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<br /> 1Jrr[roia.s Cov$xwiv'rs. Borrower and L.tnder covenant and agree as foltows :
<br /> 1. Payment ni PrincipW and Interest. Borrower sha4 promptly pay when due the principal of and interest on the
<br /> iadebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principat of and intenst r
<br /> on any Future Advances secured by this Mortgage. I
<br /> 2. Funds for Ta=ea and Insuranca Subject to applicable law or to a written waiver by I.ender, Boaower shall pay
<br /> to Lendet on the day monthly instailments of principal and interest are payable under the Note, until the Note is paid in full.
<br /> ; a aum (herein "Funda'7 equal to one-twelfth of the yeady taxes and assessments which may attain priority over this
<br /> Mortgage, and ground renis on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> plus one-twdith of yearly premium installments 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 ffiereof.
<br /> i ' T6e Funds shall be hdd in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if Leader is such aa institution ) . Lender st�all apply the Funds to pay said taxu, asse§sments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and apptying the Funds, analyzing said accoant,
<br /> or verifying and compiling said assessmenu and bills, uniess Lender pays Borrower interest on the Funds and applicable law
<br /> permits I.ender to make such a charge. Borrower and L.ender may agree in writing at the time of execution of this
<br /> 1Hortgage that interest on [he Funds shait be paid to Borrower, and unless sach agreement is made nr applicable law
<br /> requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. I.ender
<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 ptedged as additional security for the sums secured
<br /> by Wis Mortgage.
<br /> �7 If the amount of the Funds held by Lender, rogether with the future monthly installments of Funds payable prior to
<br /> O the due dates of taxes, assessmeats, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> ' � assessmeau, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either
<br /> �j prompdy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> � held by Lender shall not be sufficieat to pay taxes, assessmenu, insurancc premiums and ground rents as they fall due,
<br /> � Borrower shall pay to Lender any amount necessary to make vp 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 Morcgage, Lender shall promptly refund to Borrower any Funds
<br /> � held by L.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquircd by Lender, Lender
<br /> s6a11 apply, no later than immediately prior to the sate of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of applicadon as a credit against the sums secured by this Mortgage.
<br /> 3. Appllcatlon of Paymenb. Unless applicable law provides otherwise, alI payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender Srst in payment of amounts payable to Lender by Borrower
<br /> ; under paragraph 2 hereof, then to interest payable on the Notc, then to the principat of the Note, and theo to interest and
<br /> i principal on any Future Advances.
<br /> ;' 4. Charges; Lieos. Borrower shall pay all taxes, assessrnenu and other charges, fines and impositions attributable to
<br /> the Property which may a[tain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> j pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeot, when due, direcfly to the
<br /> i payee thereof. Borrower shall promptly furnish to Lender al! notices of amounu due under this paragraph, aud in the event
<br /> � Borrower shall make payment direcUy. Borcower shall promptly furnish to Lender receipts evidencing such payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borcower shall not be
<br /> t acquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obtigation secumd 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 /> � ]egal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Inso+aoce. Borcower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> i; againat loss by fire, hazards included within the term "extended coverag�', and such other hazards as Lender may require z
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not roquire that the amount of
<br /> � such coverage excced that amouot of coverage required to pay the sums secured by this Mortgage. r
<br /> � The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
<br /> ` that such approval sha11 not be unreasonably withheld. All 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, directly to the
<br /> insurance carrier.
<br /> � All insurance policies and renewals thereo[ shall be in form acceptable to Lender and shall include a standard mortgage
<br /> � clause in favor of and in form acceptable to I.ender. Lender shall have the right ta hold the policies and renewals ihereof,
<br /> d and Borrower shall promptly furnish to Lender all renewal notices and aJl receipts of paid premiums. In the event of loss,
<br /> { Borrower shall give prompt notice to the insurance carrier and Lender. Lendcr may make proof of loss if not made prompdy
<br /> � by Borrower.
<br /> ; Unless Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to restoration or repair of
<br /> ' the Property damaged, provided such restoratioa or repair is economically feasible 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 Bonower. If the Property is abandoned by Borrower, or if Borrower fails to respond [o Lender within 30 days from the
<br /> ' � date notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for insurance bene6ts, Lender
<br /> � is suthoriud to collect 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 Horrower otherwise agrce 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 paragraphs ! and 2 hereof or change the amount of
<br /> such installments. If under paragraph 18 hereof ihe Property is acquired by I.ender, all right, tiUe and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds tliereof resulting from damage to the Property prior to the sale
<br /> � or acquisition shall paas ro Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or
<br /> acquisition.
<br /> � 6. Pceservadoo and Maintenantt of Property; Leaselw�ds; Condominiums; Plenned Unit Developments. Borrowcr
<br /> � shall keep the Property in gaod repair and shall not commic waste or permit impairment or deteriorauon of the Property
<br /> and shall comply with the provisions of any lease if this Mortgage is on n leasehold. If this Mortgage is on a unit in a
<br /> condominium or a planned unit developmenr, Borrower shall perform all of Borrowers obliga[ions under the declaration �
<br /> or covenanfs areaiing or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> rnndominium or ' planned unit development, and constituent documents_ If a condominium or planned unit developmen[ ., �--:,- • ,
<br /> rider is executed by Borrower and recorded together witli this Mortgage, the covenants and agreements of such rider , ;; .� '
<br /> shall be incorporated iato and shalt amend and supplement the covenanu nnd agreements of this Mortgage as if the rider �
<br /> ` � wero a part hereof. °
<br /> + ' 7. Protectloo oE' I.ender's Secndty. If Borrower fails to perform the covmants and agreemenu contained in this �
<br /> Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, � Z� M1�
<br /> including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a � 4,
<br /> � banhvpt or decedenQ then Lender at I.ender's option, upon notice to Barrower, may make such appearances, disburse such
<br /> � sutns and take such aetion as is necessary to protect Le�cr's interest, induding, but not limited co, disbursement ot ' " " 1�:" ,
<br /> reaaonable attomey's fees and entry upon the Propeny to make repairs. If Lender requi�ed mortgage insurance as a
<br /> � corxlitioa of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br /> � in�urance in effect unh7 such time as t6e requirement for such insurance terminates in accordance with Borrower's and
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