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` K f~SS ~
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Prinelpai and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided in the N ole, and the principal of and interest
on any Future Advances secured by this Mortgage.
2, Funds for Taxes and Insurance. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a sum (herein "Funds") squat to one•Mreltth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Property, it any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance. if any, all as reasaonablyestimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Finds shall beheld in an institution Me deposits or accounts of which are insured or guaranteed by a Federal or
state agency(including tender if lender is such an institution). Lender 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 arxf 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
requires such interest to be paid Lerldsrshall not bB required to pay Bowower any interest or earnings o~~ the Funds. Lender
shall give to Borrower, without charge, an ~arinual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
It the amount of the Funds held by Lender, together with the future monthly installments of Fun~fs payable prior to
the due dates of taxes, 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 Borrower's 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due.
Borrower 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 ther~oQ1. • •
Upon payment in full of all sums secured 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 sate of the Property or its acquisition by Lender, any Funds held by
lender at the time of ap~ticatlon as a credit against the sums secured by this Mortgage.
3. Apprlication of Payments. Unless applicable law provides otherwise, a!1 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.
4. Charges; Liens. Borrower shall pay all taxes, assessments and othercharges, tines and impositions attributable to
the Property which may attain a priority over this Mor;yayP,,-ir~ leasehold payments orgound rents, if any, in the manner
provided under paragraph 2 hereof or, it not paid in such,manner, by Borrower making payment, when due, directly to the
payee (hereof. Borrower shall promptly furnish to Lender all notices o! amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shaft promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien Yvhich has priority.over this; MtiStgage; prowded. 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 tier or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by tire, hazards included within the term "extended coverage', and such other hazards as Lender may require
and in such atrWunts and for_ suph~periods as Lender require; provided, that lender shall not require that the amount of
such coverage exceed that amount of coverage. required to pay the sum secured by this Mortgages
The insurance carrier providing the insurance shall be chosen by Borlowei subject to approval by Lender, provided.
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be Qaid in the manner'
provided tinder paragraph 2 hereof or. i(not paid in Such mangler, by Borrower making payment: when due. directly to the
insurance carrier.
All insurance polices 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 fumish 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 Lends?. Lender may make proof of loss if not made-promptly
by Borrower.
Unless Lender and Borrower othervv~se agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair rs economically feasible and the security of this Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shat) be applied to the sums secured by this Mortgage. with the excess. if any, paid
to Borrower. II the Property iS abandoned by Borrower. or if Borrower faits 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 Lenders option either_to restoration or repair of the Property
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 extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof o.• change the amount of
such installments. It under paragraph 18 hereof the Property ~s 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 sate
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acgwsition. .
6. Preservstlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unlt Developments.
Borrower shall keep the Property in good repair and shall not commit waste or permit ~mpa~rment or deterioration of the Pro-
party and shall comply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit rn a
condominium or a planned unit development. Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned urnt development. the by-laws and regulations of the
Condominium or planned urnt 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 I
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding' is commenced which materially affects Lenders interest in the Property.
including, but not limited to. eminent domain. insolvency. code enforcement, or arrangements of proceedings involving a
bankrupt or decedent. then Lender at Lenders option. upon notice to Borrower. may make such appearances. disburse such
sums and take such action as ~s necessary to protect Lenders interest. including. but not I~mited to. disbursements of
reasonable attorney's fees and entry upon the Property to make repairs. If lender required mortgage insurance as a
cand~tron of making the loan secured trythis Mortgage, Borrower shall pay the premiums required to maintain such
~r.surance in effect until such bins as the requirement for such insurance terminates in accordance with Borrower s and
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