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UNIPORAt COVB!lANTl. Borwwe~ and Lender covenam and asra u follows:
1. ~t ot h1~c1N1 a~i l~terep. Bo~rowe~ shal) prompti~• pay when due thc principal of and interest o~ the
~ndebtednat evidenoed by the Note. prcpayment snd late thargcc a~ provided in ~he Note, and the p~ncipal of and interesl
oa aoy Future Advances secured by this Matga~e.
2. F~i tor Tuaia a~i I~p~ce. Subject to applicable law .~r to a writ~en waive~ by Lender. Borrawe~ shall pay
to Lender on the day moothly installmems ot principal anJ ~ni~rcct rrc payahle under the Note, until the Note is paid in tull,
a sum (herein "Funds") eqwl to ot~e-twelt~h of the yeari~ ~a~r~ anJ asxssments which may attain pnorily over this
Mort~aje, and `round reets on the Prope~~y, i( a~y, plus c~e-twel(~h of yearly premium installments for huard insurance.
plus one-twelfth oE yearly premium insullments tor mortgage insurancc. if any, all as rcasonably estimated inilially and trom
time to time br l.ender on the basis of assescmcnts aixi hills anci reasanable estimata Ihereof.
'tl~e Funds shall be held in an institution the depos+ts or accounls of which are insured or guaranleed by a Fede~al ot
state age~cy (i~cludina l.ender it Lender is such an inslitution). I.ender ahall apply ~he Fu~ds to pay said uxa. assessments,
insunnce premiums and g~ound rcnts 1 ender may no~ charge tor so holding and applying tl~e Fnndc. analyzing caid account.
or verifyin~ and compiling said assessments and bills, unless l.ender pays Borrowe~ inletat on the Funds and applicable law
permits Lender to make wch a charge. Borrower and l.ender may agree in writing at ~he time ot ezecution ot this
Mottaage that intercst on the Funds shall be. paid to Borrowe~, and unlas such agreemen~ is made or applicable law
requires such interat to be paid. Lender shall ~ot be rcquirtd to pay Borrower a~y interest or earnings on tht Funds. Lender
shall ~ive to Borrower, without chargc, an anoual accountina uf the Funds showing credits and debits to ~he Funds a~d the
purpose tor which each debit to the Funds wu made. The Funds are pluiged as additional security [or ~he sums secured
by this Mortaaae. ~ .
If the amount o[ the Funds htld by Lender, together with the (uture moq~hly installments of Funds payabk prior to
the dut dates of tues, uxssments, insurance premiums and ground reots, shall exceed the amount required to pay said haa,
assewnents, insurance prcmiums and ground rents as they (all due, such exceu shall be, at Borrower s opt~on, either _
promptly repaid to Bor~ower or crodited to Borrovrer on monthly installments of Funds. I( the amoun~ o( thc Funds
heW by Lender shall not be sutfcieot to pay tues, assessments, insurance prcmiums and ground rents u they fall due,
Bottower shall pay to Lender any amount nocessary to make up the deficiency within 30 days trom the date notice is mailed
by Leoder W Bprrower requating payment ~hereoi.
Upon ~ayment in full of all sums xcurcd by ~his Mortgage, l_ender shall promptly rcfund to Borrower any Funds
held by Lender. If under paragnph 18 hercof tFu Property i~ sold or the Property ~s othenvise acqu~rcd by t_ender, Lendtr
s6a11 apply. no later than immediately pcior to the sale of the Property or its acquis~tion by I.ender, any Funds held bv
I.eoder at the time of application as a crcdit aga~nst the sums securcd by th~s Mongage.
3. Applic~tiw of Payn~e~ls. Unless applicable law provides otherwix, all payments received by Lende~ under the
Note aad paragnphs 1 and 2 hereof shall be applicd by I.enJer first ~n payment of amoun~s payable to Lender by Borrower
under patagraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and ~hen to int~rest and
prinripal on any F~ture Advancu.
~. C6artes; Lk~. Borrower thall pay all Iaie~. a~utsments ~nd rnhrr charges. fine~ and imp~~sitions aUnbutable to
the Property wAich may attain a pnority over thit Mortgage, and leasehold payments or grouna rtnts, if any, in the manner
p~vvided u~der paragraph 2 hereo[ or. :f not pa~d m such manner, by Borrower making payment, when due, direcdy to the
payee thereo(. Borrower shall promptly furmsh to Lender all nouces of amounts due under this paragraph, and in the event
Borrower shall make payment d~rectly, Borrow~er ~hall promp~ly (urnish to Ixnder receip~s evidencing such payments.
Bonowe~ shall prompdy discharge any lien which has pnonty ove~ thi~ Mortgage: provided, that Borrow~r shall not be
reqwred to discharge any such lien so long as Barrower shall agree ~n ..r~ting t~~ the pa~~ment of the ob6gatiun secured by
such I~en ~n a manner acceptable ~o Lende~, or shall m g~x~d faith conte~~ such lien by, or Jefend enforcement o( such lien in,
Iegal proceedings which operate to prevent Ihe enforcement ot thr I~en or torteuure of the Property or any pan thereof.
S. Husrd I~utu~ce. Borrower shall keep the impro~cmentti nc.~ ci~sung ur hereafter erecled on Ihe Pmperty insurod
against loss by firc. hazuds included w~thm the trrm "rxtended coverage", aa~ such other hazardc ati [.ender may reyuire
wd m such amounts and for such periods ac t_ender may reyu~re; ~-rovideJ, that I.enJer Shatl not rcyuire that ~he amoLnt of
such coverage exceed that amount ot coverage required t.~ pay the tum< <ecured ~by Ih~, MortgaEe.
