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UNIFORM CQVF.NANTS. Uormwer and Lender cc?venant and agree as follows:
1. Payment of Principal and Itttcresl. Uorrowcr shall prutnptly pay when due the principal of and interest on the
indebtedness evidenced by the Nate, prepayment and late charges as provided in the Note, and the principal of attd interest
on any Future Advances secured by this Mortgage.
2. Fttnch for Taxes and insurance. S+rbjcct to applicable law or to a written waiver by I.endcr, Borrower shall pay
to Lcndcr on the day monthly indallments of principal and intrust arc payahlc under the Nutt, until the Note is paid in full.
a sum (herein "Funds") equal to one-hsclfth of the yearly taxes anJ asccstmentc which may attain pri~~rity over this
Mortgage, and ground rents on the Property, if any, plus unc-twelfth of yearly premium instattmcnts for hazard insurance.
plus one-twelfth of yearly premium installments for morteag~ insurance, i[ any, all as reasonably estimated initially and froth
time to time by Lcndcr on the basis of aucssmcnts and hills and ua~unabla estimates thereof.
The Funds shall be held in an institution the dclx~sitc ar aec~unts of which arc insured or guaranteed by a Federal or
state agency (including 1_endcr if !.coder is such an institution). 1 rndcr shall apply the Funds to pay said taxes, assessments.
insurance premiums anJ ground rents. l.cn<ler may not charge for so haldin~ ;rod applying the Funds, analyzing said account,
or verifying and compiling; s:+id aucssmcnts and bills, unless Lcndcr pays Bo -rower interest on the Funds and applicable law
permits Lcndcr to make such a charge. Borrower and Lcndcr may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, artd unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be tcquirccl to pay Borrower any interest or earnings on tht Funds. Lcndcr
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 arc pledged as 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 dote dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount requited to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lcndcr shall not be sufficient to pay taxes, assessments, insurance prcmitrms and ground rents as they fall due,
Borrower shat! pay to Lcndcr 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 fall of all sums secured by this Mortgage. Lcndcr 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
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides othenvise, all payments received by Lender under the
Vote and paragraphs I , nd 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 Mote, then to the principal of the Note, and then to interest and
principal on any Future Advances,
4. Charges; Liens. 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 p.~amptly 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 acceptabiE. 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 lien or forfeiture of the Property or any part thereof.
Hazard Insurance. B~:rower shall keep the improvements now- exi• ling or hereafter erected on the Property incnrrrt
against loss by fire, hazards it+~iuded within toe +erm "extended coverage", and such other hazards as Lender may .-;.y::::.
and in such amounts and for sup h periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amot nt of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Bor -ewer 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 Borr~+wer making payment, when due, directly-to the
insurance carrier.
All insurance policies and ; enewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form :.cceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly ft:rnish 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 Lender. Len ter may make proof of loss if not made promptly
by Borrower.
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 economical. y feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically fe +sibie or if the security of this Mortgage would
be impaired. the insurance pra:eeds shat! 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 'if $orrower fa Is to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the ituurance carrier ofie s to settle a claim for insurance benefits, Lender
is authorized to collect and aptly the insurance proceeds at Lender's opticn either to restoration or repair of the Property
or to the sums secured by this 2 fongage.
Unless Lender and Borrov er otherwise agree in writing, any such apF+ication of proceeds to principal shall not a ctend
or postpone the due date of th- monthly installments referred to in parafraphs 1 and 2 hereof or change the amount of
such installments. ]f under pat rgraph 18 hereof the Property is acquired t y Lender, all right, title and interest of Borrower
in and to any insurance poticie: and in and to the proceeds thereof resultir g from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by his Mortgage immediately prior to such sale or
acquisition.
6. Preser.~ation and Atair~tcnance of Propcrt~; Leaceholds; Condon iniums; Planned Unit De~•elopments. Bon-ower
shall keep the Property in gc?al repair and shall not commit waste or per nit impairment or deterioration of the Properly
and shall comply with the provisions of arn' Icasc if this ~1ort~:+5c is on a leasehold. 1( this ~fortgacc is on a unit in a
condominium or a planned un t dcvclopment. Borrower shall perform ail ut Borrower's obGbauons under the dedaratiun
or covenants creating or gove-ning the condominium or planned unit d:veMpmcnt, the by-laws and rceulations of the
condominium or planned unit development, rod constituent da:uments. It a condominium or planned unit developn+e:nt
rider is executed by Borrower and recorded together with this MongaF=, the covenants and agreements of such rider
shall be incorporated into and ;hall amend and supplement the covenants and agreements of this I1lortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. if Borrower fails to perform • he covenants and agreements contained in this .
Mortgage. or if any action c r proceeding is commenced which materially affects Lender's interest- in the Property.
including. but not limited to, ~ minent domaim, insolvency, code emforcerr :nt, or arrangements or pra:eedings involving a
bankrupt or decedent, then Lender at Lender's o-,rtion, upon notice to torrower, may make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's interest, including, but rot limited to, disbursement of
reasonable attorney's fees amd entry upon the Property to mrkc repairs. If. Lender required mortgage insurance as a
condition of making the loan secured by this I?tortgage, Borrower shall pay the premiums required to maintain such
insurance in eQert until such time as the requirement for such insurance terminates in accordance with Borrower s and
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