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UNttasus COVENANTS, Borrower and lender covenant and agree u follows:
1. tsutwetN at TdsttlMl sail Ialenst. Borrower shall promptly pay when due the principal of and interest on the
irtdebtedetas evidetttxd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
oa say Future Advance secured by this Mortgage.
2. 1lh~Ws tar Tabs tuatl Iaptttsactt. Subjtxt to applicable law •x to a written waiver by Lenckr. Battowcr shall pay
to Linder on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
a sum (herein "Funds"? equal to otre-twelfth of the yearl~• taxc. and assessments which may attain priority over this
Mortgage. and ground rent on the Property. if any, plus one-twelfth of yearly premium installtttents for hazard insurance.
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f:,,.~ .,.,.-........l: of ;;,arty r._,...rst ..ttrnnt+s for inert:age insurance, if any, all u reasonably estimated initially and from
tithe to tuna by Leader on the buss of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institutieur the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institutionl. 1_ender shall apply the Funds to pay said taxes. assessments,
insurance poemiuma and ground rents. 1_ender may not charge for so holding and applying the Funds. analyzing said account,
or verifyingand compiling said assessments and bills, unless Lender pays Borrower interat 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 interat on the Funds shall bt paid to Borrower. and unless such agreement is made or applicable law
requite such interest to be paid. Lender shall not be required to pay Borrower any interat or earnings on the Funds. Lender
shall give to Borrower. without chuge, 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 are pledged u additional security for the :urns secured
by this Mortgage.
If this amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes. assasmenu. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
wetgroents. insurance premiums and ground rents u 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 Leader shall not be au[Bcieat 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 Lender to Borrower requesting payment thereof. .
Upon payment in full of all soma secured 6y this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Leader. If under puagraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender ti
shall apply. rto later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Ltstsder ai the time of application as a credit against the sums secured by this Mortgage.
3. A~plicstioa of taytsteats. Unless applicablt law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shell 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 Advarwes.
Crarges; Iie4s. 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 thertrof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad 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 deftnd 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. He=ard Insarance. Borrower shall keep the improvements now• existing or hereafter erected on tht Property insured
against loss by fire, hazards included within the term "extended coverage", and such other haueds as Lender may require i
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. i
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, dinectty to the
insurance carrier.
All insurance policies and renewals thereof shall be in (orm 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 Leader 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. i
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Froperty 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 proceeds 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
oats i'wir~c s r.~aita3 by Lc :.kr to SorroeLe.I !het the itlSt!ratlCC carrier offers to settle a claim for insurance benefits, Linder
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propene
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, an}• 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 ! 8 hereof the Property is acyuired 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 Properly 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 and lfaintenance of Property; Leaseholds; Condominiums; Planned Unit lt)evebpments. Borrower
shall keep the Progeny in good repair and shall not comrpit K•aste or permit impairment or deterioration of the Property
sad shall comply with the provisions of any lease if this Mortgage n on a leasehold. If this Mortgage is on a unit in 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 unit development, the by-laws and regulations of the S
condominium or planned unit development. and constituent da:uments, !f a condominium or planned unit development
rider is executed by Borrower and recorded together wrth this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. PrWeclion of Lender's Security. 1( Bom~wer fails to perform the covenants and agreements contained in this +
Mortgage, or if any action or proceeding n c+~mmenced which materially affects Lender's intereu in the Property,
including. but nit 6mded to, eminent domain, insolvency. axle enforcement, or arrangements or proceedings invoking a
bankrupt or decedent, then Lender at I .ender ~ 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 not limned to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
conduu?n of making the loan Secured by this llfortgage. B~~rruwcr sh,rp pay the premiums required to maintain such
insurance in ellect omit :rich time as the requirement for wch +nsurance term+nates rn accordance with Borrower's and
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