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UNIFORM COVENANTS. Bonower and Lender covenant and agree as foliows:
f. Paym~nt ot Pelncipal and lnt~r~st. Bonower shall promptly pay when due the principal ot and interest on the
mdeDtedness evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal ot and interest
on any Future Advances secured by this Mortgage.
Z. Funds tor Tsx~s and Insunnc~. Subject to applicabte law or to a written waiver by lender, 8orrower shall pay
to Lender on lhe day monihy instatlments ot principal and inte~esl are payable u~der the Note, until the Note is paid in tull,
a sum (herein "Funds") equal to on~tweNth of the yea~ly taxes and assessments which may anain prioriy over this
Mortgage, and g~ound rents on the Property, it any, plus on~tweltth ot yea~ly premium installments for hazard insurance.
, plus on~tweltth of yea~ly premium installments for mortgage insurance, if any, all as reasaonablyestimated initially and irom
time to time by Lender on Ihe basis ol assessments and bills and reasonable estimates thereof. ' ~
The Funds shali be held in an institution the deposits or accounts ot which are insured or guarahte~d by a Federal or
stite agency(including lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, essessmeniS; ~
~nsurance premiums and ground rents. Lender may noi charge for so holding and applying the Funds, analyring sa~d aCCOunt,'
or verilying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and appliCable law
permits Lender to make such a charge. Bo~~ower and Lender may agree in writing at the time ot execation•oi thls
Mortgage that interest on the Funds shatl be paid to Borrower, and unless such agreement is made or applicatlle law ~
requires such ~nterest to be paid. Lender shall not be required to pay Bor~ower any interest or earnings on the Funds. Lender
shall give to Borrbwer, without charge, an annual accounting of the Funds showing credits and debits to the Funds a~tl the
purpose for which each debit to the Funds was made. The Funds are pledged as addilional security for the~ sums secured
by this Mortgage.
If the amount of the Funds held by Lender, together with the future monthty installments ot Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they talt due, such excess shall be, at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments ot Funds. If the amount ol the Funds
held by Lender shall not be suftic~ent to pay taxes, assessments, insurance prem~ums and ground rents as they tall due,
Borrower shall pay to Lender any amount necessary to make up the deticiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full oi all sums secured by this MoAgage, Lender shall promptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereoi the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no iater than immediately prior to the sale'o( the Property or its acquisition by Lender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. AppNcation ot Paym~nb. Unless applicabie law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereot shall be applied by Lender tirst in payment ot amounts payable to Lender by 8orrower
unde~ paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
pr~ncipal on any Future Advances.
4. Chary~s; Uens. Borrower shall pay all taxes, assessments and other charges, fines and impositions atVibutable to
lhe Property which may attai~ a priority over this Mortgage, and leasehold payments or gound rents, if any, in the manner
provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the
payee thereot. Borrower shall promptly (urnish to Lender all notices of amounts due under this paragraph, and in the event
Borrower shall make payment directly, Borrower shall promptly lurnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any I~en which has priority over this Mortgage; provided, that Borrower shall not be
reqwred to discharge any such lien so tong as Borrower shall agree in writing to the payment ot the obligation secured by
such lien in a manner acceptable to lender, or shall in good taith contest such lien by, or defend enforcement of such lien ~n,
fegal proceedings which.operate to prevent the eniorcement oi the lien or torfeiture oi the Property or any part thereof. -
5. Hazard Insurance. Borrower shatl keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included w~thin the term "extended coverage", and such other haza~ds as Lender may requ~re
and in such amounts and for such periods as Lender require; provided, that lender shall not require that the amount of
such coverage exceed that amount oi coverage required to pay the sum secured by this Mortgage.
The insurance canier providing the insurance shall be chosen by Borrower subject to approval by Lender, prowded,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereot or, if not paid in such manner, by Borrower making payment, when due, directly to the
j insurance carrie~.
; AII msurance polfcies and renewals thereof shall be in torm acceptable to Lender and shall include a siandard mortgage
i ciause in favor of and ~n form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly turnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
~ Borrower shall give prompt notice to ihe insurance canier and Lender. Lender may make proof oi loss i( not made-promptly
; by Borrower.
Unless Lender and Borrower othervvise agree in writ~ng, insurance proceeds shall be applied to restoration or repair ot
~ the Property damaged, prov~ded such restoration or repair is economically feasible and the security ot this Mortgage is
i not thereby impa~red. li such restaat~on or repair is not economicatly teasible or it the security of this Mortgage would
~ be impa~red, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. It the Property is abandoned by Borrower, or if Borrower tails to respond to Lender within 30 days from the
~ date notice is mailed by Lender to Borrower that the insurance carrier o(fers to settle a claim for insurance benetits, Lender
~ is authorized to coltect and apply the insurance proceeds at lenders option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
~ Unless Lender and Borrower otherw~se agree in writing, any such application oi proceeds to principal shall not exiend
~ or postpone the due date of the monthly installments reterred to in paragraphs 1 and 2 hereot or change the amount ot
~ such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
~ in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the.sale =
~ or acqu~sition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisrt~on.
6. Preservstlon and Malntsnance of Property; Lsaseholda; Condominlums; Planned Unit Dsvelopmsnts.
~ Borrower shall keep the Property in good repa~r and shall not commit waste or permit impairment ordeterioration of the Pro-
~ perty and shall comply with the provisions o( any lease ii this Mortgage ~s on a leasehold. If th~s Mortgage is on a unit in a
condom~n~um or a planned unit development. Borrower shall pertorm all of Borrowers oblig~tions under the declaration
; or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of tne
condomin~um or planned unit development, and constituent documents. If a condominium or planned unit development
r~der ~s executed by Borrower and ~ecorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated ~nto and shall amend and supplement the covenants and agreements of this Mortgage as if the rider .
were a part hereof.
' 7. Protection of Lendsrs Security. If Borrower tails to pe~torm the covenants and agreements contained in th~s
~ Mortgage. or if any act~on or proceeding is commenced which materially aftects Lenders interest in the Property.
~ ~ncludmg, but not I~mited to, eminent domain, insolvency, Code enforcement, or arrangements or proceedings ~nvolving a
~ bankrupt or decedent, then Lender at Lenders option, upon notice to Borrower, may make such appearances, disbu~se such
~ sums and take such action as ~s necessary to protect Lenders inte?est, including, but not limited to, disbursements ot :
; reasonable attorneys fees and entry upon the Praperry to make repeirs. If Lender required mortgage insurance as a ;
~ cond~tion ot mak~ng the loan secured by this Mortgage, Borrower shall pay the premiur~? i~q~~~ maintain such
msurance in etfect until such time as ihe requirement for such insurance terminates in acCdtdhA Borrowers and
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