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UNIFORM COVENANTS. BOf(OWC~ 3Q(~ L.CCIIIIC~ COY~I1;1111 .~fl(I Bg~CC 3S ~OIIOWS:
1. P~'111lp1 OE PI~11CIwI ~d III~lftSl. Borrower shall promptly pay w~hen due the principal of and interest on the
indebtedness evidenced by ihe Note. prepayment and late charges as provided in the Note. and the principal of and interest
on aay Futurc Advances secured by ~his Mortgage.
Z. Fhads fo~ T~es aad I~uraace. Subject to applicable law or to a written vraiver by l.ender, Borrower shall pay
to I.ender on the day monthly installments of pri~cipal and interest are payable under the Note. until the Note is paid in fup.
a aum (hercin "Funds") equal to ono-twelfth ot the yearly taxes and asseuments which may attai~ priorily over this
Mortgage. and ground rents on thc Property, if any, plus one-twelfth of ycarly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments €or mortgage insurancc, if any. all as reasonably estimated initially and from
time to time by Lcnder on thc basis of assessments and bills and reasonable estimates thereof.
'il~e Funds shall be held in an institution the deposits or accounts ot which are insured or guaranteecl by a Federal or
state agency (including [.ender if Lender is such an institution). I.ende~ shall apply the Funds to pay said taxes, assessments,
insuran~,~e premiums and ground rents. !_ender may not charge (or so holding and applying the Funds, analyzing said account,
or verifying and compiling said assessments a~d bills, unless Lender pays Borrower interest on the Funds and applicable 1aw
permits Lender to make such a charge. Borrower and l.ender may agree in writing at the time af 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. 1_cnder shall not be reyuired to pay Borrower any interest or earnings on ihe Funds. Lender
shall give to Borrower, without charge, an annual accounting of the FunJs 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 of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates o[ taxes, assessments, insurance premiunu and ground rents. shall exceed the amount reyuired to pay said taxes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of the Funds
held by Lender shall not be suflicient to pay taxes, assessments, insurance premiums and ground re~ts as they fall due,
Borrower shall pay to Lender any amount necessar}• to make up the deficiency within 30 da~~s from the date notice is mailed
by Lender to Borrower reyuesting payment thercof.
Upon payment in full of all sums secured by this Mortgage, I_ender shall promptly refund to Borrower any Funds
held by l.cnder. If under paragraph 18 hcreof the Property is sold or thc Propcrty is otherwisc acquired by l.ender. Lender
shall apply, no later than immediately prior to Ihe sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time oF application as a credit against the sum. secured by this Mortgage_
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs I and 2 hercof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hcreof, then to interest payable on ihe Notc, then to tlx: principal of the Note, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrow~cr shall pay all ~axes~ asscssmcnts and other charges, fines and imEwsitions attributable to
the Properiy which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provicled under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lencier all notices of amounts due under this paragraph, and in the event
BorroWer shall make payment direcUy. Borrow~er shall promptly fumish to Lender receipt~ evidencing such payments.
Borrower shall promptly discharge any lien Nhich has priority over this Mortgage; provided, th:+t Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the pa)•ment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contesl such lien by, or defend enforcement of such lien in.
legal proceedings v-•hich operate to prevent the enforcement of the lien or forfeiwre of the Property or any part thereof.
5. Hazard Insurance. Borrow•er shall keep the improvements now• cxisting or hercaftcr erccted on the Property insured
against loss hy fim, hazards included wilhin thc term "cxtended covcrage", anJ such othcr hazards as I.endcr may reyuire
and in such amounts and for such periods as Lcnder may rcyuirc: provideJ, that Lcndcr shall not reyuire that thc amount of
such coveragc exceed that amount of coverage required to pa}' the sums cecured h~• this Mortgage.
The insurance carrier providing the in'surance sh~ll be chosen by Borrower subject to approva) hy Lender, provided,
that such approval shall not be tmreasonably withheld. All premiums on insurance policies shall bc paid in the manner
provided under paragraph 2 hercof ur, if not paid in such manner, b}• Borrower making payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shalf he in form •rcceptabte to Lender and shall include a stanJard mortgage
clause in favor of and in form acceptable to Lender. Lender shall ha~•e the right to hold the policies and renew•als thereof.
and Borrow~er shall prompU~• furnish to Lender all renewal notices and all receipts of paid premiums. In the e~ent oi loss,
Borrower shall gi~~e prompt notice to the in~urance carrier and Lender. Lender may make proof of loss i[ not made promplly
hy Borrower.
Unless Lender and Borrov-er otherwic~: agrec in writing. insurance proceeJs shall be applied to restoration or repair of
the Property JamageJ, proviJed such resturation or repair is economically feasible and the security of this Mortgage is
not thereby impaired. I( such restoration or repair is not economirall~~ feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, vvith the ezce3s, if any. paid
to Borrower. 11 the Propert}~ is abandoned b}• Rorrower, or i( Borrower fails to respond to I_ender within 30 days from the
date notice is mailed by Lender to Borrower that ~he insurance carrier ofiers to settle a claim for insurance benefits, lxnder
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properiy
or to the sums secured by this Mortgage_
Unless Lender and Borrower otherwise agree in w•riting, any sach application of pmceeds to principal shall not extend
or postpone the due date of the monthl~• installments referred to in paragraphs 1 anJ 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acyuireci b}• Lender, all right, title and interest of Borrower
in and to an}• insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenation aod ~laintenance of Propert~; I.esueholds; Condominiums; Planned Unit De~elopments. Borrower
shall keep thc Property in good repair and shall not commit waste or permit impairmeni or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leaschuld. If this bfortgage 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 crcating er governing the condominium or planned unit development, the by-laws and regulations of the
~ondominium or planneJ unit development. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider
shall be incorporated into and shall amcnd anJ supplcment the covenan~s and agreements of this Mortgage as if the rider
Ncre a part hereof.
7. Protection oi Lender's Securify. If Borroaer fails to perform the covenants anJ agreements contained in this
Mortgage. ur if any action or proceeding is commenced K~hich materially afiects Lender's interest in the Property.
including. biit nnt limited to. eminent domain, inu~lvency, code enforcement, or arrangements or proceedings involving a
bankrup[ or Jeccdent, then l.ender at t_enJer's option, upon notice to Borrower, may make such appearances, Jishurse such
sums and take such ac~ion as is necessary ta protee~ Lender s interest, incluJing. but not limited to, disbursement of
reasonable attomey's fecs and en~ry upon the Propcrty to make rcpairs. I( I.ender required mortgage insurance as a
conJition o( making the loan secured by this 1~lortgage. Borrower shall pay the premiums requireJ to maint~in such
insuranee in etiect until such time as ~he reyuirement for ~uch insurance terminates in accordance v-•ith Borrow-er s and
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8o K345 Par,E1544