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UNilOtl/d COVlNANA. Borrower and Linder covenant and agree as follows:
L l~weM tat 1<tlne!>NI tttatl ItMer~eM. Borrower shall promptly pay when due the principal of and interest on the
indebtedrreei evidentxd by the Note, prepaynxnt and late charges as provided in the Note, and the principal of and interest
oa say Futtrro Advanoa secured by this Mortgage,
Z. Il<tirtNs fhr 7Lzett Itttatl laweaaee. Stirbject to applicable law sr to a written waiver by Lender. Borrower shall pay
to Lends on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a soar (herein "Funds'q equal to otra-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Properly, it any, plus ate-twelfth of yearly premium installment for hazard inwrance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and trom
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
7Le Funds shall be held in an institution the deposits or account of which are irtsured or guaanteed by :Federal or
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessment.
iawtrarrce premiums and ground rents. lender may not charge for so holding and applying-the Funds. analyzing said account,
or vsrifying.arrd compiling said assessment and bilk, unless Lender pays Borrower interest on the Funds and applicable law
pet!mit 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
requiires 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, withart charge, an annual accounting of the Funds showing credit and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc plodged as additional security for the sums secured
by this Mortgage.
Tf the amount o[ tht3 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 rent, shall exceed the amount required to pay said taxes.
auemtnents, inuurance premiums sad ground rent 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. If the amount of the Funds
held by Lender shall not be wtficieat to pay taxes, assessment. insurance premiums and ground rent ss they fall due,
Borrower shall pey to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mongags, Lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Progeny rs aherwise 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. AppBeatloe of Payoe~. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragaph 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 Advaaoes.
4. Clarges; Lkas. Borrower shall pay all fazes, assessments and other charges, fines and impositionf 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 furnish to Lender all notices of amount 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 paymejtt 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 proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Iuwnrrce. Borrower shall keep the improvements 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 in such amount 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 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- 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 carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
i 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 proof of loss if not made promptly
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 restoration 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'i[ the security of this Mortgage would
be unpaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
s to Borrower. If the Property 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 Pmpem•
~ or to the sums secured by this Mortgage.
t Unless Lender and Borrower otherwise agree rn writing, any such application of proceeds to principal shall not extend
or postpone 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 hereof the Proferty is acquired 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 extent of the sums secured by this Mortgage immediately prior to such sale or -
acquisition.
i 6. Prrservatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Udt lkvebpments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
1 and shall comply with the provisions of any lease it this Mortgage rs 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
condominium or planned unit development, and constituent documents. It 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 mto and shall amend anD supplement the covenants anD agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of LendePs Security. If Borrower fads to perform the' covenants and agreements contained in this
~ Mortgage, or if any action ur proceeding is commensal which materially affects Lender's interest in the Property.
including, but not Gm~ted to, eminent domain. insolvency. code enforcement. or arrangements or proceedings invoking 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, inchrDing. but not limited to. disbursement of
reasonable attorney ~ feet and entry upon the Properly Io make repairs. If Lender required mortgage insurance as a
condition of making the loan secured h}' Ih~s Mortgage. Borrower shall pay the premiums required to maintaon such
insurance in effect until such time as the requirement for such msurance terminates in accordance with Borrower's and
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