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UNtro~w CoveNer~m. Borrower and L.ender covenant and aarce u tollows:
1. h~we~t ot M~c1M1 a~i 1Nerai. Borrowe~ shail p~omptly pay when due the principal of and inte~est on the
indebttdnat evidenced by the Note. Prepayment and late chargec ac provided in the Note. aod the priocipal ot and interest
on any Future Advances securod by this Mongage.
2. Fr~i Iot Tua a~ l~wra~ee. Subjat to applicabk law ~~r to a written waive~ by Lendet. Borrower shall pay
to Leeder on the day monthly instalimems of pri~cipal and intercct ~rc payahle under the Note. until the Note is paid in fu{I,
a ium (het~ein "Fu~'~ equal to one-twelfth ot the yea~ly taac~ and assessments which may attain priority ove~ this
Mortsa~e. and `round rents or~ the P~+operty. if any, plus ooe-twelfth of yearly premium iestallments for hazard insurance.
plus oae-twelfth of ytarly prcmium installments tor mongagc insurancc, it any, all as reuonably estimated initially and trom
time to time by Lender on tbe basis of asxssmcnts and hills and reasonabk eslimates thercof.
The Funds shall be held in an institution the deposia or accou~ts oF which are insured or guaranteed by a Federal ot
state ageocy (includina Lender if Lender is such an institution). I.eoder ahall apply Ihe Fu~ds to pay said taxa. assessments.
insuranoe premiums and ground rcnts. I.ender may not charge tor so holdi~g and applying Ihe Fnndc. analyzing uid actount.
or verifyin~ a~d compling said assessments and bills, unless I_ertder pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. Borrower and Ler~der may agrce in writing at the time ot execution ot this
Mortgage that interat on ~he Funds shatl be paid to Borrower. and unless such agrcement is made or applicable law
requires such i~terat to be paid. Ler~der shall not be rcquircd to pay Borrower any interest or earnings on the Funds. Lender
shaU ~ive to Borrowtr. without charge, an annual accounti~g of the Funds showing credits and debits to the Funds and the
purpoae for which aeh debit to tUe Funds wu made. The Funds arc plodged u additional security tor ~he sums socured
by Wis Morttage. •
If the amount ot the Funds heW by Lender, toge~her with the future monthly installments of Funds payable prior to
the due data of ~aua. uusxments. insurance premiums and ground rcnts, shall exceed the amount required to pay said tua.
atsasments. insunnce prcmiums and ground rcnts as they fall due, such excess shall be. at Bonower s option, either
promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount ot the Funds
held by Leoder shdl not be sut6cient to pay taxes. assessments, insura~ce premiums and gmund rents u they fall due,
Borroaer shall pay to Lender any amount nece.ssary to make up the deficiency within 30 days from the date notice is mailed
by Leu~ :r to Borrower requating Q~ayment theroof.
Upon payaaeat in full of all swns secured by this Mongage, I.ender shall_ promptly rcfund to Borrower any Funds
hdd by Lender. If under paragraph 18 hercof the Property ia sold or the Propeny ~s othenvise acquircd by Lender, Lender
sball apply. no later than immediately prior to the sale o( the Property or its acquisition by Lender. any Funds held bv
L.ender at the tima of application as a credit against the sums socured by this Morigage.
3. A*piicatio~ of Paymeats. Unless applicable law provida o~hcrwise, all payments r~ceived by Lender under ~he
Note and paragraphs 1 and 2 hereof shall be applied by !_ender first in payment ot amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to interat and
principal on any Future Advanoa.
1. C6u~es; Lie~. Borrower shall pay all taxes. assessmrnts and othcr charges, fines and ~mpositions attributable to
the Propetty which may atlain a priority uver this Mortgagc, and lea,ehold payments or ground rents, if any, in the manner
provided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, whe~ due, diroctly to the
payee thereof. Borrower shall promptly furn~sh to Lender all not~ces of amounts due under this paragraph. and in the event
Botrower shall make payment directly. Borrower ~hall prompdy furnssh to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has prionty over thic Mongage: provided, that Borrower shall not be
tcquircd to discharge any such lien so long as Borrower shall agrce in wn~ing to the payment of the obligati~n securcd by
such lien in a manner acceplable to L.ender, or shalJ in g«xi (aith conte.t such lien by, or defend enforcement of such lien in,
kgal procted~ngs which operate to prevent the enforcement of the I~en or forteiture of the Property or any part thereof.
