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UNIFORM COYENANTS. Borrower and I.cnder covenant and ag~ee as tollows:
1. Paymeat of Pct~cipal aad laterest. Borrower sfiall prompt{y pay when due the principal oi and interest on the
indcbtedncss evidenccd by thc Note. prepayment a~d latc charges as provided in the Note. a~d ihe principal of and interest
on aay Future Advances secured by this Mortgage.
2. Fnnds for Tues and lasur~nce. Subject to applicabic law or to a written waiver by I.ender. Borrower shall pay
to I.cnder oa the day monthly +nstaNmen~s of principal and intcrest are payablc under the Note. until thc Notc is paid in full.
a sum (hercin "Funds") equal to one-twclfth of the yea~ly taxes and assessments whicfi may attain priority over this
Mortgagc. and grou~d rents on thc P[+~perty. if any. plus one-twelfih of yearly premium installments for hazard insurance.
plus one-tweltth of yearly premium installments for mortgage insurancc, if any, all as reasonably estimated initially a~d from
time to time by Le~der oa thc basis of assessments and biNs and reasonable estimatcs tfiereof.
'il~e Funds shall be held in an institution the deposits or accounts of which a~e irtsured o~ guarantet~i by a Federal or
state agency (including Lender if Lender is such an institution). I.ender shall apply the Funds ta pay said taxes, assessments,
insurance premiums and ground rents. I_ender may not charge for so holding and applying Ihe FunJs, analyzing said account.
or verifying and compiling said assessments and bills, unless ~.ender pa}s Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower aod l.ender may agrce in writing at the time o[ execution of this
Mortgage that interest an the Funds shall be paid to Borrower, and u~less such agreement is maJe or applicable law
requires such intecest to be paid, l_ender sha{I not be reyuireci to pay Borrower any imerest or earnings on the Funds. I_ender
shall give to Barrower, without charge, an annual accounting of ehe Fuads shawing credits anJ debits to she Funds and tfie
purpose for which eaeh debit to the Funds was made. The Funds are pleciged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by I_ender, togcthcr v-ith thc futurc monifily installmenls of Funds payablc prior to
the due dates of ~axes, assessmentc, insurance ptemiums and ground rents, shall exceed the amount reguired to pay said tazes.
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credi~cd to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shal! not be sulficient to pay taxes, asscssmcpts, insu~at~cc premium~ and ground rents as ~hey fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency withiR,~,O c~ays from the date notice is mailed
by Lender to Borrower reyuesting payment ~hercof. :~; . ~ "'
Upon payment in full of a11 snms secured by this Marlgage, l.cnder shal) pYoniptly retund to Borrower any Funds
held by I.ender. If under paragraph 1R hcreo[ thc Propeny is sold or thc Propeny is otherwisc acquimd by Lcnder, Lender
shall apply, no later than immediatcly prior to the sale of th~ Property or its acquisition by Leodet, any Funds held by
Lender a~ the ~ime oi application as a creJit against the sums secured by this Mortgage.
3. Application of Payments. Unless applicable law provides othenvise. all payments received by I.ender un~ler the
Note and paragraphs 1 and 2 hereof shall be applicd by l.endcr first in payment of amounts payable to [.c~dcr by Borrower
under paragraph 2 hereof, then to interest payable on ihe I`ote, thcn ~o the principal of the Not~, and then to interest and
principal on any Future Advances.
4. Charges; Liens. Borrowcr shall pay all taxes, assessmcnts ~nd other rharges, fines and imp.Kitions auributable to
the Propert~• which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pa~ment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment dire~:tly. Borroacr shall promptly Furnish to Lender receipts c~°idcncing such payments.
Borrov-•er shall prompUy discharge any lieo W hich has priority over this Murtgage; pmvided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agrce in K~riting to the pa~•ment o[ the obligation secured b~
such iien in a manner acceptable to Lender, or shall in good faith contect such lien by, or defend enforcement of such lien in,
legal pcoceed+ngs which operate to prevent ~he enforcement o( ~he hen or forfeiture of the Pr.,perty or an~• part ~hereof.
