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<br /> 78--� U03025
<br /> Uxrnoxrt Covax�rrrs. Borrower and Lender covenant and agree as follows :
<br /> 1. Payment of Principal and Interest. Borrower shall prompt)y pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and inmrcst
<br /> on any Future Advsnces securod by this Mortgage. I
<br /> 2. Punds for Ta=es and Insorance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender on the day monthly instaliments of principal and intercst are payable under the Note, until the Note is paid in full,
<br /> a aum (herein "Funda") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br /> Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br /> plus ono-tweifth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> dme to time by Lender on the basis of assessmmts and bills and reasonable estimates thereof.
<br /> The Funds shal! be held in an institution the deposiu or accounu of which are insured or guaranteed by a Federal or
<br /> ' ' ' state agency (including Lender if Lende� is such an institution ) . Lender shalt apply the Funds to pay said taxes, assessments,
<br /> insuranca premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiliag said assessments and bills, unless Lender pays Borrower interest on the Funds and applicabte law
<br /> permits Lender to make such a charge. Borrower and L.ender 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 /> requira such interest to be paid, Lender shatl not be required to pay Borrower any interest or earnings on the Funds. Lender
<br /> shall give W Borrower, withaut charge, an annuat accouniing ot 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 hdd by Lender, together with thc future monthly installments of Funds payable prior to
<br /> the due dates of [axes, assessmeots, insurance premiums and ground rents, shal! exceed the amount required to pay said taxes,
<br /> assessments, insurance 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 installments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sufScient to pay taxes, aasessments, insurence premiums and ground rents as they fall due,
<br /> Borrower shaU pay [o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage. Le�der shall prompdy refund to Borrower any Funds
<br /> hdd by I.ender. If under paragraph 18 hereof the PropeRy is sold or the Property is otherwise acquired by Lender. L.ender
<br /> shall apply, 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. Application of Payments. 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 payabte 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 /> principal on any Future Advances.
<br /> 4. CLarges; Lieps. 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
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<br /> payee thereof. Borrower shalt promptly furnish to Lender al! notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment direcdy, Borrower shall promp8y furnish to L.ender receipts evidencing such payments.
<br /> � Borrower shalt promptly discharge any lien which has priority 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 I.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 thereof.
<br /> S. Ha�ard Iosurance. Borrower shall keep the improvements now existing or hereafier erected on the Property insured
<br /> against loss by fire, hazards included within the term "extended coverage", and such other hazards as L.ender may require
<br /> i' and in such amounts and for such periods as Lender may requim; provided, tha[ Lender shall not require that the amount of
<br /> such coverage exceed that amount of coverage required to pay the sums secured by this Morigage.
<br /> The insurance cartier providing the insurance shall be chosen by Borrower subject to approvul by Lender, provided, "
<br /> that such approval shall not be unreasonably withheld. AII premiums on insurance policies shall be paid in the manner
<br /> i � ptovided 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 nnd renewals thereof shall be in fortn acceptable to Lender and shall include a standard mortgage
<br /> ;' dause in favor of and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof,
<br /> and Borrower shall prompUy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Borrower shall give prompE notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy
<br /> by Borrowu.
<br /> [Jnless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Property damaged, provided such rcstoration 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 impsired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />� ' to Borrower. If t6e Property is abandoned 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 ofters to settle a ctaim for insurance benefits, Lender
<br /> i is authorized to col(ect 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 Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />� or postpone the due da[e of the monthly installmen[s referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> E " such installments. If under paragraph 1S hereof the Property is acquired by Lender, all right, tiUe and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds the�eof resulting from damage to the Propeny prior to thc 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 /> acquisitioa.
<br /> 6. Prnervatloo and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />, � sha11 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 lease if this Mortgage is on a Ieasehold. lf this Mortgage is on a unit in a
<br />' � condominium or a planned unit development, Borrower shall per(orm alI of Borrower's obligations under ihe dectaration
<br /> lor covenants cnatiag 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
<br /> � rider is executed by Borrower and recorded together with this Mortgage, the covenan[s and agreements of such rider � `
<br /> � shall be incorpotated into and shall amend and supplement the cavenants and agreements of this Mortgage as if the rider
<br /> were a part hereof. J
<br />` � Z Prntectlon of LendePs Secarity. If Borrower fails to perform the covenants and agreements contained in this
<br /> Mortgage, or if any action or proceeding is commenced which materialty affects Lender's interest in the Property.
<br />; -t inclading, but not limited to, eminent domain, insolvency, code enforcemeni, or arrangements or proceedings involving a
<br /> � bankmpt or deceden4 thrn Lender at Lender's oplion, upon notice to Borrower, may make such appearances, disburse such
<br /> sums and take auch action as is necessary to pratect Lender's interest, including, but not limited to, disbursement of
<br />-. . y � reasonable attomey's fees and entry upon the Property [o make repairs. If Lender required mortgage insurance as a
<br /> j conditioa of making the loan secured by this Mortgage, Sorrowcr shall pay the prcmiums required to maintain such
<br /> � iasurance ia effect until such time as the :equirement for such insurance terminates in accordance with Borrower s and
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