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UNtFORnt Cove?v~rvrs. Borrower ard Lender covenant and agree as follows:
1. T~j~IDtDI OI PI'~11C~I SOd IDllftSl. Borrower shali promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, prepayment~and late charges as provided in the Note, and the principal of and intercst
on any Future Advances secured by this Mortgage.
2. Fbn~ for Tues aad l~urance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
to l,ender on the day monthly installments 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
Mortgage, and grou~d rents on the Pmperty, if any, plus one-twclf~h of yearly premium installments for hazard insurance,
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as rcasonably estimated initially and from
time to time by I_ender on the basis of assessments and bills and reasonable estimates thereof.
'il~e Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including l.ender if Lender is such an institution). I_ender shall apply the Funds to pay said tazes, assessments,
insurance premiums and ground reots. Lender may not charge for so holding and applying the Funds, analyzing said aceount,
or verifying and compiling said assessments and bills, unless I_ender pays Borro;~~er interest on the Funds and appiicable law
permits Lender to make such a charge. Borrower and l.ender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid, Lender shall not be required to pay Borrower anp interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the t=unds showing creclits and debits to the Funds and the
purpose for which eaeh debit to the Funds was made. The Fund~ are pleeiged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lencier, togcther with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such excec~s shall be, aC Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthty installnicnts of Funds. If the amount of the Funds
held by Lender shall not be sufficient 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 with~n 30 da~s fram the date notice is mailed
by Lender to Borrower requesting payment ~hereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrow•er any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or thc Propert~• is otherwisr aryuirrd by Lender, [.cnder
shall apply, no later than immediately prior to the tiale of thc Property or its acquisition by Lender, any Funds held ~by
Lender at the time o[ application as a credit against the sumc secured hy this Mortgage.
3. Application of PaymenLs. Unless applicable law~ provides other~ise, all payments recei~•ed by Lender un~ler the
Note and paragraphs 1 and 2 hereof shall be applicd by Lcnder &rst in payment af amuunts pa~~able to Lcnder hy Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to th~ principal of the Note, and then to interest and
principal on any Future Advances.
4. Chs~rges; Lkns. Borrower shall pay all taxcs, asss:ssments and othcr charges, fines and impositians attributahle 10
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shalt promptly furnish to Lender all noticcs of amounts due under this paragraph, and in the event
Borrower shall make payment directiy, Borrower shall promptly furnish to Lender receipts evidencing such payments_
Borrower 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
such lien in a manner acceptable to Lender, vr shall in gi~d faith contest such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the l~en or forfeiture of the Property or any part thereof.
S. H~zard Insurance. Borrower shall keep the improvements now cxisting or hercafter crccted on the Property insurcd
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may~ reyirire
and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of
such coverage exceed that amount of coverage required to pay the sums secured hy this Mortgage.
' The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be~nreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
~ insurance cazrier.
; All insurance policies and renewals thereof 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 the pulicies and renewals thereof,
~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premium.. In the event of loss,
Borrower shall give prompt nolice to the insurance carrier and Lender. Lender may make proof of loss if not.made promptly
~ by Borrower.
~ Unless Lender and Borrower othervvise agree in writing, insurance proc:ecds shall be applied to resteration 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 fcasible or if the security of this Mortgage w•ould
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 Borrower, or if Borrower fails to respond to Lender •Nithin 30 days from thc
date ~otice is mailed by Lender to Borrower that the insurance carrier ot~ers to settle a claim for insurance benefits, ~ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propert}~
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, an}' such application of proceeds to principal shall not extend
or postpone the due date of the monihly installments referred ca in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, tide 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 acquisition shall pass to L,eoder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and biaintenance of Property; Leaseholds; Condominiums; Pianned llnit De~•elopments. Borrower }
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of ihe Property
and shall comply with the provisions of any lease if this ~Sortg~ge is on a leasehold. If this tiiortgage is on a unit in a
~ condominium or a p(anned unit development, Borrower shall ~.rform all of Berrower's obligations under the declaration
s or covenants creating or governing the condominium or planned unit development, the by-laws an~ regulations of the '
condominium ar planned unii development, and conslituent documents. If a condominium or planned tinit de~~elopment
~ rider is executed by Borrower and recorded together with this Mortgage, lhe 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
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~ were a parrt hereof.
` 7. Protec6on of Leoder's Security. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commenced w~hich materially afiects Lender's interest in the Property,
~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Le~der's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
~ reasonable attorney's fees and entry upon the Properly to make repairs. If Lender required mortgage insurance a3 a
~ condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
` insurance in ef~ect until such time as the requirement for such insurance terminates in accordance with BorroK~er's and
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~ ~Q`~ 40fi P~F 941
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