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<br /> Uxu+onM CoveN�xrs. Borrower and I.ender covenant and agree as follows :
<br /> 1. Payment ot Principal and Interat. Borrower shall promptly pay when due the principal of and interest on the ,
<br /> iadebtedneas evidenced by the No[e, prepayment and late charges as provided in the Note, and the principal of and interest i-
<br /> on any Futurc Advances secured by this Mortgage.
<br /> 2. Fands [or Ta=es and Imurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay �
<br /> � to I.ender on the day monthly iastallments of principai and interest are payable under the Note, until the Note is paid in fuil, !:�
<br /> a sum (6erein "Funda'y equal to one-twelfth of the yearly taxes and assessments which may attain prioriry over this
<br /> t, Mortgage, and ground rents on the Properry. if any, plus ono-twelfth of yearly pmmium installmenb for hazard insurance> ��
<br /> 1; pins one-twelfth of yearly premium installr.�enls for mortgage insurance, if any, ali as reasonably estimated initially and from �.,
<br /> � time to tirne by Lender on tt�e basis of assessments and bills and reasonable estimates thereof. f; '
<br /> ; � The Funds ahall be held in an instimtion [he deposits or accouats of which are insurod or guaranteed by a Federal or
<br /> `' � atate agency (including I.ender if I.ender is such an instimtion) . Lender shall apply the Funds to pay said taxes, assessmenu, t
<br /> � insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds; analyzing said account, F
<br /> : or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law i
<br /> ; O prsmits L,ender to make such a charge. Borrower and Lender may agree in writing at the dme of execution of this `.
<br /> + O Mortgage that interest on the Funds shall be paid to Bonower, and unless such agreement is made or applicable law t„
<br /> i p nquires such interest to be paid, Lender shall not be required 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 debits to the Funds and the ��
<br /> ^ purpose for which each debit to the Funds was made. 'Il�e Funds are pledged as additional security for �he sums secured �
<br /> by Wis Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to �..
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed [be amount required to pay said taxes, '
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either � '
<br /> i prompfly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds �'"
<br /> { held by L.ender shall not be sufficient to pay taxes, assessments, insurancc premiums and graund rents as they fall due, f `
<br /> Bonower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed i >
<br /> t' by Lender to Borrower requesting' payment thereof. '
<br /> Upon payment in fult of all sums secured by this Mortgage, Lender shall promptly refund to Borrower aay Funda �
<br /> s held by Lender. If under paragrap6 18 hereof the Property is sold or the Properry is otherwise acquired by Lmder, Lender �.
<br /> 1 shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, aoy Funds held by �
<br /> ` Lender at the time of applicaflon as a credit against the sums secured by this Mongage. �
<br /> � 3. Appl�cation of Paymenis. Unless applicable law provides otherwise, all payments received by Lender under the f
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> � under paragraph 2 hereof, t6en to interest payable on the No�e, then to the principal of the Note, and then to interut and
<br /> principal on any Future Advances. ;
<br /> 4. Charges; Lieos. Borrower shall pay all taxes, assessmenu and other char�es, fines and impositions attributable to ;:
<br /> the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground renu, if any, in the manner
<br /> provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, direcdy to the }
<br /> payee thereof. Borrower shall promptly fumish to Lender all nodces of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shalt prompNy furnish to Lender receipts evidencing such payments_ �'
<br /> Borrower shall prompUy dischazge any lien which haz priority over this Mortgage: provided, that Borrower shall not be �
<br /> rcquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secund by
<br /> such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, �
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part theroof. �;
<br /> 5. Hazard Insurance. Horrower shall keep the improvements now existing or hereafter erected on the Property insured °p'
<br /> against loss by Sre, hazards induded within the term "extended coverage", and such other hazards as Lender may require t
<br /> and in such amounu 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 /> 'I'he insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, �
<br /> that such approval shall not be unreasonably withheld. All premiums on insurance policia shall be paid in the manner ! -'
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the i
<br /> insurance carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> clause in favor of and in form acceptable to L.ender. Lender shall have the right to hotd the policies and renewals thereof,
<br /> and Borrower shall promptly furnish to Lender aI1 renewal notices and all receipts of paid premiums. In the event of loss.
<br /> Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> � by Borrower.
<br /> Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of '
<br /> the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage is
<br /> � not thereby unpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> � to Horrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the ;
<br /> date notice is mailed by I,eader to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> g or to the sums secured by this Mortgaga
<br /> Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not cxtend
<br /> � or postpone t6e due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> such installments. If under paragraph 18 hereof t6e Property is acquired by Lender, all right, tide and interat of Borrower
<br /> � in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
<br /> or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> � acquisition.
<br /> 6. Prqervallon and Maintenance of Property; Leaseholds; Condomintums; Ylanned Unit Developments. Borrower
<br /> shall kcep the Property in goad repair and shall not commit waste or permit impairment or deterioration of t6e Property
<br /> � and shall wmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a imit in a
<br /> condotninium or a planned uni[ development, Borrower shall perform all of Borrowei s obligations under the declaration
<br /> or mveaants croating or governing the condominium or planned unit development, the by-laws and cegulations of the
<br /> j condominium or planned unit developmenG and constiment documents. If a condominium or planned unit devetopment
<br /> f rider i; executed by Bonower and morded together with this Mortgage, the covenants and agreements of such rider y
<br /> ishall be iacotporated into and s6a11 amend and supptement the covenants and agreements of this Mortgage as if the rider
<br /> � were a part hereof. ,� _.
<br /> � 7. _ Protectlon of, Lende�a Security. If Borrower fails to perform the covenants and agreements contained in this `
<br /> � ' Mortgage, or if any action ot proceeding is commenced which materially affects Lender's interest in the Property, � >� a�
<br /> � inetuding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a � , „ ,
<br /> bsnhvpror daedent, then'`I.ender at Lendu's option, upon notice to Borrower, may make such appearances, disburse such ; ,„ ,>
<br /> ` 'sums and take such action as is necessary to protect Lender's inrerest, inctuding, but not limited to, disbursement of
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<br /> reasonable atWmay's fecs and entry upon the Property to make repairs. If L.ender required mortgage insurance as a , � , ;
<br /> ' � ' conditioa of making tbe lo�n sec�d by this Mortgage. Bortower shall pay the premiums required to maintain such + `, ;M�;�
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<br /> • i iawraoee in eft'ect unU7 such time at the requirement for such iasurance terminates in accordance with Boreower s and ...
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