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UN~FORA~ CovFN.~NTS. Borrower and l.endcr rc~venant and agrec ~s follow•s:
1. Psymeat of Princlpal aud I~teresl. tiorrower shall promptly pay v-~hen due thc principal af and interest on the
indebtedness evidenced hy thc Note, prcpaymcnt anJ late chargcs ac ~+rnvided in the Note, and the principal of and interes~
on any Futurc Advanccs ucured by this Mortgagc.
2. Funds for Taxes and Insurance. Subject to applicable IaN~ or to a writlen waiver by I.ender. Borrower shall pay
to I.endcr on thc day monthly installments of principal and ~n~crest arc pa~able under thc Note, until the Notc is paid in (ull,
a sum (herein "Funds"- equal ~o ~~ne-twellth ot thc yearly ~axes anJ assessmcnts w~hich may auain priarity over this
Mortgage, a~d ground rents on thc Property, if ar-y, plus onc-twelfth of ycarly prcmium installmcnts for hazard insurance,
plus onc-tw~elfth of yearly prcmium installments (or mortgage insurance, if any, all as rcasonably cstimateJ initially anJ from
timc to time hy 1_endcr an thc basi, of a~sestimcnts and billc anJ rcasonable estimatcs thereof.
"Il~c Funds shall he hcld in an institution thc d~p~~sit~ or ar~ounts of which are insured or guarantccd h}~ a Fcderal or
state agency (including Leoder if 1_ender is such an institutionl. I.ender shall apply the Funds to ~y ~~ici taxes, assessments,
insurancc prcmiums and ground rcnts. I.cndcr ma~• not chargc for ~o holding and applying Ihc Funds, analyzing said account,
or verifying and compiling said assestiments anJ bills, unless I.ender pa~•s Borr<~wer interest on the Funds and applicable law
permits Lender to make such a charge. Borravver and t.ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Bor~ow~er, anJ unless such agreement is maJe or applicahle law
rcyuires such interest to be paid, l.rnder shall not t-c rcyuired to pay I;orrow•er xn~~ interest or earnin~ ~~n the Funds. Lender
shall gi~~e to Borrawer, without charge, an :~nnual accuuming af thc Fund, shoaing creciits and debits to the Funds and ihe
purpose for which each debit t~~ the Funds was maJc. Thc I~und~ arc plMlgrd a~ additianal securit} for ~he sums secured
by this ~lortgagc.
lf the amount of the Funds held b~~ Lcndcr, togcthcr w+ih the futurc monthly installments of Funds payable prior to
the due dates of ~axes, asscuments, insurance premiums and gmuod rents, shall erceed the amount reyuired to pa)• said taxes,
assessments, insurancc prcmiums and ground rentc as ~hcy fall duc, sunc ~+ccccs shall be, at Borrower s oplion, either
prompll~~ rcpaid to Borrowcr or crcditcd lo B~~rrowcr on monthlg installmcnts of Funds. I( thc amount of thc Funds
held by Lender shall not be sutlicient to pay taxes, ass~:ssmems, insurance premiums anJ ground rents as they fall due,
Borrowrr shall pay to Lcndcr any amount neccs.~ar~ to makc up thc dcficirnry within ;0 days from Ihc datc nMicc is mailcd
by Lender to Borrow~er rcyucsting paymcnt thercol.
Upon paymcnt in full of all sums sccured b~• thi. Mortg~ge. Lendcr shall promptly rcfund to Borrow•er any Funds
held hy I.cnJer. If under paragraph 1S hcreof the Propcrt~• i~ tiold or the Propcrt~ is otherw•i~c acqinrcd h}~ Lendcr, Lender
shall apply, no latrr than immediatrl~~ prior to the ,ale of the ProEx:rt)~ or its acyuisition by Lendcr, any Fundc held by
LenJcr at thc hmc oi appliration as a crcdit against thc sum, ticcurcd b~• thit \tortgagr.
3. Applicalion oi Pa~ments. Unlecs applicable law pnni~es otherwis~r, all payments received by l.ender undcr the
Notc and paragraph, 1 and 2 hcrcuf sh:dl lx: appli~J b)• I.cndcr fint in paymcnt o( amounts pa~~ablc ta Lcndcr h}' Borrow~er
undcr paragraph 2 hcrcuf, thcn to intrrc~t payablc ~-n thr \ote, thcn to thc princ,ipal of thc Notc, and Ihcn t~• intcrest and
principal on an}• Futurc Advanccs.
