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UNIFORh! COVENANT~. BOffOWCf :ind 1.Cp~Cf COVCil~lfll and agrec as folirnvs: ~
1. Pa ment of Princi al and Interest. f3orroH~er shall rom ti ~~a when ~lue the ~rinci il of and interest an the
Y P P P y F Y 1 P~ ~
indebtedness evidenced by thc Notc, prepaymcnt and late chargcs as pro~•ided in thc Note, and the principal of .~nd intcrest ~
on any Future Advances secured by this titortgage. +
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, l3orro~ti~er shall pay j
to I.ender on the day monthly installments of principal and interest arc payable under the Nc~te, until thr Note is paid in fuli, ~
a sum (hercin "Fun~Js") equal to one-t~ti~elfth ot the }~early~ taxes and assessments ~vhich may attain priority ovcr this `
Mortgage, and ground rents on ihe Praperty, if any, pius one-tweifth of ~•carly premium installments fur hazard insur.+ncr., ~
plus one-hvelfth of ycarly premium installments for martgage insurancc, if any, all as reasonably estim.?te~f initiall~~ and from ~
time to time hy 1_etidcr on thc basis of assessmcnts and bills and reasonable cstimates thcreof.
The Funds shall be helcl in an institution the deposits or accounts o[ which are insured or guarantee~t bp a Federal or I
state ~gency (inch~ding Lender if l.en~er is such an instilution). Lender shall apply the E'unds to pa}~ said taxes, , ssessments, s
insur~~nce premiums ~nd ground rents. I_endcr ma}~ not charge for sa holding an~ applying the Funds, analyzing said account, ;
or verifying anci compiiing said assessments and bills, unless Lender pa~~s D<~rrower interest on the Fun~ls and ap(~licahle law ;
permits Lender to make such a charge. Borrower and I.ender may agree in ~~~riting at the time of execution of Ihi~ i
~tortgage that interest un the Funds shall be paid to I3orrower, and unle~s such agreement is m:?de ar a~plicahle law• i
requires such interest to bc paid, l.ender shall not he reqiiired to pay Horruwer am~ intcrest or carnings on thc Funds. Lcn~cr
shall givc to Borro~~~er, without chargc, an annual accrnmting oF th~ Ftmds sho~~~in~; credits and dchits to thc Funds and Ihc ;
purposc for ~vhich each debit to the I~unds ~~~as made. The ~linds are plCdge~ :~s a~idition:~! securit~~ for the sums sect~red '
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by this ~4ortgage. }
_ If the amount of U~e Funds held b}~ I.cn~ier, together ~+ith the tutur~ monthl}~ in~t~illments c~f Funds papablc prior to i
lhe Jue dates of tares, assessments, insurance premiums and ground rents, shall e~cee~l the amount re~~uired to p:?)' said taxes,
assessments, insurance premiums and ground rents as they (all ~lue, such rxcess shall be, at B~~rro~ti•er's opti~n, either
promptlp repaid to Borro~ver or crcdited tu I3orro~~~er on monthly installmerits of Funds. If the amoisnt of the I~unds
held by Lendcr shall not bc suflicient to pay taxes, assessmenls, insurancc premiums an~l ground renis as thcy f.ill d~ic,
Borrower shall pay to Lender anp amount necessar~• to make up thc defirieiic}~ ~aithin 30 ~ii~~~s from Ihe date nntice is mailed
, by Lender to Borra~aer requesting papment thereof. ;
Upon payrnent iii full of all sums secured h~~ this ~fortg:i~;r, l.ender shall E:romptly~ refun~i to Borro~~•er c~ny Funds ;
held hy I.cndcr. Ii ueder paragraph If; hcreoi the Propcrl)~ is sold or thr Pro~~crt~• is othcr~ti•itc :tcquired t,~~ l.ender, I.en~lcr
shall apply, no later ihan immcdiatcl}• prior ro the ~al~ of the Prupcrty or its acyuisition h)~ I.ender, an}• Funds helii by
Lender at thc timc of application as a crc~lit against thr sum, sccure~i b~~ this ?~tortgagc.
