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<br /> 7.8-� � 02315 .
<br /> UtvrnoxM Covertnrrrs. Borrower and Lender covenant and agree as follows :
<br /> Y. Payment of Pr{ncfpa! aad Interept. Borrower shall promptly pay when due the principal of and interest on the
<br /> indebtedness evidencecl by the Note, prepayment and late charges as provided in the No[e, and the principal of and interest
<br /> an any Future Advances secured by this Mortgaga -
<br /> Z. Fmds Eor Ta=es aod L�surance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay �
<br /> to I.endet on the day monthly installments of principal and interest are payable under the Note, until the Note is paid i� futl,
<br /> ' a sum (herein "Funds'q equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> ' ; Mortgage, and ground rents on the Ptoperty, if any, plus ono-twelfth of yearly premium installments for hazard insurance.
<br /> ' ? plus one-twelfth of yearly premium instaliments for mortgage insurance, if any, all as reasooably estimated initially and from
<br /> time to time by Lender on the baais of assessments and bills and nasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> sLate agency (induding Lender if Lender is such an institution) . Lender shall appty the Funds to pay said taxes, assasments,
<br /> insurance pnmiums and ground renu. Lender may not charge for so holdi�g and applying the Funds, analyzing said account,
<br /> � ot verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permiu Lender to make such a charge. Borrower and L.ender may agree in writing at the time of execution of this
<br /> Mortgage that interest on the Funds shall be paid to Bonower, and unless such agreement is made or applicable law
<br /> requires 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 debiu to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as additional secarity for the svms secared
<br /> i by this Mortgage.
<br /> ' If the amount of the Funds held by L.ender, together with the future monthly instaltments of Funds payable prior to
<br /> [he due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground rents as they fall due, such excess shall 6e, at Borrower's option, either
<br /> prompBy repaid to Bormwer or credited to Borrower on monthly instaliments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sufficient to pay taxes, assessments, 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 /> : j by Lender to Bortower requesting' payment thereof.
<br /> ; Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy refund to Borrower any 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 /> � ehall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a credit agamst the sums secumd by this Mortgagc.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, a�l payments received by Lender under the
<br /> Note and paragraphs 1 and 2 heceof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 hereof, thea to interest payable on the Note, then to the principal of the Note, and then to interut and
<br /> � principal on any Future Advances.
<br /> } 4. Charges; Liens. Bonower shall pay all taxes, assessments and o[her charges, fines and impositions anributable 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. Borrower shatl promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> ; . Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments.
<br /> � Borrower shall prompdy 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 accep[able to Lender, or shall in good faith conrest such lien by, or defend enfomement of such lien in,
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> � 5. Hazard Insurance. Borrower shall keep the improvements now existing or hercaf2er eracted on the Property insured
<br /> agains[ loss by Sm, 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 that the amount of
<br /> j such coverage ezceed 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 unreasonably withheld. All oremiums on insurance policies shall be paid in the manner
<br /> � provided uader paragtaph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
<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 Lender. Lender shall have the right to ho(d the policies and renewals ihereof.
<br /> y and Borrower shalt promptly furnish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss.
<br /> q Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make proof of loss if not made promptly
<br /> � by Borrower.
<br /> J Unless Lmder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Property darnaged, provided such rostoration or repair is economically feasible and the security of this Mortgage is
<br /> enot ihereby impaind. If suc6 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 faiis to respond to Lender within 30 days from the
<br /> # date notice is mailed by Lender to Borrower that the insurance carrier otfers to settle n ctaim for insurance benefits, Lender
<br /> is autLorized to collect and apply the insurance proceeds xt Lender's option either to restoration o� ropair of the Property :
<br /> ; or to the sums secured by this Mongage.
<br /> Unleu Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not utend
<br /> : j or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
<br /> j such installments. lf under paragrap6 18 hereof the Property is acquired by Lender, alt right, ti8e and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br /> i or acquisition shall pass to L.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition. � �
<br /> ; 6. Praervalba and Maintenaace of Propecty; Leaseholds; Condominlums; Planned Unit Devdopments. Borrowcr
<br /> S shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> j 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 /> - - # wndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the dcclaration
<br /> ` or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of ffie
<br /> � condominium or plauned unit developmrnt, and conniturnt documents. If a condominium or planned unit development �
<br /> ' rider is execu[ed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider -.�
<br /> � shaU be incorporated into and shall amend and supplement the covenants and agreemmu of this Mortgage as if the rider r- - ��
<br /> } were a part heceof. °i' ' s
<br /> r;� Z Protectlon ot Lende�s Security. If Borsower fails to perform the covenants and agreements contained in this �` " '
<br /> �� Mortgage, or if aay actioa or ptoceeding is commenced which materially affects Lender's interest in the Property,
<br /> including, but not limited to, tminent domaln, insolvency, code rnforcement, or arrangemenu or proceedings involving a 4
<br /> ban7mipt oz decedent, then I.eader at Lender's option, upon notice to Borrower, may make such appearances, disburse such p- �q '�
<br /> ' � sums and take such action as is necessary to protect Lender s interest, induding. but not Iimited to, disbursement of .�"` -
<br /> reasonabte attosn�y's fxs and envy upon the Propeny to ruake repairs. if I.ender required mortgage insurance as a " � v�
<br /> r condiUoa of malung thc loan xcured by this Mortgage. Borrower shall pay the prcmiums required to maintain s�■ch ` �
<br /> ' inaurance in eHect until such time as the rcquircment for such insurance terminates in accordance with Borrower s and
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