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UNIlORI~[ COVBNAN7'~. Borrowe~ and L.ender covenant and aa~a u follows:
1~ lywe~t ot hMe1N1 aN IMe~at. 8orrowet shall p~ompUy pay when due the priocipal ot aod interat on the
indeMednw evidenoed by the Note, prepayment a~d late chargec ac p~ovicled in the Note, and the principal ot and intet~a~
on any FWuro Advances secured by this Mortgaae.
2. lh~i ter TuM a~i loara~ce. Subject to applicabk law ~.r to a written waiver by Lende~. Borrower shall pay
to [.ender oo the day monthly installments of principal and in~crcc~ arc payahle under the Note. until the Note is paid in tull,
a sum (heroin •'Fu~ds'ry equal to one-tweltth ot the yea~l~~ ~as~~ and assasments which may attain prioriry over this
Mortsa~e, and `round rents on the Poope~ty. if any, plus one-tweltth of yearly premium iristallments for huard insunnce.
plus oae-twelfth of yearly prcmium installments for mottgage insunncc, it any, all as rcuonably eslimated initially and trom
time to time by Lender on the buis of assesaments and hills and reawnable a~imata thereof.
7Le Funds shall be held in an ins~itution the deposia or ~ccounts of which are insured or guaranteed by a Federa! ot
state agency (iocludina Lender if Lender is such an institution). 1_ender ~hall apply the Funds to pay said uxa. sssessments.
insuranet premiums and grout~d tents. I.ender may not charge for so holding and applying the Fnndc. analyzing said account,
or verifying and compling said assessments and bills, unless Lender pays Borrower interat on the Funds and applicable law
permits Leader to make such a charge. Borrower and Lender may agree in writing at the ~ime of execution of this
Mortgaae that interest on the Funds shall be paid to Sorrower, a~d unlas such agreement is made or applicable law
requires such interat to be paid. Lender shall not be rcquired ta pay Borrower any interest or earnings on the Funds. Lender
shaU ~ive to Borrower, without charge, an aonual accounting of the Funds showing credits and debits to the Funds and the
purpoae [or which each debit to tbe Funds wu made. The Funds arc plodged as additional security tor the sums secured
by this Mortaaae.
If the amount ot the Funds held by Lender, toge~her with the future monthly installments of Funds payabk prior to
tLe due data of tues. auessmenu. insurance premiums and ground rents, shall ezceed the amount required to pay said taxa,
sssasments. insunnce premiums and ground rcnts u they fall due, such excess shall be, at Borrower s option, either
pramptly repaid to Borrower or credited to Borrower on monthly i~stallments of Funds. {f the amount of the Funds
held by I.ender shall not be sufficient to pay taxes, asscssments, insurance peemiums and ground rents u they fall due,
Borro~re~ s6a11 pay to Lender any amount nec~sary to make up the deficiency within 30 days (rom the date notice is mailed
by Leader to Borrower requesting payment thercof.
v~ wy~ae in full of all sums socured by this Mortgage, l.ender shall promptly refund to Borrower any Funds
held by I.ender. If under paragraph 18 hercof the Property i~ sold or ~he Property ~s othenvise acquircd by Lender. Lender
shall apply, no later than immodiately prior to the sale of the Property or its acquisition by Lender. any Funds held bv
L.ender at the time of application u a credit against the sums xcured by this Mortgage.
3. Ap~licaRlos of P~ya~ests. Unless applicable law provides atherwise, all payments received by Lender under the
Note and paragraphs I and 2 hercof shail be applied by I_ender first in payment of amounts payable to Lender by Borrower
uader paragnph 2 hercof. then to interest payable on the Note, then to the principal of tho Note. and then to interest and
principal on any Future Advances.
0. C6aria: Lieas. Borrower shall pay all taxes, assessments and athcr charges, fines and impositions attributahle to
tht Property which may attain a priority over this Mortgage, and lea,ehold payments or ground rents, if any, in the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymenl, when due, dircctly to the
payee the~oof. Borrower shall promptly furnish ~o Lender all not~ces of amounts due under this paragraph, aod in the event
Borrower shall make payment directly. Borrower shall promptly (umish to l.ender receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has priority over thi~ Mortgage; provided, that Bormwer shall not be
tequired to discharge any such lien so long as Borrower shall agree in writ~ng to the payment of the obligatiun securod by
such lien in a manner acceptable to Lender, or shall ~n good faith contest such lien by, or defenJ enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the I~en or (orfeuure of the Property or any part thercof_
S. Hazard IRSUnece. Borrower shall keep the improvementc now existing or hereafu~ erectcd on the Pmperty insured
against loss by 6rc, hazards included withm the term "etitended coverage". and such o~her hazards u Lender may reyuire
and in such amounts and for such periods as I_ender may require: pravided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by tbis Mor~6a6e.
