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UNtPORM Qoverartas, Borrower and Leader covenant and agree as Iollows:
)ti. >ngwartt et Mrc}al ttotl l~leresf. Borrower shall promptly pay wizen dues the principal of and interest on the
iadebtedags evideaoed by the Note. prepayment and late charges as provided in the Note, and the principal of std interest
oa any Ftttute Advances securod by this Mortgage.
lrNi tats 7lsatea arts htatrrwna~c. Sltbjcet to applicable law ar to a written waiver by Lender, Borrower Shan pay
to Leadec on the day rranthty installments of principal and int~rcst ire payable under the Note, until the Note is paid in full,
a sum (herein "Ftrads'q equal to orte-twelfth of the ycarl)• tas~Y and assessments which may attain priority over this
Mortgage, aed ;round teats oa the Property, it any. plus one-twelfth of yearly prernitrm installments for hazard insurance. i
plus one-twdith of yarly premium installments for mortgage insurance, if any. all ss rcssortably estimated initially and from ~
time to tune by lender oa the basis of asseuments and hills and reasonable estimates thereof.
11te Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
state agertey (inchding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessmenu.
insurance premiums and gr+otrttd rents. Lender may eat charge for so holding and applying the Funds. analyzing said account,
or vetifyinj_sad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Fender to make such a charge. Borrower 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 required to pay Borrower any interest or earnings on the Funds. Lert$er
shan give to Borrower, without charge, an annual 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 arc pledged as additional security for the sums secured
by ~ Mortgage-
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, imunnce premiums and ground rents, shall excced the amount required to pay said taxes.
asaastoeats, 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 amount of the Funds
head br Lt:rrder shan not be strlRcieat to pay taxes. assassrnents, insurance premiums and ground rents ss they fall due,
Borrower shad 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 payment thereof.
Upon payment in fun of all sum secured by this. Mortgage, Lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is soW or the Property rs otherwise acquired by Lender. Lender
shall sppty, tto 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 a: a credit against the sums secured by this Mortgage.
3. A~iicatiou of byroads. Unless applicable law provides otherwise, all payments received by d.tnder under the
Note sad paragaphs 1 and 2 hereof shall be applied by Lender first in payment o[ amounts payable to Lender by Borrower
under patttgcaph. 2 hereof, rhea to interest payable on the Note, then to the principal of the Nola. and then to interest and
principal on any Future Advaaoes.
Cfiias=es; Liens. Borrower shall pay all taxes, assessments and other charges, floes and impositions attributable to
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, by Borrower making payment, when due, diroctly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this parsgraph, 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 long as Borrower shall agree in writing to the payment of the obligation secunod by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia, f
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hssard Intnraace. 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. ;
'Ilre 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
provided under paragraph 2 hereof or, if Trot paid in such manner, by Borrower making payment, when due, directly to the
iosuratxe 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 have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender ail renewal riooces and all receipts of paid premiums. In the tvent of loss.
Borrower shall give prompt notice to the insurance career and Lender. Lender may make proof of loss if not made promptly
by Borrower. .
Unless Lender and Borrower otherw,se 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. If such restoration or repair is not economically feasible or it 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 Property is abandoned by Borrower. or it Borrower faits 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 wins secured by this Mortgage. i
Unless Lender and Borrower otherwise agree in writing, any such application of procceds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs l and 2 hereof or change the amount of ~
such installments. If under paragraph 18 hereof the property is acyuired by 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 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. Yreservattion sad Maintenance of Property; leaseholds; Condominiums; Planned Unit faevelopmenls. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or dtterioration of the Property ;
sad shall comply with the provisions of any lease if this Mortgage s on a leasehold. if this Mortgage is on a unit in a i
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 development, the by-laws and regulations of the
condominium or planned unit development. and constituent d~xuments. If a condominium or'planned unit development t
rider is executed by Borrower and recorded together with the Mortgage, the covenants and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as it the rider
were a part F.ereof.
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7, Protection of Lender's Security. If Borrav?er fads a. perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ,s commenced wh,ch materially attects lender's interest in the Property,
including, but not limited to. eminent domain, inse.lvenc}~. axle enforcement. or arrangements or proceedings invoking a
bankrupt or decedent. then lender at Lender's option, upon notice to Borrower, roes}- make such appearances, disburse such
sums anti lake such action as rs necessary to protect Lender's ,merest, including, but not lim,ted to, disbursement of b
reasonable attorney's fees and entry upon the Propcny to make repairs. If Lender reyuircd mortgage insurance ac a
condition of making the loan secured by this Mortgage. Borrrv?cr shall pay the premiums required to mainta+n such
insurance in effect until such time as the requirement for wch ,nsuran.e terminates rn accordance whh Borrower's and
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. ~ ~~K 340 P~~~ .557
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