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UNIlCRI~t COVBNANT3. Bomower a~d Leader coveoant and asrce u follows:
1. ~t of ltMclNl ~i 1Nerest. 8orrower shall promptly pay when due the principal of and interest on the
indtbtednea evidenoed by the Note, prepayment and late chargec ac p~ovidcd in the Note, and the principal ot and intercst
on aay Future Advances secwed by this Mortgage.
2. th~Ns tor Ta:a s~i iwra~ce. Subject to applicabk law ~.r to a written waiver by Le~de~, 9orrower shall paY
to Lender o~ ~he day monthly installments ot principal anJ intcrcct arc ~wyabk under the Note. uotil the Note is paid in tull.
s sum (herei~ ••Fund:'~ eqwl to one-tweltth ot the yea~l~~ u~~-. anJ assessments which msy attain priority over ~his
Mortjate. and ~rour~d rena on tl~e Propeny. if any. Flus one•twel(th ot yearly prcmium i~stallments for huard insurance.
plus oae-twelfth of yearly premium installments for mongage insu~ance, it sny, all as rcuonably estimated initially and trom
time to time by I.e~der on the buis of assescmcnts and hills and rcawnable es~imata thercof.
The Funds shall bc held in an institution ~he depasia or accounts of which arc insured o~ guaraoteed by a Federal ot
state agency (inctuding Lender if Lcnder is such an institution). I_ender ahall apply Ihe Funds to pay said taxa. assessments.
ituuranet ptemiums and ground rents. 1_ender may not cbarge tor so holding and applying the Fundc. analyzing wid account.
or verifyin~ and compiling said asxssments and bills, unless I.ender pays BoROwer intercst on the Funds and applicablc law
permits I.ender to malce such a charge. Borrower and Lender may agrce in writing at the time of execution ot this
Mortgaae tl~at interat on the Funds shall be paid to Borrower, a~d unless such agrcement is made or applicable law
rcquira such intercst to be paid. Lender shall not be rcquired to pay Borrower any in~ercst or earnings on the Fu~ds. Lender
shall aive to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and thc
purpoae for which each debit to the Funds wu made. The Funds arc pledged as additional security for ~he sums secured
by this Mortpge.
If the amount o[ the Funds held by l.ender, together w~th the future monthly installments of Funds payabk prior to
t6e due data of tues. asussme~ts. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assasments. insurance ptemiums and ground rents u they tall due, such eac~ss shalt be, at Borrower s option, either
promptly repaid to Borrower or cre~ited to Borrowe~ on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sutficieat to pay taxes. assexsments, insurance ptemiums and ground rents as they tall due,
Borm~ver shall pay to Lender any amount necessary to make up the deficiency within 30 days trom the date notice is mailed
by Leader to Borrower requating payment thcrcof.
Upoa paymeat ia full of all sums secured by this Mongage, l.ender shall promptly refund to Bortower any Funds
held by L.ender. If under puagraph 18 hereof the PropeAy i~ sold or the Property ~s otherwiu acquired by I_ender, Lender
shall apply. no later than immodiatcly prior to the sale of the Propeny or its acquisition by Leod~r, any Funds held bv
Lender at the time of application as a credit against the sums secured by this Mongage.
3. ApQiic~tim ot Payments. Unless applicable law providas othen~vise, all payments received by Lender under the
Note aad paragraphs I and 2 hereof shall be applied by t.ender 6rst in payment of amounts payable to Lender by Borrower
under puagraPh 2 hercof, then to interest payable on the Note, then to the principal of the Nae, and then to interest and
principal on any Futun Advances.
4. CAar~es; Lkos. Borrower shall pay all ta~rs, assessmcnts and othcr charges. fincs and impositions attributable to
the Propetty which msy attain a priority over this Mortgage, and leuehold 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, dircctly to the
payee the~+eof. Borrower shall promp~ly furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furn~sh to l.ender receipts evidencing such payments.
Borrowe~ shall promptly dixharge any lien which hu priority over ~h~c Mortgage; provided, that Borrower shall not be
rcquired to discharge any such lien so long as Bor~ower shall agree in w~ntmg to the payment of the obliga~ion ucurcd by
such lien ~n a manner accepuble to Lender, or shall ~n good faith contect such lien by, or ~lefenJ enforcement of such lien in,
legal proceedings wh~ch operate to prevent the enfurcement of the I~en or forfe~ture of the Propetty or any part lhercof.
