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UNIPORlt~ COVBNANri. BOrrowu i11d Lender covenant and agree as follows:
1. TgtteN a< PtrinelNl aril INereat. Borrower shall promptly pay when due the principal of and interest on the
indebtedneat evidenced by the Note. Prepayment and late charges ac provided in the Note, and the principal of and interest
on any Future Advances secured by this Mortgage.
2. Ftiati for Tatra atal Irtarasce. Subject to applicable law ur to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly installments of principal and tntcrest .rrt: payahk under the Note, until the Note is paid in full,
a aeon (herein "Fonda") egwl to one-twelfth of the yearn- tars and assessments which may attain priority over this
Mortgage, and ground rents on the Property, i( any, plus one•twelfth of yearly premium installments for hazard insurant~e.
plus one-twelfth of yearly premium installments for mortgage insurance. it any, all as rcssonably 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 are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxa, assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Fttndc. 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 o[ 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 was made. The Funds are pledged as 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.
asseaaments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall trot be sul6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to maktli tlp the t*fiGf;t1~ within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof. '•
Upon payment in full of all sums secured by this Mortgage; ~~'.~nl[r shag promptly refund to Borrower any Funds
held by Lender. if under paragraph 1 R hereof the Property is sold ~or ,{he Pope-ty ~t otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisitttfn by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
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 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; Liens. 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, i[ 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, 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 thts Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in wnttng to the payment of the obGgatiun secured by
such lien in a manner acceptable to (.ender, 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 Iten or forfeiture of the Property or any part thereof.
S. Hazard Insurance. Borrower shall keep the improvements now• existing c-r hereafter erected on the Property insured
against loss by fire, ha7.ards included within the term "extended coverage", a:~d such other hazards as lender may reyuire
and in such amounts and for such periods as Lender may reyuire: provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the stems secured Eby thts Mortgage-
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not bt unreasonably withheld. All premiums on insurance policles shall be paid in the manner
provided under paragraph 2 hereof or, tf 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 nonce to the Insurance canter and 1_ender. Lender may make prcx-t of loss if not made promptly
by Borrower.
Unless Lender and Borrower otherwtsc agree in wrtttng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repatr n economically tearable and the security of this Mortgage is
not thereby impaired. It such restoration or repair is nut economically feasible or if the security of this Mortgage would
be impatred. the insurance proceeds shall be applied to the sums secured by thts Mortgage. with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower. or it Borrower tads to respond to Lender within 30 days From the
date notice Is marled by Leneter to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repatr of the Property
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherv-ne agree m writing, any such application of pn-ceeds 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 18 hereof the Property n acywred by Lender, all right, title and interest of Borrower
in and to any titsurance policies and in and to the proceeds thereof resulting Irom damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by thts :-lortgage immediately prior to such sale or
acquisition.
6. Preservation and Maintenance of Properly; I.eauholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not commit ysaste ur permit impairment or deterioration of the Property
and shall comply with the provisions of any lease it this Martgagc t. on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower's ob6gauons 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 devetoi~mem. and constituent dcxuments. 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 wpplement the covenants and agreements of this Mortgage as if the rider
were a part Fereof.
7. Protection of Lenders Security. If Burrower fatly to perh-rm the rnvenants and agreements contained in this
Mortgage, or it any action ur procce3ing is commenced whtcit materially aticcts Lender's tntcrest in the Pmpern•.
Including. but nut hmtted tu. eminent domain. nnt-hency. axle enh-rcement. or arrangements c-r proceedings involving a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. ma} make such appearances, dishurse such
sums and take such action as is necessary to protect Lender's tntcrest, including. but ant limned to. disbursement of
reasonable attorney's tees and entry upon the Pmpcrty a- make repatr.. If Lender reyuircd mortgage insurance as a
condmon tit making the Jean secured by Ihn Mortgage. Burr~:wer sh.tll pay the premiums required to maiittam such
insurance in etkct until etch time as the reyuuement far such m;uran:c terminates to accordance with Borrower's and
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