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UNIFORM COYEN.~NTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and laterest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Tara and Insurance. Subject to applicable law or to a written waiver by I_cnder, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Dote is paid in full,
a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents 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 time by I_endcr on the basis of assessments and bills and reasonable estimates thereof. •
The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender ma}• not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unless lender pays Borrower interest nn the Funds and applicable law
permits Lender to make such a charge. Borrower and 1_cnder may ague in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not he reyuired to pa}• Borrower any interest or earnings nn the Funds. Lender
shall give to Borrower, without charge, an annual aca~ttnting of the Ftrnds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The f=unds arc pledge-cf 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 reyuired to pa}• said taxes,
assessments, insurance premiums and ground rents as the}, 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 pa}• to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by I.endcr to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
held by Lcndcr. If under paragraph 18 hereof the Property, is sold ur 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 of application as a credit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hereof shall he applied b}• 1_endcr first in payment of amounts pa}:chic to Lender by Borrower
under paragraph 2 hcreo(. then to interest payahlc on the Nutc. then to the principal of the Notc, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Burrower shall pay all taxes, asxssments and other charges. fines and impositions attributable to
the Property, which may attain a priority over this Mortgage, and leasehold payments ur 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 h}•
such lien in a manner acceptable to Lender, or shall in gcrxl faith contest such lien h}•, 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.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss h}• fire. hazards included within the term "extended coverage". and such other hazards as Lender may reyuire
and in such amounts and fur such Aerials as Lender may reyuire: provided, that Lender shall not reyuire 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 he chosen by Barn?wer subject to approval by lender, provided,
that such approxal ,hall not be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
I 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 Ix in form acceptable to Lender and shall inclr:de a standard mortgage
clause in favor of and in form acceptable to Lender. Lcndcr shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lcndcr all renewal notices and :III receipts of paid premiums. In 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 venting, 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 ecunomicall}• 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 h} Borrower. or i( Bormwer fails to respond to 1_ender within 30 days from the
date notice is mailed b}• 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 secured by this Mortgage.
Unless Lcndcr and Borrower otherwise agree in writing, any such application of pr~x:eeds to principal shall not extend
or postpone the due date of the monthh• imtallments referred to in paragraphs I anil 2 hereof or change the amount of
I such installments. If under paragraph l8 hereof the Property is acquired by Ixnder, all fight, title and interest of Borrower
in and to anc 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 ;lfurtgage immediately prior to such sale or
acquisition.
f 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. 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 (ease 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-laws and regulations of the ;
condominium or planned unit development. and constituent documents. If a condominium or planred unit development
rider is executed by Borrower and recorded together whh this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend and supplement iKe co~•enants anJ agreements of this Mortgage as if the rider
~.erc part hsreof.
7. Protection of Lender's Security. If Borrower fails m perform the covenants and agreements contained in this
Afortgagr. or if any action or proceeding is a~mmcnced which materially affects Lender's interest in the Property,
including. but rat limited to. eminent domain. insolvency, code enforcement, ar arrangements or proceedings invoh•ing a
bankrupt ur decedent, then Lcndcr at Lender's option, upon notice to Borrower, may make such a~?pe r,•tpc~s, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not lifnrtie~ to, disbursement of
reasonable attorney's fees and entry ulx~n the Property to make repairs. If Lender reyuired mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
• insurance in etFect until such time as the requirement for such insurance terminates in accordance with Borr~wer'srnd
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