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• UNIFORM COVEN.~NTS, Borrower anJ lender covenant and agree as follows:
1. Payment of Pdnclpal and Interest. 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 Insutance. 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 are payahle 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 rcnta on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
plus one-tw•el[th of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
time to time by lender on the basis of asscssntents and hills and reasonable estimates thereof.
'Ilte Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency f including Lender i[ Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground ants. Lender may not charge for so holding and applying the Funds, analyzing said acrnunt,
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 l.cnder 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
requires such interest to be paid, (.ender 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 f=unds arc pledged as additional security for the sums secured
by this Alortgagc.
if the amount of the Funds held by 1_endcr, together with the future monthly installments o[ 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 Borrowers 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 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 [till of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph IR hereof the Property is sold or the Property is otherwise acquired by Lender, !_ender
shall apply, no later than immediately prior to the sale of the Propety or its acquisition by 1_ender, 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 lender under the
Note and paragraphs I and 2 i~creof shall be applied by Lender fiat in payment of amounts payahle 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, assessments and other charges, fines and impxitions 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, 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 directly, Borrower shall promptly fumish 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 so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable Io lender, or shall in good faith conte.t such lien hy, or defend enforcement of such lien in,
legal proceedings which operrte to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the imprc-vcmcnts now esititing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage". and such other hazards as 1_endcr mad reyuire
and in such amounts and for such periods as Lender may reyuire: prus•ideJ. that Lender .hall not reyuire thrt the amount of
such coverage exceed that amount of rnveragr required tc- pay the sums ucurcd h}•_ this Mortgage.
The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unrcasonahly withheld. All premiums on insurance policies shall he 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 there--i shall Ix in form acceptable to 1_ender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. I_cnder .hall have the right to hold she policies and renewals 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 tv the insurnce carrier and Lender: 1_ender may make prcx-f of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwix agree in writing, insurance proceeds 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 ur if the security of this Aortgage would
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 Propert}- is abandoned by Borrower. or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers 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 by this bortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of pr~x:eeds to prine~.pal shall not extend
or postpone the due date of the munthh• installments referred u- in paragraphs I anJ 2 hereof or change the amount of
such installments. If under paragraph t8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this 1•fortgage immediately prior to such sale or
acyuisition.
6. Preservation and ~(aintcnance of Propert}; Leaseholds; Condominiums; Planned Unit Ihcelopmenls. 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 a .-n a leasehold. If this Mortgage. is on a unit in a
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
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider i, executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shail amend •rnd supplement the covenants andrgreements of this Mortgage as if the rider
were a part hereof.
~. Protection of (.enders Security. If Borrower fails to perfe-rm the covenants and agreements contained in this
Mortgage. or if any action or proceeding ~c commenced which materially affects Lender's interest in the Property-,
including. but not limited to. eminent domain. insolvency. code enforcement, or arrangements or proceedings invols•ing a
bankrupt or decedent, then 1_ender at Lender 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 not limited to. disbursement of
reasonable auomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured b}' this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the rcyuirement for suche~ns~urance terminates in accordance whh Borrower s and
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