4. Charges; I.iens. Burro~~cr tihall pa)~ aU t.~~r,, a~k~~mrnts and ~~ther chargc.. finc+ anJ im~x~.itiuns attr~butable to
thc Property w•hich may attain a prioriry over thi. ~lortbagc, and Icauhold paymcnts or ground rentti, if any, in the manner
provided unJrr paragraph 2 hcrcof or, if nut paid m surh mar.ner, b}~ Borrow~cr making parment, w•hen duc. Jirectly to thc
payec thcrc~f. Borrower shall promptly furnish to I_ender all nohccs o[ amounts duc under this paragraph, and in the event
B~rro~cr shall makc payment dir~~Uy. Burrowcr ~hall promptl}~ furnish ta Lender rercipts c~•id~ncmg wch paymcnts.
Borrower shall promptly Jischargc any licn which has priont)• ovrr thi~ l~lortgagc: pn~vufcd. that B~~rrowcr ~hall not bc
requircd to dischargc an)~ such lirn to long as Brrrowcr ~hall agrcc in Nrit~ng to th~ pa~mcnt ~~i thc obhgation sccurcd b}•
wch lien in a manner arceptab~e tu Lender, ur ~hall in g~xxl (aith cuntr~t ~uch lien b~~, or .IefenJ cnfurcemrnt of such lien in,
Icgal pr~krcdingc which opcrat~ tu pre~•cnt ~hc cnfurcrmcnt o( thc licn i~r fur[crtur~ of thc Propcrty or an~~ part thcrcof.
S. Hazard Inwrance. Bvrro~~cr shall k~y:p thr impruvcmcnh nuu ~~ititing un c~rraitcr crectcd on thc Pr~~Exrty insurcd
against locti h~• fir~, hazards incli~ded ~~~ithm thc trrm "~~tcnJc.i a•vrr,~g~'~. and w:h othcr hatard~ ac Lcnd~r ma~~ reyuirc
an.l in such amuunts an.l for such ~xri~i~ a, I.cndcr ma~ reyuirr: pr.»idc.l. tha+t 1 rnJcr ,hall not n:yuire that thc antount of
~uch ~u~•crag~ c~cc~d thal am~~unt c~f covcragc rcyu~rcd tu ~•a} the tium, ~~~ured M• ~h~ti ~turtgaRc.
l'hc ~nsuranrc .:~rricr providing ihc imoran.e ~hall tx: ch~~.cn h~~ Borru~~rr whjcct to appro~•a) b~ Lcndcr, pmvided.
that surh appro~al ~hall not b~: unrra~unshh~ w•i~hhcld :111 pr~imum. un insuranrc policics tihall br paid in thc m~nner
pru~•idcd und~r p:~ragraph 2 hcreof ur_ if nut p~id in ,urh manncr, b} B~~rrowcr makmg paymcnt, whcn due. d~r~ctly to thc
insurancc rarricr.
All insuranre rolicieti an~ ren<<~al, ~here~~t shall Fx in form ~ccrpt,~ble tu Len~ltr anJ shall include a~tanJ:,rJ mortgage
rla:~sc m fa~•~~r ~•f and in i~~rm ac.cptahtc a~ I.rnd~r. 1_rnd~r .hall h~~~ thc right t~, hold thc M~lirirs and rrncwaic thcrcof.
and Borr~~~cr ~hall promptl~• furnish to I.endcr all r~ncHa) notices and ~II rrceipts of paid premium.. In the c~~enl of lo~~.
Borruw•cr ,hali g~vc prompt noticc tu ~hc ~n.ur.~n~c wrnrr anJ Lcndcr. I.cndrr m~~• makc proof of loss if n~~t madc prumpU)
by Borruw•cr.
