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UHtt~otw CovBt+at~m. Borrorr~ and Lettder covenant and agree ss folbws:
)ti. of tti¦e1N1 a~tl lttlerrlat. Borrower shall promptly pay when due the principal of and interest on the
indebtednw evidetnoed by the Note, prepayment and late charges ac provided in the Note, and the principal of acrd interest
arc .oy Future Advances secured by this Mortgages
lftrtis ter 7lszsa ttri Ltwraytes. Subjett to applicabk law ~x to a written waiver by Lender. Borrower shall pay .
to Lender on the day monthly installments of principal and interest are payahk under the Note. until the Note is paid in full,
a sum (herein "Fund:'q equal to one-twelfth of the yearik⢠tax~~ and assessments which ttnay attain priority over this
Mortgage. and ground rents on the Property. if any. plus one-twelfth of yearly Premium installments for hazard inwrarxe.
plus one-twelfth of yearly premium installments for mortgage insurance, it any, all as rettsotubly estimated initially and from
time to time by Lender on the bssis of assessments and hills and rcasonabk estimates thereof.
1be Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal or
state agency (including bender if Lender is such an institution). 1_ender dull apply the Funds to pay uid taxes. asssssments.
irrsuranoe premiums and ground rents. lender may not charge for so holding and applying the Ftrrrds. 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 exaution of this
Mortgage that interest on the Funds shall br 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 eatdt debit to the Funds wu made. The Funds are pledged as additional security tot the su` secured
by thk Mortgage.
If the amount o[ the Funds ht:ld by Lender, together with the future monthly installments of Funds paysbk prior to
the due dates of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments. imurance premiums sad ground rents as they tall 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 setficieat to pay taxes, assessments, insurance premiums and ground rents ai they fall due,
Borrower shall pray to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borroweer requesting payment thereof.
Upon payment is full of all sunns secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property i~ sold or the Property u 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
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. Alplicatiort of PrtyoetNs. 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 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.
1. CLarges; Litters. 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 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 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 proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Insartrrree. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazuds included within the term "extended coverage", and such other hazards as Lender may require
and in 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 required to pay the sums secured by this Mortgage.
'I1re insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
I 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
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 if the security of this Mortgage would
be impaired, the insurance procceds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or i( 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 [.ender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless i_ender and Borrower otherwise agree in writing, any such application of proceeds to principa) shall not extend
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount o[
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
I~ 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 peso to Lender to the extent of the sums secured by this I~tortgage immediately prior to such sale or
- acquisition.
6. Preservation sad Maintenance of Property; Leaseholds; Condominiums; Planned Uuit Developments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shaD comply- with the provisions of any Itase it this Mortgage is on a leasehold. I( 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. 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 amend and supplement the covenants and agreements of this Mortgage as if the rider
p were a part hereof.
7. Protection of Leader's Security. If Borrower (ails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced whtch materially affects Lender's interest in the Property,
including. but not limited to. eminent domain. ins.~lvenc}. code enforcement. or arrangements or proceedings involving a
banknrpt or decedent, then 1_ender at Lender ~ option, upon notice to Borrower, may make such appearances, disburse such
sums end take such action as is necessary Io protect Lender's interest, including. but not limned to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a
condit~ m of making the loan secured by this Mortgage. Harrower shall pay the premiums required to maintain such
inuurance in effect until wch time as the reyuircmcnt for such insurance terminates to accordance with Borrower's and
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