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Ur+t~ootAS CoveN~rtrs. Borrower and Lender covenant and agree as follows:
1. Prp'twetN of ltrYsclNtl trial lttterM. Borrower shall promptly pay when due the principal of and intsrest on the
indebtedness evidenced by the Note. prepayment and lets charges ac provided in the Note, and the principal of and interest
an soy Future Advances ::cured by this Mortgage.
2. Fwla ffotr Totes ttisl Irtnrtnce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal anJ interest are payahk under the Note, until the Note is paid in full,
a sum (herein "Fund:") equal to one-twelfth of the yearl} taxes and assessments which may attain priority over this
MoAgage. and ground rents on the Property, if any. plus otte-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage instirancc, if any, all as reasonably estimated initially and tram
time to time by Lender on the basis of assessntcnts and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
:laic agency (including Lender if Lender is such an institution t. Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. tender may not charge for so holding and applying the Fiindc. analyzing said account,
or verifying and compiling said assessments and hills, 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. Lender shall not he 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 for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due data of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required 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 installments of Funds. If the amount of the Funds
held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall 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.
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 18 hereof the Property is sold or the Property is otherwise acquired by lender, Lender
shall apply. rio later than immediately 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. Arplicaliert oI Payasents. 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 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; Lkns. Borrower shall pay all taxes, asussments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rtnts, if any, in the manner
provided under paragraph 2 hereof or. if nut 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 drectly, 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 w long as Burrower Shall agree in wnt?ng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest Such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the teen or forfeiture of the Property or any part thereof.
S. Harird Insurtutee. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured
against loss by fire. hazards included within the term "extendc.l .:overage". and such other hazards as Lender may reyuire
and m such amounts and for such periods as Lender may reyuire; provvded, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage reywred m pay' she sums secured ~by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that wch approval shall not be unreasonahly withheld. All premwms on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
~ insurance carrier.
All insurance policies and renewals thereof shall t+e in form acceptable to Leader and shall include a standard mortgage
~ clause ir. favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furoish to 1_ender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt noose to the inwr.+nce earner and 1_ender. Lender may make pick+f of loss if not made promptly
by Borrower.
~ Unless Lender and Borrower otherwise agree m writing, inwrance prcx:ecds sha!I tx applied to restoration or repair of
the Property damaged, provided such restorauun ur repair iti economically feasible and the security of this Mortgage is
l not thereby impaired. It such restoration or repair is n+a camumically feasihle or if the security of this Mortgage would
be impaued. the insurance proceeds shall be applied a+ the sums secure) by this Mortgage. with the excess, if any, paid
to Borrower. If the Property is ahandoned by Borrower, ur rt Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Ixnder to Borrower that the insurance carrier often to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's optwn either to restoration or repair of the Propem•
' or to the sums secured by this 'Mortgage
Unless Lender and Burrower otherwise agree in wrung. am loch application of proceeds to principal shall not extend
or postpone the due date of the munthh instalhnenh referred tx+ in paragraphs I and 2 hereof or change the amoum of
such installments. It under paragraph I8 hereof the Pr.+Ferq is acyuued by lxnder. all right, Utle and interest of Borrower
in and to any I#isurance policies and in and to the pr.,ce~Yls thereat resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender a! the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
s 6. Preaenation and Maintenance of Property: Leaseholds; ('ondominiums; Planned Unit li)ievelopments. Borrower
shall keep the Property in gcx+d repair and shall n+~t commit ~s
estc ur permu impairment or deterioration of the Property
and shall comply with the provisions of any lease it th+s `1~~rtgege r. tin a Icaxhald. If this Mortgage is on a unit in a
3 condominium or a planned unit development. Burr~,wer shall perform all of Bormwer's obligations under the declaration
or covenants creating or governing the cond+~minuim or planned amt development, the by-laws and regulations of the ,
condominium or planned unit development. and constituent documents If a condominium or planned unit development
rider is executed by Burrower and recorded a~gether with this Mortgage, the covenants and agreements of wch rider
shall be incorporated into and shell emend end uipplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If B+~rn+aer f.nl. n~ perf~~rm the covenants anJ agreements contained in this
~ Mortgage, ur if any action ur proceeding rs r,~mmrnce.f which materialh elfects Lender's interest in the Property,
including. but nut limited to. eminent domain. in„~hrms c+~de rnturcement. ur arrangements or pnxeedings invoking a
bankrupt or decedent. then Lender at I.endcra opti+ai, up+m neuice to Borrower, mss mike wch appearances, dnhune such
sums and :aka such ecuun e. is necessary to protect Lender's interest. including. but not limned to. disbursement a(
r reawnahle attorney's fees and entry up+~n the Property to make rcpein. I( I.~nder required mortgage insurance as a
condition of making the loan seuueJ by this S1~~rteage. Bnrmucr shell pay the premwms required to maintain such
inuurance in rifest anal such time as flee reyuirenieni for such insurance ternnnates ui .icccsrdanec with Borrower's and
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