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<br /> � s- U02560
<br /> Ur�rnonM CovEivetvrs. Borrower und Lender covenant aad agree as follows:
<br /> 1. Payment o[ Prtndpal and lnterest. Borrower ahall promptly pay when due the principal of and interest on the
<br /> iadebtednesa evideaced by the Note, prepayment and late charges as provided in the Note, and the principal of and intensi
<br /> on any Future Advances securcd by this Mortgege.
<br /> r 2• Fmds lor Tasea and Insucanca Subject to applicable law or to a written waiver by L.ender, Borrower shall pay
<br /> to Lender on the day monthly installmmts of principal and interest are payable under t6e Note, until the Note is paid in full,
<br /> ' ; a sum (hereia "Funds'� equal to one-twelfth of the yeariy ta�ces and assessments which may attain priority over this
<br /> ' ; MoKgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance�
<br /> plus onFtwelfth of yearly premium iastallments for mortgage insurance, if any, alt as reasonably estiroared initially and from
<br /> dme to time by Lender on the basis of assessments and bilis and rcasonable estimates thereof.
<br /> � The Funds shall be beld in an institution the deposits or accaunts of which are insured or guaranteed by a Federal or
<br /> x atate agency (including Lender if L,ender is such an institution) _ Lender shall apply the Funds to pay said taxes, assessments. �
<br /> insurance premiums 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 bitls, 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 the Funds shall be paid to Borrower, 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 debits to the Funds and the
<br /> j purpose for which each debit to the Funds was made. 'Ihe Funds are pledged as additionai security for the sums secured
<br /> y by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the future monthly instaUments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and graund rents as they falt 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 /> ? hdd by Lender shall not be sut5cient to pay taxes, assessments, insurnnce premiums and ground rents as they fall due,
<br /> : I Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> : t by Lender to Borrower requesting' payment thereof.
<br /> � Upon payment in fuil of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br /> . fi 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 irnmediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by �
<br /> Lender at the time of application as a credit againsi the sums securod by this Mortgage.
<br /> � 3. AppBcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> j Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lend'er by Borrower
<br /> } under paragraph 2 henof, then to interest payable on the Note, then ro the principal of the Note, and then to interest and
<br /> j principal on any Future Advances.
<br /> ' � 4. Cha�ges; I�eas. Borrower shall pay all 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, dinctly to the
<br /> payee thereof. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event
<br /> Borrower shall make payment direcUy, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br /> Borrower shall prompUy discharge any lien which has prioriry 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 /> i legal proceedings which operate to prevent the enforcement of thc lien or forfeimre of the Property or any part theroof. t;�,,,M,,
<br /> � 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured �
<br /> againat lou by Sn, 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 by this Mongaga �
<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 /> provided under paragraph 2 l�emof or, if not paid in such manner, by Borrower making payment, when due, dimdy to the - ^
<br /> � insurance carrier.
<br /> All insurance policies and renewals thereof shal! be in form acceptable to Lender and shal! include a standard mortgage
<br /> clause in favor of and in form acceptable to L.ender. Lender shall havc the right to hold the policies and renewals thereof,
<br /> x and Horrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> � Borrower shatl give prompt aotice to the insurance carrier and Lender. 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 restoraiion or repair of
<br /> :, � the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby unpaired. If sucti restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> fbe impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br /> ; ro Horrowec If the Property is nbandoned 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 ofiers to settte a claim for insurance benefits, Lender
<br /> 6 is authorized to collut and apply the insurance procceds at Lender's option either to restorution or repair of thc Property
<br /> � or w the sums secured by this Mortgage.
<br /> Unless I.ender and Borrower otherwise agree in writing, any such apptication of proceeds to principal shall not extend
<br /> or postpone the due da[e of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> � such installments. If under paragraph 18 hercof the Property is acquired by L.ender, all right, title and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds t6ereof resulting from damage to the Property prior to the sale
<br /> 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. P[eaervation snd Maiotenance of Propedy; Leaseholds; Condominiums; Planned Unit Devdopments. Borrower
<br /> ahall keep the Property in good repair and shall not commit waste o� permit impairment or deterioration of the Property
<br /> and sha11 comply with the provisions of any lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
<br /> condominium or a planned unit developmrn[, Borrower shall perform all of Borrower's obligations under the declazation 4
<br /> ; or covenants creating or goveming the condominium or planned unit devetopmen[, the by-laws and rogulations of the
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development ,,, �v, .: �� ".
<br /> rider is executed by Boaower and recorded rogether with this Mortgage, the covenants nnd agrcements of such rider ' i
<br /> ahall be incorporated into and shall amend and supplement the covenanu and agreements of this Mongage as if the rider ' r
<br /> were a part hereoE � ' .' .�
<br /> 7• Pcotectlon of Lende�e Securi If HorroweS fails to ' a ;
<br /> ty. perform the covenants and agreements contained in this � �
<br /> Mor,tgage, or if aay acti� or proceeding is' commenced which materially affects Lender's interest in the PropeRy, f -
<br /> including, but aot limited to, eminent domain, insolvency, code enforcemrnt, or arrangements or proceedings involving a � ` , �S '
<br /> � bdakrupt ordecedent, then Le.nder at . I.ender a option, upon notice to Borrower, may make such appearances, disburse such *` �' .;«,�,
<br /> sums and take auch action as is nccessa�y to protect Lenders interest, induding, but not limited to, disbursement of
<br /> � reasonable attomey's feea and entry upon t6e Property to make repairs. If Lender requircd mortgage insurance as a
<br /> � conditioa bf makiag the loan securetl by this Mortgage, Boaower shall pay the premiums rcquired to maintain such
<br /> 9nauraaee in eSect until such time as the requiremmt for such insurance terminates in accordance with Borrowers and
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