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UNIFORM COVENANTS. Harrower and LCndef COYenanl and agree aS follows:
1. Payment of Principal aad Interest. &irrawer shall promptly pay wher. due the principal of and interest on the
indebtedneu evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
an any Future Advances secured by this Mortgage. •
2. Ftirads for Taxes and lasurartce. 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 Note 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 tht: Property, if any, plus one-twelfth of },early premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all az reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
'Ilse Funds shall be held in an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
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 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 !.ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcquirea such interest to be paid. Lender shall not be required to pa}• Borrower any interest ar earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the f=unds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The f=unds arc pledged as additional security for the sums secured
by this Mortgage.
(f the amount of the Funds held by Lender, together with the future monthly installments of Funds pay:+ble prior to
the due dates of taxes, assessn~euts, insurance premiuns 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 Borrowers option, either
promptly repaid to Borrower or cr~ited to Borrower 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 ~ruund rents az they fall due,
Borrower shall pay to Lender an}• amount necessar}• to ntakc up the deficienc}• within 30 da}•s from the date notice is mailed
by Lender 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 under. If under paragraph 1R hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later then immediatel}• prior to the sale of the Properly or its acquisition by Lender, any Funds held by
Lender at 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 I_cnder under the
Note and paragraphs 1 and 2 hereof shall be applied by Lcndcr first in payment of amounts payable to Lcndcr by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nate, and then to interest and
principal on any Future Advances.
~i. Charges; Lkns, BorroWCr sh:+11 pay all taxes, assessments and other charges, fines and impositions attributable to
the Property Which may attain a priority aver this Mortgage, and :easchoW payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by BOrraWCr making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts Juc under this paragraph, and in the event
Borrower shell make payment direct)}•, HOrfON'Cr shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Harrower shall not be
required to discharge any such lien so long as Harrower shall agree in writing to the pa}•ment of the obligation secured by
such lien in a manner acceptable 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 lien or for[citure of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire. hazards included within the terns "e~tende.l coverage", anJ such other hazard; ac 1_ender may require
and in such amounts and for such periods as Lcndcr may require: provided. that 1_ender shall not r~eyuire that the amount of
such rnverage exceed that amount of rnverage required to pay the sums secured by this Dortgage.
"the insurance carrier providing the insurance shall be chosu:n by Borrower subject to approval by 1_ender: provided,
that such approval shall not be . unreasonabl • withheld. All remiums on insurance !isles shall be aid m the manner
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provided under paragraph 2 hereof ur, i( not prid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
~ Ail insurance policies anJ renewals thereto shall tx; in form acceptable to 1_enderrnd shall include a standard mortgage
~ clause in favor of and in farm acceptable to fender. Lcndcr shall have the right to hold the policies and renewals thereof,
` and BOrfOw'Cr shall promptly furnish to Lcndcr all renewal notices anJ all receipts of paid premium.. In the event of loss,
Borr+~wer shat! give pmn~T+t notice to the insurance carrier a.^.d Le.^.der. Lender may z:ake proof of toss if not made prasnptly
by Borrower.
Unless Lender and Borrower otherwise agree in Writing. insurance pncecds 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 if the security of this Mortgage would
0 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 HarraWCr, ar if Borrower lash to respond to Lender within 3U days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim far insurance benefits, I~nder
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
ar to the sums secured by this Aortgage.
Unless I~nder and Borrower uthensise agree in Writing, any such application c?f proceeds to principal shall not extend
or postpone the due date of tl+e monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acquired h}• Lender, all right. title and interest of Horrower
in and to any irsurancc policies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this 1ortgage immediately prior to such sale or
acquisition.
6. Presersation and Maintenance of Propert}; Leaseholds; Condominiums; Planned t~'nit Ihcelopments. Borrower
1 shell keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is un a Icaseho!d. If this Mortgage is on a unit in a
I 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
I condominium or planned unit development. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together Whh this Mongage, 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 fails to perform the covenants and agreements contained in this
Mortgage, ar if any action or proceeding is commenced which materially affects Lender's interest in the Properly,
including, but not Gmrted to. eminent domain, insoh•ency, axle enforcement, or arrangements or proceedings im•olving a
bankrupt or decedent. then 1_ender at Lender
s option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but ,riot limited to, disbursement of
r reasonable attorney's tees and entry upon the Property to make repairs. !f Lcndcr required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance With Borrowers and
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