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UNtro~w Covat~~Hts. 8orrower and l.eoder covenan~ and ajra u follows:
l. ~weN of rti~clNi a~ 1Neiest. Borrower shall p~omp~ly pay when due the principal ot and interest on the
indebtednest evidenad by the Note. prePayment snd late chargec ac ~uovided in the Nde, and the principal of and interest
oa aoy Future Advances secwnd by this Mor~sase.
2. !wi tor Tu~s a~i i~wn~ce. Subject to applicabk law ~~r ~o a w~ittee waive~ by I.eoder. Borrowe~ shall pay
to Leader on ~he day moothly installmeots ot principal and intercc~ arc payable unde~ ~he Note. until the Note is paid in tull,
a sum (herein "Fundt") oqwl to one-twel(th ot the ytarl)~ taz~~ anJ uscssments which may atain priority over this
Mott~aje. and ~rourid rents on tl~e Pr~openy. it any. ~lus one-twel(~h of yea~ly premium installments [or hazard insurance.
plus oae-twelfth of ywrly prcmium installments tor mongage insurance, i( any, all as reuonably estima~ed initially and toom
time to time by Lender on the buis of assessmcnts and hills and rcasonabk estimata thereof.
The Funds shall be held in an institutian the deposita or accouo~s of which arc insured or guan~teod by a Fedenl ot
state ajency (includina Lender if Leode~ is such an institutionl. I.ender shall apply Ihe Funds to pay said ~axa. asseume~ts.
irourance prcmiums and ground rcnts. 1_ender may no~ charge tor so holding snd applying the Fundc. analyzing said account,
or verityins snd compling said assessments and bills, unless Le~der pays Borrower inlerat on the Funds and applicable law
permits Le~der to make such a charge. Borrower aod Lender may agrce in writing at the ~ime ot execution ot this
Mo~tp~e tbat interest on the Funds shall be paid to Borrower. a~d unlas such agrcement is made or applicable law
requita such interat to be paid. t,ender shall not be rcquircd to pay Borrower any interest or earni~gs on the Funds. Lender
slWl pve to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which eaeh debit to the Funds wu made. The Funds are plodged u additional security [or ~he sums secured
by tbis Mortaaae.
If the amount of the Funds held by l.ender, together with ~he future monthly installments of Funds payabk prior to
t6e due dates of tazes. assessmenu. insurance premiums and ground rcnts, shall exceed the amount required to pay said taxes,
a:saanents. insunnce premiums and ground rents as they fall due, such excess shall be, at Borrower's option, e~ther
promptly repaid to Borrower or crodited to Borrower oe monthly installmtnts of Funds. If the amount ot the F~unds
heW bp Lender shall not be sulficieat to pay tua, assasments, insurance peemiums and ground tents u they fall due,
BorroNer s6a11 pay to Lender any amount necessary to make up the de6ciency within 30 days (rom the date notice is mailed
by I.ender to Borrower requasting payment thereof.
Upon payment ia full of all sums secured by this Mortgage, l.endcr shall promptly retund to Borrower any Funds
l~eW by L.ender. lf under puagraph 18 hercof the Property i~ sold or the Property ~s otherwise acquircd by Lender, Leoder
s6d1 apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held bv
L,eader at the time ot application as a credit against the sums sccurcd by this Mortgage.
3. A~plicatio~ ot Pqmewb. Unless applicable law provides othervvise, all payments received by Lender under the
Note and paragnphs 1 and 2 hercof shall be applicd by I_ender first in payment ot amounts payable to Lender by Borrower
under paragraph 2 hereof. the~ to interest payable on the Note, then to the principal of the Note. and then to interest and
principd on any Futurc Advances.
1. C6~rtes; L1e~. Borrower shall pay all taxes, asscscmenls and othcr charges. fines and impositions attributable to
tbe Pmperty which may attain a priority over this Mortgage, and leacehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
qyee the~zof. Borrower shall promp~ly furnish to Lender all notices o( amounts due under this paragraph. and in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly dixharge any lien which has prionty over this Mongage; provided, ~hat Borrower shall not be
rcquircd to discharge any such lien so long as Borrpwer shall :,gree in wnting to the payment of the obligation secured by
such lien i~ a manner acceplable to Lender, or shall in good (aith contest such lien by, or JefenJ enforcement of such lien in,
legal proceedings which operate to prevent the enforcement o( thc I~en or torte~ture of the Property or any part thereof.
