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UH~FOxrK CovEN~Nrs. Borrower and Lender covenant a~td agrre as foliows:
1. Paymcnt oE Pdncipal and Interest. Bcrrower shaU promptly pay when du~ the principal of and interest on the
indebtedness evidenced by the Note, prepayment a~d late charges as provided in the Note, and the principaf of and intercst '
on any Future Advances secured by this Mortgage.
2. F`unds tor Tues and Insurance. 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 full.
a sum (harein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
Mortgage, and ground rents on the Prnperty, if any, plus one-twelfth of ~~early premium installments for hazard ~nsurance,
plus one-twelf•h of yearly premium installments for mortgage i~surance, if any, all as reasonably utimated initially and from
time to time by Lender on the basis of assessments and bills and reasonable estimata thereof.
The Funds shall be held in an institulion the deposits or accounts of which are insured or guaranteed by a Federal or
state agency (including Lender if Lender is such an insti~ution). l.ender shall appfy 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 verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law ~
permits Lender to make such a charge. B.~rrower and Lender 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 any interest or earnings on the Funds. Lender ~
shal! give to Borrower, without charge, an ann~al a~counting of the Funds showing credits and debits to the Funds and the ~
p~rpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured ~
by this Mortgage. i
If the amount of. the Funds held by Lender, together µ•ith the future monthly installments of Funds payable prior to s
the due dates of taxes, assessments, insurar.ce premiums and ground rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they iall due, such e~cess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthiy installments of Funds. If the amount of the Funds
held by Lender shall not be suflici~nt to pay taxes, assessments, insurance premiums and ground rents as they fall due, i
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is maiied ~
by Lender t~ Borrower requesting payment thereof. ~
Upon payment in full of all sums secured by this Mortgage. t.ender shall promptly refund to Borrower any Funds ~
held by [.ender. If under paragraph 18 hereof the Property is sold or the Propcrty is otherwise acquired by Lender, Lender ~
shall apply, no later t~~an immediately prior to the sale of thc 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. Application of Payments. Unless applicable law• pro~•ides otherwise, all payments received by Lender under the ?
Note and paragraphs 1 and 2 hereof shall be applied by Lender fim in payment of amounts payable to Lender by Borrower ~
under pazagraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and ~
priocipal on any Future Advances.
4. Chary;es; Lieas. Borrower shall pay all ta~c~, assessmcnts and other chargcs, fines and impositions attributable to ~
the Property which may attain a priority over thic Morigage, and leasehold payments or ground rents, if any, in the manntr ~
provided under paragraph 2 hereof or, if n~t paid in such manner, by Borrower making payment, when due, direcdy to the ~
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event ~
Borrower shall make payment directly, Borrower shall promptl~• furnish to 1_ender receipts evidencing such payments. "
Borr~wer shall promptly discharge any lien which has priority rner tkis Mortgage; provided, that Borrower shall not be ~
required to discharge any such lien so long as Borrower shall agree in W rit~ng to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith conte~t such lien hy, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeitu:e of the Property or any part thereof.
S. I~azard Insurance. Borrower shall keep the improvements now existing or hereafter crected on the Property insured
against loss by fire, hazards included within the term "e~tended coverage". and such other hazards as Lender may require
and in such amounts and for such periods as Lender may require; pmvided, that Lender shall not require that the amount of
such coverage exceed that amount of co~~erage required to pay the sumc secured by 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 unreasonabl}' withheld. All prcmiumc on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if noi paid in such manner, by Bcrrower making payment, when due, directly to the -
; insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable tu LenJe~ and shall include a standard mortgage ~
clause in favor of and in form acceptable to Lender. Lender ,hall ha~e the right to hold the policies aod renewals thereof,
~ and Borrower shall promptiy furnish to Lender all renewal notices an~i all receipts of paid premiums. In the event of loss.
~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcx~f of loss if not made prompdy
by Borrower.
~ Unless Lender and Borrow•er otheruisc agree in writing, imurance pnxeeds shall be applied to restoration or repair of
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~ the Property damaged, provided such restoraht~n or cepa~r ~s economically feasible and the security of this Mortgao,e is
~ not thereby impaired_ If such restorat~on or repair is not economi~all}• fcasible or if the security of this Mortgage would ,
g be impaired, the insurance pr.~ceeds shall be applied to the sums secured by this Mortgage, with the exc~ss, if any, paid
s to Borrower. If the Propert~ is abandoned b}• Borrower. or ii Borrower fails to respond to Lender within 30 days from the
~ date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender
g is authorized to collect and apply the insurance proceeds at Len~er'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 writing. any such application of proceeds to principal shall not extered
~ or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
~ such installments. !f under paragraph l8 hereof the Property is acyuired b}~ Lender, all right, tide and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulUng from damage to ihe Property prior to the sale
~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
~ 6. Prcsenation and Maintenance of Property; Leaseholds; Condominiums; Planned Uait Deve{opments. Borrower
~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
artd shall comply with the provisions of any lease if this h4ortgage 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 covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
; condomininm or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded toge~her with this Mortgage, the coveaants and agreements of such rider
i shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a pact hereof.
~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects 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 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, disbunement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
~a condition of making the loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
i insurance in effect until s~ch time as the requirement for such insurance terminates in accordance with Borrower s and
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