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UNIFOrtM COVL'NANT3. Borrower and Lender covenant and agree as follows:
1. lhtyrrtertf of PrMclp[I asii IsgereN. Borrower shall promptly pay when due the principal of and interest on the
indebttdnea evidenced by the Note, prepayment and lab charges u provided in the Note. and the principal of and interest
on any Futttre Advances secured by this Mortgage.
2. lihrrttls for ltiarss arri lrtrssr•M. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
:.t•~~ un uay montnry trutallments of principal and interest arc payable under the Note, until the Note is paid in full.
a sum (herein "Funds'q egwl to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents On the Pt~operh •i ..'.t. .....n....i~.i. „F .rT. ....,,.;~.a, Intl ~1~SIlCa1t tel: h.'~ai:1 ~nS11r31ftC.
~ iW[.~unents for mortgage insurance. if any. all u reasonabty es[[mateq [ntttatty ana rrom
time to time by Lender on the buffs of assessments and bills and reasonable estimates thereof.
'Ilte Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal or
state agency (including Lender it Lender is such an imtitution). Lender shall apply the Funds to pay said taxes, sssessmenu.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
. or verifying and compiling said assessments and bills, unku 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 the
-Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires wch 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 oI the Funds showing credits and debits to-the Funds and the
purpose [or 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 Fund: held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, inwrance premiums and ground rents, shall exceed the amount required to pay said taxes.
assessnents. insurance premiums and ground rents u they tall du_e. such excess shall be. at Borrower's option. either
prgnptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
heW by Leader shall not be wt8cient to pay taxes, assessments. insurance premiums and ground rents u 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, tender shall promptly refund to Borrowtr any Funds -
held by Lender. If under paragraph. l8 hereof the Property is sold or the Properly 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 of application u a credit against the sums secured by this Mortgage.
3. Application of >h~senb. 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 paymer[t 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 -
principat on any Future Advances.
d. -Crargesy Liieas. Borrower shall pay all tarts, assessments and other charges, ftnes 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 Borrowtr making payment. when due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all ootioas 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 hu 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 Ir[arrance. Borrower shall keep the improvements now existing or hereafttr eructed on the Property insured
against lass by ftre. hazards included within the term "extended coverage", and such other hazards u 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 by this Mortgage. -
'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
that such approval shall cwt be unreasonably withheld..All premiums on insurance policies shall be. paid in the manner
provided under puagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
iawrantx carrier.
AU 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 Lender. Linder 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 ratoration or repair of
the Property damaged, provided such~ratoration 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 rwtice is mailedby 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
or to the sums scoured by this Mortgage.
Unless Lender and Borrower otherwise agrce 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
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. .
f. hsaervadot+ sad Maiateoaace of Property; Leaseholds; Condominiuars; Planned Unit iflevebpreeats. Borrower
shall keep the Property in good repair and shall not commit waste 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 Borrowers obligations [ruder 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
rider is executed by Borrower and recorded .together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and sbaU amend and supplement the covenants and agreements of this Mortgage u if the rider
were a part hereof. .
7. Protectloe of Leader's Secnrity. 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 Lender at Lender's option, upon notice to Borrower, may make such appearances. disburse such
sums and take such action u is necessary to protect Lenders interest, including. but not limited to. disbursement of
reasonable attorney's fess and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time u the requirement for such insurance terminates in accordance with Borrower's and
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