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UNtro~u.t Cover+~Nrs, Borrower ar~d Lender covenant and a~ree u follows:
1. h~we~t of lA~clMl a~i 1Nsraf. Borrower shall prompd~ pay when due the pri~cipal ot and interat on the
~ndebtedna: evidenced by the Note. prepayment aod Iste chargec ac p~ovided in the Note, and the principal of and interes~
o~ aay Future Advances secured by this Mortgage.
2. Fr~ds tor Tua aad lawrs~ce. Subject to applicabk law or to a writ~en waiver by Lende~. Borro~wer shall psy
to Lender on the day moothly installments of principal and in~crcc~ arc payahle under the Note. unlil the Note is paid in (ull.
s:um (hereio "Funds") equal to one-tweltth o( the yea~ly usc. and assasmeots which may attain priarity over this
Mortsa~e, and ground rents on the Pmperty, if any, plus one-tweltth of yearly premium installmeots for huard insurance.
plus one-twel[th of yearly promium installmeMs tor mortgage insunncc, if any, all as rcuonably estimaled i~itially and trom
time to time by Lender on the basis of assescmcros ~nd hills and reasonable atimata thereof.
71~e Fu~ds shall be held in an institution the deposits or accounts of which are insurcd or guaranteed by a Federal ot
state agency (including Le~der if Lender is such an inslitution). I.ende~ shall apply the Funds to pay said taxa. asseuments,
irourance prcmiums and graund rents. I.ende~ may not ch~~ge lor so holding and applying ~he Fnndc. analyzing caid account.
or veri(ying and compiling said assessmcnts and bills, unless Lender pays Borrower intetat on the Funds and applicable law
petmits l,ender to make such a charge. Borrower and Lender may agree in writing at the time of exaution of this
Mortgage that interat on the Funds shall be paid to Borrower, and ualas such agreement is made or applicable law
requires such i~terat to be paid, Lender shall not be rcquired to pay Borrower any inlerat ~r earnings on the Fuods. Lender ~
shall give to Borrower, without charge, an annual accounting ot the Funds showing credits and debits to ~he Funds and the
purpose tor which each debit to the Funds was made. 71~e Funds are pledged as addi~ional secunty for the sums secured
by this Mortgage.
lf the amount of thc Funds held by Lender, together w~th ~he future monthly installments of Funds payable prior to
the due dates of taxes, uussments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as ~hey (all due, such excess shall be, at Borrower's option, either
pranptly rcpaid to Borrower or credited to Borrower on monthly installmen~s of Funds_ If the amount ot the Funds
held by Leoder shall not be sufficient to pay taxes, assessments, insurance prcmiums and ground rents u they fall due,
Boerower shall pay to Lender any amount necessary to make up the deficiency within 30 days trom thr date notice is mailed
by l.ender to Borrower rcquesting payment thereof.
Upon paymcnt in full of all sums secured by this Mongage, l.ende~ shall promptly retund to Bnrrower any Funds
held by I.ender. If under paragraph 18 hercof the Property i~ sold or the Property is otherwise acquircd by Lender, Lender
s6al1 apply. no later than immediately prior to the sale of the Property or its acquisrtion by Lender, any Funds held bv
Ltoder at the time of application as a credit against the sums secured by th~s Mortgage.
3. Appl~cation of Psymeofs. Unless applicable law provides otherwiu, all payments received by Lender under Ihe
Note and paragraphs 1 and 2 hercof shall be applied by l.ender first in payment of amounts payable to [.ender by Borruwer
under paragraph 2 hercof, then to interest payable on the No~e, then to the principal ot the Note, and then to inte~est and
principal on any Future Advances.
4. C6arges; [.iens. Bonower ~hall pay all ta~e~. asses~mcnts and othcr charges. fines anJ ~mpositions attributable to
We Prope~iy v?~hich may attain a pnority over th~s Mortgage, a~d leaschold paymcnts or grouna rents, if any, in the manner
provided under paragraph 2 hereof or. if not pa~d ~n such manner, by Borrower making payment, when due, dircetly to the
. payee thereof. Borrower shall promptly (urnish to I.enJe~ all notices of amounts due under this paragnph, and in the event
Borrower shall make payment direcUy, Borrower tihall promptly (urmsh to Lender receipts evidencing such payments.
Borrower shall promptly discharge any I~en which has pnonty over this Mortgage; provided, that Borrower shall not be
required to discharge any such I~en so long •rs Borrow•er shall agree in v?•rn~ng to the payment ot the obligaliun securcd by
such Gen ~n a manner accrptable to Lender, or shall ~n ga~d fa~~h contest such lien by, or Jefend enforcement of such lien in,
legal proceeding~ which operate to prevent the rnturcement of the I~en or torfeiwre of ~he Propeny or any part thereoL
S. Hazard Insu~nce. Horrower shall keep the ~mprovememti now etiisting or hereafter erec~ed on the Property insored
against loss by fire, hazards included with~n the term "eatendeJ coverage", a:~d such other hazardc as l.ender may reyuire
i and in such amounts and fvr such pericxls as Lender may reyu~re; provided, that 1_enJer shall not require that the amount of
~ such coverage exceed that amount of coverage requ~red to pay the tiums secured ~by th~s Mort6age.
71~t ~nsurance carrier providing the insurance shall be chosen by Borrower subject to approval by LenAer, provided,
that such approval shall not be unreasonably withheld. All premiumc on insurance policies shall be paid ~n 1he manner
provided ~~nder p:uagraph ~ hereof or, if not p:+id in such manner, bp Borrower mak~ng payment, when due, dircctly to the
' insurance carner.
