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UNIFORM Covt:.tvxrtrs. Borrower and !.ender covenam and agree •rs follows:
1. Payment of Principal and tatetest. Borrower shall prcmhtly pay when due the principal of and interest on the
indebtedness evidenced by the Note. prepayment and fate charges as provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Fhads for Taxd aad lasuraace. Subject to applicable law or to a written waiver by !.ender. Borrower shall pay
to lender on the day monthly installments of principal and mterest arc payable uudcr the Notc, until the Note is paid in fulh
a sum (herein "Funds") equal to one-twelfth of the yearly tams and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any, plus one•twclfth of }•early premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shat! be held in an institution the deposits or accounts of which are insured or guarantcect by a Federal or
state agency (including Lender if !.ender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground reins. 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 u( execution of this
~~lortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcyuires such interest to be paid, !.ender shall not he reyuirc~l to pay Borrower any interest ~?r earnings un the Funds. lender
shall give to Borrower, without charge, ai annual aces+tinting 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 this Mortgage.
if the amount of the Funds held by Lender, togcthcr with the future monthly installments of Funds payable prior to
the due dates of taxes, assessmm~ts, insurance premiums and ground rcnG, shall exceed the amount rcyuircd to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or crcrdited to Surruwer on monthly installments of Fund. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, astcssmcnts, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender an}• amount necessary to make up the deficiency within 30 days from the date notice is mailed
by !.ender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 1K hereof the Propcriy is x?fd ur the Property is otherw•isc acquired by Lender, Lender
shall apply, no later than immediately prior to the sale of the Propcriy or its acquisition by Lender, any Funds held by
Lender at the time s?f application as a cn:dit against the sums secured by this Mortgage.
3. dpplication of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
vote and paragraphs 1 and 2 hereof shall be applied by Lender fist in payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Nwe, then to the principal of the Notc, and Ihcn to interest and
principal on an}• Future Advances.
4. Charges; Lkns. Borrower shall pay all taxes assessments and other charges, fines 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, h}• 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 pa}•ment directly, Borrower shall promptly furnish to Lcndcr 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 ohGgation secured by
such lien in a manner acceptable to Lender. c?r shall in gcxxl faith rnntest such lien hy, or JefenJ enforcement of such lien in,
legal prcxecdings which operate to prevent the enforcement of the Iron or forfeiture of the Property orrny part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now c~isting or hereafter erected on the Pr+?pcrty insured
against loss by fire, hazards included within the term "extended coverage". and such other hazards as l.cndc~ may require
and in such amounts and for such periods as lender may require; pn?s idcd, that Lcndcr .hall not require that the amo+mt of
such coverage exceed that amount of coverage required to pay the arms secured h.• this ~tortgagc.
The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Lcndcr, provided,
that such approval shall not be unreawnahly withheld- All premiums on insurance policies shall he paid in the manner
provided under paragraph 2 hereof or, if nut paid in such mam+cr, be Borrower making payment, when due, Jircctly to the
insurance carrier.
All insurance policies and renessals thereat shalt Ix~ in form acceptable to !.ender and shall include a standard mortgage
clause in favor of and in form acceptable to !.ender. Lender .hall have the right to hold the pc?li:ies and rcnew•ak thereof.
:?nd Borrower shall promptly furnish to Lcndcr all rcncw•al notices and all receipts of paid premium+. In the event of icxs,
Borrower shall give prompt notice to the insurance carrier and !.ender. Lcndcr may make proof of loss if not mrde promptly
by Burrower.
unless I.encicr auJ Bono»er ca,`,e;.vi:,c agr~~ i.^. r•ri!iRg. inc+naocu pnxecds shall be applied to restoration or repair of
the Property damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is
not thereby impaired. I[ such restoration or repair is not economicalh• feasible or if the security of this Mortgage wrould
be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
to Burrower. If the Property is abandoned h} Borrower, or if Borrower fails to respond to Lcndcr within 3U days from the
date notice is mailed by Lender to Borrower that the insurance carrier oilers to settle a claim for insurance benefits, Lender
is authorised to collect and apply the insurance proceeds at Ixnder's option either to restoration or repair of the Property
ur to the sums secured h}• this Alortgagc.
Unless Lender and Borrower otherwise agree in writing. any such application of prcxceds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraph, i anJ 2 hereof or change the amount of
such installments. If under paragraph t8 hereof the Property is acquired M' Lcndcr, all right, title and interest of Borrower
in and to ant 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. Preser?ation and ~taialenance of Property: 1-easeholds; Condominiums; Planned Unit Ues•elopments. Borrower
shalt keep the Property in gvcxl repair and shall not commit waste or permit impairment or deterioration of the Property
and shill comply with the provisions of any lease if this Mortgage is on a kasehuld. If this 1ltortgage is on a unit in a
condominium or a planned unh dcvclopmcnt, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the rnnduminium ar planned unit dcvclopmcnt, the by-laws anJ regulations of the
condominium or planned unit development, :rod constituent documems. If a condominium or planned unit development
rider rs executed by Borrower end recorded togcthcr with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements cf this Mortgage as if the rider
~erc a part hereof.
7. Protection of bender's Security. !f Borrower faik to perform the covenants and agreements contained in this
lfurtgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
including. but not broiled to, eminent domain. insolvency, code enforcement, or arra:rgcments or pn?ceedings involving a
bankrupt or dccc~'cnt. then Lcndcr at tender's option, upon notice to $orrower, may make such appearances. disburse such
sums and take such ..~tiun as is necessary tc? protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's Ices and entry upon the Propert}• to make repair. If Lcndcr required mortgage imurance as a
condition of m:+king the loan secure) h} this 1lfartgage, Borrower shall pay the premiums required to maintain such
insurance in ef[e~t until such time as the requirement for such insurance terminates in accordance with Borrowers anJ
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