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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows=
/ . Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges as provided rn the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds forTsxes and Insurance. 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 are payable under the Note, until the Note is paid in full,
a sum (herein ~~Funds') equal to one~tweltth of the yearly taxes and assessments whrch may ariarn prioriry over this
Mortgage, and ground rents on the Property, rf any, plus one•twelfth of yearly premium installments for hazard insurance.
plus one•tweltth of yearly premium installments fa mortgage insurance, it any, all as reasaonabryestimated rnitiallyand Irom
time to time by Lender on the basis of assessments and bills and reasonable. estimates thereof.
The Funds shall be held in an institutan the deposits or accounts of which are insured or guaranteed by a Federal or
state agency(rncluding Lender rl lender is such an rnstitutrorr). Lender shall apply the Funds to pay card taxes, assessments.
insurance premiums and ground rents. Lender may not charge for so hotdrng and applying the Funds, analyzing card account,
or verifying and compiling said assessments and brill, 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 this
Mortgage that interest or1 the Funds shat! b6 paid to Borrower, and unless such agreement is made Or applicable law
requires such interest to be paid. Lender shall notce required to pay Borrower any rnterestor earnings on the Funds. Lender
shalt give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each deba to the Funds was made. The Funds are pledged a; addrtrO~al secturry tcx,the sums secured
by this Mortgage.
11 the amount of the Funds held by Lender. together with the future monthly rnstallments of Funds payable prior to
the due dates of taxes. assessments, insurance premiums and ground rents. shau exceed the amount required to pay card taxes.
assessments. rnsurance premrums and ground rents as they fall due. such excess shall be. at Borrowers option. either
promptly repaid to Borrower or credded to Borrower on monthly rnstallments of Funds. It the amount d the Funds
held by Lender shall not be Sufficient to pay taxes, assessments, rnsurance premrums and'ground rents as they fall due.
Borrower sha?I pay to Lender any amount necessary to make up the deficiency withrn 30 days from the date notice is mailed
by lender to Borrower requesting piiyment thereof.
Upon payment in full of al! sums secured by tMS Mortgage. lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property rs sold or the Property rs otherwise acquired by Lender. lender
shall apply, no later than immediately prior to fhe sate of the Property or its acgwsrtion by Lender. any Funds held by
lender at the hme of appbcation as a credit against the sums secured by this Mortgage.
3. Appllcatlon of Payments. UnteSs applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs t and 2 hereof shall be applied by Lender fast in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to rrtterest payable on the Note. then to the principal of the Note, and then to interest and
~ principal on any Future Advances. -
4. Chartres; Lfens. Borrower shall pay alt taxes. assessments and Diner charges. fines and impositions attributable to
the Property whrch may attain a priority over this ltilortgage. and leasehold payments or gourd rents, if any, in ttte manner
provided under paragraph 2 hereof or. rt not yard rn such manner, by Borrower rrlakrng payment when due, directly to the
payee thereof. Borrower shall promptly furnrsh to Lender alt notrces of amtsunts due under this paragraph. and in the event
Borrower shall make payment directly. Borrower shall promptly furnrsh to Lender receipts evidencing such payments.
Borrower shat! promptly drscharge any lien which has priority over tars Mortgage. provided. that Borrower shall not be
required to drscharge any such hen so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien rn a manner acceptable to Lender. or shall in good faith cbhtest such lien by. er defend enforcement of such lien rn.
legal ~roceedrngs whrch operate to prevent the enforcement of the Iren o? forfeiture of the Property or any part thereof-
• 5. Hazard Insurance. Borrower shall keep the +mprovements now ewsUng or hereafter erected on the Property insured
against loss by fire. hazards rncluried withrn the term 'extended coverage'. $nd such other hazar,is as Lender may require
and in such amounts and for such periods as Lender require: provided. that Lender shall not rei~uire that the amount of
such coverage exceed That amount of coverage required to pay the sum securedb~? this Mortgage.
' The insurance carrier provrdittg the insurance shalt be chosen ky Borrower subfect to approval,py Lender: provided.
that such approval shall not be unreasonably withheld- AN premiums on +nsurance policies shall be paid in the manner .
provided under paragraph 2 hereof or. rf not paid rn such manner. by Borrower mak+ng payment when due, directly to the
rnsurance e6mer
Ail insurance pol+cres and renewals thereof shall be rn form acc~:ptable to Lender and shall include a standardmortgage
clause in favor of and inform acceptable to Lender. Lender shat) have the right to hold the pohcres and renewals thereof,
j and Borrower shall promptly furnish to Lender all renews! notrces and all receipts of paid premiums. In the event of loss.
j Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of foss if not made-promptly
by Borrower
Unless Lender and Borrower otherwise agree rn writing. rnsurance proceeds shall be applied to restoration o< repair of
the Property damaged. prov+ded such restorat+on or repair +s econorr+cally feasible and the security of this Mortgage rs
not thereby impaired. It such restoration or repair +s not economrcauy feasible or rf the security of this Mortgage would
` be impaired. the rnsurance proceeds shall to applied to the sums secured by this Mortgage. with the excess. rf any. paid
to Borrower. I! the Property rs abandoned by Borrower. or rti Borrower tails to respond to Lender withrn 30 days from the
date notice is mailed by Lender to Borrower that the rnsurance carrier offers tc; serile a claim for insurance benefits. Lender
rs authorized to collect and appry the rnsurance 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 rn wr+trng. any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to rn paragraphs 1 and 2 hereof or change the amount of -
s such rnstallments. If under paragraph 18 hereof the Property +s acqurrcu oy 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 io the sale
or acquisition shall,pass to Lender to the extent of the sums secured by this Mortgage rmmedrately prior to such sale o<
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
Borrower shall keep the Property in gcx~d repair and shat! not commit waste or perm?t rmparrment or deterioration of the Pro-
perty and shall comply with the provisions of and lease rf th+s Mortgage rs on a leasehold. 11 this Martgage rs on a unit rn a
condomrnrum or a planned unit development. Borrower shat: perform ail of Borrowers obligations under the declaration
or covenants creating or goverrnng the condomrnrum or planned unit development the by-laws and regulations of the
condominium or planned unit development, and constituent dxuments. If a condominium or planned urnt development
~ rider rs executed ~y Borrower and recorded together with this Mortgage. the covenants and agreements of such rider
shall be +ncorporated into and shall amend and supplement the covenants and agreements of ihrs Mortgage as if the rider
' were a part hereof. '
~ 7. Protection of Lender's Security. If Borrower farts to perform the covenants and agreements contained rn this -
Mortgage. or rt any action or proceeding rs commenced whrch materrauy affects Lenders interest in the Property.
rncludr~g. but not limited to, eminent domain, rnsolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then lender at Lenders option. upon notice to Borrower. may make such appearances. disburse such
sums and take such action as rs necessary to protect Lenders interest including. but rat limited to. disbursements of
reasonable attorneys tees and entry upon the Property to make repairs. If Lender required mortgage rnsurance as a
condition of making the loan secured by this Mortgage. Borrower shalt pay the premrums required to maintain such
rnsurance rn effect until such ;rme as the requ+rement for such insurance terminates rn accordance with Borrowers and
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