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UNtFOxnt CoveN~-Nti~s. Borrowcr and 1_enJe~ covenant a~d agree a~ tollows:
1. Psymeat of Pirincipal aod Intetest. Harruwcr shall promp~ly pay N hen due the principal of rnd intrresl on the
indebted~ess evidenced by the Note, prepayment and late charges a. pruvided in the Note, and the principal of and interest
on any Future Advances secured by ~hic Mortgage,
2. Funds tor Taxa and Insurance. Subject to appli~able 1:-w• or to a written waiver by I.ende~, Borrower chall psy
to Ixnder on the d:+y monthly installmen~s of principal and intc~c~t arc pa~•ablc undcr the Nota ~mtil ~he ~ute ic paid in (ull,
a sum (herein "Funds") equal to one-twelflh o( ~he yearl~• ta~e. and a~cessmentc which ma}• att~in prinrity over ~h~s
Mortgagc, anJ g~ound rents on the Pmpen}•, if any, pluc on?-tHrlfth uf }early prem~um insiallmcnts f~~r hatard imurancr.
plus onatwelfth of yearly premium installments tor mortgage insurancr. ~f any, all ac rcau~nabl}~ e.timatcd iniuaU~~ and from
timt to time h}• I.endcr on thc basis ot ascescmcros c~nJ hill~ and rea~on~blc cstimatcs thcrcof.
'il~e Funds shall he held in an institution the deEx»it~ or arcuunt~ .~f w•hich are incured or guarante~d by a Feder~l or
state agency~ Iincluding I_ender if t.ender is such an institu~ionl. I cndcr shall apph• thc Funds to pa~• said ~a~cti, ati~cssment~,
insurance premiums and ground rents. !_ender may not chargr tor u~ holding anJ applying ihe Funds, :inal~~~ing ~aid accotmt,
ar verifying anJ compiling said asse~sments and bilh, unlesc Lender pa~ti Borr~~w•er interest on the Funds and applicahle law
permits I_ender to make such a ch~rge Borruw~er and l.cndcr ma~• :~Kree in writin~ aI the time ot cxecution ot this
~fortgage tha~ interr~t on the Funds shall he p:~id to Borrowrr, and unlesc ~uch agreen~ent is made or applicahle law
reyuires such interest to he paid, Lender shall ncu tx rcyuireJ tc. pa~ R~~r~owcr an~ in~rrest or carning+ on the Funds. l.ender
~hall give to Borrower, without charge, an annual accu~mhng uf ~he t=unu, +:x~w~ng cred~ts and dcbitti to the f=unJs and thr
purpose lor w•hich each debit to the Fund+ wa~ madr. The F~inds arr plcdg~d a~ additiunal secunt~~ for the +ums secured
hy this ~tortgage.
If the amount of the Funds hcld by Lender, t~-gcthcr ~~ith the future monthl}~ in~t:illmcros of Fundt pa}~:iblc prior to
thc due Jates of taxes, assessments, insurancc premium~ and gruund renb, shall excced ~hc amount reyuired to pa~ ~aiJ ta~rs,
assessments, insurance premiums and ground rent~ ac Ihry (all due, such rrce+s tihall tx:, at Burmwer's option, eilher
promptl~• repaid to Borrower or credited to Bormwer on mun~hly imtallments of FunJ,. If thc amount ~~f thc Funds
held by Lender shall not be suflieient to pay ~axet, asses+ments. imur.~nce prcm~um. :~n~l ground rentc ~s thr}• fall due,
Borrower shall pay to l.ender an~• amuunt neces~an~ to make up the Jrtiri~nc~ w~uhin 30 da}s from the date notice i~ n~ailed
by Lende~ to Borrawer requesting paymcm ~hercot.
Upon papment in full ot all sums secureJ by thi~ Murtgagr. I.ender shall promptly rriund to Borrower any FunJs
held hy l.ender. If under paragraph 1K hcFrot the Propert~~ i~ u~ld or thc ProExrty~ ~s o~her.ti•i~r arquired by 1_cndcr, I.ender
shall apply, no later than immediatcly prior t~- thc .alc of th~ PruExrty ar itti acquisiuon b~~ 1_rnJer, an}~ i~undc hcld by
Lender at the time o( application as a crcdit :+ga~nst the sum~ ucured h~ thu ~turtgagr.
