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UNtt=oRi-t Cove.rv.lNrs. Borrower and Lender cmenant and agree as follows:
1. Paynteat of Principal and laterest. Borntw•er 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. lituads for Taxa and Insurance. Subject to applicable law or to a written waiver by [_ender. 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 stun (herein "Funds") equal to one-twelfth a( the yearly tares 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 yearly premium installments for mortgage insurance, if any, all as reasonably estimated initirlly and from
time to time by !.ender on the hasis of assessments and bills and reasonable estimates thcrcof.
The Funds shall tte held in an institution the deposits or :tcrnunts 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. 1_ender may not charge for so holding and applying the Funds, analyzing said acrnunt,
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
hortgage that interest un the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
requires such interest to tte paid, !.ender shall not ttc required Io pay Borrower any interest or earnings un 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 f=unds arc pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by lender, together with the'futare monthly installments of Funds payable prior to
the due dates 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 fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall nqt be sufficient to pay taxes, assessments, imurance 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 thcrcof.
Upon payment in full of all sums secured by this Mortgage. 1_endrr shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 1K hereof the Property is soW or the Property is otherw•isc acywrcd by !.ender, Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fundc held by
Lender at the time of applirttion 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 b}• Lender first in payment of amounts payable to Lcndcr by Borrower
under paragraph ? herrnf, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advancrs.
4. Charges; Liens. Barnxrer shall pay all tapes, assessments and other charges. fines and imps»itions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if an}•, in the manner
provided under paragraph 2 hcrcof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payee thcrcof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directh•, Borntwcr shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has priority over this \turtgage: 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 acceptable ro Lcndcr, or shall in good faith contest such lien by. or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcemem of the lien ur forfeiture of the Property or any part thcreuf.
S. Hazard Insurance. Borrower shall keep the improvement. now cxititing ..r hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hatards as Lender may rcyuire
and in such amounts and for such periods as Lender may reyuirr. provided, that Lcndcr shall rn~t rcyuire that the amount of
such coverage exceed that amount of coverage required to pay the Bunn secured h}• this 1ortgage.
The insurance carrier providing the insurance sh:dl lte chosen by Borrower subject to approval by Lcndcr; provided,
that such approval tihall not be unreautnahl}• withheld. All premiums on inwrancc policies shall be paid m the manner
provided under paragraph 2 hcrcof ur. if nut paid in such manner, h}~ Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals therc:~t shall be in form acceptable to Lender :rnd shall include a standard mortgage
clause in favor of and in form acceptahle to Lcndcr. 1_ender shall have the right to hold the policies and renewals thcreuf.
and Borrower shall promptly furnish to Lcndcr all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall glee prompt notice to the insururce carrier and Lender. Lcndcr ma)• make pnx•l of loss if nut made promptly
by Burrower.
Unless Lcndcr and Borrower otherwise agree in writing, insurance pntc~~:ds shall be applied to restoration ar repair of
the Property damaged, provide) such restoration ur repair is economically feasible and the security of this Mortgage is
not thereb}' impaired_ I( such restoration or rep:ur is not economically feasible or if the security of this Mortgage would
be impaired. the insurance proceeds shall bedapplied to the sums secure) by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is ahandoned h~ Borrower, or it Harrower fails to respond to 1_cnder within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier olien to settle a claim for insurance benefits, Lender
is authonzed to collect and apply the insurance proceeds at Lcndcr s option either to restoration or repair of the Properly
ur to the sums secured h}• this Mortgage.
Unless Lender and Burrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and ?hcrcof or change the amount ~f
such imtallments. It under paragraph f8 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 thcrcof resulting from damage to the Property prior to the sale
ur acquisition shall pass to Lcndcr to the extent of the wnu secured by stirs Mortgage immediately prior to such sale or
acquisition.
6. Presenalion and ~tainfenance of Property; Leaseholds; ('ondominiums; Planned Unit Developments. Borrower
shall 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 n un a IcascholJ_ If this ~lortgagc is onr unit inr
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the rnndaminium or planned unit development, the by-laws and regulations of the
condominium or planned unit development. and rnnstitucnt documents. If a condominium or planned unit development
cyder is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall fte incorporated into and shall amend and supplement the covenants •rnd agrccmcnts of this Mortgage as if the rider
were a part hcrcof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, ur if any action or proceeding is commenced which materially affects lender's interest in the Property.
including. but not limited to. eminent domain. inathenc}'. code rnforcentent. or arrangements or proceedings invoking a
bankrupt or decedent. then Lcndcr at Lender's option. upon notice to Borrower, may mane such appearances. dishurse such
wms and take such action as is necessary to protect lender's mterest. including, but not limited to. disbursement of
reasonable atturne}'~s Ices and entry upon the Property to make repair. If Lcndcr reynircd mortgage insurancers a
cundrtion of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance lit elfect until such dine as the requirement for such insurance tcrminatcs in 'atxo~~ttncs'tyith Borrower's and
be -i' 3 f ltl'~. •- f.r t~'r
BOOK~~~ PdGE c7~t2
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