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together with said property (or the leasehold estate if this Mort-
gage is on a leasehol~) are herein referred to as the "Property".
. Mortgagor covenants that Mortgagor is lawfully seized of the
estate hereby conveyed and has the right to mortgage, grant and
convey the Property, that the Property is unencumbered, and the
Mortgagor will warrant and defend generally the title to the
Property against all claims and demands, subject to any declara-
tions, easements or restrictions listed in a schedule of excep-
tions to coverage in any title insurance policy insuring Lender's
interest in the Property.
UNIFORM COVENANTS. Mortyagor and Lender covenant and agree
as follows: -
1. Payment of Princi~al and Interest. Mortyagor shall
rom t l
p p y pay when due the principal of and interest on the indebt-
edness evidenced~ by the Note, prepayment and late charges as
provided in the Note.
2. Funds for Taxes and Insurance. Subject to applicable law
or to a written waiver by Lender, Mortgagor shall pay to Lender on
the day monthly ir~stallments of principal and interest are payable
under the Note, until the Note is paid in futl, a sum (herein
"Funds") equal to one-twelfth of the yearly taxes and assessments
which may attain priority over this ylortyage, and ground rents on
khe Property, if any, plus one-twelfth of yearly premium install-
ments for hazard insurance, plus ~ne-twelfth of yearly premium
installments for Mortyage Insurance (as hereinafter defined), all
as reasonably estimated initially and from time to time by Lender
on the basis of assessments and bills and reasonable estimates
thereof.
The Funds shall be held in an institution the dep~sits or
accounts of which are ins~~red or quaranteed by a Federal or state
agency (including Lender if L-ender is such an institution).
Lender shall apply the Funds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so
holding and applying the Funds, analyzing said account, or verify-
~ ing and compiling said assess~nents and bills, unless Lender pays
I Mortgagor interest on the F'unds and applicable law permits Lender
j to make such a charge. Mort~agor and Lender may agree in writing
~ at the time of execution of this Mortgage that interest on the
Funds shall be paid to Mortgagor, and unless such agreement is
E made or applicable law requires such interest to be - paid, Lender
~ shall not be required to pay Mortgagor any interest or earnings on
the Funds. Lender shall give to Mortgagor, without charge, an
annual accounting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made.
The Funds are pledged as additional security for the sums secured
by this Mortgage.
~ If the _amount of the E'unds held by Lender, together with the
future monthly ins;allments of E'unds ~ayable 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 be, at Mortgagor's option, either promptly repaid to Mort-
~ gagor or credited to Mortgagor on monthly installments of Funds. '
= If the amount of the Funds held by Lender shall nat be sufficient
~ to pay taxes, assessments, insurance premiums and ground rents as ,
; they fall due, Mortgagor shall pay to Lender any amount necessary
~ to make up the deficiency within 30 days from the date notice is
~ mailed by Lender to Mortyagnr requesting payment thereof. Failure
~ to pay any amounts hereunder may be treated as a default under
~ ~this Mortgage and the related Mortgage Note.
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