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<br /> 77- UoG ~ 51
<br /> Uwirortnt CoveNeHrs. Borrower and Lendcr covenant und agree as follows:
<br /> 1. Payment of Princlpel and Interest. Borrowcr shall promptly pny when duc thc principal of and interest on the
<br /> indebtedness cvidenccd by the Note, prepayment and late chargcs as proviJed in the Note, and thc principal of and intercst
<br /> I on any Futurc Advances secured by this Mortgage.
<br /> 2. Funds tor Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to Lender on the day monthly installments of principal and interest are payablc under the Note, until the Note is paid in fuil.
<br /> a aum (herein "Funds") equal to one-twclflh of the ycarly taxes end assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus one-twclfth ot yeady premium installments for hazard insurance,
<br /> , plus one•twelfth of yearly prcmium installments [or mortgnge insurancc, if any, all as rcasonably estimated initinlly and from
<br /> time to time by Lender on the basis of nssessments and bills and reasonable estimates thereof.
<br /> ' The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal ar
<br /> state ngency (including Lender if Lcndcr is such an instilution) . l.endcr shall apply the Funds t8 pay iaid taxes, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower intcrat on the Funds and applicable law
<br /> pemtits Lendcr to make such a charge. Borrower and Lcnder may agree in writing at Ihc time of execution of this
<br /> Mortgage that interest on the Funds shall be paid to Borrowcr, and unlcss such agreemcnt is madc or applicable law
<br /> requira such interest to be paid, Lender shall not be requircd to pay Borrower any interest or eamings on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debils to the Funds and the
<br /> purpose for which each debit to the Funds was madc. "Ihe Funds arc plcdged as additional security for the sums securcd
<br /> by this Mortgagc.
<br /> If the amount of the Funds held by Lender, together with thc futurc monthly installments of Funds payablc prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said laxes,
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shail be, at Borrower s option, either
<br /> prompQy repaid ta Borrower or credited to Borrowcr on monthly installments of Funds. If thc amount ot thc Funds
<br /> ' held by Lender shall not be sufi'icient to pny taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Borcower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dutc noticc is mailed
<br /> by Lender to Borrower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, l.cndcr shall prompily rcfund to Borrower any Funds
<br /> held by Lender. If under paragraph 18 hcrcof the Property is sold or the Property is otherwisc acquired by Lcndeq Lcndcr
<br /> shall apply, no later than immediately prior ro thc sale of ihe Property or its acquisition by Lcnder, any Funds held by
<br /> Lender at the time of application as a credit agairst the sums secured by this Atortgage.
<br /> 3. Appllcatlon of Payments. Unless applicablc law provides othcrwisc, all paymcnts received by Lcnder undcr the
<br /> Note and paragraphs 1 and 2 hercof shall be applicd by Lendcr first in payment o( amounls payable to Lcnder by Borrowcr
<br /> undcr paragraph 2 hereof, then ro interest payablc on thc Nolc, thcn to thc principal of the Note, and then to interest and
<br /> principal on any Futurc Advances.
<br /> 4. Charges; I.iens. Horrower shall pay all taxes, asscssments and othcr charges, fines anJ impositions attribu�able to
<br /> ; lhe Property which may attain a prioriry over this Tlortgage, and Ieasehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when duc, direcdy to the
<br /> payee thcreof. Borrowcr shall prompdy furnish to LenJcr all notices o( amounts duc undcr this paragraph, and in the event
<br /> Borrower shall make paymcnt direcUy, 8orrox�er shall promptly fumish to Lendcr receipts evidencing such payments.
<br /> Borrower shall prompdy diuharge any li^n w•hich has priority over this Morigagr, provideJ, that Borrower shall not be
<br /> ' rcquired to discharge any such lien so long as Borrower shail agree in writing to thc payment of thc obligation secured by
<br /> such lien in a manner ucceptable ro Lender, or shall in good faith contest such licn by, or defend enforcement of such lien in,
<br /> legal proccedings which operatc to prevent thc enforccmcnt of thc licn or forfeiture of Ihc Property or any part thercof.
<br /> 5. Hazard Insurnnce. Borrower shail kcep the improvements now existing or herca(tcr crceted on the Property insured
<br /> against loss by firc, hazards included wi�hin the term "extended coverage", and such other hazards as Lender may require
<br /> and in such amounts and (or such periods as Lcnder may require; provided, that Lcnder shall not rcquirc that thc amount of
<br /> such coverage exceed that amounl of coverage required to pay the sums secured by this Mortgage.
