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Unttrortw Covarut+rs. Borrower and Lender covenant and agree u follows:
i~? lMyweN of )rrioelNl aMl INeresf. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidettoed by the Note. prcpaytnent and late charges as provided in the Note, and the principsl of aril interest
err say Future Advances secured by this Mortgage.
2. F'outltt fort Trues tulti lnwr~uee. Subject to applicable law ar to a written waiver by i.,ender, Borrower shall pay
to Leader on the day rtwnthly installments of principal and interest arc. payahk under the Note, until the Note is paid in full,
a sum (herein "Funds' equal to orte•twelfth of the year)}' taxi. and assessments which may attain priority over this
Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly premium installrttents [or hazard inwrarrce.
plus one-twelfth of yearly premium installments for mortgage insurance. if any, all u reasonably estimated initially and from
time to tune by Lender on the buffs of assessments and hills and reasonable estimates thereof.
'I1re Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal or
state agency (including Lender if Lender is such an itutitutionl. 1_ender shall apply the Funds to pay said taxes, assessments.
insursnee premiums and ground rents. Lender may not charge for sa holding and applying the Ftrnds, 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 of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requites 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 wu made. 'ilre Funds arc 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 dates of taxes; assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assatments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Botmwer 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 gt+ound 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. A~licatbs of Pgoeats. 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.
1. C6suges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
ttie 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 (umish 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 hen or forfeiture of the Property or any part thereof.
S. Hazard Insurance. 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 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 Eby 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 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
insurance carrier.
j 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,
r Borrower shall give prompt notice to the insurance career and lender. Lender ma}• 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 Property damaged, provided such restoration or repair. is economically feasible and the security of this Mortgage is
not thereby imparted. 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 it Borrower fails to respond to Lender within 30 days from the
date notice is marled 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 Lender's option either to restoration or repair of the ~Propert~•
q 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
I or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installmeats. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
a in and to any Insurance 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 this Mortgage immediately prior to such. sale or
acquisition.
6. Presen•ation and Maintenance of Property: Leaseholds; ('ondominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
soil shall comply with the provisions of any lease if thu Mortgage is on a leasehold. if this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
v: ~pYCtia:.¦S ~.:3:at:i.Zy v: Kv7Crn::.~ t.n CCn~wnnnnum C.r piai,icd utter dCVelupmem, the Dy-taWS and regUlallODS Of the
condominium or planned unit development. and constituent dcxuments. If a condominium or planned unit development
rider is executed by Borrower and recorded together with 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
I were a part hereof.
z 7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
4 Mortgage, or if any action ur proceeding n a,mmenced which materially aBects Lender's interest in the Property,
mciuding. but not limned to. eminent domain. insoivenc~. jade enforcement. or arrangements or proceedings invoh•ing a
~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower. may make such appearances, disburse such
sums and take such action as.is necessar}• to protect Lender's interest, including. but not limited to. disbursement of
reasonable attorney's tees and entry upon the Property to make repairs" If Linder required mortgage insurance as a
condrdon of making the loan secured by the MorlgaRe. Borrower shall pay the premiums required to maintain such
iru~rance in effect until such time as the reyuiremept for .uch insurance terminates in accordance with Borrower's and
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A~~327 ~~~E~.392 ~ ' .
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