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UN/FOtw CoveNant•s. Borrower and Lander covenant and agree as follows:
>t• ltt~seot of lrriuciNl ttrtati latcsetsf. Borrower shall promptly pay when due the principal of and interest on the
indebtedtne:s evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
orn any Future Advances sectued by this Mortgage.
IIhttsi [or Teas a+w ittarauce. Subject !o applicahM law ar to a wttitten waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and intcrest .rtes payable under the Note. until the Note is paid in full,
a cum (herein "Furnd:'~ equal to one-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortgage. and ground rents on the Properly, if any, plus one-twelfth of yearly prctnium installments for hszatd insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
tithe to time by Lender on the buffs of assessments and hills and reasonable estimates thereof.
'tlte Funds shall be held in an institution the deposits nr accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if 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 for sn holding and applying the Frrnds, 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
requires 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 was made. The Funds are plodged as additional security for the sums secured
by this Mortpge.
If the amount o[ 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, shaft exceed the amount required to pay said taxes,
assessments, 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 Lender shall not be suf6cieat 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 therrnf.
Upon payment in full of all sotto secured by this Mortgage, (.ender 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. Appiicatbe of payments. 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 payahle 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. Charges; Lktu. 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 nut pard in such manner, by Borrower making payment, when due, directly to the
payee cheroot. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shalt promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has pnonty 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 g«xl faith cuntr;t such lien by, or defend enforcement of such lien in, _
legal proceedings which operate to prevent the enforcement of the Iren or forfeiture of the Property or any part thereof.
S: Hazard Insurance. Borrower shall keep 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 Syr 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.
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, rf not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereat shall tx in form acceptable to Lender and shah include a standard mortgage
clause in favor of and in form acceptahlr to (.ender. 1_ender shall hate the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premium;. In the event of loss,
Borrower shall gwe prompt nonce to the rnsurance earner and lender. 1_ender may make proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherw,;e agree in writing, imurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoratun or reparr rs economically feasible and the security of this Mortgage is
not thereby imparted. It such re,turahon or reparr is nest rconamically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shaft be applied to the sums secured by this Mortgage. with the excess, if any. paid
to Borrower. If the Property is abandoned by Burrower. or it Borrower fails to respond to Lender within 30 days from the
date notice is marled by Ixnder to Borrower that the rnsurance carrier otters to settle a claim for insurance benefits, Ixnder
is authorized to collect and apply the insurance prueeeda at 1_ender'; option either to reaturauon or repair of the Pmperlr.•
or to the sums secured by this Mortgage.
Unless Lender and Burrower otherwi;c agree in writing. any such application of proc:ceds to principal shall not extend
or pcxtpone the due date of the monthly installments referred to in paragraph; I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property rs acquired hs [tender. act right, title and interest of Borrower
in and to any Aisurancr policies and in and to the proceeds thrreul resulting from damage to the Properly prior to the sale
or acquisition shall pass to Lender to the e~trnt of the ,tiros secured by thu Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unif Uevebpmenls. Borrower
shall keep the Properly in gcaxl repair and shall not comrpit y.aste or permit impairment or deterioration of the Property
and shall rnmply with the provisruns of any lease if chi, Mortgage on a leasehold. 1f this Mortgage is on a unit in a
condominium or a planned umt drvrlopmrnt, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating ur guvern,ng the condominn,m or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and ron;titurnt dcxument,. 1; a condominium or planned unit development
rider rs executed by Borrower and rerordcd t~+gethcr w,th the, Mortgage, the covenants and agreements of Such rider
shall be incorporated into and ;hall amend and ,upplcment the covenants and agreements of th,c Mortgage as if the rider
were a parl hereof.
7. Protection of Lender's Securtty. If Bam~,scr earl, to prr(orm the covenants aria agreements contained in this
Mortgage, or if any action ..r pro~rea,nlr „ c+~mmcn~ra which materially attests Lender's intere;t in the Property.
rncludmg. but not Irmitrd to. rmsnent dum:un. in.~d~eni: u~de enforcement. or arranKementc or pnxeedings rnvol;,nK a
bankrupt ur decedent, then l ender at I rnder'c optnv+. upc+n notice a+ Borrower. ma; make ;uch appearances" drshurse such
sum; and take such action a; rs nrce„an to pn+trct I.cnder'c mterest. rncluetine. but not "limned to. dnhursrment of
reasonably attorney'; lee; and entry up~+n the Pmprrlc to make repauc. If 1"ender require.( mortgage imurance a; a
condruon u( making the loan ,y~urea h} Ihr; Mortpa~e. Borru~er sh ell pay the l,rcmnum rcqu,red to maintain such
rnsurance in rllr~t until ,ugh time :ic the reyunenrent for -,uch rmuran,e termrnatc, ur ac:ordancy with Born+wyr', and
E1;~327 y.GE2672