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UNIFORM COVENANTS. Borrowe- and Lender covenant and agree as foltows
1. Paym~nt of PNnClpal and Int~rost. Borrower shall promptly pay when due Ihe pnncipal ol and mterest on the
~ndebtedness ewdenced by the Note, prepaymen! and late charges as provided in the Note, and the pnncipal of and inlerest
on any Future Advances secured by th~s Mortgage.
2. Funds forTsx~s snd I~suanc~. Sub~ecl to appl~cable law or to a wr~tten wa~ver by Lender, Borrower shall pay
to lender on the day monthly ~nstallments of pnnc~pai and ~nterest are payabie under the Note. unai the Note ~s pa~d ~n fun,
a sum (here~n ~~Funds") equal to on~twelilh ot the yea-ly taxes and assessments which may atta~n pnonty over th~s
Mortgage, a~d ground rents on the Property, It any, ptus one-twelith of yearly premium ~nstallments for hazard ~nsurance.
plus onetwellth ol yearty prem~um mstailments for mortgage ~nsurance. ~t any, all as ~easaonablyest~mated ~rnt~aily and from
time to t~me by Lende- on the basis of assessments and bills and reasonable estimates thereol.
The Funds shall be held in an institution the deposits or accounts ot wh~ch are insured or guaranteed by a Federai or
state agencylinciud~ng Lender ~f Lender ~s such a~ inst~lut~on). Lender sha1l apply the Funds to pay sa~d taxes. assessments. _
msurance premlums and ground rents. Lender may not charge tor so holdmg and appty~ng the Funds, analyzmg sa~d account.
or venfying and compiling said assessments and bills, unless lender pays Borrower ~nlerest on the Funds and appl~cable law
permlts Lender to make such a charge. Borrower and Lender may agree ~n wnting at the lime of execution ot this
Mortgage Ihat interest on the Funds shall be pa~d to Borrower, and unless such agreement ~s made or appl~cable law
requ~res such mterest to be pa~d, Lender shall not be required to pay Borrower any mterest or ea-rnngs on the Funds. lender
shall g~ve to Borrowe-, w~thout charge, an annual account~ng of the Funds showing cred~ts and deb~ts to the Funds and the
purpose !or wh~ch each debit to the F.unds was made The Funds are pledged as addrl~onal secunty fo~ the sums sec~~red
by Ih~s Mortgage.
If the amount ot the Funds held by Lender. together w~th the future monthly ~nstailments of Funds payable pnor to
the due dates ol taxes, assessments. ~nsurance prem~ums and ground rents, shatt exceed the amount reqwred to Gay sa~d taxes.
assessments, msurance prem~ums and ground renis as they lalt due. such excess shall be, at So~rowers opt~on. e~the-
promptly repaid to Bcrrower or credited to Bor~ower on monthly mstallments of Funds. If the amount ot the Funds
he~d by Lender shaii not be sufl~C-ent to pay taxes, assessments. ~nsurance prem~ums and g-ound rents as they fali due.
Borrower sha11 pay to Le~der any amount necessary to make uR the def~c~ency w~th~n 30 days from the date not~ce ~s ma~led
by Lender to Borrower requesting payment thereof.
Upon payment ~n fuli o1 all sums secu~ed by th~s Mortgage. Lender shaii promptly retund ~o Borrower any Funds
held by Lender. It under paragraph 18 hereol the Property is sold o- the Property ~s otherw~se acqu~red by Lender, Lende-
shatt appiy. no tater ihan ~mmed~ateiy pr~or to the saie of the Properiy or ~ts acqws~UO~ by Lender, any Funds held Gy
Lender at the t~me of apphcat~on as a cred~t aga~nst the sums secured by th~s Mortgage.
3. Application of Payments. Untess appl~cable law provides otherwise. all payments rece~ved by Lender under the
Note and paragraphs t and 2 hereot shail be appi~ed by Lender f~rst ~n ~ayment ot amounts payable to Lender by Borrower
under paragraph 2 hereof, then to ~nterest payable on the Note. then to the pnnc~pal ot the Note, and then to ~nterest and
pr~nc~pal on any Future Advances.
4. Charges; Liens. Borrower shall pay a11 taxes. assessments and other charges. f~nes and ~mpos~t~ons a!tr~butable to
the Prope-ty wh~ch may attain a pnor~ty over th~s Mortgage. and leasenotd payments or gound rents. ~f any. ~n the manner
prowded under paragraph 2 hereot or. if not pa~d ~n such manner. by Borrower mak~ng payment. when due. d~rectly to the
payee thereot. Borrower shall promptly furnish to ~ender alt not~ces of amounts due under th~s paragraph, and ~n theevent
Borrower shall make payment directly. Borrower shatl p-umplly turn~sh to Lender receipts evidencing such payments.
Borrower shalt promptly d~sctearge any I~en ~vh~ch has pr~or~ty over th~s Mortgage. prav~ded. that Borrower shalt not be
requ~red to d~scharge any such i~en so iong as Borrower shail agree ~n wr~t~ng to the payment of the obi~gat~on secured by
such i~en ~n a manner acceptabie to Lender. or shaii ~n good fa~th contest such t~en by. or defend enforcement of such i~en ~n.
tegal proceed~ngs wh~ch operate to prevent the enforcement of the I~en or torfe~ture ot the Property or any part thereot.
