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<br /> ; 78- U02730
<br /> ' Uxrnow�t CovstaeN'rs. Borrawer and Lender covenant and agree as follows:
<br /> 1. Payment o! Priucipal and Intereet. Borrower shalt promptly pay when due the principat of and interest on the
<br /> indebtedneas evidenced by the Note, prepayaieat and late charges as provided in the Note, and the principal of and interest
<br /> on any Futvre Advances secur�d by this Mortgaga �
<br /> f. 2. I+bods for Tases and Ineurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> ; , to Lender on the day monthly installmeou of principal and interest are payable under the Note, untit the Note is paid in full.
<br /> � � a sum (herein "Funda'� equal to ono-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground renu on the Property, if any, plus one-twelfrh of yearly premium installmenu for hazard insurance,
<br /> plua ono-twelfth of yearly premeum 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 thereof.
<br /> The Fuods shall be held in an institution the deposits or accounb of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if Lender 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 bills, ualess Lender pays Borrower interest oa the Funds and applicable law
<br /> permiu I.ender to make such a charge. Borrower and Ixnder may agree in writing at the time of execution of this
<br /> Mortguge that iaterest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> mquirea such interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Lender
<br /> sha(I give to Borrower, without charge, an annua( accounting of the Funds showing credits and debiu 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 i ,
<br /> by this Mortgage.
<br /> If the amount of the Funds 6eid by Lender, together with the fuWre monthly installments of Funds payabie prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
<br /> assessmenu, insurance premiums and ground rcnu as they falt due, such excess shall be, at Borrowers option, either
<br /> promptly repaid to Borrower or credited to Horrower on monthly instaliments of Funds. If the amount of the Funda
<br /> ' � held by Lender shall not be sufficicnt to pay taxes, assessments, insurance premiums and ground renu as they fall due.
<br /> Borrower shall pay to Lender aay amount necessary to make up t6e deficiency within 30 days from the date notice is mailed
<br /> } by L.ender 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 Lendec If under pazagraph 18 hereof the. Property is sold or the Property is otherwise acquired by Lender, Lender
<br /> shall app;y, no later 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 Mortgage.
<br /> �' 3. AppllcaHon of Paymeots. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> �! under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br /> r principal on any Future Advances.
<br /> r' 4. Charges; L&os. Borrower shall pay ail taxes, assessmenu and other charges, fines and impositions anributable to
<br /> }; the Property which may attain a priority over this Mortgage, and leasehold payments or ground renu, if any, in the manner
<br /> r; ptovided under paragraph 2 hereof or, if not paid in such manneq by Borrower making payment, when due, directly to the
<br /> , r payee thereof. Borrower shall promptly fumish to Lender all notices of amounu due under this paragraph, and in the evcnt
<br /> j; Borrower shall ma�e payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> Borcower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br /> , f' rcquired 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 mannu acceptable to Lender, or shall in good faith contest such lien by, or defend enfonement of such lien in, ,J
<br /> legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hvard Insonnce. Boaower shall keep the improvements now existing or hereafter erected on the Property insured �'' '
<br /> against loss by fire, hazards incladed within the term "extended coverage", and such other hazards as Lender may requirc i
<br /> aad 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 amaunt of coverage required to pay the sums secured by this Mortgaga
<br /> y The insurance earrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> � that auch approval shall not be unreasonabty 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 Borrower making payment, when due, directly to the
<br /> t insurance carriea
<br /> � All iasurance policies and renewals thereof shall be i� form acceptable to Lendcr and shall include a standard mortgage
<br /> clause in favor of and in focm acceptable to Lender. Lender shall have the right to hold che policies and renewals thereof.
<br /> and Bon+ower shal! promptly furnish to L.ender all renewal notices aad all receipts of paid premiums. In the eveat of loss,
<br /> � Borrower shall give prompt notice lo the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> by Sorrower.
<br /> � Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resroration ot repair of
<br /> the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br /> not thereby impaired. If such restoration or tepair is not economically feasible or if the security of this Mortgage would
<br /> ;' , be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
<br /> to Borrower. If 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 insnrance bene6ts, Lender
<br /> is autborized to collect and apply the insurance procceds at Lrnder's option eit6er ro restoration or repair of the Property
<br /> or to the sums secured by this Mortgage.
<br /> Unless Lcnder and Borrower otherwise agree in writing, any such application of proceeds to principa! shatl 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 installmeats. If under paragraph ! 8 herwf the Property is acquired by I.ender, atl right, tiUe and interest of Borrower
<br /> in and to any iasurance policies and in and w the proce�ds thereof resulting from damage to the Property prior to the sale
<br /> , or aaquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> 6. Prnervation and Mainbenance of Property; I.easeholds; Condomivfums; Planned Unit Developments. Borrower
<br /> s6a11 keep the Property in good repair and shatl not wmmit waste or perntit impairment or deterioration oF the Property
<br /> and shalt comply with the pmvisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> coudominium or a planned unit developmenf, Borrower shali perform alt of Borrower's obligations under the declaration �
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and cegulations of the
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> rider is execuud by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider " r'="'
<br /> � shall be incocporated into aod shall amend and supplement the covenants and agreements of this Mortgage as if the rider "
<br /> wcre a part hereof. I '�
<br /> 7. ;Protection . ot Lender's Secotity. IE Borrower fails to perform the covenants and agreements contained in this ° `' ' '
<br /> Mortgagr., o�, if any action or proceeding �s commenced which materially atYects Lendet's interest in the Propeny, y;'. '
<br /> t ibcluding, bu[ aot limited to;,eminent domain. insolvency, code enforcemenc, or arrangements or proceedings involving a � :r
<br /> bankrupi or decedent, then Lend�er at Lendu's option, upon notice to Borrower, may make such appearances, disburse such " ` ' ` �
<br /> „` ,� sums aad take such ac6oa as is aecessaxy to protect i.endeYs interest, including, but not limited to, disbursement of �` � p`"�'
<br /> - � , , reasonabie attorney's fees and entry- upon the Property to make repnirs. If Lender requimd mortgage insurance as a
<br /> ', � coaditioa bf makiag the loan secured' by this Mortgage, Borrower shall pay the premiums rcquired to maintain such
<br /> inaurance in eSect �til suc6 time es the requirement for such insurance terminates in aceordance with Sorrower s and
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