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UNIFORM COVENANTS. Borrower and Lender covenant and agree_as loilows.
1. Paym~~t of iMncipal and Int~~est. Borrower shall promptly pay when due the pr~napat ot and ~nterest on the
~ndebtedness evidenced bythe Note, prepaymentand late charges as prov~ded ~n the Note,and the pr~napal ot and mterest
on any Future Advances secured by this Mortgage.
2. Funds forTaxes a~d Insurance. Subject to appl~cable iaw or to a wr~tten wa~ver by Lender, Borrowe- shall pay
to Lende~ on the day monthly installme~ts o1 pr~ncipal and ~nterest are payabte under the Note. untii the Note ~s paid in lull.
a sum (here~n ~~Funds") equal to onetweltth of the yearly taxes a~d assessments wh~ch may atta~n pnonly ove~ th~s
Mortgage. and ground rents on the Property, il any, plus one-twellih ot yearly prem:um mstallments for hazard insu-ance,
plus onc,Ltwelfth of yearly premium installmenls toi mortgage insurance, it any, all as reasaonablyestimated ini!ially and trom
time to time by lender on the basis of assessments and bills and reasonable estimates thereot.
The Funqs shall be held ~n an ~nst~tut~on the depos~ts or accounts of which are ~nsured or guaranteed by a Federal or
state agency(~ncluding Lender if Lender is such an ~nst~tution). Lender shall apply lhe Funds to paysa~d taxes, assessments.
~nsu-ance premwms and ground rents. Lender may not chargQ for so hotd~ng and appty~ng the Funds, analyzing sa~d account,
or ventying and compiling said assessments and bdls. untess Lender pays Borrower interest on the Funds end applicable law
perm~ts Lender to make such a charge. Borrowe- and Lender may ag~ee ~n wnting at the time ol execution ot this
Mortgage that ~nterest on the Funds shall be pa~d to Borrower, and unless such agreement ~s made or applicable law
requires such ~nterest to be pa~d. lender shall not be reqwred to pay Borrower any ~nterest or earn~ngs on the Funds. lender
shall g~ve to 8orrower, w~thout charge. an annual accounimg of the Funds show+ng cred~ts and deb~ts to the Funds and the
purpose tor wh~ch each deb~t to the Fu~ds was made. The Funds are pledged as add~t~onal secur~ty ior the sums secured
ey this Mor:gage.
It tne amount of the Funds held by Lender, together w~th lhe future monthty ~nslallments ot Funds payable pnor to
the due dates ot taxes, assessments. ~nsurance prem~ums and gr~und rents. shall exceed the amount requ~red to pay sa~d taxes.
assessments. ~nsurance prem~ums and ground rents as they lall due, such excess shall be, at Borrowers option, either
promptly repa~d to Borrower or credited to Borrower on monthty ~nstallments of Funds. If the amount of Ihe Funds
held by Lender shatl not be suffic~ent to pay taxes.'assessments. ~nsurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the det~c~ency w~th~n 30 days trom the date not~ce is mailed
by Lende~ to Borrower request~ng payment thereot.
Upon payment ~n full ot all sums secured by th~s Mortgage. Lender shati promptly retund to Borrower any Funds
hetd by lender. If under paragraph 18 hereoi the Property ~s soid or the Property ~s otherw~se acqwred by Lender, Lender
shau apply. no later than ~mmed~ately prior to the sale ot the Prope-ty or ~ts acqu~s~t~on by Lender, any Funds held by
Lender at the t~me oi app~~cat~on as a cred~t aga~nst the sums secured by th~s Mortgage.
3. Application of Payments. Unless appl~cabte taw prov~des otherw~se, all payments rece~ved by Lender under the
Note and parag~aphs 1 and 2 hereot shall be appl~ed by Lender f~rst ~n Fayment ot amounts payabie to Lender by Borrower
under paragraph 2 hereof. then to ~reterest payable o~ the Note. ihen lo the prmc~pal ot the Note, and then to ~nterest and
prmapa! on any Future Advances.
4. Charges; Uens. Borrower shall pay aIt taxes assessments and other charges, bnes and ~mpos~UOns attnbutable to
the Property wh~ch may attain a priority over th~s Mortgage. and leasehold payments or gound rents. ~f any, ~n the manner
prov~ded under paragraph 2 hereot or, it not pa~d ~n such manner, by Borrower mak~ng paymen~ when due, directly to the
payee thereof. Borrower shall promptly furnish !o Lender ali not~ces ot amounts due under th~s paragraph, and in the event
Borrower shall make payment directly, Barrower shali promptly furn~sh to Lender rece~pts ev~dencing such payments.
Borrower shall promptly d~scharge any lien wh~ch has pnonry over this Morlgage: provided, that Borrower shall not De
reqwred to d~scharge any such i~en so long as Borrower shali agree ~n wnting to the payment of the obligation secured by
such I~en m a manner acceplabte to Lender. or shali m good ta~th contest such i~en by. ordetend entorcement of such I~en 1n,
legal ~roceed~ngs wh~ch operate to prevent the er~forcement of the lien or }orie~ture of the Property or any part thereoi.
