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<br /> 7s- p02436
<br /> UxrnoxHt Cov$xwtaTs. Borrower and Lender covenant aed agree as followr.
<br /> 2 2. Payment ot Piineipal and Interest Borrower shall, promptly pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, pnpayment and late charges as provided in the Note, and the principal of and interest
<br /> � on any Futuro Advanoes secured by this Mortgage. �,
<br /> 2. Fmds for Tazes and Ineurance. Subject to applicable law or to a written waiver by Lender, Bonower si�a11 pay
<br /> � to I.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br /> � a sum (lienin "Fanda") 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 one-tweifth of yearly premium installments far hazard insurance,
<br /> , plus ono-twelfth of yearly premium instatlments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> ; time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> ' ; T'he Funds shall be held in an institution the de
<br /> posits or accounu of which are insured or guaranieed by a Federal or
<br /> � state agency (including Lender if [.ender is such an insti[ution) . Lender shall apply the Funds to pay said taxa, assessmmu,
<br /> ! insurance premiums and ground rents. Lender ma not char e for so holdin and a I m the Funds, anal m said account,
<br /> ' � or verifying and compiling said assusments and b Ils, unless Lender pays Borrowe P�n erest on the Funds nd applicable law
<br /> y permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> ! Mortgage that interest on the Funds shalt be paid to Borrower, nnd 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. L.ender
<br /> i 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. The 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 instaltments of Funds payabte prior to
<br /> � the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount requized to pay said taxes,
<br /> assesements, insurance premiums and ground rents as they fali due, such excess shall be, at BorrowePs option, either
<br /> � promptly repaid to Borrower or credited to Borrower on monthly installmenu of Funds. If the arnount of the Funds
<br /> - ; held by Lender shall not be sutficient to pay taxes, assessmenu, 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 Bonower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br /> held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> a shall apply, no larer than immediately prior to the sale of the Property or its acquisition by L.ender, any Funds held by
<br /> � Lender at the time of application as a credit against the sums secured by this Mongage. i
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> � Note and pazagraphs t and 2 bereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 heroof, t6en ro interest payable on the Note, then ro the priocipal of the Note, and thrn to interest and �
<br /> � principal on any Future Advances. ;
<br /> 4. Charges; Lieos. Borrower shall pny all taxes, assessments and other charges, fines and impositions attributabk to z
<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 oc, if no[ paid in such manner, by Borrower making payment, when due, direcdy to the •
<br /> - � paya t6ereof. Bonower s6all pmmpdy fumish to Lender al! notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> Bonower 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 liea in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, �
<br /> � ]egal proccedings which operate to prevent the enforcemenc of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Ha�ard Insurance. Borrower shail keep the improvements now existing or hereafier erected on the Property insured `��
<br /> � againat loss by Sre, 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 /> ; such coverage exceed that amount of coverage required to pay the sums secured 6y 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 premiums on insurance policies shall be paid in the manner ,,.,
<br /> providod under paragreph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> insurance carrier.
<br /> Ail insurance policies and renewals thereof shall be in form acceptable [o Lender and shaU include a standard mortgage �
<br /> clause in favor of and in form acceptable to Lender. Lender shall have the right to hotd the policies and renewals thereof,
<br /> and Borrower shall promptly furnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss,
<br /> 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 /> 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 econamically feasible and thc security of this Mortgagc is
<br /> > y' not thereby unpaimd. 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 a�y, paid
<br /> ? to Borrower. If the Property is abando�ed 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 oHen to settle a claim for insurance benefits, I.ender
<br /> is auffioriud to collxt 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 /> 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 mon[hly installmenu referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> Z such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, tiUe and interest of Borrower
<br /> # in and to any insurance policip 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. Preaervatlou aud Maiatenaoce of Property; Lcaseholds; Condominiums; Planned Unit Developments. Borrower
<br /> � shall keep the Property in good re air and shall not commit waste or
<br /> p permit impairment or deterioration of the Propeny
<br /> and shall comply with the provisions of any lease if this Mortgage is on a leaschold. If [his Mortgage is on a unit in a
<br /> condominium or a planned uait development, Borrower shall perform all of Borrower's obligations ursder the declazation �
<br /> or oovenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> condominium or planned unit development, and constiwent documents. If a condominium or planned unit development ; "iy
<br /> rider is uecuted by Borrower and recorded together with this Mortgage, the covenanu and agreements of such rider ` `— � :�
<br /> shall be iacarporaud into and shall amend and supplement the covenants and agreemenu of this Mortgage as if the rider �;. r
<br /> wecr a part hereof_ � � � ;. � �f` "i
<br /> ; , 7. Protection of Lender's Security. IE Borrower fails to perform the covenants and agreements contained in this � : ` ��
<br /> ; Mortgage, or if aay action or proceediag iS commenced which materially affects Lender's interest in the Propeny, � - ,t� �
<br /> F � iadudiug, but not' limited to; emi�mt domam, insolvency, code enforcement, or arrangements or proceedings involving a y ;u ; - K; .
<br /> bsakruptor deoedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br /> > i sums aad take such actioa as is neces.aary to protect Lenders interest, including, but not limited to, disbursement of ^ ,^ .
<br /> •.: e reasonable attomey's fxa and mtry upon the Property to make repairs. If Lender required mortgage insvrance as a �
<br /> ;.; -j condiuon of making the loan secured by this Mortgage, Boaower shall pay the premiums required to maintain such
<br /> '. j inauranee In effect until such time as thd requirement for such insurance terminates in accordance with Borrower s and
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