S. Hazard I~urawce. Borrower shall keep the ~mprovements now exicung or hereafter erected on the Property insurod
against loss by fire, hazards included withm the term "ettended coverage", and such other hazards as Lender may rcquire
wd in such amounts anJ for such periods as l_ender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay ~he sums secured ~by this Mortaage.
The ~nsurance carrier providing the insurance shall be chosen by Borrower subject to apQroval by Lender. provided,
that such approval shall not be unreasonably withheld. All prem~ums on insurance polic~es shall be paid in the manner
provided under paragraph 2 hereof or, ~f not pa~d in such manner, by Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies anJ renewals therrof shall be in form accep~~ble to Lender anJ shall include a standard mortgage
clause in favor of and in form acceptable tu Lender. 1_ender shall have the right to hold the policies and renew•als thereof.
and Borrower shall promptly furn~sh to Lender all renewal not~ces and all receip~s of paid prcmiums. In the event of loss,
Borrower shall give prompt notice to the msur~nce carner and l.ender. Lender may make proof o( loss if not made promptiy
by Borrower.
Unless Lenckr and Borrower olherw~x agree in w•riting, in~urance proceeds shall be applied to restoralion or repair of
the Property damaged, provuied such re~toration or repair is economically feasible and the s~curily of this Mortgage is
not thereby impaired. 1t such restoration or repair is nc~~ economically teasible or i[ the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid
to Borrower_ If the Property is abandoned by Borrower, or if Borrower (ails to respond to Lender within 30 days trom the
date not~ce is maded by Lender to Borrower that ~he insurance carrier otTers to settle a claim for insurance benefits, Lender
is authorized to collec~ and apply the insurance proceeds at 1_ender's optiun either to restoration or repaer of the Propert~~
or to t6e sums secured by this Mortgage.
Unless I.ender and Sorruwer otherv~~se agree m wnting, any such applicrtion of proceeds to pnncipal shall not extend
or postpone the due date of the monthlv installmcntt referred to in paragraph~ I and 2 hereof or change the amount of
suc6 installments. If under parag~aph 18 hereof thc Property~ ~s acyuued by I.endcr, ali nght, title and interest of Borrower
in and to any tnsurance pulicies and in and ta the proc:eeds thereof resultmg from damage to the Propeny prior to th~ sale
or acquisition shall pass to Lender to the ex~ent of the ~ums secured by th~s Mortgage ~mmediately prior to such sale or
acquisition.
6. Presen•ation ~nd ~faintenance of Property; I.easehulds; Condominiums; Planned Uuit Devebpments. Borrow•er
shall keep the Property in good repair and shall not comro~~ ~'astc ~~r perm~t ~mpairment or deterioration of the Property
and shall comply~ with the provis~ons of any lease d th~. Mortgage ~~ on a leasch~~ld. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrow•er shall perform all of Borrower s obligations under the declarahun
or covenants creatmg or governmg ~he conJominium or pl:~nned unit development. ~he by-laws and regolationc of the
condominium or planned unit development, and constituem d~xumentt. I( a conJominium or planned -mit development
riJer ~s eaecuted by Borrower and recorded together ~~th th~~ Mortgage. ~he covenants aod agreements of such nder
shall be incorporated into and shall amend and supplement the co~enants and agreements of this Mortgage as if the riJer
were a part t,ereof.
7. Protection of ixnders Secu~ity. If Borr~~wer fa~l. m~xrf~-rm ~he covenant~ and agreements contained in this
4/ortgage, or if any •rcbon ur proceed~ng ~. cummrnced wh~rh ma~eriall~~ nfirctt LenJer'S interest in the Property,
includmg, but n~t t~miled to. em~nem domain. ina~hency, c~xic enf~~riemenL ar arrangcments or pr~xeedings invol~~ing a
bankrupt or decedem. ~hen Lender at I.ender'~ option, up~m notice to Borrower. ma~ make such appearances, disburse such
sums and take such actiun ac is nece«ar~• t~- prMCCt I.ender's mterest. ~nclu~ling. but not lim~ted to, disbursement ot
reasonable attomey's (ecs and emry up~~n thc Propcrh• to makc repair~. It Lender rryuired mortgage in~urance ac a
conJrtwn of makmg the {oan SecureJ by Ihi~ titur~gage. B~.rrr.NCr sh.~ll pay th~ premiumc requireJ to mainta4n such
ins~rance in ctfcct until such t~mc as thc reyuircmcn~ for .uch msuran,c tcrm~natr~ in :iccordancc with Borrow•ct s anJ
g~~ 345 pa~E 673