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UHtraw CoveN~r+t~s. Horrower and Leade. covenant and asroe ss tollows:
l. lqweN ot hMe1N1 ri LMe~est. 8orrower shali promptly pay when due the principal ot and interest on the
indebtednas evidenad by the Not0. P~MY~~t and late chargec ac ~xovided in the Note, aed the principal of aod interes~
on aoy Future Advances secured by this Mottp~.
_. pris Mr Tua s~i iwr~ce. Subjat to applicabk law a~ to a written waivet by Lende~. Borro'wer shall pay
to Ltnder o~ the day monthly installments of principal aod intcrcct arc paya!-k unde~ the Note. until the Note is paid in [ull.
s:um (herein "Fundt") eqwl to one-twelfth of the yearl~~ taa~y anJ assessments which may attain priority ove~ this
Mortsa~. and ~round [eats on tbe Peope~ty. if any. E+lus onrtweltth of yearlp premium installments for hazard insu~ance.
plus one-twelfth of yearly premium installments (or mongage insunocc. if any, all u rcasonably estimated initially and irom
time Eo time by Lender on the buis of auasments and hills and rcasonable estimates thercof.
'Ibe Ftinds shall be held in an institution ~he deposia or accounts oF ~rfiich arc insurcd or guaranteed by a Fedenl ot
state agency (includi~a Lender if Lcoder is such an institution). 1_cnder shall apply the Funds to pay said taxa, uxssments.
inturanoe premiums aod ~wund rc~ts. I.ender may oat cha~ge for sc- holding and applyina the Fnnds. analyzing caid account.
or verifyin~ and compling uid assessmeots and bills, unless Lender pays Bormwe~ intercst on the Funds and applicable law
permitt L.e~der to make such a charge. Borrower aad Lender may agrce in writing at the time ot exccution of this
Monga~e that interat on the Funds shall be paid to Borrower. aod unless such agrcement is made or applicable law
requi[es such interat to be paid. Lender shall ~ot be requircd to pay Borrower any interest or earnings on the Fu~ds. Lender
s6d1 give to Borrower~ without charge, an anoual accounting o[ the Funds showing credits and debits to ihe Funds and the
purpoee for which each debit to t6e Funds was made. The Funds arc plodgod u additional security tor the sums secureci
by this Mortpge.
If tl~e amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
t6e due data of tua. asxssmeats, insurance premiums and ground ronts, shall exceed the amount required to pay said taxa,
a:seaments. insunnce premiums and ground rents u they fall due, such excess shall be, at Borrower's option, either
pranptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Fur~ds
held by Leoder shall not be su}6cieat to pay t4xes. assessments, insurance premiums and ground rents as they fall due,
Horrower s6a11 pay to Lenderiny amou~t nocessary to make up the deficiency within 30 days trom the date notice is mailed
by Lender to Borrower requasting payment thereof.
Upon paya4eat ia full of dl sutns securcd by this Mortgage, I_ender shall promptly refund to Borrower aoy Funds
held by I.ender. lf under pusgraph 18 hereof the Propeny i~ sold or the Propeny ~s otherwiu acquired by Lender, Lender
s6al! apply. no later than immediately prior to the sak of the Property or its acquisition by Lender, any Funds held bv
I,eader at the time of application u a credit against the sums secured by this Mortgage.
3. Applieatio~ oE Paymeals. Unless applicable law provida otherveise, all payments received by Lender under the
Note and paragraphs 1 and 2 hercof shall be applied by [_ender first in payment of amounts payable to Lender by Borrow•er
uader paragraph 2 hereof. then to inte~est pa~able on the Note, then to the principal of the Note, and then to interest and
priocipal on any Future Advaaoe.s.
1. C6s~es; Lieas. Borrower shall pay all taxes, assessmcots and other charges. 6nes and impositions atlributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or g[ouncj rtnts, if any, in the manner
pruvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promp~ly furnish to Lenckr all notices of amounts due under this paragraph. aod in the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promp~ly dixharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
rcquired to discharge any such lien so long as Borrower shalf agree in w•rit~ng to the payment o( the obligatiun ucurcd by
such lien in a manner acceptable to Lender, or shall in good faith conte~t such lien by, or defend enforcement of such lien in,
kgal proceedings which operate to prevent the enforcement of the l~en or forfeiture of the Propeny or aoy part thereof.
