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UNtratw COVItlNANTtt, Borrower and Lender covenant and agree u follows:
1. IlaywetN ed lrMc+al tttatl liMeret~. 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 soy Futuro Advances saurod by this Mortgage.
2. 114tNs for Tattes ttatl lawrsttce. Subject to applicable law cr to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and intcrcct arc payable under the Note. until the Note is paid in full,.
a sum (herein "Funds'? equal to one-twelfth of the yearly taxes and assessrncnts 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 oartwel[th of yearly premium installments for mortgage insurance, if any, all u reasonably estimated initially and tram
time to time by Lender on the buts of assessments and hills and rcaaonable estimates thereof.
'ILe Funds shall be held in an institution the deposits 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 faxes. assessments.
insurance premiums and ground rents. Lender may not charge for sa holding and applying the Fundc. analyzing said account.
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 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 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 wu made. The Funds arc pledged u additional security for the sums secured
by this Mortgage.
If the amount o[ tha Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of fazes, 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. I[ 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 Letidtr 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 rs otherwise acquired by Lender, Lender
shall apply. rte later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
[.ender at the time of application as a credit against the sums secured by this Mortgage.
3. Appiicatloe o[ Payments. 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 Advancers.
4. Charges; Liters. 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, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad 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 wntrng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or cfefenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the Iren or forfeiture of the Property or any part thereof.
S. Hazard Insurance. 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", ar.J such other hazards as Lender may require
and in such amounu 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.
'ilte 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 premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not pail in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies anJ renewals tberrof 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 Lender. Lender may make proof of loss if not made promptly
by Borrower.
Unless Lender anJ Borrower otherwrse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property Damaged, provided such restoratron or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not ecorwmically feasible or if the security of this Mortgage would
be unpaired. the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
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, Lender
is authorized to collect anJ apply the insurance proceeds at Lender's option either to restoration or repair of the Properts•
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree rn writing, any such application of proceeds to principal shall not extend
or postpone the Jue Date of the monthly installments referred to in paragraphs I and 2 hereof or change the amoum of
such installments. If under paragraph 18 hereof the Property is acyuueJ by Lender, all right, title and interest of Borrower
in and to any insurance policies anD in anJ 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. Preservation and Maintenance of Property; I.easehulds; Condominiums; Planned Unit Devebpments. Borrower
shat! keep the Property in good repair and shall not commit yeaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage rs un a leasehold. If this Mortgage is on a unit ins
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 developmem, the by-laws and regulations of the
condominium or planned unit development, and constituent Ja:uments. 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 anJ supplernent the covenants anJ agreements of this Mortgage as if the rifer
were a part Fereof.
7. Protection of Lender's Security. If Bonrower fails tc. perform the covenants anD agreements contained in this
Mortgage, or if any action ur proceeding ~s a-mmenced which materially affects Lender's mterest in the Property.
includrng..but not limited to. eminent domain. insc.lvency. axle enforcement, or arrangements or proceedings invoking a
bankrupt or decedent, then lender at Lender's option, upon notice to Borrower, ma} make such appearances, disburse such
sums and take such action as is necessary to protect Lender's mterest, including. but not limited to, disbursement of
reasonable auomey's tees and entry upon the Property fo make repairs. If 1_cnder reyuircd mortgage insurance as a
condition of making the loan. secure) by this Mortgage, Born:wer shall pay the premi~uns require). to mainta+n such
iruurance in effect until such time as the reyuirement for such msuran:e terminates in accordance with Borrower's anJ
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