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UNIPORIi COVBNAN7's. Borrowe~ and Ltc~der covenant and ag~ee u follows:
l. h,~we~t ot hbci/~i a~i 1Nerest. 8orrower shall promptly pay when due tbe p~incipai ot and interat a- the
~ndebt~u evidenad by the Note. prepayment and late charga ac provided in Ihe Note, and the principal of and intercst
on any Future Advances secured by this Mortaate.
2. FwBt ter ?aa~es a~i [wra~ce. Subject to applic~bk law or to a written waiver by Leoder. Bortowe~ shall pay
to [.ender on the day monthly installmeats of principal and intcrcc~ arr payahk under the Note, until the Note is paid in tull,
a=~un (hereir~ "Fund:'~ eqwl to one-twelfth of the yea~l~~ tas~. and assessments which may attain priority over this
Mo~ase. and `round reots on tbe Propetty, if any. Flus one-twelfth of yeariy premium i~staliments for huard insura~ce.
plus one-twelfth of yearly premium installments tor mortgage insunncc, if any, all as rcasonably estimated initially and trom
time to time by Lender on the buis of asxs.cmcnts and hills a~d rcasonable atimata thercof.
'il~e Funds shall be held in an institution the deposit~ or accounts of which arc insured or guannteed by a Fedenl ot
state ageocy (includi~g Le~der if Lende~ is such an institution). 1_ender shall apply the Funds to pay said taxa. asxuments.
it~surance premiums and ground rcnts. I.ender may na~ charge tor sc- holding and spplying the Fundc. analyzing caid actount.
or verifying and rnmpiti~g said assessments and bills, unless Leoder pvys Bonrowe~ inlerat on ihe Funds and applicable law
permits Lender to make such a charge. Borrower a~d [.ender may agrce in writing at the time of ezecution ot this
Motigage that interest on the Funds shall be paid to Borrower, and u~less such aareement is made or applicable law
requires such intercst to bt paid. Lender shall nM be rcquircd ta pay Borrower any interat or earnings on the Funds. Lender
shall Sive to Borrower, without charge, an annual accounting of Ihe Funds showing credits and debits to the Fundc and ihe
purpose for which each debit Io the Funds was made. The Funds are plodged u additional securily for the sums secured
by this Mort~e. "
If the unount of the Funds held by Lender, toge~her with ~he futuro monthly installme~ts of Funds payabk prior to
t6e due dates of tua. assessmtnts, insurance premiums and ground rents, shalt exceed the amou~t required to pay said taxa,
assasments. insurance prcmiums and ground reMS as they (all due, sueh excess shall be, at Borrower s opt~on, either
promptly repaid to Bornower or credi~ed to Borrower on monthly ins~allments of Funds. If the amount o( thc Funds
held by l.tader shall not be sut6cient to Qay taxes. atsescments, insurance premiums and ground rents u they fall due,
Borro~rer shall pay to l.ender any amou~t necassary to make up the deficiency within 30 days trom the date notice is mailed
by Leader to Borrower requesting payment Ihercot.
Upon pay~peot ia full of all swns secured by this Mor~gage, l.ender shall promptly retund to Borrower aoy Funds
heW by Lende~. it under paragraph 18 hereof the Property ia sold or the Propeny ~s othervviu acquircd by Lender, Lender
s6dl apply. no later than immediately prior to the sale of the PropeRy or its acquisition by Lender, any fionds held bv
[.ender at the time of application as a credit against the sums secured by this Mortgage_
3. A~plicat~on ot Paymeats. Unless applicable law provida otherwise, all payments received by Lender unckr the
Note and paragraphs 1 and 2 hereof shall be applitd by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hercof, then to interest payable on the No~e, thcn to the principal of the Note, and the~ to interest and
principal on any Futun Advanoes. ,
1. C6ar~es; Lie~. Borrower shall pay all taxes, assessmcnts and othcr charges, fines and impvsitions attributahle to
tbe Property which may attain a priority over this Mortgage, and leuehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or. ~f not paid in such manner, by Borrower making payment, wheo due, directly ~o the
payee thereof. Borrower shall prompUy furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments.
Borrow~er shall promptly discharge any lien which hu priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrowe~ shall agrce in writ~ng to the payment o( the obligation securcd by
such lien in a manner acceptable to Lender, or shall in good fai~h contes~ such lien by, or defend enforcement of such lien in.
legai proceedings which operate to prevent the enforcement of the I~en or Eorfe~ture oF the Property or any part thereof.
