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<br /> LJrrmon*t Coverrwrrrs. Borrower and Lender covenant and agree ati follows:
<br /> 1. Yayinent of Princlgal ana, lnterest. Horrower shall prampdy pay when due the pridcipal of and interest on tht
<br /> �Adebfedneas evidenced by the Note, prepayment and lafe chargts as provided in the Note, and the priacipal uf and interest
<br /> on any Futurs Advances secured by this 1Mortgaga
<br /> 2. Funds fnr Taes anfl I�urpnce. 5ubject [o applicable law or to a written wgivt� hy Lendsr, Bocrowor shall pay I
<br /> to Ltader on tl�e day mortthly iostallments of prinripal' and interest ace payable ander the Note, until the Note is paid in Eu11,
<br /> ' I a sum (heroin `Funds'� equal to one-twelEth of thC yearly taxes and assesaments wfiich may atWin priority over this '
<br /> Ivtortgagt, and ground reots'un the Pmperty, if any, plua c�ne-tweTfth of yearly premium instalLnents for hazard insurance,
<br /> ptus one-twelffh of yearly premium iastallrnenta for mortgage insuranee, if any, ali as seasonably estimatcii iaitially and frqm
<br /> time to time by I.ender on rhe basis of assessmencs and bills and reasonable estimates thereof.
<br /> Tht Funds ahall be held in an institurion the deposits or actounts of which are insured or guaranteui by a Federal ov
<br /> " ; atate agency (,including Lcnder if I.ender is such a� iestitutiod) . Lender sh811 apply the Funds to pay said taxes, assessment�,
<br /> insuranx premiums aad gtpund aents. I.ender may not charge for so hol�ling and applying ehe Funds, analyzivg said account,
<br /> or verifying and compiling said assessmenu and bills, unless LendeY pays $orrower interesY un the Fundn and applieable law
<br /> permits Lender tq make such a charge. Eorrawer and L.endar may agree in wriYing at the time of execution of this
<br /> Mortgage that interest an the Funds shall he paid to Borrower, and unless sueh agreersient is madt or applicabls law
<br /> nquireS such inurest to be paid, Lender shall not be required ta pay Borrower any interest or earnings on the Punds. Lender
<br /> s6all givc ro Borrower, without charge, an annua( accpunting of the Funils sh�wing credits and de6its Yo the Funds and ahe
<br /> purpose for which each debit to the Funds was made. The Funds are ptedged as addYtionat security for Che sums secured
<br /> by this Mirrtgdge.
<br /> If the amaunt of the Funds held by 3,ender, t�gesh�er with Ehe Cuture monchly installmenu of Funds payable prior to
<br /> the due datas of taxes, assesyme�ts, insurance prem3ums and gmund re�ts, shatl exceed the amounc reyuiced to pay said ca�ces,
<br /> ; assesemer�ts, insucance premiwms and ground rents as theyy falt due, such excess shaU be, at B�rrower's optian, cither i
<br /> prompdy repaid [o Bar�rpwor pr credited to Barrower on monthly inseallments of Funds. IF the amount of Yhe Funds
<br /> held by Lendsr shal.l not be sufficiwt to pay taxes, assessments, insurance p.remiums and ground rents as they fall due,
<br /> Borrower sh'all pay to Lender any amonnt necusary to mnke up the deficiency within 30 days trom the date nc+tice is mailed
<br /> by I.tnder to Borrower reqaesiing payment rhqeeof.
<br /> ,
<br /> Clpon paymtnt in Eull of all syms secured by rhis Mortg-age, �ender shall promp[ly refund to Borcower any Fundi •
<br /> held by Lender. Yf under paragraph 18 hereof the Property is sold or the Property �Y otherwise ucqcwired by L.ender, Lendcr
<br /> s6a11 apply, no later Yhan immediately prior eo che sale of the Prope,rty or its acquisition by L.ender, any Funds held by
<br /> Lendet at tha time of apptieation as a crCdit against che sums saeured by this Mortgage. '
<br /> 3. AppiiaaBoq uf P�yments. Unless mpplicahle law pravides otherwise, all payments recoived by Lcnder under Ehe
<br /> Note and paragraphs 1 and 2 hereof s6a11 be applied by Lender first in payment of amounts payab'Ie to L�nder by Boccower
<br /> under paragraph 2 hereof, then to interest payable on Ehe Note, then ta thc principal oE che Note, and then to inurost and
<br /> priqcipal on any Future Advances.
