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UNtt=oar/ COYINANTi. Borrower and Lender covenant and agree as folbws:
1.. !'s4yesent d hitsdMl ttrM IrtMreM. Borrower ihall promptly pay when due the principal of and interest on the
irtdebtedattaa eviderroed by the Note, prepayment and tats charges ac provided in cite Note. and cite principal of and interest
oa soy Fmtue Advaaoes secured by this Mortgage.
l+ria ter '1lsana tt.r tu.rtnct. Subject to applicable law cx to :written waiver by Leader. Borrower :hall pay
to Leader on cite day monthly installments of principal and interest ere payable under the Note. until the Note is paid in full.
a sum (Mrein "Futtda") equal to one-twelfth of the yearly ta>,~~ and assessments which may attain priority over this
Mortgage. and ground rants on the Property. it any, plus one-twelfth of yearly prcmiuta installments for hazed inwrana.
plus owe-twdith of yearly premium installments for mortgage insurance. it any. all s: reasonably estimated initially and frown
time to time by Lender on the basis of assessntcnts and hilh and reasonable estimates thereof.
'IUe Funds shall be held in an institution the deposits or •rccounts of which arc ittstu+ed a gwnnteed by a Federal of
state agency (including Lender if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes, assessments.
insurance premiums and ground rents. i.ertder may not charge for so holding and applying the Funds. analyzing said account.
oc verifying.and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permit: Lender to make such a charge. Borrower and Lender may agree in writing at the tithe of execution of this
Mortgage that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
t+equites such interest to be paid. Lender shall rid be required to pay Borrower any interest or earnings on the Funds. Lender
sbaU give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the •
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured '
by this Mortgage. j
if the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the des dices of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assaaaents, insurance premiums and ground rents as they tall 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
Geld by Letrder shall not be wf6cieot to pay taxes. assessments. irtsurartce premiums and ground rents ss they fall due,
Borrower shall 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 secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Property rs 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
L~der at the time of application as a credit against the_sums secured by this Mortgage.
3. ApNicatiotr of layerents. Unless applicable law• provides otherwise, all payments received by Lender under the
Note and paragraphs 1 sad 2 hereof shall be applied by !_ender 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. and then to interest and
principal on any Future Advances.
I. ('Mager. Lkas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to i
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,., t?Wpr~~Si~;p#tKR!lio~+l~~$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 shall make payment directly, Borrower shall promptly furnish to Le4tikr`tteeipts `evidencing such payments. ,
Borrower shall promptly discharge any lien which has priority oyez. this-Mortgage: provided.. that Borrowsr shall not be
required to discharge any such lien so long as Borrower shall agree,iP wE.iuag to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall to gait faith contest such Iten by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of th+eMien iA'r forfeiture of the Property or any' part thereof.
S. Retard Inantraace. Borrower shall keep the improvements now 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
and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
7lte 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 r
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the -
iuwrance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and-shall include a standard mortgage
i 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 ratites and all receipts of paid premiums. In the event of loss,
Borrower shalt give prompt notice to the insurance carrier and lender. Lender may make proof of lass if not made promptly
by Borrower.
~-Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provrded such restoration or repair ~s economically feasible and the security of this Mortgage is
!f not thereby impaired. I( such restoration or repair is not economically feasible or if the security of this Mortgage would i
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if soy, paid #
to Borrower. If the Property is abandoned by Borrower. or it Borrower fails to respond to Lender within 30 days from the
j date ratite is mailed by 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 I.endcr'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 monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Proferty is acgwred by Lender, all right, tick and interest of Borrower
in acrd to any htsurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale !
or acquisition shall pass to Lender to the extent of the gums secured by this Mortgage immediately prior to such sale or
acquisition.
6. )rresenation anti t?ittintenance of Propert;; l.easehulds; Condominiums; Planned Ustit Developments. Borrower
1 shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Properly
and shall comply with the provisions of any lease if this Mortgage ~s 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 dix-umentc. 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 incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fah to perform the covenants and agreements contained in this
Mortgage, or it any action or proceeding is commenced which materially afTects Lender's interest in the Property,
I including. but not limited to. eminent domain. unolsenc~. axle enforcement. or arrangements or proceedings involving a
bankrupt or decedent. then Lender at Lender i option, ulxm notice to Borrower. may make such appearances, disburse such
sums and take such action as ~s necessary to protect Lender's interest, including. but not limbed to. disbursement of
reasonable attorney's fees and Crary ulxm the Property to make tepees. If Lender rryuircd m9ftgage insurance as a t
condition of making the Irian secured by thn Mortgage. Born:wer sh_dl pay the premiums rcqutred to maintain such
insurance in effect until such Ume as the reyuirrment for wch muuan.c Ietrm~nates m accordance with Bormwer's and -
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