S. Haiud lnsnrance. Borrower shall kcep the improvement~ now cxisting ~~r hereafter erec~ed on the Property insured
against loss by firc, hazards included withm the term "exlcnJed coverage", and such o~her hazards as Lender may require
and in such amounts and for such periods as Lender may requirc; provided, that Lender shall not require that the amount of
such rnverage exceed that amount of coverage required to pay the sums ucured ~by this Mort~a6e.
'Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
t6at wch approval shall not be unreasonably withheld. All premiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not pai~ in such manner, by Bc~rrower making payment, when due, directly to the
inwrance catrier.
All insurance policies and renewals therro( shall be in form acceptable to Lender anJ shall include a standard mertgage
clause in favor of and in form acceptable ~o Lender. Lender shall ha~•e the right to hold the poticies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts ot paid premiums. In the event of loss.
Bonower shall give prompt notice to the ~nsurance carner and I.ender. LenJer may make proc~( of loss if not made promptly
by Borrower.
Unless Lender and Borrower othen+•i~e agree in wnting, insurance proceeds shall be applied to restoration or repair o(
the Property damaged, provided such restorauon or repa~r is economically feasible and the securiry of th~s Mortgage is
not thereby impa~red. If such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired. the insurance procceds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, pa~d
to Borrower. If the Pro~+erty is abandoned by Borrower, or it Borrower fails to respond to I_ender within 30 days from the
date notice ~s madeJ by l.ender to Borrower that the insurance carrier ofiers to se~tle a claim for insurance benefits, I_ender
is authorized to cullect and apply the ~nsurance proceeds at Lender's uption either to restora~ion or repaer of 1he Propen~•
or to the sums secured by this Mortgage.
Unless LenJer and Borrower otherw~se agree in wr~ling, an}• such application of proceeds to pnnc~pal shall not extend
or postpone the due date of thc monihl~• installmcntc referred to in paragraphc I and 2 hereof or change the amount of
wch installmeob. If under paragraph 18 hereof the ProE,erty ~s acyuired by Lender, ali nght, tiUe and interest of Borrower
in and to any~ tnsurance policies and in and to the proceeds thereof result~ng from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums secured by th~s l~tortgage immediately prior to such sale or
acquisition.
6. Presenatioo aad Maiotenance of Properiy: Leasehulds; Condominiums; Plsnned Unit Devebpmenfs. Borrowcr
shall keep thc Propeny in good repair and shall not comroit y-~aste or permit impairment or deterioration of the Property
and shall comply with the provis~ons of any lease ~f thn Martgage n on a leaschuld. 1( this Mortgage is on a unit in a
condominium or a planned umt Jevclopment, Borrower shall prr(orm all of Borrower's obl~gations under the declarat~on
or covenants creaUng or governmg the condommium or planned umt development, the by-laws and regulationc of the
condominium or planned unit de~•clo~,mcnt, and constitocnt d~xumcntc. I( a condominium or planned umt dcvclopment
rider ~s executed by Borrower and rernrded tc~ge~her w~th thit Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall rmend and supplement the co~cnan~s and agreements of this Mortgage as if the riJer
were a part bereof.
7. P~otertion of l.ender's 5ecurfty. I( R~~rrower (ailti t~~ perf~~rm the covenaMs and agreements contained in thic
Mor~gage, or if any act~on ur proceeJing ~ti commcnceJ whi~n materiall}~ :~Bects Lender's mterest in the Property.
including, but not I~mited tu. eminent domain. ~ncolvency. c.xie en(~rcement. ~~r arrangements or proceedings invoh~ng a
bankrup~ or decedem. ~hen Lender at I.ender i option, upon no~~ce to Rorrower, ma} make such appearances, dishurse such
sums and take such action as ~s nece~eary tu protect Lender's ~merest. incii~dmg. but no~ limrted to. Jisbursement o(
reasonable at~omey's fees and entry u~x~n ~he Proper~y to make repa~r~. If Lender reyuircd m~rtgage incurance ac a
condrtion of making thc loan ~ecured by Ih~~ hlongage. R~,rn:N~r sh.dt pay thc prcmiums requ~red to maiuta~n such
'nsurance in ettect until such t~me as the reyuiremem (~r .uch m,uran;e term~natrs ~n aecordance w~th Borrower's anJ
ao~34~ P!(~E2~3?
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