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UNQOKM OOVliNAN1YS, 1dOrr0'Mler and Larder covenant and agroe as fO1k+WS:
1. ll~sent of lrMtel}al a~tt 6tNnef. Borrower shall promptly pay when due the prirtcipsl of and interest on the
atdebtedttea evidenced by tbs Note prepayment and fate charges ac provided in the Note. and the principal of and interest
oa say Ptttw~e Advsaoes securod by this Mortgage.
2, lltroi ter 7'aataa anti 14satrrtttx~e. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intcrcN arc payable under the Note. until the Note is paid in full,
• atwt (Itecein "Fturdt'~ equsl to one-twelfth of the yearl~• tax~~ and assessments which may attain priority over this
Mortgage, and ground vents on the Property. it any, plus onatwelfth of yearly premium itstallments for haurd inwrance.
plus olte•twelfth of yearly premium installments Eor mortgage insurance, if any. all as reasonably estimated initially and from
time to titre by Latdet oa the basis of assessments and hills and reasonable estimates thereof.
The.Furrd: shall Ire held in an institution the depoaita or accounts of which are insured or gwranteed by a Federal of
triate agency (includiq~ Leader if Lender is such an institution). Lender
s~hall~a^p~ply the Funds to pay said taxes. assessments.
insurance premiutrrs and ground rents. lender may not charge for ~'in?~reo+" applying the Frrnda. analyzing said account.
or verifying gttd compliag said assessments and hilts, unless Lende ~i ~~yer interest on the Funds and applicable law
pt:rmits Lender to mytlce such a charge. Borrower and Lender may agrees in writing at the time of execution of this
Mortgage that interest on the Futrds shall bt: paid to Borrower, and unless such agreement is m:de or applicable law
requires such interest to be ptrid, Lender shall not bt: required 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~or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
ottgage.
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:sgamenn. irtsuratrce premiums and ground rents as dray fall due, such eXCess shalt be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower vn monthly installments of Funds. If the amount of the Fund:
bdd by Lender shall not be wlBcient to pay taxes. asxssments,_ insurance premiums and ground rents as 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 r+equestiog payment thereof.
Upon payment is full of sll soma secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by leader, If under paragraph 18 hereo[ the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall spply, rro later than immediately prior to the sale of .the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3 ANtYeatio~ et layaletsb. Unless applicable law provide otherwise: aB.paymtnts 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
unnder paragraph 2 hereof, rhea to interest payable on the Note, then to the principal'of the Note. and then to interest and
priaapd on any Future Advances. - , .
1. Crarges; Lkws. Borrower shall pay all taxes, assessments and ether charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground aer
provided under paragraph 2 hereof or. if not paid in such manner, by 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 Lender receipts evidencing 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 obligation secured by
such lies in a manner acceptable to Lender, or steal! in good faith contest such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the Iren or forfeiture of the Property ter any pan thereof.
S. 1Hssard learaace. Borrower shall keep ttre improvements new existing or hereafter erected on the Property insured
against loos by fire. hazards included within the term "extended coverage", and such other hazards as .ender may require .
sad 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.
'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 shat! be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Burrower making payment, when due. directly to the
insurance 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 fiave the right to hold the policies and renewals thereof,
sad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pttmiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and lender. Lender may make proof of loss 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, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. 1f such restoration or repair is not economically feasible or if 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. If the Pr'optrty is abandoned by Borrower, or it 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 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 monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyurred by Lender, all right, title and interest of Borrower
in and to any huurance 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. Prrterratloa sad Aflaiotenaace of Properly; Leaseholds; Condominiums; Planned Uait 1DerelopmenLs. Borrower •
shall keep the Property in good repair and shall not comrvit yvaste or permit impairment or deterioration of rho Property
sad shall comply with the provisions of any lease if thiti Mortgage is vn a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shalt perform art of Borrower's obligations under ttre dectaratian
or covenants creating or-govern -the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent Jocument~. If a condominium or planned unit development
rider is executed by Borrower and recorded rogether wrth thn Mortgage, the covenants and agreements of such rider
shall be incorporated into and shalt amend anJ supplrment the covenants and agreements of this Mortgage as if the rider
were a part hereof. ,
Protection of bender's 5ecurfty. If Borrower f;rile a~ perform the covenantx and agreements contained in this
Mortgage, or if any action ur proceeding rt commrnccd vrhrch materially affects Lender's interest in the Property,
including. but not limited to. eminent domain, invr?h•ency. code enforcement, or arrangements or proceedings invoking a
bankrupt or decedent. then Lender at Lender's option, ulxm notice to Borrower, may make such appearances, disburse such
sums and take such action as is nece~~ary ti~ protect Lender's interest, including, but :rot limned !o, disbursement of
reasonable auomey's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a
condition of making the loan cecureJ by this Mortgage. Bern:wcr sh.rll pay the premiums require) to maintain such
insurance in effect until. such ume as IhC reyuirement f~~r wch msuran:e terminates m accordance with Borrower's and
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