5., Hazard Insurance. Borrotver shall keep the ~mprovements now ex~sung o- hereattEr erected on the Property ~nsured
aga~nst loss by fire, hazards ~nc~uded w~tr-~n the term ~~extended coverage'~. and such other hazards as Lender may requ~re
and ~n such amounts~and 1or such per~ocis as Lender requ~re: prov~ded. that Lender shalt not requ~re that the amount cf
such coverage exceed that amount of coverage required to pay the sum secured by thfs Mortgage.
The ~nsurance carne- prov~ding the ~nsurance shali be chosen by Borrower sub~ect to approval by Lendei; prowded.
that such approval shall not be unreasonabiy ~wthheld Ail prem~ums on ~nsurance pol~c~es shall be pa~d m the manner
prov~ded under paragraph 2 hereot or. ~t not pa~d ~n sucn manne-. by Bo-rower mak~ng payment. when due. d~!ectly to the
insurance carner
Alt insurance pol~c~es and renewals thereot shall be ~~ torm acceptabte to Lender and shall mc~ude a standard mortgage
clause m lavor ot and m form acceptable to Lender Lender shall have the r!ght to hold the pol~c~es and renewals thereof.
and Borrower shall promptly furn~sh to Lenc]er att renewal notices and a-I rece~pts oi pa~d prem~ums. In the event ot loss
Borrower shall g~ve prompt not+ce to the ~nsurance camer and Lender Lender may make proot of loss it not made-promptly
by Borrower.
Unless Lender and Borrower otherw~se agree ~n wr~t~ng, ~nsurance proceeds shatl be app!~ed to restorat~on or repa~r of
the Property damaged, prov~ded such restorat~on or repa~r ~s econom~caiiy teas~ble and the secunty of th~s Morigage ~s
not thereby ~mpa~red. If such restorat~on or repa~r ~s not econom~caliy feas~ble or ~t the secur~ty of th~s Mortgage woul~
be ~mpa~red. the ~nsurance proceeds shali be appi~ed to the sums secured by th~s Mortgage. w~th the excess, :t any, pasd
to Borrower. It the Property ~s abandoned by Borrowe~. or ~f Borrower fa~is to respond to Lender w~th~n 30 days from the
date notice ~s ma~ted by Lender to Borrowe~ that the ~nsurance carr~er offers to settle a cla+m for ~nsurance benef~ts. Lender
~s author~zed to collect and apply the insurance proceeds at Lender s opt~on either to restorat~on or repa~r ot the Property
or to the sums secure~i by th~s Mortgage.
Unless Lender and Borrower otherw~se agree ~n w~~t~ng. any such app!~cat~on ot proceeds to pr~nc~pal shall not extend
or postpone the due ~ate of the monthly installments reterred fo ~n paragraphs t and 2 hereof or change the amouni of
such ~nstai~ments. If under paragraph t 8 hereof the Property ~s ac~u~-ed by Lender. a~i r~ght. t~tie and ~nterest of Borrowe-
m and to any insurance polic~es and ~n and to the proceeds thereof resuit~ng from damage to the Property pnor to the sale
or acqu~s~t~on shail pass to Lender to the extent ot the sums secured by th~s Mortgage ~mmed~ateiy pnor to sucn sa~e or
acqws~tion.
6. Preservetion and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments.
Borrowe- shall keep the P-operty ~n good repan and shat~ not commst waste or perm~t:mpa~rment or deter~oradon ot the Pr~,-
perty and shall comply wrth the prov~sions of any lease ~f th~s Mortgage ~s on a leasenold if th~s Martgage ~s on a urnt m a
condom~n~urr~ or a~.~anned un~t deveiopment. Borrower shatl perform all of Borrower's obl~gat~ons under the deciarat~on
or covenants creat~ng or govern~ng the condom~n~um or planned un~t development. the by-taws and regulat~ons ot the
condommwm or~lanned urnt development. and conslituent doCUments. If a condommium or planned urnt devetopment
r~der ~s executed by Borrower and recorded together w~th th~s Mortgage. the covenants and agreements of such r~der
shall be ~ncorporated ~nto and shall amend and supplement the covenants and agreements of th~s Mortgage as ~t the r~der
were a part hereof , ,
7. Protection oi Lender's Security. !t Bo~rower la~ls to pe~form the covenants and ag-~ments contained ir~ this
Mortgage. o~ ~f any act~on or proceed~ng ~s commenced wh~ch matenally affects lenders ~nterest m the Propeny.
inGluding, but not limited to, eminent doma~n. insolvency. code enforcement. or arrangerrents or proCeedings involvmg a
bankrupt or decedent, then Lender at Lenders opt~on, upon not~ce to Borrower, may make such appearances, d~sburse such
sums and take such act~on as is necessary to protect Lenders interest. ~nclud~ng, but not I~m~ted to, disbursements ot
reasonable aitorneys tees and entry upon the Property to make repairs. It Lender required mo-tgage insurance as a
cond~t~on of makmg the loan secured by th~s Mortgage. Borrower shall pay the prem~ums requ~red to ma~nta~n such
~nsurance m eftect unl~l such t~me as the requ~rement for such msurance term~nates ~n accordance w~th Borrowers and
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