3. Application of PnYme~ts. linlecs appficaMe laa pro~ides otherwiu. all pa}•ments reccived b}• Lender unJer the
Note and paragraphti 1 and 2 hercof ~hall bc apphcd b}• LenJ~r fint in pa~ment u~ amounts payable to Lcnder b}' Bo~roWe~
under paragraph 2 hereof, then tu intrrc~t payablc ~~n the Nute. thrn lu Ihc principal uf the Iva1r, and lhen tu intcrest and
principal un an~• Fuiurc Advances.
4. Cha~es; Litns. BorroNer tihall pay aU ~,~~e~, atik~~mcnls an~i .~~hcr eh.~rgc~. fineti and impotiihi~ns attnbutahle to
the Propertp w~hich may aUain a priority rner thiti Alortgagr, and Ieaschold payments i~r ground rents, if any. in the manner
provided under paragraph 2 hereof or, if not patJ in such m~nner. by R~~rrower ma~:':ng pa~~ment, khen d~c, directly to the
pa~ec thereof. Borrower shall promptly furnish to Lendcr al! not~ccs o( amounts duc under this paragraph, and in the event
Borruwer shall make payment dirertl~•, Borrower tihall prompUy f!uni~h t~~ I.cnJer rercipt~ e~•idcnc~ng surh pa}•ment~.
Borrow~er shall prompdy discharge any lien whirh h•rs pnorrty ovrr thi. ~lurtg~gc: pro~~~ded. that B~~rrower ~hall n~~t be
required to discharge any such lien so long :~s Borrowrr ihall :~grec in ~rit~ng to the payment ot the obligatiun tecured b~•
such lien in a manner acceptable to Lender, or sh~ll in gcxKl faith cunte~t ~uch licn by, or defend enforcemeM ~-f such lien in,
legal pr~k-ecd:ngc w~hich oper~te to prevcnt ~he cnfurccmrnt o( thr I~rn ~~r forf~~ture of the Propert~• or :~n}• part thereof.
S. Hazard Insurance. Borrower thall F.eep the ~mproccment. naH eticting or herr:,ftcr crectcJ on the Pr.~~erty ~n~ured
sgainst loss h~• fire, hazards included w~ith~n the tcrm "r~tcndcJ ru~~rragr", anJ such othcr hazard5 a~ Lendcr ma~- reyu~re
anJ ~n such amounts and for such periocl~ as I.ender m:+y reyuire; pruvideJ, that 1_enJer shall not reyuire that the amuunt ~it
such covcragc cxcccd that amuum uf cmeragc reywrcd to pa}• -hc tium~ ~ccurcd h}~ this ~lortgagc.
The insurance carrier providing ~he insurance ~hall be rho.en by Borrower subject to approval by Lender; provided,
that such approval shall not be unrea~onabl}~ withheld. All prem~um~ on insurance policies ~hall be paid in the manner
prov~ded under paragraph 2 hereof or. ~( not p:-iJ in such manner, b} Borrower makmg payment, w•hen due, direcUy to the
insurance carrier.
All insuranee policies anJ renewals there~~( sh~ll br in form arce~t~blr to Len~!cr anJ shall incluJe a~tanJard mortg~ge
dause in favor of and in form accept~ble t~~ Lender. Lender ,hall ha~e the right ti~ holJ the ~~lici~~ anJ rene~alc thereof,
and Borrow~er Sh.,ll prompd~~ furnish to l.ender all rencNal notices and all receipls of paid prcmium~. In thc c~ent ~~f locs.
