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Untt~onw Covawants. Botiower and lender covenant and agree ss follows:
1~ ><styttt>yt M hiaelNl tstod lttttett+eN. Borrower shall promptly pay when due the principal of and interest on the
indebtedrttxs evideuoed by the Note, prepayment and late charges as provided in the Note, and the principal o[ artd interest
oa nay Future Advances secured by this Mortgage.
2. leis totr TarcN ttnti lnatrtree. Subject to applicable law err to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and intcrect ,rre payable under the Note, until the Note is paid in fuq,
a sttm (herein "Funds'q egwl to one-twelfth of the yearly tax~y and assessments which may attain priority over this
Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly prcmittm installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insttrancc, if any, all as rcssonably estimated initially and trap
time to time by Lender on the bass of assessments and hills and reasonable estimates thereof. -
The Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal of
states agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
iawrattce premiums and ground rents. Lender may na charge for zn holding and applying the Fttnds, analyzing said account,
or verifyingand compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permit: 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 unksi 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 Furtds and the
purpose Ior which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by this Mortgage.
It the amount of the Ftutds 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.
astxsanents, 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 inuallments of Funds. If the amount of the Funds
6eid by Lender shall not be suf6ciwt 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 I.eadt:r to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, tender shall promptly refund to Borrower any Funds
held by Lender. If under parsgraph 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~piicatios of PayaeNs. Unless applicable law provides otherwise, all payments rettived 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 Advancers.
1. C6argtx; Liras. 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 ,
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 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 context such lien by, or deftnd enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof.
S. Hazard Irrwtautee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by Ere, 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 tender shall not rtquire 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, if not paid in such manner. by Borrower making payment. when due, directly to the
insuratxe 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,
i 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
i by Borrower.
i Unless Lender and Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
I the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. 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 mailed 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 I~nder's option either to restoration or repair of the Propert~•
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 ProT.erty is acquired by Lender, all right, title and interest of Borrower
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. Preservation and 1laintenance of Property; Leaseholds; Condominiums; Planned Unit Devebprnents. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if thn 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
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 da:uments. 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
were a part hereof.
p 7. Protection of Lenders Security. It Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects 1_ender's interest in the Property,
including. but not limited to. eminent domain. ina•lvency, code enforcement. or arrangements or proceedings invoh•ing a
bankrupt or decedent. then (.ender at I.ender'a option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action ac is necessary to protect t_ender's interest, including. but not limned to. disbursement of ;
reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shill pay the premiums required to maintain such
insurance in etTect until such time as the rcyuirement fur wch insurance terminates in accordance with Bormwer's and
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