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UNITORM COVBNANTa. Borrower and Lender covenant and agree u follows:
1. hyweM of hiacipal ttttti lalereat. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedtttxs evidentxd by the Note. Prepayment and late charges as provided in the Note, and the principal of and interest
oa any Future Advances secured by this Mortgage.
2. FtrtNs for Tatua arts lawrance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interact arc payable under the Note. until the Note is paid in full.
a sum (herein "Funds") equal to one-twelfth of the year)} taxr`~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property, it any. plus one-twelfth of yearly premium installments for hazard insurance,
plus one-twelfth o[~yearly premium installments for mortgage insttrartcc. it any, all as reasonably estimated initially and from
time to tune 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 guaranteed by a Federal or
state agency (including Lender it 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 sn holding and applying the Funds. analyzing said account.
or vtritying 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 artnual 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 o[ the Funds held by Lender, together wtth the future monthly installments of Funds payable prior to
the due data of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assettaments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the l:unds
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 Lender to Borrower requesting payment theroof.
Upon payment in full of alf 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 is otlltnvise acquired by Lender, 1_ender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. A~plicatioa of Payttaeats. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad 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 tnterest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Liras. 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, b}• Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly [urnish 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 thts Mortgage: provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in wrttrng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall _in good faith contest such lien hy. or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or tor(etturc of the Property or any part thereof.
S. Hazard Inwranee. 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". ar,d such other hazards as Lender may require
and in such amounts and for srxh periods as 1_ender may require; provided, that 1_ender 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 polictes shall be paid in the manner
provided under paragraph 2 hereof or, tf not pai~9 in such manner, by Borrower making payment, when due, dircetly 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. I.rnder 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 earner and Lender. lender may male pnx-f of loss it not made promptly
by Borrower.
Unless Lender and Borrower othenvru 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
not thereby impaired. It such restoration or repair is not economically feasible ur if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secure) by this Mortgage. with the excess, if any, paid
to Borrower. It the Property is abandoned by Burrower, or it Borrower fatly to respond to Lender within 30 days from the
date notice is marled by Lender to Burrower that the insurance carrier offers to settle a claim for insurance benefits, 1_ender
is authorized to collect and apply the mwrance 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 m wnung.rn} wch application of proceeds to principal shall not extend
or postpone the due date u( the monthly installments referred to in paragraph. I and 2 hereof or change the amount of
such installments. It under paragraph IS hereof the Property is acyutred h} L.endcr, all right, title and interest of Borrower
in and to any k-surance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquusition shall pass to Lender to the extent of the sums secured by thu Mortgage immediately prior to such sale or
acquisition.
6. Preservation soil ~taiatenance of Property; 1_etoseholds; Condominiums; Planned Urti! Developments. Borrower
shall keep the Property in good repair and shall not cumrgit y-astc or permit impairment or deterioration of the Property
and shall comply with the provisions n( any lease rf this Mortgage n an a leasehold. It this Mortgage is on a unit in a
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 development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with the. Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the coscnants and agreements of this Mortgage as if the rider
were a part t,ereof.
~. Protection of Lenders Security. If Br~rn~wer fads n~ perf~.rm the covenants and agreements contained in this
Mortgage, or if any action nr proceeding rs commenced whrcn materially aBect, Lender's rnterest in the Propert}•.
including. but not Irmtted to. eminent domain. insohenc}. cede enforcement. ur arrangements or proceedings im•olsing a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. mad make such appearances, dtshurse stx;h
sums and take such action as is necessary. to protect Lender's interest. including. but not limited to. disbursement of
reasonable anorney's fees and entry upon the Propern~ to make repairs. If Lender required mortgage insurance as a
condition of making-the loan secured by this Mortgage. Borrr.KCr sh.tll pay the premiums required to maiutam such
insurance in effect until such time as the requirement fur such rnsuran:e terminates to ac:ordance with Borrower's and
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