3. Application of Payments. Unle~t ap~~Gcahle la~s pro~i~ics uthenti•ise, all payment~ rercived b}~ t_en:ler un~ier the
Note and paragraphs 1 and 2 hereof sh:~ll be applird h~~ Lendcr first in pa~•ment ~f amounts payahle to I.cn~ter h~~ I3orro~~~er
undcr paragraph 2 hcrcof, then to intrrest payablc on thc :votc. thcn ti~ thc princip:~l of thc N~tc, ancl thcn t~~ intcrest an~l
principal on any Futurc Advanccs.
4. Charges; Liens. f3orro~~~er sh.ill pay all t.~xcs, atisessmcnts and ~~thrr chargcs, fincs and impo4itions attributahle to .
the Propert~• which may attain a priority over this ~tortgage, and Icasefiold payments or ground rents, if anp, in the manner
provided under paragraph 2 hereof or. if not paid in such manner, b~• F3iurow~er makin~ payment, ~~~hen due, ~lirectly to the
_ payee thereof. Borrower shall promptl}' furnish to Len~i~r all noticcs of amounts duc under this parabraph, and in the c~~ent
Borro~ver shall make pa}'ment directly, Borro~~~rr shull promptly tur~~ish tc. 1_ender receipts e~~idencing such payments.
Borrower shall promptly discnarge any lien ~~hich has pri~rit}~ o~er this \tortgage; pro~~i.ied, that 13orrowcr sh.~ll not bc
required to discharge any such lien so long .~s (3nrro~ti~er shall agrce in ~~riting t~~ lhe pa}~ment of the ~~bligation secured by
: such lien in a manner acceptable to Lender, or ~hall in good (ai~h contetit surh licn hy, or ~iefend enforccment of such lien in,
legal proceedings ~~hich operate to prevent the enf~~rcement of thc I~en or fortcit~rre of the Pro}~ert~~ or any part thereof.
- 5. Hazard Insurance. Borrower shall keep the unprc~~~ement. no~; e~i~ting ~~r hercafter crected on the Property insured
against loss hy fire, hazards included ~+~ithin the term "c~ten~c~t c~~verage", anJ such other hazards as 1_ender may require
and in such amounts and for such perio~is as I.ender m.?~ r~yuire; ~~ruvided, that 1_en~3er Shall not reyuirc that the amount of
such coverage exceed that amount of co~~erag~ rcq~iired to pa~~ the sum~ ~ecured h}• this 1lortgage.
The insurance carrier providing the insurance shall be ch~se~ti by 13orro~ver subjeet to approval by Ler.der, provided,
that such approval shall not bc unreasonahly withhcld. Ali ~~rcnuumc on insurancc policics shail bc paid in thc manncr
provided under paragraph 2 hereof or, if not paid in such mann~r, by E3orro~ti•er making payment, when due, directly to thc
insurance carrier.
All insurance policiei an~1 renea•als thereuf shall he in form ;,rcrpt:,blr tu Len~ler and shall include a stand:~rd mortgage
clause in favor of and in f~rm acccptahle tu Ixnder. t.cnder ~hall ha~e thc ribht t~~ hold thc policies a~id rene~?-als thereof,
and Bot~ower shali promptl~• furnish ta l.enclc~ all rrnewa! notirc~ .~n~f all re~eipts of paid pmmium~. In the c~~cnt of loss,
Borrower shall give prompt nrnicc w the insurance ~arrier anel Lrn~lcr. I_en~lrr ma) make proot of Iess if not made pmmptl}'
by Borrower.
