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Untrorw Oovenat+TS. Borrower and Lender covenant and agree u follows:
1.. >trpweM of )iriatigai ttta~ IrNetnsf. Borrower shall promptly pay when due the principal of and interest on the
ittdebtednas evidenced by the Note, prepayment and late charges ac provided in the Note, and the principal of and intetrest
oa any Future Advances secured by this Mortgage.
3. >Etrrtis ter TmrM anti Ittwatsce. Subject to applicabk law .x to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly irtstalltnents of principal and intcrect arc payable under the Note, until the Note is paid in full, .
a sum (herein "Ftrnds'~ egwl to otte-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium installments [or hazard insurance.
plus one-twelfth of yearly premium ir?stalltnents ter mortgage insurance, if any, all as reasonably estimated initially and from
tune to time by Lentkr on the buffs of assessments and hills and rcasonabk estimates thereof.
'IUe Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. lender may not charge Ior sc~ holding and applying the Frrnds, analysing said account.
or veritying.arrd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicabk 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 applicabk law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbaU 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 are pledged u additional security .for the sums secured
by thu Mortgage. •
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, usessments. insurance premiums and ground rents; shall exceed the amount required to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds
held by Lender shall rent be wfficient to pay taxes, assessments, insurance premiums and ground rents as they tall due,
Borrower shall 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.
Uptxr payment in full of all surna secured by this Mortgage, I_onder shall promptly refund to Borrower any Funds
held by Lender. If urtder 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
Lender at the time of application u a credit against the sums secured by this Mortgage.
3. A~plkatiou 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 1_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.
4. Charges; Lkrr?s. Borrower shall pay all taxes, assessments and other charges. finec 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, 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 long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptabk 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 Iren or forfeiture of the Property or any part thereof.
S. Hued Inwrawce. Bohower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included vYithm the term "extended coverage", and such other hazards as Lender may require
wd in such amounts and for such periods as Lender may reyuire; 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.
'i 'I1re 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, rf not paid in such manner, by Borrower making payment, when due, directly to the
insurance curler.
I All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor c}f 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 notices and all receipts of paid premiums. In the event of loss,
i Borrower shall give prompt notice to the insurance carrier and tender. Lender may make proof of loss if not made promptly
! by Borrower.
Unless Lender and Borrower otherwrse 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 nut 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 fails to respond to Lender within 30 days from the
date notice is maileD by Lender to Borrower that the insurance carrier oQers to setile 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 Propert~~
or to the sums secured by this Mortgage. '
Unless Lender and Burrower otherwise agree in writing, any such application c+f 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 o[
such installments. It under paragraph I8 hereof the ProFerty is acywred by Lender, all right, title and interest of Borrower
in and to any tnsurrnce 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 exte_ nt of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
6. Preservation and 3laintenance of Property; I.easehulds; Condominiums; Planned Unit Ikvebpments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease ~f this Mortgage is tin 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 documentc. If a condominium or planned snit development ~
~ rider is executed by Borrower and reeordeD together with thn 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 tender's Security. If Burrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding rs cc+mmcnceD which materially affects lender's interest in the Property.
including. but nut 6mrted to, eminent domain. insolvency, code enforcement. or arrangements or proceedings invoh•ing a
bankrupt or Decedent, then Lender at I.enDer's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's rnterest. including. but not limned to, disbursement of
reasonable attorney's fees and entry upcm the Propert}' to make repairs. If Lender rryuireD mortgage insurance as a ~
condq+un of making the hurt secureD by Ih~s ;lfurtgagc. Burrower shall pay the premiums requrreD to maintain such
insurance in etlect until such time as the reyuirrment fur such insurance Iermrnates rn accordance with Borrower s and
a~ 340 P~ i0~g