S. H~zard insurann. Borrower shall keep the ~mprovements now exicting or hereafter erected on the Property insurod
against loss by fire, hazards included withm the term "eztended coverage", and such other hazards u Lender may require
and in such amounts and for such periods as Lender may require; provided, that [_ender shall not requirc that the amount of
such coverage eaceed ihat amount of coverage required to pay ~he sums secured ~by this Mort~age.
'[he 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 policies shafl be paid in the manner
provided under paragr3ph 2 hereof ur, ~f not pa~d in such manner, by Borrower making payment, when due, dircctly to the
insurance curier.
All insurance policies and renew~ais therrof shall be in form accep~able to Le~der 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 renew~als thereof,
and Borrower shall promptly [urn~sh to Lender all renewal notices and all receipts of paid prcmium~. In the event of loss,
Bonower shall grve prompl notice to the insurance carner and Lender. Lertder may make proo( of loss if not made prompUy
by Borrower.
Unless Lender and Borrowe~ otherw~se agree in wnt~ng, imurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJeJ surh retitoration or repair is economically (easible and the security of this Mortgage is
not ~hereby impa~red_ It such restoration or repair is nut cconomically feasible or if the xcurity of this Mortgage would
be impa~red. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the eacess, if a~y, paid
to Borrower. If the Propert}• is abandoned by Borrower. or it Borrower fails to respond to 1_ender within 30 days from the
date notice ~s maded by Lender to Borrower that the insurance carrier ofiers to settte a claim for insurance benefits, Lender
is authoriud to collect and apply the insurance proceeds at Lender's option either to ~estorauon or repa~r of the Propem•
or to the sums secured by this Mortgage.
Unless LenJer and Borrower utherv-ue agree m ariting. any such applica~ion of proceeds to pnnc~pal shall not eatend
or postpone the due date of the monthly~ installmentc rcferred to in paragraphti 1 and 2 hereof or change the amount of
suc6 installments. It under paragraph I8 hereof the Yrot,erty ~s acyuued by LenJer, ali nght, title and interest of Borrower
in and to any Itisurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th~ sale
or acqwsition shall pass to Lender to the extent of the sums secured by this Mortgage immedialely prior to such sale or
acquisition.
6. Presenatan and ~laintenance of Property; I.easeholds; ('ondominiums; Planned Unit Developments. BorroK~cr
shall keep the Property in good repair and shall not comtpit yvaste or perm~t impairment or deterioration of the Property
and shall comply~ w~ith the ptovisions of any lease if th~s Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned umt development, Borrow~er shall perform all of Borrower's obligations under the declarat~un
or coveoants creating or governing the condom~nium ~r planned unit develupment, the by-laws and regulationc of the
condominium or planned unit deve~u~,ment, and constituent d~xument~. 1( a condominium or planned unit Jevelopment
rider is execu~ed by Borrower and recorded together w~th thn Mortgage, the covenants and agreements ot such ricicr
shall be incorporated into and shall amend and supplement the co.enants and agreements of thic Mortgage as if the n~ler
were a part t~ereof.
7. Protation ot Lender's Securfty. I( Bnrrouer fad~ t~• perfarm the covenants anJ agreements rnntained in Ihic
Mortgage, or if any act~on ur proceedmg ~c cummrnced whicn materially atTrctc I.enJer's interest in the Pmper~y,
including, but not I~mited ro, cmment domain. inc~•lvenry, cocle en(or.ement. or arrangements or pn.ceedings involc~ng a
bankrupt or deccdent, ~F-en Lender at ! ender'~ op~~on, up~m notice io Borrow•er. ma~ make such appearances, d~shorse such
sums and ~ake such action ac ~s necec~ar~ tu pro~ect Lender'c interest, including. but not lim~ted to. disbursement of
reasonable al~omey't (ceti and •eniry u~n thc Pmpcny~ 1c~ makc repa~r~. It I.rndcr rcyuircd mortgage incurance as a
condrtion u( mak~ng thc loan ~ccured by ~his :-tortgagc. Bnrrr.wcr sh.~ll pay thc prcmiums ~cquireJ to mainta~n ~uch
iruurance in etiect unul wch time as ~Fn: reyuiremen~ for wch in,uran;e termmates in accordance with Borrower's anJ
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