Unless Lender and Borrow~er ether~tiise a~rec in •~~riting, in.urance pr~~~cc~1ti shall he applied ta restoration or repair of
the Properly ~lamaged, provi~led such re~torat~un or r~pair f, ~conrmic:tll) (c.~~ibl~ .~nc~ the scrurity~ of this Atortg~ige is -
not thereby in~paired. If su~h restor:,ti<~n or repair is n~~[ rc~~numir:~ll~' f~asihle ur if the securit}• of this `tortg.+ge ~ti'ould
be impaired, the insurance procee~ls shall be .i~~IICiI [O the sums sccure~l by this ~1~~rtg:ige. ~ti~ith the cxeess, if an}~, paid
to Borrower. If the Propert}~ is ahandoned h~: f;c~rro~ti•er, ~~r it Borm«~er f.iik t~~ respond te~ Lender within 30 da~~s from the
date notice i~ mailed b}• Lender to Burro~+~er that the iustuance carricr otier~ t~ ~ettle cl.~im fur insurance benefits, I.ender
is autharized to colleet and appl}~ the insurance prc~cee~a at l.en~i~r's optiun eithcr tc~ r~:storation ur repair of thc Property .
~ or to the sums secured by this \fortgage. :
t Unless I.ender and Borro~ti~er othcr«ise abrec in «ritin~, an}~ such a!»lic:~tion t~f pruc~eds to principal shall not e~tend ~
or postpone the due date of thc m~mlhl~~ installmcnts rcfcrred i~~ in paragr:~ph, 1:uxl ? hcreuf ~~r ~han~c the amount of ~
Such installments. If under parabraph 12~ hcreof thc Property iti :~cyuir~~i h~ Lrncler, a1~ right, rtlc an~ interest of {3ormwer ~
in and to_any insurance policies and in and ~o the ~roceceJs thercof te~ul~,ng fmm ~ian :~~c to ~he Prup~rty pricir to the sa~e
or acquisition shall pass to Lender to ihe estent of the sum~ ~ccured b, thi; tit~+rtea, . imm~~iiatcly~ prior to ruch sale or
acquisition.
6. Presen•ation and ~faintenance of Property; Lcascholds, Condominium.: 1'lanned Unit Dc~clopmcnts. BorroN•er
stsall keep the Property in good repair and shall not commit ~~~astc c~r pcr,n~t ;}i; mcnt or deterioration of the Property _
and shall compl~~ with the provisions of any leasc if this ~fortgaec i~ c~i~ I~a ~h ~Id. If thi, ~i~~rtgagc is un a unit in a
condominium or a planned unit development. Borrow~cr sh.+ll pcrform :~If c~t Ran~~~~er's obligations imder thc cleclaration
or covenants creating or governinb the a~ndorninium or plann~d nn~ devetnpment, the by-la~+~s and regulations of the '
~ condominium or planned unit development, and constituent d~~cum~,~i~. lf a.-~~n~lominium or ~lanned unit de~•elo~ment -
~ rider is exec~ated b}• Borrower and recordcd together with !hi~ \1~~rtgage, thc covenants and agrecmcnts u~ surh rider
' shall be incorporated into and shall amend and su~plement the co~enants and agreements of th~s I~tor~gas;e as if the rider
~ «ere a patt hereof. j
7. Yrotecfion of Lenders Security. If Borro~+cr i.~ils t~ ~crl~~rm the rovenants an~i agrcemenls c~~ntained in this ~
- 111ortgage, or if any action or proceeding is commence~l ~tihich materially' afTects Leniler's in,crest in the Pmpert)', ~
including, but not limited to, eminent dom:~in, insolvenc}, ccdc en(e~rcement, or arrangements ~r proceedings im•ol~~ing a i
_ bankrupt or decedent, then Lender at Lender's option, upen n.~tice t~i f3orrower, ma~~ make such appcarances, dishurse such =
sums and take such action as is necessary t~~ pre~tect I.ender's intrrest, including, but not limited to, disbursement of '
. reasonable attorney's fees and entry upon the Property to makc rcpairs. If l.cndrr reyuire~l mortgage insu~ance as a F
~ condtion of m~king the lozn secureel by this Mortgage, f3i~rro«~r sh:+ll ~~a~~ the premiums require~l to maintain such
insurance in e(iect until such time as thc reyuirement for such insurance ~erm~nates in accordance with Borro«~er's and
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