lJnlcss I_endcr and Borruwcr otherH~.r ~grer in wrihn~, imur~nre pr.xecJc shall bc applicd to rc.turation or repair of
the Pruperty ~amageJ, pru~~uled such retitorat~un ur repair ~s crunumically frasible and thc security of this Mortgagc is
not thereb~• imp~~red. !t such re~toraU~m or rcpair is n.~t rc~mumic:~ll~~ fra~ible or i( the securu}' of this Mortgage would
be impaired. the insuranre pr.x:eedc ~hall be :~pplied tu the wms securcd b~~ this Mortgage. ~cith the e~eecs, if any, paid
to Borr.~w•rr. U ~hc Propertc i~ ahandnncd h~ Bormucr, ~~r il B~~rmw•er faih to re~~nd.to I.ender H•ithin 30 da~'s (rom the
J;~tc nolicc i, mail~d h~~ Lendcr to Borrow~cr that the insurancc r.~rncr otTen to settlc a claim for ~nsurancc bcr~cfits, I.ender
~. auth~-n-r.ed t.~ culfect and ~ppl~ the lmurance proceed~ at I.enJer's upt~un either to restoration or repair of the Property
.-r to thc sum. ,ccurcd h~• thi~ ~fortgag~.
Unles~ Lcndrr :~nd BurruNCr i~thcn+i,c agree in Hriting, an~ ~uch ~ppliration i~f pnn:~eds to prmeipal ~hall not e~tend
~.r p.~stpunc thc duc Jatc of ~hc mi~nthh~ imtallmcntc rrfcrrcd ~~- in par:~graph~ 1 and 2 hcreaf or changc thc amount of
w~h imtalhnenb. It under paragraph l8 hereof the Propert~~ u acyu~rcd b~ l~nder. :~II nght, tiUe and imerest of Borrowcr
in and to ~n~ mwran~c policies and in anJ to the pnxeed+ thcreof residting frum damage to the Proper~y ptior to the s~le
or acyw~Uion ~h:,ll pa~s to Lender to the e~tent ot the ~ums ~ccured b~ this \lortg~gc immediately prior to ~uch sale or
acyuisition.
6. Presenation and ~tainfcnance of Properl~: I.easeholds: ('ondominium~; Planned Unit De~•elopments. Borrowcr
tih~ll keep thr Propcrty in gcx~d repair and shall not commii ~astc or permit impairmcnt or deterioration of the Propcrt~•
and sh~ll compl}' «iti~ thc provisions of any Iease if th~. M~~rtgage ~ti on a le:ischuld. If thic 1lortgage is on a unit in a
~onduminium ~~r a planncJ unit Je~~clopmcnt. Sorruvrer shall perf~rm rll u( Borruwer's obhgations under the declarati~~n
or cov~nantti crcating or ge~vcrmng the candum~nium ar planncd unit dcvelopment, the by-laws and regulatiom of the
~onJumin~un~ ur planneJ unit Je~~elopmen~, anJ constituent documents. I( a cundominium or planned umt development
n~lcr i, c~c~utcd by Borrowcr anJ recordcd ~ogcthcr Hith thi, Murtgagc, thr co~•cnants and agrecmcnts ot cuch ndcr
~hall be mcor~~rated into anJ shall an~cnd and tiuppl~ment the co~cnants anJ agreemcros" of th~ti Mortgage as i( the tiJcr
v-~rc a part hcrcof.
7. Proleclion of Lenders Security. 1( Brrr~.~er fa~l~ t~ ~xrf~•rm the covenants and agreements c<~ntained in thi~
~furtg~~;c. ur if an} action ~~r prckeed~ng ~c a~mm~necd wh~rh mal~rtall~~ :~I~ech I.ender's interest in the Property.
incfud~ng. hirt nut hmited to. rmincnt d~main. ~n,~~hcnc}, s,xic cn(~~rccmcrtt, or arrangcmcntc ~.r rr~~cccdings ~nvohing a
bankrupt ur Jr«~ent. ~hen I.enJer ai I.enJer'~ option, upon`~'iotice to Borrow~er, ma) make Such apEx.arance~. dichursr such
sums and takr ~u.h arlion :n ~s neccti~ar~ to pmtccl I cndcr's ~mcrest. incL~ding. but nnt IimitcJ to, d~cbursrmcnt ~•f
rcason•rhlc attornc}•'~ tcc~ and cotry uEx~n thc Propcri~ to makc rcpair,. 1( 1_rndcr rryuired mortgage imuran~c as a
conditu~n i~f making thc lo;~n K:cured h~ thi. ~t~~rtgagc. B~~rr~•wcr sh:~ll ~e}• thc prcmiums rcquircd to mainta~n ~uch
insurancc in rtirrt umil wch dmc ati ~hc rcyuircmcnt for wch ~nsurancc trrminate~ ~n accordanc~ w~th BormKCr's anJ
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