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UNtpolt~ Covat+~nts. Borrower and Lende~ covenant and asroe ss [allows:
I. ~we~ ot hi~elNi a~i I~hna1. 8orrower shall promptl) paY when due the pri~cipal ot and intercst on the
indebtednea evideooed by the Note, prepayment an3 late chargec ac provided in thc Note. and the principal ot ~nd intenst
on any Ruture Advaaces secur~ed by this Manaase.
?. Fwi Mr T~a a~l I~ara~ee. Subject to applicahk law ~.r ~o a written waive~ by Le~Mer, Borrower shalt pay
to Leeder oo the day monthly iostallmcnts of principal and int~rcat rrr ~-ayahle unde~ the Note. until the Note is paid i~ full,
a swn (hercin "Funds'ry equal to one-twettih of ~he yearl~~ ta~-~~ anJ asstssmeots which may attain priority over th;s
Mort;aje. and sround rena on the Praperty. if any. plus one-twelhh of yea~ly premium installments for hazard insuraece.
plus one-tweltth of yearly premium installn~ents for mongage i~~surance. if any. all as reawnably estimated initially and trom
time to time by Le~der oe the buis ot assessmcnts and hitls and rcawoable estimala thercot.
The Funds shall be held i~ an institution the deposin or accounts of which are insurcd or guannteed by s Federal ot
s4te atency (including Lender if Lcnder is such an ins~itutionl. I.ender ahall apply the Funds to pay said uxa, usessments.
insuranoe premiums and grouod rcnts. I.ender may not charge tor so holding and applying the Fundc, analyzing wid account.
or verifyin~ and rnmpiling uid assessments and bills, unless l.ende~ pays Borrower intercst on the Funds and applicable law
permits Lender to make such a charge. 8arrowsr and L.e~der may agree in writing at ~he time ot eaecution ot ~his
Mo~tgag~e that interat oo the Funds shall be paid to Bo~rower, and unless such agrcement is made or applicable law
requira such interest to be paid. Lender shall not be rcquircd to pay Borrower any interest or tarnings on tht Fuads. !_endrr
sdatl aive to Borrower~ without ~harge, an annual accounting of the Funds showing credits and debi~s to the Funds and the
purpose for which eacA debit to the Funds wu madc. The Funds arc plodged u additional securily tor ~he sums securcd
by this Mortp~e.
It t!u ~t~eount e[ ths Funds held hy t.ender, together with the future monthty installments of Funds payable prior to
the due data of taxa. uxuments. insurance premiums and ground rcnts, shall exceed the amount requi~ed to pay sa~d taxes,
stsaanents, insurance premiums and ground rents as ~hey lall duc, such eacess shall be. at Borrower's opuan, either
ptomptly repaid to Borrowe~ or credited to Bormwer on monthly installments af Funds. I[ the amount o( the Funds
held by Lender shail ~ot be sufl9cieat to pay taxa. assessments, insurance prcmiums and ground rents as Ihey tall due,
Borravs~ shall pay to Lender any amount necessary to make up the de6ciency within 30 days t~om the date notice ic mailed
by Lender to Borrower requating payment thercof.
Upon paymeat in full of all tums secured by this Mortgage, [_ender shall promptly rcfund to Borrower any Funds
held by Lender. If under pusgraph 18 hereot the Property is sold or ~he Property is wherwix acquired by Lender, Lemier
s4dl apply, no later ihan immodiately prior to the salo ot the Property or its acquisition by l..ender, any Funds held bv
Leader at the time of applicatioa as a credit against the sums secured by this Mongage.
3. A~plicatioa ot paymeots: Unless applicable law provides otherwise, all payments receivtd by Lender under the
Note and paragraphs 1 and 2 htrcof shall be applied by !_enJer first in payment at amounts payable to Lender by Borrower
under psragraph 2 hertof, then to interest payable on the Note, then to the principal of the Note, and then to interes~ and
principal on any Future Advances.
~. C6sRes; Lk~. Borrower shall pay all ~axes, acsestments and other charges. 6nec and ~mpositions attnbutable ta
the Propetty which may attain a priority over this Mortgage, and leasehold payments ar grouna rcnts, it any, in the manner
pmvided under paragraph 2 hereot or. if nw paid ~n such manner, by Borrower making payment, when due. directly to the
payee thereof. Borrower shall p~omptly furn~sh to LenJer all notices o( amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrow•rr shaN promptly (urnish to Lender receipls evidencing such payments.
Borrower shall prompUy dixharge any lien which hax pnonty over th~c Mortgage: providzd, that Borrower shall not be
rcquired to discharge any such lien so long as Borrower shall agree in v-nhng to the payment of the obhga~iun secured by
such lien in a manner acceptable to Lender, or shall ~n gex~d (aith contr~~ such tien by, or defenJ enforcement of such 1'een in,
legal proceedings which operate to pre~ent the enfurcement ot the I~en or (orfeiwre of the Property or any part thereof.
