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Untpotut CoveHSNTS. Borrower and Lender covenant and agree u follows:
1. hytweof of rrMctpal atad interest. Borrower sh:ll promptly pay when due the principal of and interest on the
indebtedrtesa evidenced 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.
tt~aads for Ttutea aad laatsoce. Subject to applicable law ur to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal anJ interest rrc payable under the Note, until the Note is paid in full,
a sum (herein "Fonda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortaaae, and around rents on the Property, if any, Flus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and tram
time to tithe by Lender on the basis of assessntcnts and hills and reasonable estimates thereof.
The Funds shall lx held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender it Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance Premiums and ground rents. Lender may not charge (or so holding and applying the Funds. analyzing said account.
or verifying artd compling 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 of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
rcquira such interest to be paid. Lender shalt 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. 71te 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, assessments, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either
pranptty 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 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, i,ender 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
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Appticatioe of Fayments. Unless applicable taw provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I_eniler first in payment'o[ amounts payable to Lender by Borrower
under paragraph 2 htrcof, 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; ti.iens. Borrower shall pay all talcs; 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 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 tx
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 g,x?d 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 Irrsuraaee. Borrower shall kcep the improvements now 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 a: 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.
77te 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 pai9 in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance poGciec and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable a+ Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shad promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall grey prompt nonce to the insurance earner and lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property Damaged, provided such restoration or repair is rconomicatly feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is nut economically feasible or if the security of this Mortgage would
be impa,red, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property n abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
date notice rs marled hp Lender to Borrower that the insurance carrier otTers to settle a claim for insurance benefits, Leader
is authorized to collect and appl? the imurance proceeds at Lcndcr's option either to restoration or repair of the Propene
or to the sums secured by this Mortgage
Unless Lender and Borrower otherwise agree rn writing, any such application of proceeds to principal shall not extend
or postpor:e the due date of the m++nthh~ installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. if under paragraph 18 hereof the Projerq is acywred by Lender, all right, title and interest of Borrower
in and to any Insurance policies and m and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the ext•~nt of the sums scoured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and 3ltintenance of Property; Leaseholds; ('ondominiums; Planned Lnit Ihvelopments. Borrower
shall keep the Property in good repair and shalt not oomroit y~aste or permu impairment or deterioration of the Property
and shall comply with the pros•isions of any lease rt the. Mongage a tin a leasehold. If this Mortgage is on a unit in a
condomin:um ur a planned unit dt~seloprttent, Borrower .h,,l! l+e-rtorin all of Borrower's obhgahons under the declaration
or covenants. creating or gavermng the cundonnmum or planned umt development, the by-laws and regulations of the
condominium or planned unit development. ,,rid rnnstitucnt d,xumems. If a condominium or planned umt development
rider is executed by Borrower and recorded together w,th this Mortgage, the covenants and agreeritents of such rider
shalt be incorporated into srid shalt amend an<l su{~pkment the covenants and agreements of th,s Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If Harrower ta~h t+. perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding i, commcr,,eJ which materially affects Lender's interest in the Property,
including, but not hmrted to. em,neM domain. uisoheucs. c++tle enMrrement. or arrangements or proceedings invoh~ing a
bankrupt or decedent. then 1 ender at l ender's opti,•n, up+~n notice to Borrower, mad make such appearances, disburse such
sums and take such action as is necessary to pmtrct Lender's interest. rncludrng. but not limned to. disbursement of
reas<mahle anorney's tees and entry up+ai the Pr<+perts• to make repass. It Lender rcyuirrd mortgage insurance as a
condition +.f making the loan secured by this \t~+rtg.+~r. Horrrwcr shall pay the premnuns required to maintain such
insurance in rifest until such time as tt?e reyuirenient for wch insurance terminates ,n ac,ordance with Borrower's and
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