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UNIFORM COVENANT'S, BOrruwer and Lcndcr COYenanl and agree as follows:
1. Payment of Principal and Interest. 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 cite principal of and interest
on any Future Advances se-cured by this Mortgage.
2. !!treads for Taxes and ltutrrat[ce. Subject Io applicabk law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
a stun (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 !_ender on the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be head 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). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents, lender may not charge for so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender 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, 1_ender shall not be 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 fur which each debit to the Funds was made. The Funds arc pledged as additional security tur the sums secured '
by this Mortgage.
If the amount of the Fttnds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance prcntiunu and ground rents, shall exceed the amount required to pa}• said taxes,
assessments, insurance premiums and ground rents as they (all 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shah pay to Lender any amount necessary to make up the deficiency within 30 days tram the date notice is mailed s
by Lender to Borrower requesting payment therrni.
Upon payment in full of all sums secured by this Mortgage, Lcndcr shall promptly refund to Burrower any Funds
held by Lender. If under paragraph t8 hereof the Property is sold or the Property is otherwise acquired by Lender, I_cnder
shall apply, no later than immediately prior to the sale of the Property or its acyuisitron by !.coder, any Funds held by
Lender at the time o[ application as a credit against the sums secured by this hfortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by l.end~r first in payment of amotmts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Notc, then to the principal of the Note, and then to interest and
principal on any Future Advances.
~i. Charges; Liens. Borruwcr shall pay all taxes, assessments and other charges. fines and impositions attributable to.
the Property which may attain a priority over this 1Nortgagc,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, 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 bender receipts evidencing such payments.
Borrower shall promptly discharge an}• 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 payment of the obligation secured by
such lien in a manner acceptable to I_rnder, or shall in g<xx1 faith contest such lien by, ur defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hercatter erected on the Property insured
against loss h}• fire, hatards included within the term "extended coverage". and such other ha-tards as Lcndcr may reyuire
and in such amounts and fur such periods as I_cnder may reyuire; provided, that Lender shall nut reyuire that the amount of
such coverage exccti~d that amount of rnverage required to pa~• the sums secured by this 111ungage.
The insurance carrier providing the insurance shall tx; chosen by Borrower serhjeet to approval by Lender; provided,
that such approval shall not be unreasonahh• wtithheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof ur. i( not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereot shall be in form aceeptabk to Leneler and shall include a standard mortgage
clause in favor of and in form acceptable to Lcndcr. Lcndcr shall have the right to hold the policies and renewals thereof.
and Borrower shall prompth• furnish to Lcndcr all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall gis•e prompt notice to the insurance carrier and [.ender. Lender may make prcx~t of loss if not made promptly
b}• Borruwcr.
Unless I_cnder and Burrower others ise agree in writing. insurance prexecds 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
nut thereby impaired_ If such restoratu~n or repair is oat 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 Proper[}~ is abandoned h~• Burrower. or it Borrower fails ro respond to 1_cnder within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a cfaim for insurance benefits, Lender
is authorized to collect andappl}• the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this 1ortgage.
Unless Lcndcr and Borrower otherwise agree m writing. any such application of proceeds to principal shall nut extend
~ or postpone the due date of the monthh• installments referred to in paragraphs 1 and 2 hcreot or change the amount of
such instaNments. it under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to am• insurance policies and in and to the proceeds thereot resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this :Mortgage immediately prior to such sale or
acyuisition.
{ 6. Preservation and tfaiatenance of Property; Leaseholds; Condominiums; Planned Unit De~•elopmenls. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comp!), with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is ona unit in a
i cundomimum or a planned unit development, Burrower shall perform all of Borrua•er's obligations under the declaration
or covenants creating ur governing the condominium ur planned unit development, the by-laws and regulations of the
condomimum or planned unit development, and constituent documents. If a condominium or planned unit development
rider rs 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 tails to perform the covenants and agreements contained in this
tifurtgage. ur if any action ur proce:edmg is commence) which materially aficcts Lender's interest in the Property.
including. but oat limited tu. eminent domain. insohency, code enforcement, or arrangements or pr~*~eedings invoh•ing 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 as is necessari• to protett lender's interest. including. but nut limbed to, disbursement of
reasonable attornc)•'s tees and curry upon the Property ro make repairs. If Lcndcr rcyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. Barrawer shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance whh Borrowers and
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BOCK PdGE .
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