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UNIFORM COYENANTS. Borrower and lender covenant and agree as follows:
1. Payment of Ptiaclpal 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. Roads for Taxes trod lasttraace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on ttte day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
a sttm (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 Lender 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 are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the F•thds to pay said taxes, assessments.
insurance premiums and ground mots. Lender ma}• nut charge for so holding and applying the Funds, analyzing said acrnunt,
or veri[ying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Burrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be reyuirect to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
purpose fur which each debit to the Funds was made. Tlie Funds arc pledged 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 Ft+nds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amounrreyuired to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option. either
promptly repaid to Borrower or credited to Burrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufTicient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the Deficiency within 30 da}•s from the date notice is mailed
by Lender to Borrower requesting payment tbereof.
Upon payment in full of all sums secures! b}• 1his,Mortgage. Lender shall promptly refund to Borrower any Funds
held by Lcndcr. If under paragraph 18 hereof the Property is u~ld or the Property is otherwise acquired by Lender, 1_ender
shall apply, no later than immediatel}• prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time-af 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 l and 2 hereof shall be applied by I ender first in pa}•ment of amounts payable to l_cnder by Borrower
under paragraph 2 hereof, then. to interest payable tin the Nute, then to the principal of the Note, and then to interest and
principal on.any Future Advances. -
4. Charges; Liens. Burrower shall pay all taxes• assessments and other charges. fines and imlx?sitions attributable to
the Properl}• which may attain a priority over this Mortgage, and leasehold payments or ground rents, if an}•, in the manner
provided under paragraph 2 hereof or, if -not paid in such manner, b}• 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 Lcndcr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the pa}•ment 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 lnwrance. Borrower shall keep the impmvcments now• cxistit~g ar hereafter erected on the Property insured
against loss by fire. hazards included within the terns "extended coverage'". and such other hazards as Lcndcr may require
and in such amounts and for such periods as Lcndcr may require: provided, that Lcndcr shall not require that the amount of
such coverage excc•~-d that amount of rnverage required t+? pa}~ the sums secured by this htorigage.
The insurance carrier providing the insurance shell be chosen by Borrower subject to approval by Lender, provided,
that such approval ,hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
i provided under paragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lcndcr and shall include a standard mortgage
clause in favor of and in farm acceptable to Lender. Lcndcr shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly lurnish to Lcndcr all renewal notices anJ all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the imurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lcndcr and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of
the Property damaged. provide) such resturauon or repair is ccunamically feasible and the security .of this Mortgage.~s
not thereby impaired. If such restoration or repair is oat economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall be applieJ to the sums secure) by this Mortgage. with the excess. if any, paid
to Bor~owcr. If the Property is abandoned by Harrower, or it Borrower fails to respond to Lender within 3U days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to tittle a claim for inwrance benefits, Lender
is authorized to collec~nd apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ur to the sums secured h}• this Mortgage_
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the d++e date of the monthh• installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph L8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to an} 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 j
acquisition.
~ 6. Preservation and ~taiatenance of Propert}: Leaseholds: Condominiums; Planned Unit Deselopmenfs. Borrower
shall keep the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this htortgrge 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
ur covenants creating or governing the acmdominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constit++em documents. If a condominium or planned trait development)
rider is executed b}• Horrower and recorded together w+th this Mortgage, the covenants and agreements of such riders
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider I
were a part hereof. ;
7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage. or if any action ur proceeding is commenced which materially affects lender's interest in the Property.
including. but oat limited to. eminent domain. insahency, code enforcement. or arrangements or proceedings involving a
bankrupt or decedent, then Lcndcr at I enders option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect lender's interest, including. but not limited tu. disbursement of
reasonable attorney ~ fees and entry upon the Properly to make repairs. If Lcndcr required mgrl~a~c inwrance as a
condition of making the loan secured h}• this M~•rtgage,, Burrower shall pay the premiums- required to maintain such
insurance in effect until such time as the rriquiremegt for such insu~nce terminates in accordance with Borrowers and
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