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UNIFORM CovF.NANTS. Borrower and Lender l'oYCnanl and agree as follows:
1. Payment of Principal and laterest. 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 the principal of and interest
on any Future Advances secured by this Mortgage.
2. Funds for Taxes and Irtsuraace. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Notc is paid in full,
a sum (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 ycarly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by I.endcr on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall he held in an institution the deposits or accounts of which are insured or guaranteed b}• a Federal or
state agency (including Lender if tender is such an institution Lender shall apply the Funds to pa}' said taxes, assessments,
insurance premiums and ground rents. 1_ender n)ay not charge for su holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments and hills, unless 1_ender pa}•s Borrower interest on the Funds and applicable law
permits Lender to n)ake such a charge. Borrower and Lender may agree in writing at the tine of execution of this
Mortgage that interest on the Funds shall be paid to Born)wcr, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Burrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual acrnunting of the F=unds showing credits anJ debits to the Funds and the
purpose for which each debit to the Funds was made. The Ponds arc pledged as additional security for the sums secured
by this ;?iortgagc.
If the amount of the FuncFa held by Lender, together with the future monthly instalments of F::nds payable prior to
the due dates of taxes; assessnents, insurance premiums and ground rents, shall exccc^d The amount reyuin-d to pay said taxes,
assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly imtallments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay tares, assessments. insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar}• to make up the deficienc}• within 30 days from the date notice is mailed
by Leader 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 hc:rcof the Property is u)Id or the Property is 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
Lenderrt the time of application as a credit against the sums secured by this Mortgage. _
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 Lender first tin payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the ;\ote. then to the principal of rho Note, and then to interes! any!
principal on any Future Advance's.
j S. Charges; Liens. Burrower sh:di pay all taxes, asussments and other charges. fines and imp.nitions attributable to
the Propert}° which may attain a priority over this Mortgage, and lea_sehuld payments ur ground rents, if any, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making paymeot, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts Jue under this paragraph_ and in the event
Borrower shall make payment directly, Borrower shall promptly lurnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority m•er this Mortgage; priwi,led. that Burrower shall not be
required to discharge any such lien so long as Borrower shall agrcc in writing to the payment of the obligation secured b}•
such lien tin a manner acceptable to Lender, or shall in g~xxl faith contra such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or an} part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured
I~' against loss b}• fire, hazards included within the term "extended cxwerage", and such other ha-tards as Lender may require ~
I and in such amounts and for such periods as Lender ma}• reyuirc: provided, that Lender ,hall nut require that the amount of
such coverage exceed that amount of coverage required to pay tlx: sums secured h}• this Mortgage.
j The insurance carrier providing the insurance shall tx; chosen h}• Borrower subject to approval by 1_ender, provided,
-that such approval shall not be unreasonahl}• withheld. :VI premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof ur, if nut paid in such manner, b}• Burrower making payment, when due, directly to the
i
~ insurance carrier.
All insurance policies and renewals thereof shall tx 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 Ix)licies and rcriewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premium,. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and 1_ender. 1_ender may make proof of loss if not made promptly
by Borrower.
l3nless 1_ender and Borrower otherwix agrcc in writing, insurance pn?ceeds shall be applied to restoration or repair of
the Property damaged, provided such re~toratiun ur repair is economically feasible and the security of this Mortgage is
not thereby impaired. If cash restoration or repair is not cconumic:dly 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 Burrower. If the Property is abandoned by Borrnwcr, ur it Burrower fails to respond to Lcndcr within 3U days from the
date notice is mailed by Lender to Borrower that the insurance carrier Mfers 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 h}• this Mortgage.
Unless Lcndcr and Borrower otherwise agar in writing, any such application of prrxceds to principal shall not extend
or postpone the due date of the munthh• installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 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 thereof resulting from damage to the Property prior to the sale f
or acyui~ition 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 Maintenance of Propert}: Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Property
and shall comply wick the provisions of any tease it this Mortgage is un a leasehold. If this Mortgage is on a unit in a .
condominium or a planned unit development. Borrower shall perform atl 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 constituem documents. If a condominium or planned unit Development
rider is executed by Borrower and recorded together whh 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 r
were part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
i\iortgage. ur if any action or procceding is commenced which' materially attests Lender's interest in the Properly.
including. but not limited to, eminent domain. intiolvenc}. c~x1e enforcement. or arrangements or proceedings invoh•ing a i
bankrupt or decedent. then lender at t_ender~ option, upon notice to Borrower, ma} make such ap~c~[ances. disburse such s
sums and take such action as is necessar}• to protect Lender's interest, including. bus-;not ~i~rtitedr'lo. disbursement of
i reasonable aUOme}•'s fees and entry upon the Property to make repairs. If Lcndcr rcyuireJ mortgage insurance as a
condition of making the loan secured b}' this Mortgage. Burrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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