortgage inwrance at a
condition of nc,k+ng the Han secured by th+s 1}urtgagc. B~~rr„wrr shall pay the prcmiwns required to maintain such
iruuranee u+ effect until uich lime as the reyuiremem for such inuuancc terminates to accordance with Borrower's :rod
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