<br /> The insurance catrier providing the insurance shall be chosen by IIorrower subject ro approval by LenJer; provided,
<br /> that such approval shall not be unreazonably withheld. All premi�ms on insurance policics shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by dorrower making payment, when duc, direcUy to the
<br /> insurance carrier.
<br /> All insurance policies and renewals therco( shall bc in forni acccptablc to Lendcr and shall indude a .tandard mortgase
<br /> clause in favor of and in farm acceptable to Lender. Lender shall have thc right to hold the policics and renewals thereof,
<br /> and Borrower shall promplly turnish to l.ender all renewal notices and all receipts o[ paid premiums. In the event of loss,
<br /> Borrower shall give prampt notice ro the insurance carrier anJ Lendec Lender may maAe proot of loss if not made prompdy
<br /> � by Barrowcr.
<br /> ' Unless Lcnder and Borrower othetwisc agrcc in wriling, insurancc procceds shall bc applicd to restoration or repair o(
<br /> ! the Property damaged, provided such testoration or repair is ewnomically fcasible and the securiry of this Alortgage is
<br /> i not thereby impaired. I[ such restoration or repair is not economically teasible or i( the security of this Alortgage would
<br /> bc impaircd, the insurance procceds shall bc applicd to thc sums secured by Ihis hfortgage, with thc ezccss, if any, paid
<br /> to Borrower. If thc Property is abandoned by Dorrowcr, or it Borrowcr (ails to respond to Lcndcr within 30 days from thc
<br /> date notice is mailcd by Lender to Dorrower that the insurancc carrier otfers to settle a claim for iusurancc benefits, L.ender
<br /> is authoriud to collect and apply the insurance proceeds at Lender's option either to restoretion or repair o[ the Propect)'
<br /> or ro thc sums sccured by this Mortgagc. •
<br /> Unless Lender and Borrower otherwise agrec in writing, any such applicalion of proceeJs ro principal shall not extend
<br /> ' or postpone the duc datc of the monthly installmcnts rc(erred to in paragraphs I and 2 hercof or change Ihc amount of
<br /> such installments. I[ under paragraph 18 hereof the Property is acyuircd by Lender, all right, litle and interest ot Dorrower
<br /> in and lo any insurance policies and in and to the proceeds thereof resulting from damage to the Yroperty prior to the sale
<br /> or acquisition shall pass to Lender to the extent ot the sums secured by this Atortgage immediately prior to such sale or
<br /> � acquisition.
<br /> 6. Pcesen•atlon and Dtalntenunce ot Property; Lcascholds; Condom(nioms; Planned Unit Derclopmenls. Oorrower
<br /> shall keep the Property in good repair and shall not commit wastc or permit impairmcnt or detcrioration of the Property
<br /> and shall comply with thc provisions o[ any leasc if this Mortgagc is on a Icaschold. I[ this Mortgagc is on a unit in a
<br /> condominium or a pinnncd unit dcvclopment, Borrower shall perform all of Borrower's obligations under the declaration
<br /> or covcnants creating or governing the condominium or planncd unit development, the by-laws and rcgulations of thc
<br /> condominium or planned unit development, and constiuient documents. It a condominium or planned unit de�•clopment �
<br /> rider is exewted by Borrower and recorded together with this Morigage, the covenants and agreements of such rider „�i - , .`
<br /> shall be incorporated inro and shall amcnd and supplcmcnt thc covenants and agrcemcnts of this Mortgagc as i( thc ridcr . ;- ,� :,
<br /> � ' were a part hcreof. ( � ;
<br /> 7. Proteclion ot I.ender's Secudty. I( Borroa•cr fails to perform the covenanls and agrecments containcd in this
<br /> L Mortgage, or if any action or proceeding is commenced which materially aRects Lender's interest in the Property, p.
<br /> including, but not limited to, cmincnt domain, insolvcncy, codc cnforecment, or arrangemcnts or procecdings involving a n ;
<br /> bankrupt or decedent, then Lender at Lender's oplion, upon notice to Dorrower, may make such appcarances, disburse such �
<br /> sums and lake such action as ie nccessary to protect Lcnder's imcrest, including, but not limited to, disburscment u[
<br /> rcasonable attomcy's tccs and entry upon Ihe Property to makc repairs. It Lendcr required mortgagc insurancc as a ,
<br /> condition of making the loan secured by this Mortgage, Borrower shall pay Ihe premiums requircd to maintain such �
<br /> insurance in effect until such time as the rcquirement for such insurance terminates in acwrdunce with Barrowers and
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