S. Hazard Insnraace. Borrower shall kcep the improvements now• existing or hereafter erected on the Propeny insured
against Icxs hy 6re, hazards included with~n the term "extended coverage", and such other haurds as I_ender may requirt
wd in such amounts and (or such periods as Lender may require: provided, that I_enckr shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortaage.
"I?~e insurance carrier providing the insurance shali be chosen by Borrower subject to approval by Lender. provided.
tbat such approval shall not be unreaconably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hercof or, if not paid in such manner, by &~rrower making payment, when due, directly to the
insurance curier_
All insurancr policies and renewals therro( shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender ~hall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furn~sh to Lender all renewal not~cec and all receipts of paid prcmiumc. In the event ot loss,
H~-rrower shall grve prompt nouce to the ~nsurance carner and Lender. Lender may make proof of loss if not made promptly
by Borrower. • -
Unless Lender and Borrower other.+•ise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property damaged, provided such restorat~on or repair ~s economically (easible and the ucurity of this Mortgage is
not ~hereby impa~red. I( such restoration or repair is not eronomically feasible or if the securiry of this Mortgage would
be impa~red, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borruwer. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days f~om the
date notice is mailed by Lender to Borrower that the insurance carrier ofTers to seule a claim for insurance benefits, I_ender
is authoriud to collect and apply the insurance proceeds at Lender's option either to resroration or repa~r of the Propen.~
or to the sums sccured by this Mortgage.
Unles~ Lender and Borrower otherwise agree in Nnting, any such application of proceeds ro pnncipal shall not extend
or postpone the due date of the monthly insiallmentt rcferred to in puagraph~ I anJ 2 hereof or change the amount ot
such ~nstallments. If under paragraph 18 hereo( the Property i~ acyuireci by l,ender, all right, title and interest of Borrower
in and to any ihsurance policiu anJ in and to the proceeds thereof resulung from damage to the Propeny prior to th~ sale
or acquisition shall pass to Lender to the extent ot the sums secured by th~s Mortgage immediately prior to such sale or
acquisition.
6. Presen•atioo and blaiatenance of Propert~: Leasehulds; Condominiums; Planned Unit Developments. Borrow•cr
shall keep thr Property in gcwd repair and shall not comroit ~vaste or permit ~mpairmem or deterioration of the Property
and shall compl~ with ~he provisions of any lease if this Mortgage ,. un a leaschold. lf this Mottgage is on a unit in a
condominium or a ptanned un~t development, Borrow~er thall pertorm all ot Borrower s obligations under the declaratwn
or covenants creating or governing the condominium or planned unit develupment, the by-laws and regulationc of the
condominium or planned unit development, and conslituent J~xumenic. If a conJominium or planned unit development
rider ~s eaeruted by Borrower and recordeJ tuge~her with thic M~rtgage, the covenants and agreements o( such rider
shall be ~ncorp.xated ~nto an~l shall amend anJ supplrment the cu.cnants anJ agreements of this Mortgage as if ~he riJer
were a part hereof.
7. Protection of I.ender's Security. I( Borrower fa~lti t~~ ~xr(arm the covenants anJ agreements contained in thic
Mortgage, or i( any actux~ ur proceedmg n rummenced which m~lerially afTects Lender's interect in the Pmperty,
~ncluding, but n~~t hmrted to. eminent domam. inW.lve~cy, axle enf~rcemen~, or arrangements or proceedings invol~mg a
bankrup~ or ~1eceJem. ~hen Lender at Lender', opt~on, upon nouce te~ Borrow•er. ma~ m:,ke such appearances, dishurse such
sumc and take such acliun ac ~s nece~~ar} tu pmtect Lender's ~n~erest. ~ncluJing. but not lim~ted to. d~~bursemeM ~~(
reasonahle att~~rney'1 trc~ and enlry u~x~n ~hc Pmpcrt~• to makc rcpa~rti. If I.cndcr rcyuircJ mortgage insurance ati a
condrtu~n ~-f makmg thc loan securcJ b~ thi~ ,~1vng.~gc. B~~rraNrr shall pay thc prcmium~ rcqwreJ lo maintam such
~nsurancr in rtfcc~ until ~uch umc as thc reyuircmcm for .uch insurancr tcrmmalrti in accordancc N'11F1 B(~ffON'~f ti and
Erl~~x •
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