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UNIFOItM COVENANTS. 8orrowe~ and Lende~ covenant and agra as foilows:
l. P~a~eat ot Priacipal aod lalerest. Borrower ahall promptly pay when due the principal ot and intercst on the
indebtedncu evidenceci by the Note. prepaymeat and late charges as providod in the NMe. and the principal o[ a~d intenst
on aay Futuro Advances secund by this Mortgsge.
2. Feed~ for Tua aad In~nnece. Subjcet to applicable law or to a writte~ waiver by Lender. Borrower shall pay
to Lender on the day monthly installments of principal and interest are payable unde~ the Note. until the Note is paid in full.
a:um (herein "Funds") cqual to one-twelfth of the yea~ly taxes and assossments which may attain priority over this
Mortgage. and ground rents on tl~e Propehy. if any, plus ono-twel(th of yearly premium installments for haurd insurance,
plus one-twelfth of yearly premium installmenta for mortgage insurance, if any, all as reasonably ~stimated initially s~d from
time to time by Lender on the basis of assestsments and bills and reasonable estimates thereof.
'Il~e Funds shAll be held in an institution the deposits or accounts of which are insured or guarantee~ by a Fede:al or
state agency (including l.ender if Lender is such an institution). l.ender shall apply the Funds to pay said taxa, assessments,
insurance ptemiums and ground rents. Lender may not charge (or so holding and applying the Funds, analyzing said account,
or verifying and compiling said asseuments and bills. unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of eaceution of this
Mortgage that interest on the Funds shall be paid fo Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not tx required to pay Borrower any intcrest or earnings on the Funds. Lender
shal~ give to Borrower, without charge. an an~ual accounting of Ihe Funds showing crcdits and debits to the Funds and the
purpose for which each debit to the Funda was made. The Funcis aro pledged as additional sa:urity for the sums seeured
by this Mortgage.
If the amount of the Funds held by I.e~cier. together with the future manthly instaUments of 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 fall due, such excess shall b~, at Borrower s option. either
promptly repaid to Borrower or credited to Borrower on momhly installments of Funds. lf the amount of the Funds
held by Lender sha11 not be sufti'icient to pay taxes. assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrov?•er any Funds
held by Lender. If under paragraph 18 herrof the Property is sold or tFie Praperty is othtrwise acquired by Lender. Lender
shall apply. no later than immediately prior to ihe sale of the Propeny or its acquisition by I.ender, any Funds held by
Lender at the time of application as a credit against the sums secured by this Mongage. -
3. Application of Pa,ymenfs. Unless applicable law provides otherwise, all payments received bv Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by I_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Futurc Advances.
4. Chartes; Lkas. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable to
the Prop~rty which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any. in the manrur `
provided under paragraph 2 hereof or, if not paid in such manper. by Borrower making payment. whe~ due, directly to the '
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event i
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Bonower shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
suc6lien in a manner acceptable to L.ender. or shall in good faith contest such lien by. or defend enforrement of such lien in, ~
legal proceedings which operate to prevent the enforcement of the lien or forfeiture. of the Property or any pari thereof.
S. Hazard Iasuraoce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", .and such other hazards as Lender may rcquire ?
and in such amoun4t and for such periods as Lender may require; provided, that Lender sh~ll not require that the amount of
such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
'Ibe iasurance carrier providing the-insurance shall be chosen by Borrower subject to approval by Lender, providod, ;
that such approval sha11 not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner i'
' provided under paragraph 2 heroof or. if not paid in such manner. by Borrower making payment. whon due, dirccdy to the :
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insurance curier.
j All insurxnce policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage }
~ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals th~reof. ~
, and Borrower shall promptly furnish to Lender all renewal notices and all receipt: of paid premiums. In the event of loss, ;
Borrower shall give prompt aotice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly }
; by Borrower. ;
~ Unlesc Lender and Borrower otherwise agree in writing, insurance procceds ahall be applied to restoration or repair of ~
the Property damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is ;
~ not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would !
~ be impairod, the insuranc:e proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
~ to Borrower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
; date nodce is mailod by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
~ is aut6orized to collect and apply tbe insurance procceds at Lender's option either to restoration or repair of the Propecty
t or to the sums securod by this Mortgage.
~ Unless Lender and Borrower otherwise agrce in writing, any such application of proceeds to principal shall not extend
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installments. If under paragraQh 18 heroof the Property ic acquired by I.ender, all right, tide and interest of Borrower
~ in and to any insurance policies and in and to the proceeds t6ereof resulting from damage to the Property prior to the sale
~ or acquisition shall pass to L.ender to the eztent of the sums secured by this Mortgage immediately prior to such sak or
r acquisition.
' 6. Preservation and Maintenance of Pmperty; Leaseholds; Condominiums; Pfanned Uuit Devebpmeats. Borrower
~ shall kcep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
; and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
~ condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or coveoants creating or governing the condominium or planned unit development. the by-laws and regulations of the
condominium or pianned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
; shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
~ were a part hereof.
7. Protection of Leader's Security. If Borrower fails to perform the covenants and agrcements contained in this
; Mortgage, or if any action or proceeding is commenced which materially at[ects Lender's interest in the Property,
~ including, but not limited to, eminent doma ~n, insolvency, code enforcement, or arrangements or proccedings involving a
~ bankrupt or decedent, then Leoder at Lender s option, upon notice to Borrower, may make such appearances, disburse such
~ sums and take such action as is necessary to protect [.ender s interest, including, but not limited to. disburaement of
E reasonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
~ condition of making the loan secured by thia Mortgage, Borrower ahall pay the premiurtu required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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s~397 ~A~ 944
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