<br /> 4. Cha�ges; Ydens. Borrawer shall pay a1F taxes, assessmenrs and other charges, fines and impositions attributable to
<br /> tlfe Property which may anlsin a prioriry ovet this Mqrtgage, and leasehold payments or gsaund rents, if any, in the manpec
<br /> ; pmYided' under paragraph 2 hereof or, if reot paid in such manner, bq Borrower making payment, when due, direetly to the r
<br /> ;; payee thereof. Bonower shalt pr,amptly turnish to Lender all notices of amounts due under this parrgraph, ;und in Yhe event
<br /> �, Borrowet shall make payment direclly, Sorrower shall promp8y fuenish ro Lendet teeeipts eviden�ing such peymsnu.
<br /> j Bonower shall gromptl3r discharga any lien which has priority over th�s Martgagei provided, chat Bocrower shall not be
<br /> `: required to discha[ge any such lien sa long as Horrower shall agre� in wricing ta ehe payment af the .obligation secumd by
<br /> such lian r`n a manner aeceptabte ro Lendec, or shall in good faith cuntest such lien by, or defend enforcemrnt o€ such lien in,
<br /> ` legal proceedings which operate to prevent the enforcement of the lien or forfeimre of the Property or any part thercof. :
<br /> ` 5. Haa�rd Luurance. Borrower shall keep the improvemenu now existing or hereafter erected on the Property insured
<br /> t' against losa by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br /> } and in such amounn and For such periods as Lender may require; provided, that Le�der shall not require that the amount of ?,'
<br /> , ?: such covvage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> ;- T6e inauranee carrier providing t6e insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> ` that such approval shall not be unreasonably withheld. All premiums on insurence policies shall be paid in the mamer
<br /> ;'� provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> f insurance carriet_
<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 Lender. Lender shall have the right to hold the policies and renewats thereof.
<br /> and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of ]oss,
<br /> ? Bocrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptty
<br /> `c; by Borrower.
<br /> ' €- Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Proparty damaged, provided such restoration or repair is economicatly feasibte and the security of this Mortgage is
<br /> - ? not thereby impaired. 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 Borrower. If the Property is abandoned by Borrower, or if Borrower fails ro rapond to L.ender within 30 days from the
<br /> ' F date nodce is mailed by Lender to Horrower that the insurance carrier oHeis to setUe a claim for insurance benefits, Lender
<br /> is suffiorized to collect and apply the insurance proceeds at Lender's option either to reswration or repair of t6e Property
<br /> : or to the sums secured by this Mortgage.
<br /> Unl�ss L,ender and Bonower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> < or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> ' � such instaIlments_ If under paragraph l8 bereof the Property is acquired by Lender, all right, tiUe and interest of Borrower
<br /> � in and to any insurance policin aad in and to ffie proceeds thereof resulting from damage to the Property prior to the sale
<br /> � or acquisition s6all pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or -
<br /> acquisition.
<br /> � 6. Praervation and Maintenance of Pro
<br /> perty; Leaseholds; Condomininms; Planned Unit Devdopments. Borrower
<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. lf this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration
<br /> or covenants creating ot govetning the condominium or planned unit development, the by-laws and regulations of the x
<br /> „ co�dominium or planned unit developmen4 and constituent documents. If a condominium or planned unit development
<br /> rider is execuud by Borrower and recorded together with this Mortgage, the covenanu and agreements of such rider , _ "`��� '�
<br /> ahall be im,wcporated into aad shall amend and supplement the covenants and agreements of this Mortgage as if the rider -
<br /> '. were a part-hereo£ � � � � , ' � � '��
<br /> �; 7. Protectlon of Lenderb Secnrlty. Zf Borrower fails to perform the covenants and agreements contained in this ; ,
<br /> ;,�� Mortgage, or lf any action or proceeding i�s commenced which mazerislly affects Lender's interest in the Property, I �: !
<br /> inc'luding, but not limited to, eminrnt domain, insolvency, code enforcemeni, or arrangemrnu or proceedings involving a ' a;
<br /> banlQupt or daedent,`then Lender at iender's option, upon notice to Borrower, may make such appearances, disburse such = ` r''
<br /> sums ,and take such acaon as is necessary to protect I.enders iaterest, induding, but not limited to, disbucsement of ' ' -h,;�,.s,�,
<br /> � � � .�reatoaable attoraey's �feea � aqd entry upon the � Property to make repairs. If I.ender required mortgage insurance as a � ��� �+^ � ,a�E �" �: :�
<br /> ' ' condition of malcin the loan xcured this Mon
<br /> , � - g . by gage, Botrower shall pay the premiums required to maintain such
<br /> iasurance in e6xt until such time as We reyuirement for such insurance terminates in accordance with Horrower's and
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