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Ut+trot+tw Covartents. Botrrower and Lender covenant and agree u follows:
L 1ltt~etN M lrirtclMl atN IuhreN. Borrower shall promptly pay when due the principal of and interest on the
indebtedtKSS evideaoed by the Note, prepayment and late cFwrges ac provided in the Note, and the principal of and interest
as tiny Fttrittu~e Advsnces stecured by this Mortgage.
lrnis tar'1lszas ttntl Iattnranca Subject to applicabk law ar to a written waiver by Letuder. Borrower shall pay
to Lender on the day monthly irutallments of principal and intcre~t arc payable under the Note, until the Note is paid in full,
' a shun (Ixrein "Funds'q equal to one-twelfth of the yearly ta>,~~ and assessments which may attain priority over this
Mortgage, and ground rents on the property, if any, plus otx-twelfth of yearly premium installments for hazard insurance,
plus otx-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and from
time to time by Lender on the buffs of assessments and hills and reasonabk 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). I~nder shall apply the Funds to pay said taxes. assessments:
irounnoe premiums and ground rents. lender may not charge for so holding and applying the Fttnds, analyzing said account.
or verifying~rtd compiling said assessments and bilk, 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, and unless such agreement is made or applicable law
requites such interest to be paid, Lender shall not be requited 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 eae6 debit to the Funds was made. The Funds arc pledged u additional security for the sums secured
by this Mortgsge.
Tf the amount of the Funds hdd by Lender, together with the future monthly installments of Funds payable prior to
the due dates of toes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
asseaments, insurance premiums and ground rents as they tall due. such excess shall be. at Borrowers option, either
promptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shaA not be wl6ciient 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 requesting payment thereof.
Upon payment is fuq of all soma sceured 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 is 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
Leader at the time of application u a credit against the sums secured by, this Mortgage.
3. A~licatloa oti Payatetutr. Unless applicable taw provides otherwise, all payments received by Lender under the
Note sad paragraphs !and 2 hereof shall be applied by !_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 Notc, and then to interest and
principal on any Future Advances.
I. Charges; Lkas. Borrower shall pay ail taxes, assessments and other charges, fines and iril~h~iitivtis aitiibuiabie 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 heroof 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 hu 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 ben or forfeiture of the Property or any part thereof.
S. Hazard Inwrance. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
I~ against loss by fire, hazards 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
i such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shalt 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
g insurance carrier.
I All insurance policies and renewals thereof shall be in [otYrt acceptable to Lender and shall include a standard mortgage
j 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 sums secured by this Mortgage, with the excess, if any, paid
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 procceds at Lender's option either to restoration or repair of the Property
f onto the sums secured by this Mortgage.
1 Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to.in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof .the Pro ferry is acgwred 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.
6. Preservation sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit fi)evebpments. Borrower
shall kcep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
l and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium ar 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 rernrded 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
r were a part hereof.
7. Protection of Lender's Security. 1f Borrower fails ti• perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding i~ commence.! which materially affects Lender's interest in the ~ Property,
including, but not limited to, eminent domain. intah~ency. code enforcement, or arrangements ar proceedings invoh-ing 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, including. but oat limited to, disbursement of
reasonable aUomey's Ices and entry upon the Property to make repau~. If Lender reyuired mortgage insurance as a
condition of making the lawn secured by this Mortgage. B~~rrowcr shalt pay the premiums required to maintain such
insurance in etTect until such dine as the requirement far wch insurance terminate. in accardance with Barmwei s and