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UNIFORM COVENANTS. Borrower and Lender covenant and agree u follows:
1. laymeat of Puiuci~pal std lsterest. Borrower shall promptly pay when due the principal of and interest oa the-
indebtedness evidenced by the Note. prepayment and late charges u provided in the Note, and the principal o[ sad interest
on any Future Advances secured by this Mortgage.
2. Frtad's for 7lutss attd Iawnat:e. Subject to applicable law or to a written waiver by Lender, Borrower shay pay
to Lender on the day monthly inusllments of principal ani interest are payable under the Note. until the Note is paid is fuB,
a cum (herein ''Funds") equal to one-twelfth of the yearly taxes and assessments which tray strain priority over this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium ittstallmeats for hazard iasrxaace.
plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as rptsortaWy estunated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
'ilte Funds shall be held in an institution the depoaiu or accounts of which are insured a guaranteed by a Federal a
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assesstaeots.
insurance premiums and ground rents. Lender may not chuge for so holding and applying the Funds. analyzing said aooottnt.
or verifying and compiling said assessments and bills, unless Leader pays Borrower interest on the Funds cad applicable hew
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of th's
Mortgage that enteral on the Funds shall be paid to Borrower, and unless such agreement it made or applicable Isw
requira such interest to be paid. Lender shall not be required to pay Borrower any interest or earsings oa the Funds. Leader ii
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the f
purpose for which each-debit to the Funds wu made. The Funds arc pledged as additional sorority tot the sums secured +
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments d Funds payable prior to ;
the due dates of taxes. assessments. insurance premiums and ground rents, shall exeted the amount rogrtired to pay said rues.
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 amottttt d the Furls
held by Lender shall not be sufficient to pay taxes. assessments. insurance premiums and ground rents as thry fop 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 ptiyment thereof.
Upon payment in full of all sums secured by this Mortgage, lender shall promptly refutd to Borrower say Frmds
held by Lender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Leader
shall apply, no later than immediately prior to the sale of the Property br its acquisition by Lender. coy Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Applkatiort of Psytnertls. 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 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. cad rhea to 6tterest and ;
principal on any Future Advances. '
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. 5nes and imposition attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground roots. if coy. m the matttrar. i
provided under paragraph 2 hereof or, if not paid in such manner, by BotTOVrcr making payment, whey due. directly to the
payee thereof. Borrower shall promptly furnish to lender ailpotices of amounts due under this paragraph, and is the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evideoeiag 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 bng as Borrower shall agree in writing to the payment of the obtigatioa secuued by
such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such ties ia.
- legal proceedings vi+hich operate to prevent the en[orament of the lien or forfeiture d the Property or any put tbered.
S. Hazard Irtsttratsce. Borrower shall keep the improvements now existing or hereafter erected on the Propcrty insured
against loss by fire. hazards included within the term "extended coverage'. and such other hazards as Lender may require
and in such amounu and for such periods u Leader may roquirc; provided, that Lender shall not require that the arnqunt d
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. -
'Ibe insurance carrier providing the inswance shall be chosen by Borrower wbject 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
i insurance carrier.
j All insurance policies and renewals thereof shall be in form acceptable to Lenderand shall include a sundard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the pdicies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts d paid premiums. In the event of Was.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof d loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or tepoir d
the Property damaged, provided such restoration or repair is economically feasible and the security d this Mortgage is
not thereby impaired. If such restoration or repair is not economically feasible or if the security d this Mortgage would
be impaired. the insurance proceeds shall be applied to•the sums secured by the Mortgage, with the excess, if say, paid"
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for inurance beoebts, Deader
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 agrce in writing. any such application d proceeds to principal sbaA not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount d
such installments. If under paragraph l8 hereof the Property is acquired by Deader, all right, tick 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.
6. )Preservatloa and Maiuteoaoce of Property;. Leaseholds; Coadosiaittsss•, Plawaci Utit Devdo~est<s. 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 kale 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 under the declaration
or covenants creating or governing the condominium or planned unit devcbpment. the by-laws and reguiatioos of the
condominium or planned unit development. and constituent documents. If a condominium w planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreemrnts of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
wen a part hereof.
7. Protection of Leader's Security. If Borrower fails to perform the covenants and agrcerttents contained is this
Mortgage, or if any action or proceeding is commenced which materially affects Lenders interest io the Property,
including. but not limited to, eminent domain, insolvency. code enforcement, or arrangements or pmce~dmgs invdviag 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 ttecessary to protect Lenders interest. including. but not limited to, disbtusematt of
- reasonable attorney's fees and entry upon the Property to make repairs. if Lender required mortgage inwartet as a
condition of making the loan sceured by this Mortgage. Borrower shall pay the premiums required to maintain- such {
inswance in effect until such time u the requirement for such insuratce terminates io accwdartce with 8orrovrer's cad
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