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UntFa~ua CovErisnts. BOR'OWC~ illd LtOdt~ COVC11i111 ~11d a`f!t i3 ~OIIOWi:
1. ~we~t ot hMclMl a~i 1Meresl. 8o~rower shall promp~ly pyy whcn due tbe principal ot and intercst on the
irtdebtednat evidenced by the Note. prepaymeot and late cha~ge~ ac p~ovided in the Note, and the priecipal of and interesl
on any Future Advsnces secut~ed by this Mortsate.
2. lh~~i tor TuM a~i Iw~nce. Subject to applicabk law u~ to a written wsiver by Leode~. Borrower shall paY
to I.snder on lhe day monthly installments of principal and ~ntcrcct rre ~yahle unde~ the Note, uotil the Note is paid in tull.
a sum (herein "Fund~") equal to ooe-tweltth ot the yea~l~~ usc. ar.d assessments which may attain pnori~y ove~ ~his
Morija~e. and `wund rents on tl~e Pmper~y, if any: F-lus ooe-twelfth ol yearly prcmium iostallments for hazard insurance.
plus oae-twelfth of yeuly premium installments tor morigage insunncc, it any, all as rcuanably eslimated i~itially and trom
time to time by Leader on the buis ot assescmcnts and hills and reawnable estimates thercof.
The Funds shall be held i~ an insti~ution ~he deposus or accounts ot which are insured or guaranteed by a Fedenl or
ttate agency (including Lender if Lcnder is such an ins~itutionl. I.ender shall apply ~he Fu~ds ~o pay said taxes. assessments.
insunnce premiums and ground rents. I.ender may not charge tor so holding and ap~+lyiog ~he F~~nJc. analy7ing said account.
or verifyin~ aod compiling said assessments and bills, unless Lender pays Bonowe~ interest on the Funds and applicable law
permits L,ender to make such a charge. Borrower and I.endCr may agrce in writing at the time ot executioo of this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agrcement is made or applicable law
rcquires such interat to bt pvid. Ler~der shall nat be rcquired to pay Borrower any interat or earnings on the Funds. I_ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and deb~ts to the Fu~ds and the
purpose for which taeh debit to the Funds was made. The Funds a~e pledged u additional security tor ~he sums secured
by ihis MoKpae.
lf the amount of the Funds held by Lender, toge~her with the future monthly installmeots of Funds payable prior to
t6e due dates of taxa. asussmenu. ir~surance prcmiums and ground rcnts, sfiall exceed the amount required to pay said taxes,
assaunents, insurance ptemiums and ground re~ts u lhey fall due, such exceu shall be, at Borrower s opaon, either
pranpdy rcpaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount o( ~hc Funds
held by Lender shall not be suKicieat to pay taues, assessments, insurance premiums and g~ound rents u they fall duo,
Borro~-e~ shall pay to L.ender any amount necessary to make up the deficiency within 30 days from the dat~ notice is mailed
by L.ender to Borrower iequating payment thereof. .
Upon pay~aent in full oE all :ums socured by this Mortgage, t_ender shall promptly rcfund to Borrowe~ any Funds
held by Leader. If under puagriph 18 hercof the Property i~ sotd or the Property ~s otherwise acquircd by Lende~, !_ender
shall apply, no later than immediately prior to the sale of the Propeny or its acquisition by [.ender, any Funds held bv
L.ender at the time of application as a crcdit against the sums securcd by ~his Mortgage.
3. Applicatlos ot Paymests. Unless applicable law provida otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hercof shall be applied by I_ender 6rst in paymeot of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to i~terest payable on the No~e, then to the principal of th~ Note, and then to interest and
principal on any Future Advances.
4. C6aRes; Liens. Borrower shall pay all laxec, assestmcnts and ather charges, fines and impositions attnbu~able to
the Propecty which may attain a priority over this Mortgage, and leasehold payments or ground rcnts, if any, in the manner
provided under paragraph 2 hereo[ or, if nw paid in cuch manoer, by Borrower making payment, when due, directly to the
payoe thereo(. Borrower shall prompdy [urmsh to Lender all not~ces of amounts due under this paragraph, •and in the event
Borrower shall make payment d~rectly, Borrower shall promptly t~m~sh to Lender receipts evidencmg such payments.
Borrower shall promplly discharge any lien which has pnonty over thic Mortgage; provided, that 8orrower shall not be
rcquired to discharge any such lien so long as Borrower shall ~gree in wnhng ti~ ~he payment of the obligatiun secured by
such litn in a manner acceptable to Lender, ar shall m gc~d faith contetit such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent ~he enforcement o( the I~ea or forteiture ot the Propeny or any part thereof.