The msurance carrier ~roviding the ~nsurancs sh~ll be chosen by Borrower subject ~o approval by Lender, provided.
~hat wch a,pproval shall not be unrcasonabty withheld. All premium~ on insurance policies shall be paid ~n Ihe manner
prov~ded under pa~agraph 2 hereof or, d not paid in such manncr, b}~ Bi~rrower mak~ng payment, when due, dircctly to the
insurance carner.
All insurance Fwl~rieti and renewals thereof shall be in forni :ll'CCF1IdbIC to Lender enJ shall include a ttandard mortgage
clause in favor of and ~n fo~m acceptable to Lender_ Lender tihall ha~e the right t~~ hold the policies and renewalt thereof.
and Borrower shall prompth~ furmsh to Lender all renewal notices and all receipts of paid premium~. In the event of lo~s.
Borrowe~ shall grve pmmpt nouce t~. ~he ~murence carner :,nd 1_enJer. 1_ender may make pnx~f of loss ~f not made prompt~y
by Borrower.
Unless I_ender and Banuwer othen+~.r agree m wru~ng. ~nwrance procecJa shall be applied to restoration or repair of
the Property damaged, pro~iJed such re~torahe~n ar repa~r ~s economic:~lly~ feas~ble and the ucurity of this Mortgage i~
not thereby~ impa~red. If such re~torahon or repair ~s ni~t econ~~m~call~ Iras~ble or i( the secunty of Ihis Mortgage would
be impaired, the msurance proceeds shall be rpplieJ to the sums secured by this Mortgage. wi~h the excess, if any, pa~d
to Borrower. If the Property ~~ aband~~ncd b} Borruwer. i~r it Bormwer ta~l~ to re~{xmd to I.encler w~thin 30 days (rom the
date notice ~s mailed b~ IxnJer to Borrower th:,t the imuravice carrier otTen to ~eule a cla~m for insurance benefi~s, 1_ender
is aut6nrizeJ to collec! and appiy the insuranc~ proceed~ at LenJer'i option either to restor:~hon or repaer o[ ihe Pr~pert~•
or to the sum~ secured by th~s Mortgage.
Unless Lender and Borrowe: utherw~.c agrre m wnting. am surh appliwtion uf pn.ceeds to pnncipal shal) not ertend
or postpone the due date of the momhh• inuallment~ referred to m paragraph~ t and 2 hereo( or change Ihe amount of
suc6 instal!mena. It under paragcaph 18 hereof the !'ro f.erty n acywred hy Lender, aU nght, tiUe and interest of Borrower
in and to an~ tnsuran;e pol~cies and ~n a~tl io thc pnkeeds thrreot r~yulnng hom Jamage to the Property prior to thc sale
or acquisiUOn shall pass to Lender to the e~tent of the -,ums secured b~ th~s 1lortgage immediately prior to such sale or
acquisition. ~
6. Presen~ation aod~~tainfen~nce o( Properl~; I.easeholds; ('ondominiums; Planned Unit Uevelopments. Borro.~cr
;h~ll keep the Propcrt}~ in goud rep.-ir and shall not comroit yti~astc ~~r permu impairment or deterioration ot the Property
and shall comply with the ptovisions ot any~ Icase if th~, Murtgage ~. un a Ieasch~~ld. If this Mortgagc is on a un~1 ~n a
condomimum vr a planned unrt de~~el~~pment. Borrower ~hall ~xrt~~rm all ot Borrower's obliga~~ons under the decla~atu~n
or covenants creatmg or govermng the condum~mum or plannrd umt develupment, the by-laws and regulationc of the
condomimum or planned unit develo~,ment. .ind a+nstituent J~xumen~~ If a condominium or planned umt developmert
nJer is executed by B~rrower and recorded tugeiher ~ith th~~ M~rtgage, the covenantc and agreements of such ridcr
shall be ~ncorporated into and shall rmend and suppl~mcnt thc co~enant• :~nJ agrcemeMs u( th~ti Mortgage as if the ri.icr
were a part Fereof.
7. Prote~tion of I.enders Security. I( H~~rr~~wer t.~d~ t~~ ~xrl~~rm the covcnant~ an~l agrcements c~mtained in thic
Mortgage, ur if an)~ action ~~r proceeding i~ c~~mmrncr~l w hicii 'malrriall~ .~tircts I enJer'~ ~ntere~t in Ihe Pr~Ex rt~•,
~ncludmg. bul nnt hm~ted tu. emincnt dom:un. u~~~~hcni~, cudc rnt~~rirmcnt. ~~r arranKcmrntti i~r pr~kccdings ~m~~~hmg a
bankrupt or decedent, then I.ender at 1 enJer'ti ~.pi:un, u~~n nohce ~ii Borruw~rr. ma~ m:~kc Su.h :ippearances, ditihune such
sums and take such actiun n. ~s nece.~ar} h~ pmtect I.endrr'~ mlereci. ~nclnilin~. b+~t not limited to, d~tibursement u(
reasonahle atlorne}~'~ fec~ end entry upun thc Pmpc~~} t~~ mal~c rc~+.,ir~ II Lendrr r~yiiirr~l mortgage incurance as a
cond~uun ~~f makmg Ihc loan .~wrcd h~ Ihi~ ~1rng,~~r. Horr.~~cr sh.~ll pa~~ thc prcmium~ rcqinreJ to maiota~n such
insurance in rHe~t uMd tiuch Ume as the reyuirement f~~r .uch in;uran;r tcrmin:~Ir~ in .~c;ordance wi~h Bc-rroHer'~ and
a~;~K 346 PeGE ~9'
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