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UH~FORM Cov~N.~NTS Aorruwer and L.tnJt~ io~enant •rnd :,~rce as faltows: i
1. rayment ot Priaci~f aad lalcrest. ti~~rruwer shali promptly pay when due tht pnoripal of and interes~ an the i
~ndeb~edntss ev~dertced by 1hc Note, prtpayment and bte charg~, a. proviJed in the Note, and thG principal ~f a!id ~nterest
on any Future Advancre secured by this Mort~age.
2. Fnads for Taxes ~aA lawrance. Subject to applicable law or to a written waiver by 1_ender, Borrower chalt pay
to l~nder on the day mon~hly installments o( principal and ~nteres~ arc payable undtr the Note, until the Notc is paid in full.
3 fUlll ;iurci~ ' Funcls~~j CqUi1t Io ont•lwe~ii~i ui ii~ ycaiiy ti+ci ii~~ a~.i~SS::.t.^.:S :t'!2 3t~aiR n~~prilV AVt~ 1~1iS
Mortgage, and ground rents on the Pro~xrty, if aay, pius onatwelt~h of yeuly prem~um ~nstaumen[s ior nuxru inaw.u~c,
plus one-twelfth of yearly pre~nium installmcn~~ tar ~nortgage insurance, i( any, all u reuonably estimatcd initially and from >
time tc+ time by Cender on the bacis of assusr.~ents and bilis and reasonable estimata thereaf.
The Funds shall bt held in an institution the depc~sits or accounts of which are insured or gvaranteed ry a Federal or <
state agency (including l.ende~ if l_ender is such an institutionl. I.ender shall apply the Funds to pay said taxes, auessments,
i~surance prcmiums and ground rents. l_er.der may not charge for so holding and appl~~ing the Funds, analyzing said a:count, '
or verifying and cornpifing said assessments and bills, untess Lender pays Borrower interest on the Funds and applicable iaw
permits l.tnder to make su:h a charge. Borrower and Lender may agree in writing at the time of exccution af this
Mortgage that interest on the Funds shall he paid to Horrower, and unless such agreement is made or applicable law
rcquires such interest to be paid. Lender shall not be required to pap Borrower aar interat or =arniags on the fiunds. I_ender
shalt give to Barrower, withoui chargt, an annuat accounting of thc Funds showing credil~ an~ debits to the Funds and the
purpose for which each dtbit to the Funds was made_ The Funds are pledged as additional security for the sums secured
by ihis Mortgag!~.
If the amount of the Funds held by Lender, together with che future mo~thty instaltments of Funds p:;. ~rior to t
the due dates of tax~s, assessments, insurance premiums artd ground reoti, shall exceed the amount reouired tc pay said taxa,
assessments, insurance premiums and ground r~~ts as they fall due, such excas shal! be, a•. Be~rower's option, either
promptly repaid to Borrowor or credited to Bor~ower on mo~thly installments af Funds. I~ the amount of the Funds
held by Lender shall not be ~ufficieat to pay taxes, assessments, insurance prcmiums and ground rents as they fafl due,
Borrower shal! pay to Lender any amount rtecessary to make up the doficiency within 30 clays from the date notice is mailed '
by L.ender to Borrower rcq~mting paymcnt thereof. ±
Upon payment in full of all sums secured by this Mor~gage, l.ender shall promptly refund to Borrower any Funds '
held by Ixnder. If under paragraph 18 hereof the Property it sotd or the Property is othenvisc acqwred by Lender. Lender
shall aQply, no later than imm~diately prior to iht :~le of the Property or i~s r.:quisition by L.ender, any Funds held by
Lender at the time of application as a credit aga~nst the sums secured by this Mortgage.
3. Applica;:on oE Paymeats. Unless applicable law provides otherwise, all payments received by [.ender under the .
N~tt ~ara~oranhc 1 and 2 hereof shall be aQpl~ed by 1_ender first in payment ot amounts payable to l.ender by Borrower
under paragraph 2 hercof. then to interest payable on the Note, then to the princ;pal of the Note, and ~hen to interest and -
principal on any Futur~ Advances.
a. Charges; Lk~. Borrower shal~ pay all ~a~es, ~ssessments and othe• chargec. fines and impvsitions aitributable to
the Property which may attain a priority over this i~iortgage, and leasehold paymcnts or g~ound rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrouer tmaking payment, when due, directly to the
payee theteof. Borrower shall promptly furnish to Lendcr all notices of amounts due under this ~aragraph, and in the event
Borrower shall make payment directly, Berrower shall promptly furnish to Lender receipts e~idencmg such paymenis.