'[l~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lendtr. provid~d,
tbat such approval shall not be unrtasonably withheld. All premiumc on insurance polic~es shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makmg payment, when due, directly to the
insurance carrier.
All insurance pol~c~es and renewals therrof shall be in form acceptable to Lender and shall include a standard mongage
clauu in favor of and in form acceptable to Lender. Leoder shall have the :ight to hold the policies and renewais thercof,
and Borrower shall promptly [urnish to Lender all renewal not~ces and all receipts of paid premiumc. tn the event of loss,
Borrower shall give prompt notice ~o the insurance carrier and I.ender. 1_ender may make proaf ~f loss if not made promptly
by Borrower_
Unless Lender and Borrow•er o~her~iu agree in writ~ng, insurance proceeds shall be applied to restoration or repair of
the Property damaged, prov~Jed such reatorahan or repair is economically (easible and the securily af this Mortgage is
not thereby impaired. I( such restoration or repair is not economically feasible or if the xcurity of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. I[ the Property~ is abandoned by Borrower, or it Borrower fails ro respond to Lender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is aut6orized to collec~ and apply the insuranre proceeds ~t LenJer's option either to restoration or repa~r of the Propert~•
or to the sums secured by ~his Mortgage.
Unkss Lender and Borrower otherv~i~e agree m v-nNng, any such application o~ prcxeeds to pnncipal shall not extend
or postpone the due date of Ihe monthly installmemc referred to in paragraphti I anJ 2 hereot or change the amount o[
such installments. I[ under paragraph I 8 hereof thc Pro f,erty is acywred by LenJer, ali nght, lide and interest of Borrower
in aod to any ihsurance policies and in and to th~ proceeds thereof re~tult~ng from damage to the Property prior to th~ sale
or acqwsition shall pass to Lender to the extent ot the sums secured by this {~tortgage immediately prior to such sale or
acquisition.
6. Priservatan and ~faintenance of Propert~: Leasehulds; (undominiums; Planned Unit Developments. Borrow•cr
shall keep the Property in good repair and shall not comroit raste or permit impairment or deterioration of the Property
and shall comply with the provis~ons of any lease ~[ thu Mor~gage ic on a leasehe~ld. If this Mortgage is o~i a unit in a
condomimum or a planned un~t Jrvelopment, Borrower shall perform all of Borrower's obligalions under Ihe declaration
or coveoants creatmg or guverning the condominium or planned unit develupment, the by-laws and regulationc of the
conJominium or planned onit Jevelopment. and constituent d~xument~. I( a conJominium or planned unit development
nder is executed by Borrower and recorded ~ogether with ~hi~ Mortgage. ~he covenants and agreements of such ridcr
shall be incorporated into and shall amend and supplcment the covenan~s and agreements of this Morlgage as if ~he riJer
were a part h~ereof.
7. Protection of I,ender's Secwity. If B~~rri~wer fa~ls t~• pert~rm the covenants and agreements contained in this
Mortgage, or if any act~on ~~t proceed~ng ~~ c~~mmcnceil wh~ch matrrially atTrcts 1_enJer's ~nterest in the Propert~~,
including, but n~~t limited to, eminent domain. in~~l~enr~•. rode en(orcement. ~~r arrangemenK or pmceedings mvohing a
bankrupt or decedent. ~hen Lender at I.ender's option, upon notice to Borrower. ma~ make such appearances. Jishurse such
sums and take such ac~inn a~ is nececsar~• tu pmtect I.ender's mterest. mclud~n~. bul not IimrteJ to. disbursement ot
reasonable a~~omey'i tce~ and emry uM-n ~he Proper~y to make repair~. If I.ender reyuircJ mortgage i~surance as a
cond~t~on of making the loan ~ecureJ b~ ~hiti AfurtRage. B~~rrr.v-cr shell p~y the premiums requireJ to mai~itain such
insurance in eSect until weh time as the reyuiremeni (or wch msuran,e termmatrs ~n accordance wilh Borrowcr's and
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