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Unttoaw Coviarunts. Borrower and Leader covenant and agree u follows:
1. )T~tent at hLe1M1 anti ltMered. Borrower shall promptly pay when due the principal of grid interest on the
itidebtednas evidenced by the Note. prepayment and late charges ac provided in the Note, and flit principal of and iatet+at
oa my Future Advances secured by this Mortgage.
lY~tni for Tastes aril Iwrtmea Stiibject to applicabk law .u to a written waiver by Lender, Borrower shall pay
to Lender oa the day monthly installments of principal and interest arr. payable under the Note. until the Note is paid in full,
a ttun (herein "Fuads'~ egwl to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground reties on the Property. if any, plus one-twelfth of yearly premium installtitents for hazard insurance.
plus oaatwelfth of yearly premium installments for mortgage insurance, if any, all u reasonably estimated initially and from
time to tithe by Leader on the buffs of assessments and hills and rcasonabk estirrutes thereof.
71te Funds shall be Held in an institution the deposits or accounts of which art instued or gwrantted by a Federal of
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessriicnts.
inwratice premiums and ground rents. lender may not charge for ro holding and applying the Fnrids. analyzing said account,
or verifying~nd compiling said assessrents and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Ltpder to make such a charge. Borrower sad Lender may agree in writing at the lima of execution of this
Mortgage that interest on the Funds shall 6e paid to Borrower. and ualeu such agreement is made or applicabk 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 pledged u additional security for the sums secured
' by the Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payabk prior to
the due dates of taxes. atsesssments, insurance premiums and ground rents, shall exceed the amount required to pay said-tuts,
atnaaneats, insurance premiums and ground rents u they fall due, such excess shall be, at Borrower's option, either
protnptfy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds
Geld by Leader shall not be sufficient 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 thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fund:
held by Lender. If untkr puagraph 18 hereof the Property is sold or the Property ~s otherwise acquired by Lender, Lender
shall apply. rio later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Leader at the tithe of application u a credit against the sums secured by this Mortgage.
3. A~ikatlow off layoeals. Unless applicable law provides otherwise, all.paytnents 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.
4. Charges; Lieas. 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 mantxr
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shalt 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 Itch 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 lien 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 ituured
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.
"Ilse 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.
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,
Borrower shall give prompt notice to the insurance carrier and tender. Lender 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 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 if Borrower tails 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 Lender's option either to restoration or repair of the Property
1 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
1 such installments. 1f under paragraph I S hereof :he Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and to 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 sad Maintenance of Properly; Leaseholds; Condominiums; Planned Unit lkvekpments. Borrower
f shall kcep the Property in good repair and shall not commit y?•aste or permit impairment or deterioration of the Property
- and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a.
z 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 documents. If a condominium or planned unit development
r 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.
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7. Protection of Ledder•s Security. If Borrower (ads to perform the covenants and agreements contained in this
t Mortgage, or if any action ur proceeding is c~~mmrnced whic#~ materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. in~~.h•ency. code 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, dishurse such
~ sums and take such action as is necessary t~? protect Lender's interest, including, but not limited to, disbursement of
~ reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
conduion of making the loan sccure~l by this M~~rtgage. B~.rn:wcr shill pay the premiums required to maintain such
insurance in effect until such time as the reyuircment ft•r wch insurance terminates in accordance with Borrower's and
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