S. Hazard I~urance. Borrower shall keep the improvements now~ existing or hereafter erected on ihe Property insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
wd in such amounls and for such periods as Lender may require; provided, that t_encler shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage.
The ~nsurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providod,
that such approval shall not be unreasonably withheld. All premiums on insurance polic~es shall be paid in the manner
providod under paragraph 2 hereof or, if not pai~ in such manner, by Borrow~r making payment, when duE, dircctly io thr
insurance curier.
Al) insurance policies and renewals therrof shall be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold ~he policia and renevrals thereof.
and Borrower shall promptly furnish to Lender all renewal noaces and all receipts ot paid premiums. In ihe event of loss.
Borrower shall give prompt not~ce to the insurance carrier and LenJer. Lender snay make proof of loss if not made promptly
by Borrovrer.
~ Unless LenJer and Borrow•er othen~nse agree in writing, insurance proceeds shall be applied to restoration or repair of
the Property damaged, provided such restora~~on or repair is economically (easible and the security of this Mortgage is
not thereby impaired_ I( such rostoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by [iorrower, or it Borrower fails to respond ta !_ender within 30 days from the
date notice is mailed by l.ender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender
is aut6orized to collect and a~ply the insurance proceeds at Lender's option either to restoration or repaer of the Propenv
or to the sums secured by this Mortgage. -
Unless Lender and Borrower otherwise agree in writing, any such application of pra;eeds to principal shall not extend
or postpone the duc datc of the monthly installments referred to in paragraph~ 1 and 2 hereof or change the amount of
suc6 installments. If under paragraph 18 hereof the Pro f,erty is acyuired by Lender, all right, tide and interest of Borrower
in and to any Insurance policies and in and to the proceeds thereof resul:~ng from damage to the Property prior to thc sale
or acquisition shall pass to Lender to the extent of the ~ums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Presenalioo and Maintenance of Property; l.easehulds; Condominiums; Planned Uait Devebpmenls. BorroH~cr
shall keep the Property in good repair and shall not comroit yvaste or permit impairment or deterioration of the Property
and shall comply with the provis~ons o( any leate if th~s Mortgage ~t on a leasehold. If this Mortgage is on a unit in a
condomimum or a planncd unit devclopment, Borrow•er shall per(orm all of Borrower s ubligations under the declaratiun
or coveaants creatmg or governing the condomioium or planned unit development, the by-laws and regulationc of the
condominium or planned unit development, and constituent dcxumentc. I( a condominium or planned unit Jevelopment
rider ~s ezecuted by Borrower and recorded ~ogether with tha Mortgage. ~he covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the co~enams anJ agreements ot this Mortgage as if the rider
were a part hereof.
7. Protection of I.ende~s Securfty. If Borrower failti t~~ ~xrform the covenants and agreements contained in this
Mor~gage, or if any action or proceeding is commrnce~l wh~ch matcrially afiects I.ender's interest in ~he Properi~•.
induding, bat not limited ta eminent domain. in~~h•ency. code en(~~rcement. or arrangements or proceedings invol~~ing a
bankrupt or decedent. then Lender at 1_ender'a option, upon notice to Borrow•er, ma~ make such appearances: dishune such
sums and take such action as -s nececsary tu prutect Lende~ s in~erest, ineluding. but not IimrteJ t~. Ji~bursement of
reasonable at~omey's (ces and entry uEx~n thc Propcrty to makc rcpairs. If Lcndcr rcyi~ircJ mortgage in~urance as a
condiUon of makmg the loan ~ecured by Ih~s l1lunRage, Borrr.wer ih_d! pay the premiums requireJ to mainla~n tuch
insurance in efiect uotil such ~ime as ~he reyuiremem for wch ~n;uran.e ~erm~natrs in :~ecordanee w~i~h 8orr~~wer's and
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