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<br /> 78_ U02559
<br /> UxtroxM Covexetrrs. Borrower and Lender covenant and agree as follows:
<br /> 1. Payme� of Principal and Interest. Borrowee shall prompdy pay when due the principal of and interest on the
<br /> indebtedneas evidenced by t6e Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br /> : on anyFuture Advences secured by this Mortgage.
<br /> � ! 2. P'ands for T�es and Ineu�ance. Subject to applicable law or to a written waiver by Lender, Boaower shall pay
<br /> to Lender on the day monthly instaliments of principal and interest are payable under the Noro, until the Note is paid in full.
<br /> a aum (herein "Funda•q equal to one-twelfth of the yearly taxes and assessmenu which may attain priority over this
<br /> Mortgage, and ground tents an t6e Property, if any, plus one-twel8h of yearly premium installments for hazard insurance,
<br /> plus one-twelfth of yearly premium instaliments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by I.ender on the basis of assessments and bilis and nasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposiu or accounu of which �re insured or guaranteed by a Federal or
<br /> atate agency (including Lender if Lender is such an institution) . Lender shall apply the Funds to pay said taxes, assessments,
<br /> insuraace pnmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, unless Lender pays Borrower 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 interest on tt�e Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> requires such ioterest to be paid, Lender shall not be required to pay Bocrower any interest or earnings on the Funds. Lender
<br /> 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 installments of Funds payabie prior to
<br /> the due dates of taxes, assessmeats, insurance premiums and ground renu, shall exceed the amount required to pay said tarzes,
<br /> assessments, insurance premiums and g�ound renu as they fall due, such excess shall be, at Borrower's option, either
<br /> promptly repaid to Borrower or credited to Borrower on monthty installments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sut5cient to pay taxes, assessments, insurance premiums and ground rents as they fail due,
<br /> Borrower s6a11 pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Leader to Borrower 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 18 hereof the Property is sold or Ihe Property is otherwise acquired by Lender, Lender
<br /> shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> ` I.ender at the time of application as a credit against the sums secured by this Mottgage.
<br /> � 3. ApplicatBon of Paymenls. Unless applicable law provides otherwise, all paymenu received by Lender under the
<br /> ? Note and paragraphs 1 and 2 hereof shall be appiied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 hereof, then to interest payabte on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> � 4. C6a�ges; Liens, Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> � the Property which may at[ain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 hereof oq if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borrower sha[l prompdy fumish to Lender all notices of amounts due under this paragraph, and in ihe event
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> 1! Borrower shall promptly disc2�arge any lien which has prioriry over this Mortgage; provided, that Borrower shall not be
<br /> !' ttquired to dixharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> i such lien in a manner acceptable to I.ender, or shall in good fai[h contest such lien by, or defend enforcemmt 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 /> '' S. Hazard Insurance. Borrower shall kee the im rovements now existin or hereafter erected on the Pro er
<br /> : P P 8 P �Y insured r,�.�,�,:
<br /> ' against loss by Sre, hazards included within ihe term •`extended coverage", and such other haza�ds as Lender may require
<br /> ';^ and ia 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 /> , "I7�e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lmder, provided,
<br /> ,' that such approval shall not be unreasonabty withheld. AU premiums on insurance policies shall be paid in the manner
<br /> provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the �
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<br /> 'i insurance carrien . , . ;.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a stundard mortgage
<br /> clauae 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 furnish to Lender al! renewal notices and all receipts of paid premiums. In the event of loss,
<br /> � Borrower sha(I give prompt notice to the insurance carrier and Lendec C.ender may make proof of loss if not made promptly
<br /> �'� by Borrowet.
<br /> Unleas Lender and Borrower otherwix agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> � the Property daataged, provided such restoration or repair is economically feasiblc and the security of this Mortgage is
<br /> not thereby irnpaind. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> be impaired, t6e insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> to.�oaower. If the Property is abandoned by Borrower, or if Sorrower fails ro respond to Lender within 30 days from the
<br /> dafe ribticB u mailed by L.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> � is`airt�oriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> or to thC'swns secured by this Mortgage.
<br /> ; Ualess Leoder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or poatpone the due date of the monthly installmenu refcrred to in paragraphs I and 2 hereof or change the amount of '
<br /> ; j' such iostallments. If under paragraph 18 herwf the Property is acquired by Lender, all right, title and interest of Borrower
<br /> ; in and to any insurance policies aad in and to the procceds ffiereof resulting from damage to t6e Property prior to the snle
<br /> � or acquisitioa shall pass to I.ender to the extent of the sums secured by this Mortgage immediarely prior to such sale or
<br /> acquisition.
<br /> � 6. Preaervatloo and Maiatenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br /> } shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> 4 aQd ahall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is oo a unit in a
<br /> condominium or a plaoned unit development, Borrower shall pedorm alt of Borrowecs obligations under the declaration
<br /> or rnvenants creating or govuning the condominium or ptanned unit development, the by-laws and regulations of the s
<br /> condominitun or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> rider is execuud by Honower and recorded together with this Mortgage, the covenants and agreements of such rider _
<br /> sha11 be incorporated into and shall amend and supplement the covenants and agreemenu of this Mortgagc as if the rider `""
<br /> were a part hereo£
<br /> 9. Protec8on of Lender's Securlty. If Borrower fails to perform the covenants and agreements contained in this I � ;
<br /> Mortgage, or if aay actioa or proceeding is commenced which materially affects L,ender's interest in the Pruperty, �
<br /> including, but not limited to; eminent domain', insolvency, code enfomemen[, or arrangements or proceedings involving a : �
<br /> bankxupt or decedent, thedI.ender at'Lender's option, upon notice to Borrower, may mnke such appearances, disburse such } ' y ,' .;� ?
<br /> sums aad take sucb action as is necessary to protect Lender s interest, including, but not limited to, disbursement of * ' �
<br /> reasonable attotney'a fees sud entry upon the Pro rt to make re airs. If Lender re uired mort �' • � �`
<br /> P� Y p q gage insurance as a . .
<br /> - f coadi8oa of making the loan secured by this Moagage, Borrower shall pay ihe premiums required to maintain such
<br /> ; ± , insuraace ln effect unUl such time as the requireroent for such insurance terminates in accordanae with Borcower's and
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