Borrower shall promptly discharge any lien which has prionty over this Mortgage; provided, that Barrower shall not be ~
required to discharge any such lien so long as Borrower shall agree in arit?ng to !he payment of the obligation secured by
such litn in a manner acceptable to Len~er, or shall in good faith contett such lien by, or defend enforcement of such lien in,
Itgal proceedings which operate to prevent the enforcement of the l~en or forfeiture of the Property or any part thertof. ,
S. Huard Insurance. Borrower shall keep the improvements n~w eticting or hereafter erected on the Property insured
against ioss by fire, hazards included with~n the term "ettendeJ coverage". and such other- hazards as Lender may requirc
and in such amounts and for such periods as Lender may require: provided, that Lender shall nut require that the amount of
such coverage exceed that amount of coverage required to ~a}~ the sums secured by this Mortgage_
'Il~e insurance carrier providing the insurance shall E+e chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonab(y withheld. All premiums on insurance policiu shall be paid in the manner '
providtd uoder paragraph 2 htreof or, if nut paid in such manner, by Borrower making payment, when ~ue. ~'irtctly to the
insurance curier.
.+l11 insurance policies and renewals thereof shall be in foRr? acceptable to LenJer and shalt include a standard mortgage
ctause in favor of and in for~n acceptable [o Lender_ Lender shall ha~e the right to hold the poiicies and renew~als thereof.
and Borrower shal! promptly furnish 1u Lendee all renewal notices and all receipts of paid premiums. In the event of loss, •
Borrower shall give prompt notice to the insurance ca.?rier and t_en~er. Lender may~ make pranf of loss if not made promptly~
by Borro~rer.
Uniess Lender and Borrowcr otherwise agree in w riting, insurance pruceedi sha{~ be appl:~d to restnration or repair of
the Properiy damaged, provi~led such restoration or repair ~s economically feasible and the security of this Mortgage is
not ther=by impaired. If such restoradon or repair is not economically fea:,i~le or if the secur+ty of th~s Mortgage wouid
be impaired, the msurance proceeds shali be applied to the sums sec~red by this Mortgage, with the ~xcess, if any, paid
to Borrower. If the Praperty~ is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the ~
date notice is r~ailed by I.end~r to Borrower that the insurance carrier ofters to seule a cl3im for insu~ance bene~its, Lender ~
is author'sud to collect and apply the insurance proceeds at Lender's option either to restoralion or repair of the Property
or to the sums secured by this Mortgage.
Uniess Lender and aorrower otherwise agree en writing, an~ such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments refcrred to in paragraphs 1 and 2 hereof or change thc amount of
sucfi installments. If under paragraph 18 hereof the Property is acyuired b}~ Lender, all right, title and interest of Borrower
in and to any insurance policia and in and to the ~+raceeds thereo[ resulting from damage to the Prop~:rty prio: to the sale
or acquisiti~n shaN pass to l.ender to the oxteRt uI the sums secured bV this Mortgage immediatel~• prior to such sale or
acquisition.
6. PtlSln'9f~Oq and Maintenaace of Properi}: ~.eaxholds; Condominiums; Planned Unit Dtv~lopments. Sorrow•er
shall ktep the Property in good repair and shall not commit wast;, or permit irr~pairmen[ or deterioratiort of the Propcrty
and shatl compiy with the provisions of any leax if this Mortgage es on a leasehold. If this Mortgage es on a unit in a
condominium or a~lanned unit development. Borrower .hali perform al! of Borrower's obligations under Ihe declaration
or covenants creating or go~ermng the condom~nium or planned unit develnpment, the by-law~s and regulationc of the
condomin~um ar planned unit devetopment, and constituent documen~.. {f a condominium or planned ~mit de~~elapment
rider ~s executed by 6orrow~er ar,d recordcd together ~.~th th~c I~far.gage, che cavenants and agreements c~! such nder
shall bt incorporated i~~to and shall amend and supptement thr co~enants and agreements of this Mor!gage as if the rider
were a part hercof.
7. Protectioa of [.ender's Security. If Borrower fails to perform the co•renants and agrcements contained in this
Mortgage, or ir.any action or proceeding is commenceJ Khich materiaUy aRects Lender's interest in ~he Proprc~y,
includ+ng, but not limited to, eminent domain, insolvency. code enforcement, nr arrangements or proceedings invohing a
bankrupt or decedent, then Lender at Lender's option, upo~~ notice to Borr~wer, ma}' make such appearancei, disburse such
sums and take such action as is necessary to protect Lender's interest, ~nc'.uding. but not limited ro, disbursement of
reawnablc attomey's fees and entry up~n the Prapeny ta make repai;s. I( Lender required mortgage i~suranec as a
condition of making the loan secured by this Mongage. Bnrrower shail pay the prcmiums required to maintain such
insu~ance in effect until such time as ~he requiremeit for such insurance tecminates in accordance with Borrower's and
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