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UNIFORM COVENANTS. Borrower and Lender covenant and agree u follows:
1. laUwertt of lriac+al anti Iwterest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. Prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. thrai for Ta:a anti Iawruce. Subject to applicable law ~.r to a written waiver by Lettder, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a sttm (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgaage, and `round rcnu on the Property, if any, plus one-twelfth of yearly prcmittm installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage irtsurancc. if any, all u reasonably estimated initially and tram
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 are insured or guaranteed by a Federal otr
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
intutanoe 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 and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution o[ 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. 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 was made. The Funds arc pledged as additional security for 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 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 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 suR'icient to pay taxes, assessments, insurance premiums and ground rents as 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 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 Lender. 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 Payments. 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.
4. Charges; Lktas. Borrower shall pay all taxes, assessments and other charges. fines and impositions att?ibutable 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
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regwred to discharge any such Iren so long -as Borrower shau agree in writing to the payment of the ooiigaiiun accurcu uj
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 I,en or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements nov? 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 amounts and for such periods as Lender may reyuirc; 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 unreasonahly 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 g,vc prompt notice to the insurance earner and Lender. Lender may make proof of loss if not made promptly
by Borrower.
' Unless Lender and Borrower othen+,x agree in writing. insurance proceeds shall be applied to restoration or repair of
s the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
Q not thereby impaired. I( such restoration or repair is nut eamomically 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 Property a abandoned by Burrower. or it Burrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier ufiers 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 repalr 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 I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acgwred by Lender, all right, title and interest of Borrower
in and to any hisurance 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 thin Mortgage immediately prior to such sale or
acquisition.
6. Prrsen•ation anti Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit y+•aste or permit impairment or deterioration of the Property
and shall comply with the provis,ons of any lease it thn Mortg,+ge is on a leasehold. If this tilortgage is on a unit in a
condominium or a planned unit development, Borrower chill perform all of Borrower's obligations under the declaraUun
or covenants creating or guvermog the condominium or planned unit development. the by-laws and regulations of the
condominium or planned unit uevefopment. and constituent da:uments. If a condominium or planned unit development
nder is executed by Borrower and recorded together w,th this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shell amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If Harrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding comnunced which materiafly affects Lender's interest in the Property,
including. but not limited tu. eminent domain. insohenc}. c+xle enforcement. or arrangements or proceedings invoking a
bankrupt or decedent, then Lender at Lender's option, up,in notice to Borrower, map make such appearances, dishurse such
sums and take such action as is necessary to protect I_cnder's interest. including, but not limited to, disbursement of
reasonable anorney's fees and entry upon the Property to make repairs. If Lender reyi,irrd mortgage insurance as a
amd,tu,n ~.,f making the loan secured b}' Ihn Morlgacc. Harrower shall pay the premiums required to maintain such
,nsurancr in effect unUi such time as the reyuirement far wch insurance terminates in accordance with Borrower's and
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