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<br /> UrrffoFwr CovexAxrs. Borrower and Lender covanant and agree ss foliows: '
<br /> 1. Payment o[ Princtpal and Internt. Borrower shall promptly pay when due the principal of and interest on the
<br /> indebudness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interat
<br /> oa any Future Advances secured by this Mortgage.
<br /> � Z. I+tinds for Ta�cm aod 7nsunnce. Subject to applicabte law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender on We day monthly installments of principal and interest are payabte under the Note, until the Note is paid in fuil,
<br /> ? � a sum (herein "Fvnds'� equsl ro ono-twelfth of the
<br /> yearly taxes and assessments which may attain priority over this
<br /> � Mortgage, and groand rents on the Property, if any, plus ono-twelfth of yearly premium installments for hazard insurance,
<br /> plus oaFtwelfth of yearly premium installments for mortgage insurance, if any, ali as reasonably estimated initially and from
<br /> � dme to time by Leader oa the basis of assessments and bills and rcasonable estimates thereof.
<br /> C� The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br /> O state agency (inNuding I,ender if I.ender is such an institution ) . Lender shall apply t6e Funds to pay said taxes, assessments,
<br /> � insurance premiums and ground rents. Lender may not charge for so holding and apptying the Funds, analyzing said account,
<br /> � or verifying and compiling said assusments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br /> � permits L.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> pp Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicabte law
<br /> 1�, requires such interest ro be paid, Lender shall not be required to pay Borrower any interest or earcungs on the Funds. Lender
<br /> shall give to Horrower, without charge, an annuai 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 piedged as additional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds 6eld by Lender, together with the future monthly instaliments of Funds payabie prior to
<br /> ` the due dates of taxes, assessments, insurance premiums and ground rents, shall ezceed the amount required to pay said taxes,
<br /> ' asseesmenu, inaurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br /> ' promptly repaid to Borrower or credited to Borrower on monthly installmenis of Funds. If the amount of the Funda
<br /> hdd by Lender shall not be suf6cient 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 �otice is mailed
<br /> by Lender to Borrower requesting' payment t6ereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy refund to Borrower arty Funds
<br /> held by I.endea If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> shall apply, no later than immediately prior to the sale of the Propecty or its acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Appiicatlon of Paymenfs. Unless applicable law provides otherwise, al� payments received by Lender uoder the
<br /> 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 hereof, then to interest payable on the Note, then to the principat of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> i' 4. Charges; I3ens. Borrower shall pay alI taxes, assessments and other charges, fines and impositions attributable to
<br /> , 4 the Property which may attain a priority over this Mongage, and leasehold payments or ground ronts, iY 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 /> ;1 payce thereof. Borrower s6a11 promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> a Borrower shall make payment directly, Borrower shall prompdy fumish to Lender receipts evideneing such paymenu.
<br /> ' ' Bonower shall prompdy disc6arge any lien which has priority over this Mortgage; provided, that Borrower shal[ not be
<br /> �;' required to discharge any such lien so long as Borrower shall agree in writing m the payment of the obligation secured by
<br /> such lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, '
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thercof.
<br /> � 5. Hazard Iroarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured "
<br /> t' againat loss by Src, hazards included within the term "extended coverage", and such othcr 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 /> f such coverage exceed 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 auch approval s2�alt not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br /> provided under pazagraph 2 hereof or, if not paid in such manner, by Sorrower making paymmt, when due, direc8y 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 Lendec Lender shall have the right to hold the policies and renewals thereof.
<br /> and Borrower shalt promptly furnish to I.ender aU renewal notices and alt receipts of paid premiums. In the event of loss,
<br /> Borrower shal! give prompt notice to the insurance carrier and Lmdec Lender may make proof of loss if no[ made promptly
<br /> by Bonower.
<br /> Unless L.ender ax�d Borrower otherwise agree in writing, insurance p�oceeds shall be applied to restoretion or repair of
<br /> the Property da�aged, provided such restoration or repair is economically feasible and tt�e security of this Mortgage is
<br /> not thereby impairod. If such restoration or mpair is not economically feasible or if the secu�ity 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. :i the Property is abandoned by Borrower, or if Borrower fails to respond to 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 benefits, Lender
<br /> is sut6oriud to collect and apply the insurance procceds at Lender's option eitl�er to restoration or repair of the Property
<br /> ot to the sums secured by this Mortgage.
<br /> Unless I.ender 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 installments refermd to in paragraphs I and 2 hereof or change the amount of
<br /> such installments. If under paragraph 18 hereof the Property is acquired by I.ender, aIl right, title and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting frorn damage to the Property 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. Prcservatioo and Maintenance 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 /> and shall comply with the provisions of any leau if this MoRgage is on a leasehold. lf this Mortgage is on a unit in a
<br /> condominium or a planned uqit development, Borrower shall perform all of Borrower's obligations under the dedaration �
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development ,,.,Y,.;:,_.;
<br /> rider is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider ;� •
<br /> 4 shall be incocporated into and shall amend and supplemrnt the covenants and agreements of this Mortgage as if the rider , a '
<br /> were a part hereof. t ';
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<br /> , 7• Profectlon oE Leuder's Secwity_ If Borrower fails to perform the covenants and agreemenis contained in this ; ^
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<br /> Mo�rtgage, . or if any action or proceeding i3 commenced which materially affects Gender's interest in the Property, 4
<br /> „ inclading, but aot limited to; eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a + .,, ,
<br /> bankrupt-o[ decedent, then Lendv at Leader's option, upon noticc to Borrower, may make such appearazua, disburse such "d` , -<�': ^
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<br /> sums and takr such aMion as is necessary to pro[ect Lenders interest, including, but not limited to, disbursement of • .,t�` : ,
<br /> ' � reasonabie attomey's fces and entry upon the Property to make repairs, lf Lender required mortgage insurance az a
<br /> � condition of making the ]oan secured by this Mortgage, Borrower sha11 pay the premiums requind to maintain such
<br /> insuraoee in eHect until such time as the cequirement for such insurance terminates in accordance with Horrower s and
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