All insuranrr Ewhrie+ and renewals therrof shall be in form acceptable to l_enJer anJ shall include a standard mortgage
f clause ~n favnr ~~f and m form acceptable tu Lender. Lender shall have the right to hold the policies and renev?•als thereof.
f and Borre>uer sh:~ll pr~~mpdy furo~sh to Lender all renew•al nouces and all receipts of paid premiumt. In the event of locs,
Borr~~wer ~h.~ll gi~r prumpe nut~ce to the in~ur.,nce carner and I_enJer. I_enJer ma~• make prcx~t of loss ~f not made promptly
{ by Borrower.
~ Unless I ender and 8orre~wer otherwiu agree in Hnhng, inwrance proceeds shall be applied to restoration or repair of
f the Properry dam.iged, provided wch restorauon or rcpair ~s economically feasible and the security of th~s Mortgage ~s
not thereby impaired if ~uch retitor~t~<+n or repa~r is n~~t rcon~~m~c.illy feasible or the secunty of this Mortgage would
f be impa~red. the in~urance proceeds shall be applied to the sums ~ecureJ by this Morigage. wrth the excess, if a~y, paid
~ io Borrowcr It thc Yr~~perty n abandoncd h~ Horrower, cir it Borrower fails t~~ respond to I.ender within 30 days from the
date not~ce m:ul~d h} Lender to Hurruwer that the ~nsurance carner ofiers to cettle a claim for insurance txnefits, 1_ender
~ is authrnzed t.~ collect anJ :~ppl~ the inwrance proeeedi at Lender's optiun either to restoraUOn or repa~r of the Pmpenv
or to the iums itcured hy shi~ ~tortgagc
Unless Lrn~cr and Burruwer otherv?i~e agree ~n :+nt~ng, any such application af pre?ceeds to pnncipal shall not extend
~ or p~xtpcmc the .iuc date c.f thc m~~nthl~ imtallmcntc rcferred t~~ in paragraph. I and 2 hereof or change Ihe amount of
such installrnrot~. If under paragraph 18 hereof the Prof.ert} n acyuired hy LenJer, ali nght, title and interest of Borruwer
> in and io an~ insurancc pe~licieti and in and to the proceeds thereof resutung from Jrmage to the Propeny pnor to thc sale
~ or acyuisition ~hall pas~ to Lender to the extent ot the sum> >ecured by this Mortgage immediately prior to such sale or
acqwsition_ '
6. Presenation and ~ttiotenance ~f Propert~; Lestuholds; Condominiums; Planned Unit Dt~•elopments. Horrowcr i
~ shall keep the Pmperty ~n gcwd repair and shall no[ comr~it Kaste ~~r permit impaument or deterioration of the Property +
} and shall cc~mpl~ w•ith the provis~ons of any lease thi~ Mortgage i, on a Ieaseh~~ld. If this Mortgage is on a unit in a
= condominium or a'ptanned un~t ~ie~rlupment. Borrower tih:,ll ~xrlorm all of Borrower's obligadons under the declaration
or covenants creaUng ~~r g.~verning ~he condominium or planned unrt development, the by-laws and regulationc of the
€ conJominium or planned unu Jevelo~,ment, end constitucnt d~x umentti. 1( a cunJominium or ptanned unit development
' nJer is executed hq Hurruwer and rec~~rJrd tugether with th~ti `t~~rtgage, thc covenants and agreements ~f such, ndcr
~ shall be ~ncorporated ~nto and shall amend and ~uppl~ment the catienant~ anJ agreements of this Mortgage as ~f the n~ier
were a part t,ereof.
i 7. Proteilion of Lender's Security. 1( B~•rr~~~er f;,~h n~ ~xrt~~rm the covenanta and agreements c~~ntained ~n Ihic
~ Mortgagr, nr i( .tn} actiun ~~r prekced~ng ~ti c~~mmcncc~l Nhicn m.~tcriall} .~(Tcctti LenJer'ti mterc~l in thc Pm~xrh,
~ including. hut m+t !~m~ted tu. cm~ncnt dom:un. im~~l.cncy, c~xlc rnl~~rccmrnl. ~~r ~rr.mKrmrntc or pnxccdings invohing a
~ bankrupt ur dc~c.lrnt. the~~ I.ender ~t I ender', ~~puon, up~m ni~tice a~ Borruw•cr, m~~ m:ike wch appearances, dishur~e Such
tiums and take such a~u~m e. ~s nece~~ar} t~~ prntect I.ender'c interesl. mclii~ling. but no1 limi~ed to, di~bursement c~f
~ reasonahlc a~~~~me~'~ f~cti and eniry u~+~~n the Pri~pcrt~ t~~ m;~l~c rrpeir~. If I.enJer reyiiircd mortgage in~urance ati a
cunJ~U~rn m,+king Ihc I~~an Kcurc~l h} th~~ ~t~tttga~c. B„rrr.~cr th.~ll pa}• thr prcmium~ rcqwre~l to maiitt.~~n ~uch
~nsurancr tn rttec~ untd wch Umc ati ~hc reyuiremcm (i~r ~uch imuran;c tcrminatr~ in accordancc with B<~rr.~wcr'ti and
~ ~ ~ ~ ~ ` ~ ~ ~ ~ ~ ~ $~~K355 999
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