S. Nuard lnsunace. Borrower shall keep the improvementti now c~isting .~~ hercatter erected on the Praperty ~nsured
against loss hy fire, hazards included withm the term "e~-tended coverage", a:~d s~Kh othe~ hazards as I_ender may reyuire
and m such amounu and for such periods as Lender may reyuire; provideJ, that Lerxler shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums zecured ~by this Mortaage. ~•
Tht insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All prem~umt on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, +f not paid in such manner, by Borrower makmg payment, when due, directly to the
inwraoce carrier.
All insurance Ewlicies and renewals thereof shafl be in form accep~abte to LenJer and shall include a standard mortgage
clause m favor of and in form acceptable to Lender. Lender ch•rll have the right to hold the policies and renewals thereof.
and Borrower shall promptly turmsh to Lender all renewal not~ces and all receip~s of paid premiums. In the event of loss.
Botrower shall gn•e prompt noUce to the insurance carrier and (.ender. Lertder ma~• make pra~f ot loss if not made prompd~•
by Borrower.
Unless Lender and Borrower othen+•ix agree in .~rit~ng, insurance proceeds sh~ll be applied to restoration or repair ot
the Property damaged, proviJed su~h rc~torat~on or re{+a~r is economically (easible and the security of th~s Mortgage i~
not thereby impaired. I( s~xh restorat~on or repair is n~~t cconomically feasiblc or it the security of tt~:s Mortgage wouW
be impaired: the insurance proceeJs shall be applieJ to the sums secured by this Mortgage, with the excess, if any, pa~d
to Borrower. If the Propert}~ is aband~ned by Borrower, or it Borrower (ads to respond to Lender within 30 days (rom the
date notice is ma~led by l.ender ro Borrower that the ~nsurance carrier ofiers ro setNe a claim for insurance txnefits, Lender
ia authurized to collect and apply the mwrance proceeds at Lender's c~pti~~n either to restcrat~on or repa~r of the Propem~
or to the sums secured by this Mortgage.
Unless I_ender and Burrower otherwise agree m wnung, any such applic:~tion of pro~eeJs to pnncipa) chall not rrtend
or postpone ihe due date o( the monthly installmcnts rcfcrrcd to in Paragraph. 1 anJ 2 hereof or change Ihe amount of
suc6 installmeats. I[ under paragraph 18 hereof the ProFerty ii acywred b~ LenJer, aU nght, title and inJerest of Borrov-~er
in aod to any hisuranre policies and in and to thc pro~:eeds thereaf resulting from damage to the Properly prior to th~ sale
or acquis~don shall pass to Lender to the extent of the ~umi ~ecured by this :~tortgage ~mmediately prior to s~ch sale or
acquisition.
6. Pnsen~ation aod ~taiotenance o( Propert~; Leasehulds; Condominiums; Planned Uni! DevelopmeMs. B~rro~cr
shall keep the Property in good repair and shall nat comrpit y~~aste or perm~t impairment or Jeterioration ot the Property~
. and shall comply. with the provis~ons of any lease it this Mortg.~gc ~c un a Ieaschold. I( this Mortgage is on a isnit in a
condomin~um or a planned umt Jevelopmcnt, Borrower ~hall pcrlorm all of Borrower's ubligat~ons under the declarah.~n
or covenants creating or governmg ~he condom~nium or planned unit development, the by-laws and regulation~ ~f the
conJominium or planned unit development. .,nd rnnstituent d~xumem.. If a cundominiam or planned umt develupment
tider is extcuted by Borrower and recorded ~~~gether with th~~ MortgagC, the covenants and agreemenss of ~uch ri~lcr
shall be ~ncorporated ~nto and shall smend and supplcment the co~enants and agreements of this Mortgage as ~f the nJcr
were a part Fereof.
7. Protection of t.ender's Securfly. I( H~~rrower fail~ a~ ~rf~xm the covenamc and agreements c~ntained in this
Mortgage, or if any action ~~r proceedmg is rommence~l which materiall} afirct~ Lender's ~nterest in the Pmperi~~.
includmg, b~t not lim~~ed to. emment domain. ~ncol~ency, c~x1e rnfi,rcement, ar arrangemems ~r proceedings invol~~ng a
bankrupt or deceJent, then I.ender at I.ender's option, upon nouce to Borrower. ma~ make such appearances, d~sburse such
sums and take such action as ~s ntceesary w prolect l.ender's interest. i~cluding. but not limrted to, disbursement of
reasonable atrorney's.fees and en~ry upun thc Propert}• to makc rcpa~rs. If Lcnder requircJ mortgage insurance as a
cond~tion o( makrog the loan ucured by this Mortgage. Borrov-cr sh.dl pa}• the premiums requiseJ to mainta~n such
iruurance in efiect until such time as ~he rcquirement for wch insuran:e terminates in accordance with Borrower's and
~ B~~K 346 P~~E 2466 r~