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UNIlottW Covarurrrs. Borrower and Lender covenant and agree u follows:
1. ITsU~tl of hMciMl tttai 1NereN. Borrower shall promptly pay when due the principal of and interest on the
itldebtedtrestt evidenced by the Note. prepayment and late charges as provided it' the Note, and the principal of and interest
on soy Future Advances secuued by this Mortgage.
2. Fai [or Tatcaa anti lawnrtee. Subject to applccat+k law ur to a written waiver by Lender. Borrower shill pay
to Lender on the day rttonthly installments of principal and interest are payable under the Note. until the Note is paid in Lull,
a sum (herein "Fttnds'~ egwl to one-twelfth of the year)} taxes and assessments which may attain priority over this
Mortgase, and ground rents on the Property, iF any, plus one-twelfth of yearly premium installments [or hazard insurance.
plus one-twelfth o[ yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
time to time by Lender on the buffs of assessntcnts and hills and reasonable estimates thereof.
The Funds shall be held in an institution the depostu 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 may not charge for so holding and applying the Funds. 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 mske such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall t+e 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 are plodged u additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthly installments of 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. I[ the amount of the Funds
held by Lender shall not be strl6cieat 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 Lender to Borrower requesting payment thereof.
Upon payment in full of all :ums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under puagraph 18 hereof the Property is sold or the Property rs otherwise acquired by lender. Lender
shall apply, rto later than immediately prior to the sak of the Property or its acquisition by Lender, any Funds held by
Lender at the time o[ application u a credit against the sums secured by this Mortgage.
3. Appiieatiou 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 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.
~. Charges; I.ieas. 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 furmsh 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 ve•riting to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith .unrest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements nove exiiting ur 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
veil 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.
'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 premiums on insurance policres 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. (_ender shall has•e the right to hold the policies and renewals thereof,
and Borrower shall promptly tarnish to 1_ender 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 proof of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in venting, 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 thts Mortgage is
not thereby impaired. It such restoration or repair is not economically feasible ur it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied t~. the sums secured by this Mortgage, with tht excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to 1_ender 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 mwrance proceeds at lender's option either to restoraUOn or repair of the Pmperle
or to the sums secured by this Mortgage.
Unless 1_ender and Borrower othervease agree in venting, any such application of pro:eeds to principal shall not extend
or postpone the due date of the monthly installments referred t~ in paragraphs I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property n acquired b} Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the prexeeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured b} this :Mortgage immediately prior to such sale or
acquisition.
6. Presenation soil ~laiotenance of Propert}: Leaseholds; Condominiums: Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not commit K aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage ~s tin a leasehold. If this Mortgage is on a unit in a
condominium or a planned amt development. Borrower shall perform all of Borrower's obGgaUOns under the declarabun
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. It a condominium or planned unit development
rider rs executed by Borrower and recorded together ve~th 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 Lenders Security. If 13orruwer fads t~. perti~rm the covenants and agreements rnntained in this
Mortgage, or it any action ar proceeding ~. commenced Hhich materiall} affects Lender's interest in the Property,
including, but not limited to. eminent domain. ins~~henr~, c~Kie enforcement. ~~r arrangements ur proceedings invoh~mg a
bankrupt or decedent. then Lender at Lender's option, ulx-n notice to Borrower. mad make wch appearances, d~shurse such
sums and take such action as ~s necessar}• to protect lender's interest. including. but not limned to, disbursement of
reasonable attorney's tees and entfy up~zn the Property to make rcpain. If Lender required mortgage insurance as a
condition of making the loan secure) b} this Mortgage. Borrrveer shalt pay the premiums required Io maintain such
insurance in effect until such time as the •reyuirement for wch insuran;e terminates in accordance with Borrower's and
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