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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: ; , ,
1. P~nNnt Oft Prlnalpal and IifMnt+N. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note,prepayment and late chargesas provided in the Note, and the principal of and jnt@rest
on any Future Advances secured by this Mortgage.
Z. Funds focTaxN and Inaunnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender onthq daxmonthry Installments of principal and ir>Itprest are payable under the Note, until the Note is paid in full,
a sum (herein "Fun4ta'~ equal to one-twelfth cd the Yearly. tallxes and assessments which may attain priority ov@r this
Mortgage, and ground refits on the~'roperry, if any, plus-one-twelfth of yearly premium installments for hazard insurance,
plus one-twelllh pf yearry ifremium Installments for rr?drtgage Insurance, it any, all as re8saonabryesttinated inltiallyand frorft
time to time by Lender on the basis of assessments 8nd bills and roasonable estimates thereof. '
- The Funds shall be held in an institution the deposits or aotrounts of which are insured or guaranteed by a Federal or
state agency(incltxling Lender if Lender is such an institution?. Lender shall apply the Funds to paysaid taxes, assessments,
insurance pn3miums and ground rents. Lender may not charge for so holding and applying the funds, analyzing said account,
or verfying 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 matte or applicable law
requires suoh interestto be paid, ~end~rat~U ~ol•~e (egtJi~d to pay_f3orroWeranyinlerest orearnings or.the FiJ(lds.lender
shall give to Borrower, without charge, an anno8l accounting of the Fonds Showing credits and detlits to the FUrSds and the
purpose for which each debit to the Funds was made. The Funds are 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 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 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 Lender 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 Borrowar requesting payment thereof.
Upon payment in full of,aN surds sc3cured by;his ~AoRgage,,Lender, shall promptly refund to Borrower any Funds
held by Lender. It find@T liaragrapr~l8 hereol the Pioperty`is sofdor 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
Lender at the time otapplicafion as'8 credit against the`•Sums secured by this Mortgage.
3. Application Of Paymrrnts. 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 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. -
pay all taxes, assessments and othercharpeS, fines and imppsitions attributable to
4. Chars; Hens. Borrower shall
the Property which may attain a priority over this Mortgage, and leasehold payments or Bound rents. if env, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by~9orrower rim~flElrl~`peyrhent, wfr~n doe, directly to the
payee thereof. Borrower shall promptry turnish to Lender all notices of amountsque under this paragtapit, and in the event
Borrower shall make payment directly, Borrower shall promptly,fVmish to-.Lender receipts evidenCif><7.t3uols payments.
Borrower shall promptly discharge any lien which has priority'bver this Mortgagg provided, that Borrower shall not be
required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by
such li@n 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 o1 the Property or any part thereof.
S. Hawd Insurarroa. Borrower shall keep the impri5veriients now eitisting 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 require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay, the sum sec_grQd,by this Mortgage.
The insurance!carrier'providing the insurance shatibe chosen by BorroW~r,SUbject to approval by Lender, provided,
that such approval shall~not be unreasonably witfllield.-AlI premiums on i~+surence policies sftialf be~paid in ihe~manner
provided and@r paragraph 2 hereot or, if not~iaid in such maixier, 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 shalt have the right to hold the policies and renewals thereof,
and Borrower shall promptly turnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrowershall 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 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
E not thereby impaired. It such restoration or repair is not economically feasible or it 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
f to Borrower. If the Property is at~andoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lerxier 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 Borrowerotherwise agree h writing. any such application of proceeds to principal shalt not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereot or change the-amount of
such installments. if under paragraph 18 hereof the Property 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. Pnsarvation and Matntananca of Property; L.aasihofds; CondQminlums; Plannid Unlt f~evalopments.
Borrower shall keep the Property in good repair and shat l not commit waste or permit impairment or deterioration of the Pro-
~ party and shall comply with the provisions of any lease it this 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
r 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. It 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 inW and shall emend and suppterrieht the covenants and agreements of this Mortgage as it the rider
were a part hereof.
7. Protraction of I..andsrs Security. If Borrower tails to perform the covenants and agreements contained in this
Mortgage, or ~ any action or proceQding is commenced which materially affects Lenders interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lenders option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursements of
reasonable attorneys fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
t condition of making the loan secured by this Mortgage, Borrowdr shalt pay the premiums required to maintain such
insurance in effect until such time as the requirement (or sucfl insurance terminates in accordance with Borrowers and -
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