5. Haiard Insurance. BorroNer shall kcep 1hc impro~ement~ noN exiuing or hercaftcr crccted on thc Propcrty insured
against loss hy fire, hazards included wi~hin the term "extendeJ coverage", and such rnher hazards as Lender ma} require
anJ in such amounts anJ for such pcriods as Lender may reyuirc: prc~vided, that Lender shall not requim that tlx. amount of
such co~erage excrcd that amount of co~•erage required to pa~• ~he tium~ ce~ured hy this htor~gage.
The insurance carrier providing the +nsurance shall be chosen by Borrower si~bject to approval b~~ t_ender, provided,
that such appro~~al shall not be tmreasonably withheld. All premiumc on insurance policies shall 6e paid in the manner
provided ander paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment, when due, directly to the
insurance carrier. •
All insurance policies anJ renewals thereo( shall be in form acceptable to Lender and sha11 include a standard mortgage
clause in fav.,r of and in form acceptable tu LenJer. Lender .hall ha~~e the right to hold the policies :~nd renew•als thereof,
and Borrow~er shall prompUy furnish to Lender all rencw~al' notices and all receipts of paid premium~. In the event of loss.
Borrower shal! give prompt notice to the inwrance carrier and Lender. Lender may make proof of loss if not made prompdy
by Borrowcr.
Unless I_ender and Borrower otherv-•ix agrec in vrriting. insurance proceeds shall be applied to restoration ur repair of
the Property Jamaged, provideJ such re~turation or repair is economically feasible and the security of this Mortgage is
not thereby impaired_ If such restoration or repair is not economically frasibte or ii the security~ ot this Mortgage would
be impaired, the insurance proceeds shall be applieJ to the sums secured hy this Mortgage. v-ith the excess, if any, paid
to Borrower. If the Propert~• is abandoncd hy Bormwer, or iF Bormwer fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to senle a claim for insurance benefits, L.ender
is authorized to collect and appl~ the insurance proceeds at Lender'a option either to restoration or repair of the Property
or to the sums sccured by this htortgage.
Unless [_ender and Borrower othen+•ise agree in w~riting, an~~ such application of proceeds to principa) shall not extend
or postpone the due date of the monthty installments referrcd to in paragraphs I anJ 2 hercof or change the amount of
such installmenu. If under paragraph l8 hereof the Property is acyuired b)• L.ender, all rigfit, title and interest of Borrower
in and ~o an~ insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
or acyuisition shall pass to LenJer to the extent of the sums secured by this ~tortg~ge immedia~ely prior to such sale or
acquisition.
6. Presen~ation and ~taintenance of Propert~; Leuefiofds; Condominiums; Ptanned Unit De~•elopments. Borrowcr
shrll kcep thc Property in good repair and shall not commi~ wastc ar permit impairment or deterioration of the Property
and shall comply with thc provisions of any lease if this Mortgage is ~~n a Icas~:hold. If this blortgage is on a unit in a
condominium or a planned unit development. Borrow~er shall perform all of Borrower's obligations under Ihe declaration
or covenants crcating or governing the condominium or planncd unit development, the by-laws and regulations of the
conJominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded ~agether w•ith ~his Mortgage, the covenants and agreements of such rider
shall be incorporated into and shafl amend and supplement the covenanls and agreements of this Mortgage as i[ the ricler
v.rrc a part hereof.
7. Proteclion of [.ender's Security. If Borrow•er fails to perfo~m the cavenants and agreements contained in this
Mor~gagc. or if any action or proceeding ~s commenceJ which materially aHects Lender's interest in the Propeny.
including, but nat limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or deccdent. then I.ender at LenJer's option, upon notice to Borrower, may make such appearances. Jisburse such
sums and take such action as is necessary to proteet Lender's mterest, including. but not limited to. disbarseme~t of
reasonable at~omey's fecs and entry upon thc Propcrty to make repairs. If l.cnder reqaircd mortgage insurance as a
cond~tion of maf:ing the loan secured by this Mongage. Borrower shall pay the premiums required to maintain surh
insurance in eQect until such time as the reyuirement for such ~nsurance ~erminates in accordance w•ith Borrower s and
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