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Untr?aw CoveNaHrs. Borrower and lender covenant and agree u tolk+ws:
1. >rofweert of lrinclMl arad Isleeest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest
an any Future Advsnces secured by this Mortgage.
2. Egress for Toes ated Iswrsrrce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a sum (herein "Funds") equal to one-twel[th of the year!} taxes and assessments which may attain priority over this
Mortgage. and ground rent: on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to tithe by Lender on the basis of assescntcnts and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). [.ender shall apply the Funds to pay said taxes, assessments,
.nsurance premiums and ground rents. [.ender may not charge for sa holding and applying the Funds. analyzing said account,
or verifying 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 o[ execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable 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 this Mortgage.
If the amount o[ 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 Borrower's 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 Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Funds
held by [.ender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
sball 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 ensured by. {his Mortgage.
3. Appikstion of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to inlrresl payable un iirt Mott, thtri to the principal of the Mote, and ihcn io interest and
principal on any Future Advances.
4. Charges; Lkas. 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 m such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnrsh to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment drrectl}•, 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 IonK as Borrower shall agree in writing to the payment of the obligation secured by
such hen in a manner acceptable to Lender, or shall in gaxl faith contest such lien hy, or defend enforcement of such lien •in,
legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the rmpros•ements now existing or hereafter erected on the Property insured
against loss. by fire, hazards includrd within the term "extended coverage". and such other hazards as !.ender may require
-and m 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 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, rf not paid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
j All insurance polrcre. and renewals therruf shall t><: in form acceptable to Lender and shall include a standard mortgage
clause in favor of and rn form acceptable to Lender. Lender shaFl have the right to hold the policies and renewals thereof,
I and Borrower shall promptly furnrsh to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
I Borrower shall grs~c prompt notice to the rnsurance earner and Lender. Lender ma}• make proof of loss if not made promptly
by Borrower.
I Unless Lender and Borrower otherwrse agree in wntrng, insurance proceeds shall be applied to restoration. or repair of
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I the Property damaged, provided wch restoration or rtparr is economically feasible and the security of this Mortgage is
not Ihereb}• imparred. If such restoration or repair is nut economically feasible or if the security of this Mortgage would
be impaired, the rnsurance 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
s. date notice rs marled by !.ender to Borrower that the rnsurance carrier otTers to settle a claim for insurance benefits, Lender
is authorised to collect and apply the insurance proceeds at I_cnder's option either to restoration or repair of the Properts•
or to the sums secured h}• this Mortgage
Unless Lender and Borrower otherwise agree rn writing. an} such application of pn>.:eeds to principal shall not extend
or postpone the due date of the monthly inataldmcnts referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. It under paragraph 18 hereof the Property rs acymred by Lender, all right, title and interest of Borrower
in and to any Insurance policies and in anJ to the proc:ceds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the bums secured by this ;Mortgage immediately prior to such sale or
acquisition.
6. Preservation and 1laintenance of Property: l.easehulds: ('ondominiums: Planned Unit Developments. Borrow•cr
a shall keep thr Property in g~xxf repair and shall not commit ~sastc or permit impairment or deterioration of the Property
and shall comp!} with the pros•isrons of any lease rf this ~furtgagc rs un a Itaschold_ If this Mortgage is on a unit in a
condominium ur a planned umt development, .Borrower shall perform all of Borrower's ohhgations under the declaration .
or covenants creating or governing the conduinrmum or planned unit development, the by-laws and regulations of the
3 condominium or planned unit develupment..ind constituent J~xuments. If a condominium or planned unit development
ti rider rs executed by Burrower and re:orded together with tftrs ~tortgagc, the covenants and agreements of such rider
shall be rncorpurated into and shall amend and wpplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of [.enders Security. If Burrower faits to perform the covenants and agreements contained in this
Mortgage, or if any action ..r pioceedrng rs commenced which materially affects Lender's interest in the Property,
~ including. but not Irmued tu, eminent domain. rnsolvenc}. code enforcement, or arranFe~tems or proceedings involving a
bankrupt or decedent. then 1 ruder at I ender's option, upon notice Io Borrower, mac make such appearances, disburse such
sums and :ake such action as is necessary to pnHect Lender's interest, inchiding. but not limned to, disbursement of
reasonable attorney's tees and entry upon the Propert}~ to make repairs. If Lender reyuirecl mortgage insurance as a
~ condmon of nrakrng the loan secured h} thu Slortgage. Borrower shall pay the premnnm required to maintain wch
rnsurance in etlect until s;rch ume as the reynuement [or .uch inuuancc terminates in accordance with Borrower's and
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