5. Hazard Insurance. Borrower shaH keep the ~mprovements now ex~st~ng or hereatter erected on the Property ~nsured
agamst loss by f~re. hazards ~nc~uded w~th~n the term ~~extended coverage'. and such other hazards as Lender may require
and ~n such ar*~~unts and tor such penods as Lender reqwre; prov~ded, that Lender shall not requ~re that the amount of
such coverage exceed that amount of coverage requ~red to pay the sum secured by th~s Mortgage.
The ~nsurance carr~er prov~ding the ~nsurar,ce shalf be chosen by Borrower subject to approval by Lender: prav~ded.
that such approval shaU not be unreasonably wrthheld All prem~ums on n~surance pol~c~es shall be pa~d m the manner
provided under ~earagraph 2 hereot or. ~f not pa~d ~n such manner by Borrowe~ mak~ng payment. when due. d~rectly to tne
~nsurance carr-er.
All ~nsurance pohc~es and renewals thereot shau be ~n torm acceptabie to lender and shall ~nclude a standard mortgage
clause ~n !avor of and ~n form acceptable to Lender. Lender shalt have the nght to hotd the polic~es and renewals thereol.
and Borrower shall promptly furrnsh to Lender all renewal not~ces and a11 rece~pts of paid premiums. In the event of loss.
Borrower shall g~ve prompt not~ce to the ~nsurance carr~e- and Lender Ler~der may make proof of Ivss ~I not mad~promplly
by BorrOwer
Untess lende- and Borrower othervnse agree ~n wr~Ung. ~nsurance proceeds shai~ be appbed to restoraUOn or repa~r oi
the Property damaged. prov~~ed such restorat~on or repa~r ~s econom~cally feas~ble and the secur~ty of th~s Mortgage ~s
not ihereby ~mpa~red. If such reriorat~on or repa~r ~s not econom~cally feas~bte or ~f the secur~ty of th~s Mortgage would
be ~mpa~red. the insurance proceeds shatl be appl~ed to the sums secured by lh~s Mortgage. w~th the excess. ~f any, pa~d
to Borrower. If the Property ~s abandoned by Borrower. or ~f Borrower fa~ls to respond to Lender w~thin 30 days from the
date notice ~s ma~led by Lender to Borrower that the insurance carr~er ofiers to settle a cia~m (or msurance benefits. Lender
~s author~zed to co~tect and appfy the ~nsurance proceeds at Lsnder s opt~on e~ther to restorat~on or repa~r ot the Property
or to the sums secured by th~s Mortgage.
Jnless Lender and Borrower otherw~se agree ~n wnt~ng. any suc~ appl~cat~on of proceeds to pnrc~pal shali not extend
or pastpone the due date ot the monthly mstailments ~eterred to ~n paragraphs t and 2 hereof or change the amount of
such ~nstaiiments If under paragraph ~ 8 hereot the Property ~s acqu~red by lender. ali r~yht. t~t1~ and ~nterest ot Borrower
~n and to any ~nsurance polic~es artd ~n and to the proceeds thereof result~ng from damage to the Property pnor to the sale
or acq~-S~t~on shail pass to Lender to ihe exient ot the sums secured by this Mortgage ~mmediately pr~or to such sale or
ocqu~sihon. -
6. Preservation and Maintenance oi Property; Leaseholds; Condominiums; Planned Unit Developments.
Borrower shall keep the Properiy m good repa~r and shall not commrt waste or perm~t ~mpa~rment or detenoraUon of the Pro-
perty and shall comply w~th thE prows~ons ot any iease ~f ih~s Mortgage ~s on a Ieasehold. If this Mortgage ~s or, a urnt m a
condominium or a planned unit devetopment. Borrower shall perlorm all of Borrower s obf~gations under the declarat~on
or covenants creat~ng or govern~ng the condom~n~um or planned un~t development. the by-laws and regulat~ons of the
condominwm or planned unrt develQpment, and constituent documents. I( a Condominwm or planned unit development
r~der ~s executed hy Borrower and ~recorded together w~th th~s Mortgage, the covenants and agreements of such r~der
~ shall be incorporated ~nto and shali amend and suppfement t-,e covenants and agreements of th~s Mortgage as if the nder
were a part hereot.
7. Protection of LendePs Security. It Borrower fa~-s to pertorm the covenants and agreements conta~ned ~n th~s
Mortgage. or ~f any acl~on or proceedsng ~s commenced wh~ch matenally affects Lenders mterest m the Property.
including. but not limited to, eminent doma~n. msolvency. eode enforcement, or arrangements or proceedings mvolving a
bankrupt ar decedent. then Lender at Lenders opt~or.. upon not~ce to Borrower. may make such appearances. d~sburse such
sums and take such action as is necessary to protect Lenders ~nleres4 ~ncluding. but not limited to, disbursements of
reasonable attorney s fees and entry upon the Property to make repa~rs. if lender requued mortgage msurance as a
cond~t~on ot making the loan secured by th~s Mortgage. Borrower shall pay the prem~ums requ~red to mainta~n such
~nsurance ~n etfect unt~l such t~me as the requ~rement lor such ~nsurance term~nates m accordance w~th Borrowe~s and
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