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<br /> �s-�101. 2 81 �
<br /> [Jxrnoxrs Covex,uv�[�s. Borrower and Lender covenant and agree as follows:
<br /> 1. Paymeat of Princlpd and InhresL Borsower shall promptly pey when due the p�incipal of and interest on the
<br /> indebteMeaa evidenced by the Note, prcpayment and Iate charges as provided in the Note, and the principal of and intercst
<br /> oa any Future Advances secund by this Mortgaga
<br /> { Z. Fands tor Tases and Imurance. Subject to applicabte Iaw or to a writtrn waiver by Lender, Borrower shall pay
<br /> I to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> � a sum (heroin "Funds'� equal to ono-twetfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus ono-twelhh of yearly premium installments for hazard insurance,
<br /> plus onatwelfth of yearly premium installmenta for mortgage inaurence, if any, ali as rcasonably estimated initially and itom
<br /> time to time by I.ender on the basis of assesements and bilis and reasonable atimates thereof.
<br /> The Funds ahall be held in an institution the deposits or accounts of which are insured or guarantced by a Federal or
<br /> state agency (including Lender if Lender is such a� ins[itution) . Lender shali apply the Funds to' pay said taxes, assessments,
<br /> iasurance pmmiums and ground rents. L.ender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessmenu and bills, unless Leuder pays Borrower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time of execution of this
<br /> Mortgage that interat on the Funds shall be paid to Borrower, and ualess such agreement is made or applicable law
<br /> itquires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give to Sorrower, without charge, an annual accounting of the Funds showing credits and debiu to the Funds and the
<br /> purpose for which eac6 debit to the Funds was made. 'i'he Funds are pledged as additional security for the sums secured
<br /> ' by this Mortgage.
<br /> � If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br /> ` i the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> asseuments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If t6e amount of the Funds
<br /> held by I.ender shall not be su�cient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br /> Bonower shall pay to L.ender any amount necessary to make up the deficiency within 30 days from the dare notice is mailed
<br /> - ; by Lender to Borrower requesting payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br /> held by Lender. If under paragcaph 18 hereof the Property is soid or the Property is otherwise acquired by Lender, Lender
<br /> s6a11 apply, no Iater than immediately prior to the saie of the Property or its acquisition by Lender, any Funds held by
<br /> , Lender at the time of applicaflon as a credit against the sums secured by this Mongage.
<br /> 3. Applieation of Paymenfs. Unless applicable law providu otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lend'er by Borrower
<br /> under paragraph 2 hereof, ihen to interest payabte on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> j 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a priority over this Mortgage, and leasehold 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 due, directly to the
<br /> , payce thereof. Bonower shall promptly furnish to Lender all notices of amouau due under this paragraph, and in the evrnt
<br /> � Borrower shall make payment direcdy, Bwrower shall prompNy furnish to Lender receipts evidencing such payments.
<br /> ! Bonower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> i ' required to discharge any such lien so long as Borrower shatl agree in writing to the payment of the obligation secured by
<br /> � such liea in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br /> , p legal proccedings which operate to prevent the enforcement of thc lien or forfeiture of the Property or any part thereof. ?
<br /> ' ' S. Hazard Insurance. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured `
<br /> ; agaiaat loss by Sre, ha7ards included within the term "extended coverage", and such other hazards as Lender may require
<br /> i and ia such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> ! such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. '
<br /> a The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br /> j that such approval shall not be unceasonably withheld. All premiums on insurance policiu shall be paid in the manner
<br /> � provided under puagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> = IDSl1�8IICC C8[ClEi. �
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard moRgage
<br /> ! clause in favor of and in form acceptable to I.endec Lender shall have the right to hold the policies and renewals thereof,
<br /> . � aad Horrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> � Borrower shal! give promp[ aotice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> j by Borrowu.
<br /> � Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br /> the Ptoperty damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> i not t6ereby impaind. If such restoration or repair is not economically feasible or if the securiry of this Mortgage would
<br /> fi be impaired, the inaurance proceeds shall be applied [o the sums secured by this Mortgage, with the excess, if any, paid
<br /> � to Borrower. If the Properry is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> �• date notice is mailed by Lender to Borrower that the insurance canier offeis to setde a claim for insurance benefits, Lender
<br /> jis authoriud to collect and appiy the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> , E or to the sums secured by this Mortgage.
<br /> ) Unless Lender and Borsower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> f or postpone the due date of the monthly installments referrod to in paragraphs I and 2 hereof or change the amoant of
<br /> i such installments. If under paragraph l8 fiereof the Property is acquired by Lender, all right, tiUe and interest of Borrower
<br /> 4 in and to any insurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to the sale
<br />€ � or acquisition shall pass to Lender to the extent of We sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br />�. � 6. Preservatlon and Malntenance of Property; Leaseholds; Condominiums; Plaaned Unit Developments. Borrowcr
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />, - ; and shall comply with tHe provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> i S condominium or a planned unit devetopment, Borrower shall perform all of Borrower s obligations under the declaration
<br />; q. or coveaants creatiag or goveming the condominium or planned uoit development, the by-Iaws and regulations of the
<br />� � condomiaium or planned unit development, and constituent documents. If a condominium or planned unit development ` -
<br /> rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
<br /> shal! be incorporated iato and shatl amend and supplement the covenants and agreements of this Mortgage as if the rider
<br /> ' we;e a part hereof. -
<br />� � 7. Protection o[ Lende�a Security. If Borrower fails ro perform the covenants and agreements contained in this �
<br /> 4 '� Mortgage, or if aay adion or proceeding is commenced which materially affecu Lender's interest in the Property. ,
<br />�,, � inctuding, but not:limited to, bminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br /> bsekrupt or decedent, then I.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br /> aums and take such aetion as ia nuusary to protect Lender s interest, including, but not limited to, disbursement of
<br />?., y seasonablr attomey's fee.v and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br /> ;:; coadifioa of making thd losn secured by tl�is Mortgage, Borrower shall pay the premiums reqaired to maintain such
<br />`''? inwraaee in eHect until such timr as the requinment for such insurance tecminates in accordance with Borrower's and
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