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<br /> Urrrnoxnt Coverrerrrs. Borrower and Lender covenant and agree as fotlows:
<br /> 1. Payment of Prlocipat and Iaterest Borrower shall promptiy pay when due the principal of and interest on the
<br /> ' indebtedness evidenced by the Note, prepaymrnt and late charges as provided in the Note, and the principal of and interest
<br /> roa any Futurc Advance9 sec;urecl by this Mongage.
<br /> 1 ; 2. Fands Eor T�es aod Inaunnce. Subject to applicable law or to a writren waiver by Lender, Borrower shall pay
<br /> � to I.ender on tl�e day monthly installments of principal and interest are payable under the Note, unti! the Note is paid in full,
<br /> a sum (herein "Funda'� eqnal to one-twelfth of the yeady taxes and assessments which may attain priority over this
<br /> � Mortgage, and graund reats on the Pmperty, if any, plus one-twelfth of yearly premium installments for hazard insu:ance,
<br /> C7 plus ono-twclfth of yearly premium installments for mortgage insurance, if any, ali as reasonably estimated initially and from
<br /> T- dme to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> ('tj The Funds shall be held in an instiwtion the deposits or accounts of which are insured or guaranteed by a Federat or
<br /> ' � state agency (induding Lender if Lender is such an institution ) . Lender shali apply the Fands to pay said taxes, assessments,
<br /> � d iasurance premiums and ground rents. Lender may not charge for so holding and apptyir.g the Funds, analyzing said account,
<br /> ` � or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on ffie Funds and applicable law
<br /> permits L.ender to make sueh a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> r Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> � nquires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> � shal] give Lo Borrower, withoa[ charge, aa annuat accounting of the Funds showing credits and debits ro the Funds and the
<br /> ; purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br /> � by this Mortgage.
<br /> . i If the amount of the Funds held by Lender, together with the fuwre monthly installments of Funds payable prior to
<br /> � the due dates of taxes, assessmen�s, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> aasessments, 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 the amount of the Funds
<br /> held by Lender shall not be suf&cient to pay taxes, assessmen[s, insurance premiums and ground rents as they fall due.
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date 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 prompUy refund to Borrower any Funds
<br /> held by Lender. If under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br /> ! shall apply, no later than immediatety prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Leader at the time of application as a credit against the sums secured by this Mongage. '
<br /> ; 3. Apptication of Payments. Unless applicable law provides otherwisc, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounu payable to Lender by Bor.ower
<br /> under paragraph 2 hercof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> ' § principal on any Future Advances.
<br /> ` 4 4. Chaiges; Liens, Borrower shall pay alI 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 /> 1 provided under paragraph 2 hereof or, if not paid in such manner, by Horrower making payment, when due, directly to t6e
<br /> 3 _ payee thereof. Borrower s6a1t promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> < Borrower shall make payment direcily, Borzowcr shatl promptly furnish to Lender receipts evidencing such payments.
<br /> ; Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be "
<br /> ' �� required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured 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 /> ` j legal proceedings which operate to prevent the enforcement of thc lien or forfeiture of the Property or any part thereof. E
<br /> � 5• Hazard Insuwnce. Borrower shnll keep the imp�ovements now existing or hereafter erected on the Property insured
<br /> � agains[ loss by fire, hazards induded within the term "eztended coverage", and such other hazards as Lender may require
<br /> � and in 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 /> The insurance carrier providing the iasurance shall be chosen by Borrower subject to approval by Lender; provided, -
<br /> i that such approval shall not be unreasonably witMheld. All premiums on insurance policies shall be paid in the manner ''
<br /> 3 provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dimcUy to the �
<br /> � insurance carrier_
<br /> jAll insurance policies and rrnewals 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 renewals thereof,
<br /> , � and Borrower shall prompdy fumish to Lender aIl renewal notices and all receipts of paid premiums. In the event of loss. �
<br /> Borrower shall give prompt noiice to the insurance carrier and Lender. Lender may make proof of Ioss if not made pror.tipcly
<br /> ! by Borrower.
<br /> ' � Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Property damaged, provided such rostoration or repair is economically feasible and thc security of this Mortgage is
<br /> aot thereby impaired. If such rcstoration or repair is not economically feasible or if the security of this Mortgage would
<br /> 7 be impaired, the insurance proceeds shall be applied to the sutns secured by this Mortgage, with the excess, if any, paid
<br /> , � � to Borrower. 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 Lender to Borrower that the insurance carrier ofters to set[le a claim for insurance benefits, Lender
<br /> is suthoriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> $ or to the sums secured by this Mortgage.
<br /> j iJnless Lender and Borrower 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 /> � suah installments_ If under paragraph 18 hereof the Property is acquired by Lender, all right, tiUe and intcrest of Borrower
<br /> � in aad to any insuraace policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> or acquisition shall pass to L.ender to the extmt of the sums secured by this Mortgage immediatety prior to such sate or
<br /> acquisition.
<br /> y 6. Prmervadon and Maiatenance of Property; Leaseholds; Condominiums; Ptanned Unit Developmenb. Borrower
<br /> , � . shall lceep the Property ia 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 tt�is Mortgage is on a unit in a
<br /> � condominium or a plaaned unit development, Borrower shall perform all of Borrower's obligations under the declazation t
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and regulaiions of the
<br /> condomininm or planned unit development, and constituent documents. If a condominium or planned unit development �.•. `Y� � �:
<br /> j rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider � �;
<br /> � shall be incorporated iam aad sha!( amend snd supptement thc covenants and agreements of this Mortgage as if the rider �
<br /> � were s part hereof.
<br /> 7- Protection of Lender's Secarity. If Borrower fails to perform the covenants and agreements contained in this
<br /> Mortgage, or if any acdon or proceeding is" commenced which materially affects L.ender's interest in the Property, ; � „,Sr,�
<br /> including, but not limited.to, eminent domain, insolvency, code enfomment, or arrangemrnts or proceedings involvmg a =��";
<br /> bankrupt or decedeat, thea I.ender aY Lender's option, upon notice to Borrower, may make such appearances, disburse such �-;K,;,
<br /> sums and take such action az ia necessary to protect I.ender's interest, including, 6ut not limited to, disbursemenc of � 3:�`',
<br /> � # ' re�onable atWmey's faa aud entry upon the Property to make repairs. !f Leader required mongage insurance as e
<br />� ,� conditioa of making t6e loan secured by this Mortgage, Borrower shall pay thc premiurns required to maintain s+uh
<br /> � iffiuraace in effeci unffi such time as the requiremcat for such insurance terminates in accordance with Borrower's and
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