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Utrtrottw CovarrAtvis. Borrower and I,errder covenant and agree as follows:
1. il~rnetN et lzirtelMl arai lrtfsraf. 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
as any Future Advances secured by this Mortgage.
_. ltinda tote Taatea acrd iwraocc~e. Subject to applicabk law ar to a written waiver by Lender. Borrower shag 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 "Ftrrtds'y egwl to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage, and ground rafts on the Property. it any, plus one-twelfth of yearly premium installments for hazard insurance.
plus oae•tweltth 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 hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal or
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. ssscsstnents,
insurance premiums and ground rents. Lender may not charge for sn holding and applying the Frrrtdc. analyzing said account.
or verifying and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
petrmits 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
rtquircs such interest to be paid. Lender shall not be 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 arc pledged as additional security for the sums secured
by tbk Mortgage.
If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessments. insurance prcmiutns and ground rents, shall exceed the amount required to pay said taxes.
asseasments, 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 sha0 cwt be w(ficieat 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 is full of all sums recured by this Mortgage. lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph l8 hereof the Property is sold or the Propeny ~s 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
Leader at the tune of application as a credit against the sums secured by this Mortgage.
3. AppiieaRloa of P~yneets. 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.
1. Crarges; Lkns. Borrower shall pay all taxes. assessments and other charges. fines and impositions 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, drrectly 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 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 so long as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith confect such lien by, or defend enforcement o[ such lien in.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard inwrawce. Borrower shall keep the improvements now existing or hereafter erected on the Properly insured
against loss by fire, hazards included within the term "extended. coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided utider paragraph 2 hereof or, if not pai~J in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and 1_ender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender 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
Trot thereby impaired. It such restoration or repair is not economically feasible or if the security of This Mortgage would
be impaired, the insurance procads shall be applied to the sums secured by this Mortgage. with the excess, if any. Qaid
to Borrower. If the Property is abandoned by Borrower, or it 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, I~nder
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 Mortgage.
Unless Lender and Borrower 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 I and 2 hereof er change the amount of
such installments. If under paragraph I8 hereof the Pro ferty is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies an~+ in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. !reservation and ~taiatenance of Property; Leaseholds; Condominiums; Planned Uait DeYebprnents. Borrower
shall keep the Property in good repair and shall not commit y-•aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ~s on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers 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 develoi,ntent. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage. 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 fads to perform the covenants and agreements captained in this
Mortgage, or if any action ar proceeding is c-i~mmenced which materially- affects Lender's interest in the Property.
including. but not limned to. eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender 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 not limned to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. If !.ender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borri:wrr shall pay the premiums required to maiitta~n such
insurance in eBect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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