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UNIlOUM COVBNAHTa. Borrower and Lender covenant and agree as follows:
1. 1lsgwetN o/ PsirtelMl sttstl iNens(. 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 soured by this Mortgage.
t lrtsai [or Ttua ud lawratree. Subject to applicat-k law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest arc payahk under the Note, until the Note is paid in full,
a sum (herein "Funds'? equal to one-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortgage, and ground rents on the Property, if any. plus one-twelfth of yearly prcmittm installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as rcuonably estimated initially and from
time to time by Lender on the buffs of assessments and hills and rcawnable estimates thertof.
The 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 institutionl. 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 Fiindc. analyzing said account.
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 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 chargt, 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 are pledged u additional security for the sums secured
by this Mortgage.
if the amount of the Funds heW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessmenu, 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 I•unds
held by Lender shall not be strflicieat to pay taxes, assessments, insurance premiums and ground rents u 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 Leader 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 puagraph 18 hereof the Property i~ 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
L.eoder at the time of application as a credit against the sums secured by this Mortgage.
3. A~pikation of Paytneats. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 aad 2 hereof shall be applied by 1_ender 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.
4. Charges; Lkas. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a priotily 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 tender all notices of amounts due under this paragraph, anti 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 contest such lien by, or Defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hared Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as lender may require
aad 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 premium. 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 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 career and Lender. 1_ender may make p:cx-f of loss if not made promptly
by Borrower.
Unless i_ender and Borrower otherwise -agree in writing, inwrance 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 eat economically feasible or if 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 a:iy, paid
to Borrower. I( the Property is abandoned by Horn,wer, or it Borrower fails ti, respond to 1_ender within 30 days from the
date notice is marled by I~nder to Borrower that the insurance carrier otlen to scale 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 Mortgage.
Unless lender and Horruwer otherwise agree in wnUng, any such application of proceeds to principal shall not extend
or postpone the due date of the monthh~ installments referred to in paragraphs 1 and.` hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by I~nder, all right, Utle 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 acquisition shall pass to Lender. to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation and Maintenance of Property; Leaseholds; ('ondominiums; Planned UNt Developments. Borrower
shall keep the Property in go„d repair and shall not commit K•aste or permu impairment or deterioration of the Property
and shall comply with the provisions of any lease if the Mortgage is on a Icaschuld. If this Mortgage is on a unit in a
condominium or a planned amt 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 trait development, and constituent documents. If a condominium or planned unit development
rider is executed by Horruwer and rernrded together with the 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 Fereof.
7. Prole~tion of Lender's Security. If Hurn+wer fails a+ perfi+rm the covenants and agreements contained in this
Mortgage, or d any action ur proceeding is cummence.l which m:+terially affects Lender's interest in the Property.
including. but nut bmited tu. eminent domain. n-sohcncy, axle enforcement, ur arrangements ur proceedings invoh,ng a
bankrupt or duedent. then Lender at Lender's option, upon notice to Borrower. may make wch appearances, disburse wch
sums and take such acuun as is necessary to prefect lender's interest, including. bLt eat limited to. disbursement of
reasonable auomey's tees and entry ulxm the Pn+pcrty ti, make repairs. 1( Linder required mortgage insurance as a
condition of making the town secured by this :1lurtg:+ge. Hurn:wcr shall pay the premiums required to~ maintain such
insurance in effect until wch time ay the reyuuement for uich in;uran:e terminates in accordance with Borrower's and
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