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UNl><O~li CovBNAN». Borrower and Lender covenant and altee u follows:
1~ lysae~t of lrsiaclital anti iMesesl. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedrxss evidetttxd by the Note, prepayment and late charges as provided in the Note, and the principal o[ and interest
on any Future Advances secured by this Mortgage.
2. Dtinis for TtutN anti Ittrarattee. Subject to applicable law ..r to a written waiver by Lender. 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 stun (herein •'Fuads'~ egwl to one-twelfth of the year)}~ taxc. and assessments which may attain priority over this
Mortgage. and ground rents on the Property. i[ any, plus one-twelfth of yearly premium itutallments for harard insurance,
plus one-twelfth of yearly prcmitun inuallments for mortgage insunrtcc, if any, all as reasonably estimated initially and from
tints to time by Leader 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 arc insured or guaranteed by a Federal or
state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
imut'attce premiums and ground rents. lender may not charge for zn holding and applying the Funds. analyzing sand account.
or verifying-and compiling said assessments and bills, unless Lender pays Borrower interat on the Funds and applicable law
permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interat on the Futtds shall be paid to Borrower. and unless such agreement is made or appliable law
requires such interat to be paid, Lender shall not be required to pay Borrower any interat of earnings on the Fund;. Lender
shag 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 are pledged u 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 data of taxes, a:sasrrtents, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessments. insurance premiums and ground rents u they fall due, such excess shall be, at Borrowers option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
hdd by Leader shall sot be sufl"icieat to pay taxes, assessments, inwrance 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 is full of all stems secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under puagraph I8 hereof the Property is sold or the Property is otherwix acquired by Lender, Lender
sbaU 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 a: a credit against the sums secured by this Mortgage.
3. Applicatloa of IPaytaeaLs. Unless applicable law provides otherwix. all payments received by Lender under the
Note and paragraphs 1 sad 2 hereof shalt 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 Advantxs. ~ ~
4. Charles; Liras. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
the Pro tt which ma attain a riorit over this lvtort a e, and leasehold a '
pe Y Y P Y g g p ytttents or ground rents, if any, in the manner -
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, where due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due utader this paralrsph, sad is the event t
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 parr. thtreof.
S. Hazstd Insurance. Borrower shall keep the improvements nou• 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 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.
'Ilte 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, directly to the
ituuraace 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 tender. 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 tfie security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if tht 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 it 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 ancf 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, 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 Property is acquired by Lender, all right, title and interat of Borrower
in and to arty lnsurar~~e Ialicics sad ir, and to the proceeds thereof resulting from damage to the Properly prior to the sale i
or acquisition shall pass to .Lender to the extent of the sums secured by this titortgage immediately prior to such sale ,or
acquisition.
6. Preservation sad Maintenance of Propert}; I.easehulds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comtDit y?~aste or permit impairment or deterioration of the Property
sad shall comply with the provisions of any lease it this Mortgage is on a leasehold. !f this Mortgage is on a unit in 3
condominium or a planned unit development, Borrower shall perform all of Borrower's obGgadons 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
rickr is a;wci~rgr~ by Borrower and recorded together wnh 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
were a .part hereof.
7. Protection of Lender's 5ecurfty. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding n commenced which materially affects Lender's interest in the Property,
including. but not Gmrted to, eminent domairii. insolvent}, code enforcement. or arrangements or proceedings involving a
bankrupt or Decedent, then 1_ender at Lender's option, upon notice to Borrower, ma}~ 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 fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the roan secured by this Mortgage, Bnrrewer shall pay the premiums required ro maintain such
insurance in effect until such time as the « yuirement for wrh insurance terminates in accordance with Borrower's and
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