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UNtFOUM CoveN~Hrs. Borrower and Lende~ covenant and agree as tollows:
i. lqmt~t ot Tdacipd rd leterest. Borrower shall promptly pay v~hen due the priocipal o( and mtcrest on the
indebtedness evidenced by the Note, prepayment and late charges as proviJed in the Note, ..~r~ :hc principal of and intercst
on any Futurc Advances secured by this Mortgage.
2. F~dc tor Tua a~~i i~ica~e. Sabject to appiicable law or to a written waiver by I.cnder, Borrower shall pay
to l.ender on ~he day monthly installments of principal and interest are payable under the Nae, until thc Note is paid in full,
a:um (hercin "Funds") equal to one-tv?•elfth of the yearly taxes and acsessments which may attain pnority over this
Mortgage, a~d ground rents on the Property, if any, plus one-!wel(th of yearlx premium installments for hazard insu~ance,
plus one-twelfth of yearly premium installments [or murtgage insurance, if any, all as rras.~nably estim•rted initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
'il~e Funds shall be held in an instiWtion the deposits or accounts o( which are insured er g?~aranteed by a Federal or
state agency (including Lende~ if 1 ender is such an institution). I_ender shall apply th_ Funds to pay said taxes, assessments,
insurance premiums and ground rents. l.ender may not charge For so holding and applying the Funds, analyzing said account,
or vtrifying and compiling said assessments and bills, unless I_ender pa~s Borrower interest on the Funds and applicable law
Nc:~~~:is L~~~.;c: :s make such a charge. Borrower and l.ender may ~gree in writing at the time of execuuon of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless ~uch agreement is made or applicable law
requires such interest to ~ r~:~, !_~.^.a=~ shall not be required to pa)~ Burrawer any interest or earnings on ihe Funds. t.ender
sha:: gi~c 9^~eo±!~tr, without charge. an annual accounting of the Funds showing credi~s anJ debits to the F4nds and the
purpose (or which each debit ro the Funds was made. The Funds arc pleJged as additional security for the sunu secured
by this Mortgage.
lf the amount o[ the Funds held by Lender, together with ~he future monthly ins~allments of Funds payable prior to
the due dates of ~axes, assessments, insurance premiums and ground rents, shall exceed ~he amount reyuired to pay said taxes,
assessments, insurance premiums and ground rents as they (all due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Sorrower on monthly installments of Funds. If the amount o[ the Funds
held by Lender shall nut be suflicient to pay taxes, assessments, ~nsurance premiums anJ ground rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficienc~~ within 30 da~s (rom the date notice is mailed
by Lender to Borrower reyuesting payment thereof.
Upon payment in full of all sums secured by this Mortgage. I.ender shali promptly refund to Borro~~er any Funds
held by LenJer. If under Qaragraph 18 hereof the Property is sold or the Properry is otherwise acquircd by l.ender, Lender
shall apply, no later than immediately prior to the sale o( the Property or its acquisition by I_ender, any Funds held by ~
Lender at the time of application as a credit aga~nst the sums secured by this rtortgage.
3. Application of Payments. Unless appticable law provides ulhrrwise, all payments received by Lender unJer the
Note and paragraphs I and 2 hereof shall be applied by 1_cnder first ~n pa~•ment of amounts payable to Lender by Borro~er
under paragraph Z hereof, then to interest payable on the Note, then to the principal of the Notc, and then to interest and
principal on any Future Advances. -
4. Cbarges; Liens. Borrower shall pay all taxec, assessmcnts and ather charges. fines and impesitions attributable to
the Property which may att~in 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, ciireciiy io the
payce thereof. Borrower shall promptly furnish to LenJer all notices of amounts due under this paragraph, and in the event
Borrow•er shall make payment directly. 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 d~scharge 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 ~o Lender, or shall in gcx~d faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate _to prevent the enfurcement of the I~en or [orfeiture of the Propeny or any part thereof.
S. Hasard lnsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against Ic~ss by fire, hazards included withm the term "ettendeJ coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of
f such coverage excced that amount of coverage required to pay the sums secured by this Mortgage. '
'I~e insurance carrier providing the insurance shall be chosen by Borrower subject to appruval by Lender; provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
4 Nr~vided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
insurance carrier.
; All insurance policies and rer.ewals thereof shall be in form acceptable to Lender and shall include a standard morigage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
Borrower shall give prompt notice to the insurance carrier •rnd Lender. Lender may make proof of loss if not made promptly
by Borrower.
t Unless Lender and Borrower otherwise agree in w•riting, insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed 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 teasible or if the security of this Mortgage would
~ be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage. with the eacess, if any, paid
= to Borrower. If the Property is abandoned by Borrower, or if Borrower (ails to respond to Lender within 30 days from the
~ date notice is mailed b~• Lender to Borrower that ~he insurance carrier ofTers ro setde a claim for insurance benefits, Lender
~ is authorized to collect and appty the insurance proceeds at Lender's option either to restoration or repair of the Property
; or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in w~riting, 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 paragraph 18 hereof the Property is acyuired by I.ender, all right, title and interest of Borrower
in and to any insurance ~olicies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this !?tortgage immediately prior to such sale or
x acquisition. _
6. Prrservalion and Maintenance of Property; Leaseholds; Cundominioms; Planned Unit Developments. Borrower
shall keep 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. lf this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall per(orm all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or pianned unit development
rider is executed by Borrower and recorded rogether w~th this Mortgage, the covenants and agreements of such rider
sha31 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 Lender's Security. !f Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceCding is commenced which materially afiects Lender's interest in ihe Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
~ bankrupt or decedent, then Lender at Lender'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, d~sbursement of
reasonablt.attomey's fees and entry upon the Property to make repairs. If Lxnder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
_ insurance in eftect until such time as the requirement for such insurance terminates in accordance with Borrower s and
3JOK 415 P!~E 9~7
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