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UNtrott?t Covantat~ns. Borrower and Lender covenant and agra ss tolk+ws:
L )rgtweM of tsietNl anti latissrest. Borrower shall promptly pay when due the principal of and interest oa Cite
atdebtedttees evideaoed by tha Note, prepayment and late charges as provided in the Note. and the pritcipal of and interest ~
oa soy Fpttare Advatttxs sxtu+ed by this Mortgage. ~
lriwi fter Tftae ttrtd Iastrraiec~e. Subject to applicable law ~x to a written waiver by Lender, 8orro*?er shag Pay
to Leader on the dsy monthly installments of principal and interest arr. payable under the Note. until the Note is paid in full,
a start (herein "Fuads'q egttal to ortatwelfth of the yearly tsx~~ and assessrttertts which ttnay attain priority over this
Mortgage, sad ground reab oa the Property. if any. plus one-twelfth of yearly Premium installments for hazard inwratnce,
plusone-twelfth of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
time to bate by Leader oa the basis of assessments and bills and reasonable estimates thereof.
The Fttnds shall be bold in an institution the deposiu or accounts of which are insured or guaranteed by a' Federal of
states agency (including bender if Lender is such an institution). I~nder shall apply the FLttds to pay said taxes. assessrttettts.
iawnrtce premiums and ground rents. Tender may not charge for so holding and applying the Fonds. analyzing said account.
or veritying_attd eompling said assessttxnts and bilk. unless lender pays Borrower interest on the Funds and applicable law
permits Lender to make wch a charge. Borrower and Lender may agree in writing at the time of execution of this .
Mortpge that interest on the Funds shall be paid to Borrower. and uttkss such agreement is made or applicable law
regttitns 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 arc pledged as additional security for the sums secured
by this Mortgage,
It the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assattments, insurance premiums and ground rents ss they tall 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 o[ the Funds
bad by Lettder shall not be st~iaeat 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 Leader to Borrower ttquestin8 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 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
Leader at tha time of application as a credit against the sums secured by this Mortgage. .
3. A~catioa aE Pr~ymea~ts. 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.
1. Crarges; Lit:as. 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 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 ittw~ntusce. 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 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 ~y this Mortgage. i
'Ilte 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
I 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. Tn the event of loss. .
Borrower shall 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
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 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 far 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 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 I and 2 hereof or change the amount of {
such installments. If under paragraph I8 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 procceds thereof resulting from damage to the Property prior to tltc 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. Prrtservatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Unit lkveloptnents. Borrower
shall keep the Property in good repair and shall not commit yvaste 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
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-taws and regulations of the
condominium or planned unit development. and constituent docurncnts. 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.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to. eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then 1_ender at (.ender i option, upon notice to Borrower, may make such appearances, disburse such t
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If (.coder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Barrewcr shall pay the premiums required to maintain such
insurance in effect until such time as the reyoirement for such msurance terminates in accordance with Borrowers and
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