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<br /> 78-, U02313
<br /> Uivtroxar CovEN�x�rs. Borrower and Leader covenant and agree as follows:
<br /> 1. Payment of P�incipal and Interest. Borrower shall prompdy pay when due thc principal of and interest on the
<br /> indebtednesa evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intenst
<br /> on any Future Advaaces secured by this Mortgaga
<br /> 2. Fands for Tases and Imuranca Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to Lender on the day monthly installmenu of principal and interest are payable under the Note, until the Note is paid in full.
<br /> a aum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus ooatwelfth of yearly premium installments for hazard insurance.
<br /> plua one-twelfth of yearly promium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by Leader on the besis of assessments and bills and reasonable estimates thereof.
<br /> 'Ihe Funds sha11 be heid in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (induding Lender if I.ender is such an institution) . Lender shall apply the Funds to pay said taxes, assessments,
<br /> . insurance premiums and grouad rents. Lender may not charge for so holding and apptying the Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, unless Lender pays Bonower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> Mortgage that iaterest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such interest to be paid, Lende� shaU not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> shall give ta Borrower, without charge, an annuat accoanting of the Funds showing credits and debiis to the Funds and the
<br /> purpose for which each 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 /> the due dates oF taxes, assessments, insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance promiums 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 instaliments of Funds. If the amount of the Funds
<br /> held by Lender shall not be suScient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br /> Horrower 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 Bonower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shatl promptly refund to Borrower arty Funds
<br /> held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br /> shall apply, no later than immedialely prior to the sale of the Property or its acquisition by Lendeq any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> ` ' Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lend'er by Borrower
<br /> under paragraph 2 heroof, then to interost payable on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> 4. C6s�ger, I3ens. 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 /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borcower shall promptly furnish to Lender all �otices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment direcUy, Borrower shall promptly fumish to Lender receipts evidencing such paymenu.
<br /> Borrower shall pmmptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> required [o discha�ge any such tien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> ' such lien in a manner acceptable to L.ender, 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 Properry or any part thereof. �
<br /> 5. Hazard Insarance. Soaower shall keep the improvements now existing or hercafter erccted on the Properry insured >
<br /> ; against loss by fire, hazards included within the term "extended 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 tha[ 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 insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> that such approval shall not be unreasonabty withheld. All premiums on insurance policiu shall be paid in the manner
<br /> ? provided under paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when due, dimcUy to the
<br /> � insurance carrier_
<br /> ? All insurance policies and renewals thereaf shall be in form acceptable to Lender and shall include a standard mongage
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals ihereof.
<br /> and Borrower shall promptly furnish to Lender all renewal notices and aIl receipts of paid premiums. In the event of loss,
<br /> Boaower shatl give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if noc made promptly
<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 restoration or repair is economically fcasible 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 Borrowea 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 carricr ofters to setde a claim for insurance benefits, Lender
<br /> is authorized to collect and appiy the insurance proceeds at Lender's option either to restoration or repair of tUe Property
<br /> ; or W the sums secured by this Mortgage.
<br /> Unless 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 pazagraphs 1 and 2 hereof or change the amount of
<br /> such insiallmems. If under paragraph IS hereof the Property is acquired by Lender, all right, tiUe and interest of Sorrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to ihe 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 /> A acquisition.
<br /> 6. Preservadon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrowcr
<br /> shalt keep the Property ia good repair and shatl not commit waste or permit impairment or deterioration of the Property
<br /> and s6all comply with the provisions of any lease if this Mortgage is on a leaschold. If this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform all of Borrower's obtigations under the declaration
<br /> � or covenants crcatiag or governing the condominium or planned unit development, the by-laws and regulations of the ;
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> ' f rider is wcecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider _ � �,'^�
<br /> y shall be incorporated into and shall amend and suppiement the covenants and agreements of this Mortgage as if the rider ��
<br /> � �( wue a part hereof. ��
<br /> 1 '8 7. Protectloo of Lendeta Secwiry. If Borrower fails to perform the covcnants and agreements contained in this
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<br /> Mortgage, or if any aMion or proceeding, is commenced which materially affects Lender's interest in the Property,
<br /> � includierg, but noi limited to, eminmt domain, insolvency, code enforcement, or arrangemenu or proceedings involving a ry, ;�
<br /> j bsnkcupt or dceeda►t, then I.ender at Lender's option, upon notice to Borrower, may rnake such appearances, disburse such
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<br /> ' sums and take euch action as is necessary to protect Lender's interest, including, but not limited to, disbursement of r
<br /> ttaeonable attomey's fxs and entry upon the Property to make repairs. If Lender requimd mortgage insarance as a "'-
<br />�� condition of makin lhe losn securod b thix Mort a e. Borrower shnll a the quired to maintain such ��� �
<br /> g y g g p y premiums re
<br />�I insurana in effxt untit such tisne as the requirement for such insurance terminates in accordance with Borrower s and
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