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UN[lOrtM COt/BNAti7'a. Borrower and Lender covenant and agree as follows:
1.' lslYrneN of hMttlMl aril Interest. Borrower shall pramptly pay when due the principal of and interest on the
indebtedness evidertoed by the Note. prepayment and late charges a. provided in the Nde, and the principal of and interest
on any Future Advances sectued by this Mortgage.
2. lhtrti left Taut ten/ lwrtree. Subject to applicahk law .,,r to a written waiver by Lender. Borro~?er shall pay
to Lender on the day monthly installments of principal and interest are payahk under the Note. until the Note is paid in full,
a stun (herein "Funds") egwl to one-twelfth of the year)} taAC. and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any. plus 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 tenter
time to time by Leader on the basis of assessntcnts and hills and reasonable estimates thereof.
'Ilte Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (including Leader if Lender is such an institution). lender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. Lender may nest charge for set holding and applying the Frrnds. analyzint 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 exaution o[ this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement h made or applicable law
requires such interest to be paid. Lender shall nest 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
purposes 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 tha Funds held by Lender, together with the future manthty 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 tall due, such excess shall be, at Borrowei s option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be strf6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Bomot+ver shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader 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 I8 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
Lesader at the time of application as a credit against the sums secured by this Mortgage.
3. Appticatiow of payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by I.endcr 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. Cltarses; Lkru. 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
payoe theroof. 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 Iten which has priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long :is 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,
legs! proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Huard Irisuranee. Borrower shall keep the rmprovrments 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 reyuire; 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. '
Tlie 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.
AI! 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. fn the event of Ions,
Borrower shalt give prompt notice to the insurance carrier and lender. lender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwix- agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restvrauon or repair is economically feasible and the security o1 this Mortgage is
not thereby impaired. if such resmrahon or repair is nest economically feasible or if the security of this Mortgage would
be unpaired, 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 ~s marled by I~nder 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 Property
or to the sums secured by this Mortgage.
Unless Lender and Burrower otherwise agree in writing, an_y 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 IK hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any rnsurance policies grid 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. Pr+esenation and lfaiotenanc~ of Property; Leaseholds; Condominiums; Planned Unit Devebpments. $ortower
shall keep the Property in gaud repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if thi, Mortgage n on a leasehold. If this Mortgage is on a unit in a
condominwm or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the amdominuim or planned iimt development, the by-laws and regulations of the
condominium or planned unit development. and constituent dcxuments. !f a condominium or planned unit development
rider is executed by Borrower and recorded t~~gether 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
were a pact hereof.
Protection of Lender's Security. I( Borrower fsils to Ixrform the covenants and agreements contained in this -
Mortgage, ur if any action ur proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. ins~~lvenc~. code enforcement, or arrangements or proceedings invoking a
bankrupt or decedent. then tender at 1 ender', opium, upon notice to Borrower, may make such appearances, disburse such
sums and take cosh action as is neLCSSan to protect Lender's interest, including. but not limned to, disbursement of
rPasouahle attorney's tees and entry upon the Property to make repair. If Lender rcyuircd mortgage insurancx as a
conduu,n of making the lo:,n secured by this Mortg:+cc. Hormwer shall pay the prcmnum rcyuired to maintain such
insurance in effect until such time as the reyuuernent for arch mstrranre terminates in accordance with Borrower` and
?327 P.~f~1~58 - . _ .
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