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UNIFORM CoVENANT$. Borrower and LCndef CtIVCDanI and agree as follc+wS:
1. Payment of Prlnclpal and Interest. Borrow•cr shall promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment and late charges az pnwided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
T. Fnnds for Taxes and lasuraace. 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 an 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 the 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 as reasonably estimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall he held in an institution the depcuits or 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 nta}• not charge for so holding and applying the Funds, anal},tang said account,
or verifying and compiling said assessments and bills, unless Lender pa}•s 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. 1_ender shall nut be required to pay Borrower any interest or earnings tin 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 fur which each debit to the Funds was made. The Funds are pledged as additional security fur the sums secured
by this Mortgage.
]f the amount of the Funds held by Lender, together with the future monthly installments of Fttn+ls 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 Burrowers option, either
promptly repaid to Borrower or credited to Barmwer on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments, imur;race premiums and ground rents as they fall due,
Borrower shall pay to I-ender any amount necessary to make up the deficiency within 30 da}s from the date notice is mailed
by Lender to Borrower requesting pa},merit thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by lender. 1f under paragraph It{ hereof the Property is sold 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
Lender at the time of application as a credit against the sums secured by this :1lortgage.
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 Lcndcr first in payment of amounts payable to 1-ender by Borrower
under paragraph 2 hereof, then to interest payable tin the Nutc, then to the principal of the Notc, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrower shall pay all taxes, asussments and other charges, fines and imp:»itiuns attributable to
the Property which may attain a priority over This Mortgage, and leasehold payments or ground rents, if an}•, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Burrower making payment, when due. directly to the
payee thereof. Borrower shall promptl}• furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directh•, Borrow•cr shall promptly furnish to Lcndcr receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall nut be
required to discharge an}• such lien so long as Borrower shall agree in writing to the pa}•ment of the obligation secured h}•
wch lien in a manner acceptable to Lender, or shall in good faith contetit such lien hy, or defend enforcement of such lien in,
legal proceedings which open.+te to prevent the enlurrement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing or here;+fter erected on the Property insured
against loss b}• fire, hazards included within the term "extended coverage°. and such other hazards as Lender may reyuire
and in such amounts and fur such periods a. Lcndcr may reyuire; provided, that Lcndcr shall not reyuire that the amount of
such coverage exceed that amount of cm~crage required to par the ,ums secured b}• this ~tortgage_
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by 1_ender, provided.
that such approval shall not be unreasonably withheld. All premn+m~ 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 anJ renewals thereof shall Fx in forni acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lcndcr ,hall has•e the right to hold the policies and renewals thereof.
and Borrower ,hall promptly furnish to Lcndcr all renewal notices anJ all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and tender. I_endrr may make proof of loss if nut male promptly
by Burrower.
Unless 1_ender and Borrower otherwise 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
nut thereby impaired. If such restoration or repair is nut economically feasible or +f 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- It the Properh• is abandoned h}• Borrower. or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the inswance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect andappl}• 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 Burrower otherwiu 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 I and 2 hereof or change the amount of
such installments. If under paragraph IS hereof the Property is acquired h}- Lender, all right, title and interest of Borrower
in and to an}' insurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to the sale
or acquisition shall pass to Lcndcr to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presertation and ~taiatenance of Propert}; Leaseholds. Condominiums; 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 hturtgage is tin a leasehold- If this Mortgage is on a unit in a
wndominium or a planned unit development, Borrower shall perform all of Borrowers obbg:+iions 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 is executed by Borrowerrnd recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the cotenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this
hturtgage. ur if any action ur proceeding +~ a-mmenced which materially affects lender's interest in the Property,
including. but not 6nnted to. eminent domain. insuhency. axle enforcement. or arrangements or proceedings invoh•ing a
bankrupt or decedent, then 1_ender at Lender's option, upon. notice to Borrower, ma} make such appearances, disburse such
sums and take such action as is necessary t+• protect lender's interest. including. but nut limited to. disbursement of
reasonable attomc}'s fors and entry ulxm the Propcrt}~ to make repairs. If 1_endcr required mortgage inwrance as a
condition of making the loan secured b}' this Mortgage, Burrower shall pay the premiums required to maintain such
insurance in efTect until such time as the requirement for such +nsuranre terminates m accordance with Borrower's and
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