Borrower ~h:ill gi~•e prompt notice ta the ~murance rarnrr and LenJcr_ I.ender ma~ make pnx~t of loss it not made pmmpU~
b}' Borrowcr_
Unless Lendcr anJ Bormwcr othcr~+ti~ :~gre~ in wnhng, imurancc (~flKCl'lJS SFI:iII bC applicd to re~toratic~n ur repair of
the Yroperty damaged, provi~ed such re,torat~on or repa~r iti econ~~miwllp (easibie and thr tiecurity of th~s \~ortgage ~~
not ~hereb~~ impaired. I( such restora~ian or repair is n~a ra~n~~micall)~ fras~hle or ~f the secunt~• of th~ti A1~rtgage w•ui~ld
be impaired, the msurance proceeds shall be applieJ tu the wm~ ,ecure~ b~ thi; M~~rtgagr. ~~th the exce;s, if any, pa+d
to Borruwer. if the Propert) is :ibandimcd h~ Nixr~~wcr, or ~1 Bi~rmw•cr f:+il~ t~. re~~~nd ~~~ 1 cndcr wrth~n 30 daps fmm the
J~te notice is n:ailed hy~ Lender to Borrow~er that the insur;~nrr r~rncr ~~tTcr~ u~ ~cnlc ,~ l'I~IRI for imuranrc tH:nrfih, [_ender
i. authonted tc~ collect and apply the imurancc praceeJ~ at Lrnder's opti~~n either tu restorat~on or repair of the Property~
ur to the sum, ~rcured h~• this Mortgage.
Unless Lender and Botcower othen+ix ~gree ~n Hnting, am such ~pplir.ition ~~f pruceeds to prmripai tihall not etit~nd
or pustpone the due d~te of the mcmthly installments referred t~~ in paragraph~ 1 and 2 hereo( or change the amount of
such in~tallment~. It under paragraph I8 hereof the Propert~ is acyu~re~ h~ Lender. ali nght, title and interest of Borrc~w~er
~n and tu an} inwran~e polic~es and in and to thr proceeds thrreot retiulung (rom d:~maGe to the P~operl~~ prii~r to the -ale
or acyui~itwn shall pass to Lender to thc e~tent uf the ~unu ~ccureJ h~ th~ti ~ti~rtgagc ~mmediately~ prior t~~ tiuch tiale or
acquisition.
6. Presenalion and ~taintcnance of Propert~: I.ea~ehuld+: ('~~ndominiumti; Pianned l;nit De~elopments. Borrowrr
sh~ll keep thc Property in good rep~ir anJ shall not commii Haste ~~r perm~t ~mpcurment or deterioration of the Propeny
and shall compl~~ with the provis~ons of any lease :f thi~ ~turtgagc ~~ un a Icaschold. If this ~turtgage is on a unit in a
cundumimum or a planned unit dc~~rlopment, BorroKrr ~h~ll Exr(~~rm all uf Borrrwer's nbhgahons under the declaraU~n
.~r ravcnantti ~rrating or guvcrmng ~hc cc~ndamimum or plannrJ umt dcvclupmcm. thc by-law•ti and regulati~m of the
~onJ~~min~um or planned unit de~~clopmcnt. :~nd comtitucnt ~kx•umcntti. If a condominium or planned unit dc~rl~~pment
n~er ic exe.:uted bp t3orrow•er and recordeJ tugether H~th thi~ M~~rtgage, the co~~en;~nts and agreemenh ~~( ~uch nder
shall be incorporated ~nto and ~hall amend anJ supplement ~he co~enants and ~greements of this Mortgage as ~t thc riJer
Nere a part hereof.
7. Protection of Lenders Security. If Borraw•er f~ilt te. Exrfurm the covenams and agrcemcnts contained in thi;
Mor~gage, or if any action ur proceed~ng ~c commrnce~l wh~.h materiall}- afiects l.enJer's interect in the Propert},
including. but nut lim~ted to. rminent domain. inc~~h•ency, code enforcement, or arrangements or pr~~ceedin¢s invol.ing a
bankrupt or Je.edent, then Leader at l.ender'ti opUUn, upon nutice to Borrower, ma} mrke such appearancc~, d~sburse such
sums and take such action as is necessar}~ t~- pratecl Lender's mt~rest. incluJing, but not iimiteJ w, d~cbursement o(
reasor.able atromey's fees and entry upon the Propcrty to makr repain. If Lcnder rcyuired mortgage inturance as a
rond~Uon v( mal:ing the loan secure~l b}• this M~~ngage, B~~rrowrr ;hall pa~• the premiums requireJ to maint:~in such
insurance in efTect until iuch t~me •rs ihe reyuirement for such msurance ierminatrs in accordaoce with Borrow-er's and
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