S. Husrd Inwrance. Borrawer shall keep the ~mprovement. now eiisting or hereafter erected on the Property insured
against lo~.s by fire, hazards incluJed with~n the term "ex~ended cuverage", and such other hazards as I_ender may reyuire
wd in such amounts and for such periods as ~ender may require: prmided, that LenJer shall not require that 1he amount of
such coverage e~ceed that amouot of coverage requ~red to pay tbe sums secured ~by th~s Mortaage.
'i1x insurance carrier providing the insu~ance shall be chosen by Borrower subject to approval by Lender; providui,
that such approval shall not be unreasonahly withheld. All prem~umc on insurance polic~es shatl be paid in the manner
provided under paragraph 2 hereof or, if not pa~~ in such manoer, by Borrower makmg paymeot, when due, directly to the
insurance rarrier.
All insuranee polic~es and renewals thereot shall be in form acceptable to Lender and shall include a~tandard mortgage
clauu in favor of and in form acceptable to [.ender. Lender shall have the right to hold the policies and reneKals thereof,
and Borrower shalt prompely furmsh to Lender all renewal not~ces and all receipts of paid premium~. ln the event of loss,
Borrower shall g~~e prompt notice to the in~urance carner and Lender. 1_ender may make pr~•c.f of loss if not made promptly
by Borrower.
Unless Lender and Horrow~er otherv-•ix agrec in wnong, inwrance proceed~ shall be applied to restoration or repair of
the Property damaged, provided such restora~ron or repair ~s economically feasible and the cecurity of th~s Mortgage ~4
not thereby impaired. It such restorat~on or repair is not econ~~miratly feasible or i( the secunty of th~s Mortgage would
be impa~red, the insurance proceeds shall be applied to the sums secured by this Martgage. with !he excess, if any, pa~d
to Borrowcr. tf the Property~ is abandoned by 8orrower, or it Bormwer fails to respond to Lender within 30 days frum the
date notice ~s mailed by Lender to Borruwer that ~he insurance carrier ofTers to settle a claim for insurance benefits, 1_ender
is aut6orized to collect and apply the insurance proceeds at I.ender"s option either to restoration or repaer of the Propen~•
or to the sums sccured by this Mortgage.
Unless l.ender and Borrower otherui~e agree ~n writing, any such application of proceeds tQ princ~pal shal! not etitend
or postpone the doe date of the mnnthly installmcnt~ rc(erred t~ in puagraph~ 1 and 2 hercof or change the amount of
suc6 installmenls. If under paragraph 18 hereof the Property is acyuued by [.enJer, ali nght, title and interest of Borrower
in aod to any ihsurance policies and in and to the proc:ceds thereof resulting from damage to ~he Property prior to thc sale
or aequisition shall pass to Lender to the e~tent of the ~ums aecured b} this t~tortgage immediately prior t~ such sale or
acguisition.
6. Presen•ation and ~tain~enaoce ot Properiy; I.easehulds; Condominiums; Planned Unit Developments. Borrowcr
shall fceep the Property in good repair and shall not ..omrpit yvaste or permrt impairment or deterioraiion of ihe Property
and shal! comply with the ptovisions ot any lease ~f this Mor~gage i~ an a leaschvld. 1( this Mortgage is on a unii in a
condomimum or a planned umt devclopmcnt. Borr~w•er shall perform all of Borrower's obl~gaUons under the dcclarahon
or covenants creating or governmg Ihe condominium~or planned unil development, the bylaws and regutationc ~f tne
condominium or planaed unit Jevelopntent. and constituent d~xument~. 1( a conJominium or planned unit develnp~nent
r~dtr ~s executed by Borrower and rernrded tagether w~Ih ~h~c ;~1~~tgage, the covenants and agreements of ~uch nder
shall be incorporated into and shall emend anJ supplcment the co~enants an~l ~agreemenis of this Mortgage as if the n~ier
were a part hereof.
~. Protection ot I,eoders Security. If Horrouer fa~lc a~ perf<~rm the covenants anJ agreements runta+ned in th~~
Mortgage, or if any action ur proceeJing ~~ c~~mmcnre.l ~bich matcrially~ aftectc I.enJer's mterest in the Property,
includmg, but not limited ~o. eminent doma~n. insoivency, cude enforcemer~r. ~,r arrangements or proceedings ir~vul~mg a
bankrupt or decedent. then l.ender at I.enJer's option, upon not~ce to Borrow•er, ma~ make such appearances, d~shurse such
sums and take such action as rs nececsar}~ tu pro~ect Lender's ~nterest, mcluding, but not IimiteJ to. dabursement ot
reasonable at~omey's (ees and emry u~-n ~he Property to ma~e repa~rc. I( l_ender reyuired mortgage incurance ac a
condit~on ot maki~g thc loan ~ecurcJ by this Mc~rtgagc. B~rn:HCr sh.ill pap thc prcmiums reqwred to mainta~n such
insurance in etiect until such time as the reyuirement for wch m;uran;e lerminates in :~ceordance w•rth $orrower'c and
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