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Ur+tt~otur Covsrtatuts. 8orroarer pad Lender covenant and agree to follows: •
1. >EspateM M)leLelpttl atM 1tNerp~1. borrower shall promptly pay when due the principal of and interest on the
irtdebtedrtea evidetttxd by the Note. prepayment and late charges as provided in the Note. acrd the principal of and interest
oa any Futuue Advances secured by this Mortgage. .
Ifttnis fir Tattsa ttr.i Ittwra~ee. Subjat to spplicat?k law tx to a written waiver by Lender. Borrower shall pay
to Leader on the day monthly installments of principal and interest arc payable under the Note. until tl?e Note is paid in full,
a stop (herein "Fttttds'~ equal to orte-twelfth of the yearly- taxc. and assassntents which tray attain priority over this
Mortgage, pad ground tent on the Pt!operty, if any. plus one-twelfth of yearlyi premium installment for hazard insurance.
plus one-tttrNfth of yearly preraitrm installments for mortgage insttrantx, if any. all as reasonably estimated initially and from
time to tithe by Lender on the basis of asst:ssntcnts and hills and reasonable estimates thereof.
The Fund: shall be held in an institution the depasita or accounts of which arc insured or gwanteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
inwrttaoe premiums and ground rents. lender may not charge for so holding and applying the Fonds, 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 of execution of the
Mortgage that interest on the_Funds shall be paid to Borrower, and unless such agreement is made or applicable law
roquirea such interest to be paid. Lender shall not be requited to pay Borrower any interest or earnings on the Funds. Lender
slug give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpQst for which each debit to the Funds was made, 'tlte Funds arc pledged as additional security for the sums secured
by this Mortgage..
Tf 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.
a»drmeots, insurarnce premiums and ground rrnts 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.. Ij the amount of the Funds
held by Deader shall trot 6e sttf6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Borrower shill pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment is full of all sums t[ectrred by this Mongagc, Lender shall promptly refund to Borrower any Funds
held by [.ender. If under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender. Lender
sbaU apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application a: a credit against the sums secured by this Mortgage.
3. AMtlicatiota of >rtp~tne~. Unless applicable law provides dherwise, all payments trceived by Lender under the
Note pad paragraphs 1 attd 2 hereof shall be applied by Lender fast 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.
4. C6artes; Liew. 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, what due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
Borrower she!! retake payment directly. Borrower shall prompdY furnish to Lender rcceiQts evidencing. such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower snail 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 praceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Haiard lawrance. Borrower shall leap the improvements nov.• 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
pad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
SUCH COVtragt :w~~w :fie: ~ . en nw .M c_nm_t vrntrrl by this Morttale.
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'Ibe 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
iasuratxe 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 a!I 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 loos if not made promptly
by Borrower.
Unless Lender and Borrower otherw?c~: agree in writing, insurance proceeds shall be applied to restoration or repair of
the •Prpperty 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 i( 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. tf the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed 6y Lender to &irrower 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 Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the mi~nthly insallments referred to in paragraphs I and 2 hereof or change the amount of
such installments. It under paragraph l8 hereof the Pro fertj+ is acquired by Lender, alt right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resuttmg from damage to the Property prior to tlx~ sale
or acquisition shall pass to Lender t~ the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and. lNaiatenance of Property; Leaseholds; condominiums; Planned Udt 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 wi[h the provisions bt any lease if this Mortgage i~ 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 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 develoi,ntent, 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 incorporate) into and shall amend and supplement the covenants anJ agreements of this Mortgage as if the rider
were a part hereof.
Prptection of Lender's Security. If Borrt~wer fads t~, perfc.rm the covenants and agreements contained in this
Mortgage, or if any action ~~r proceeding is cammrnced which materially affects Lender's interest in the Property,
including, but not limned to. eminent domain. in~~~lvency. axle cn(orcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lender at I.ender~ option, upon notice to Borrower, m~~j nt_fc~st~ch'appearances, disburse such
sums and take such action ac is necc~,ary to protect Lenders interest, including. but not limited to, disbursement of
reasonable attorneys tees and entry ulxm the Property to make repairs, if 1_ender required mortgage insurance as a
condition of making the loan secured b~• this Mortgage. Bi,rrrwer sh.tll pay the premiums required to maintain such
insurance in effect until etch time as the requirement for wch insurance term[nates m accordance with Borrower's and
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