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<br /> �s- U03051
<br /> UrrrnoxM Covexee�rs. Borrower and L,ender covenant and agree as follows :
<br /> 1. Payment of Principal and Inferest. Borrower shail promptly pay when due the principal of and interest on the
<br /> indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intenst
<br /> on any Future Advances secured by this Mortgage.
<br /> r Z. Fands for T�ea and Iasurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br /> I : to Lender on t6e day monthly instaliments of principal and interest are payable under the Note, until the Note is paid in full.
<br /> � a aum (herein "Funda'7 equai 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 one-twelfth of yearly premium iastallments 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 Funds shall be hetd in an institution the deposits or acwunts of which are insured or guaranteed by a Federal or
<br /> state ageocy (including Lender if Lender is such an instimtion ) . Lender shall appty the Funds to pay said ta�ces, assessments,
<br /> insurance premiums and ground renLs. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiting said assessmrnts and bills, 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 uoless such agreement is made or applicabie law
<br /> rcquires 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 Sorrower, 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 additionat security for the sums secured
<br /> by th;s Mongage.
<br /> ! If the amount of the Funds held by Lender, together with the future monthly installments 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 /> assessmmts, insurance premiums and ground rents as [hey 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 ihe Funds
<br /> held by Lender shall not be sufficient to pay tvices, ascessmen[s, 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 notice is mailed
<br /> by Lender to Sorrower requesting payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall prompdy refund to Borrower arty Funds
<br /> hdd by Lender. 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 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. Applicatlon 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 payable to Lender by Sorrower
<br /> under pazagraph 2 hereof, [hen 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. Cha�ges; Liens. Borrower shall pay all taxes, assessments and o[her charges, fines and impositions attributable to , . �
<br /> We Property which may attain a priority over this Mortgage, and Ieasehold payments or ground rents, if any, in the manner
<br /> � provided under paragraph 2 hereof oq if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> payee thereof. Borrower shall promptly furnish to Lender aIl notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such paymena.
<br /> Borrower shall prompdy discharge any lien which haz 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 thc obligation secured by
<br /> i such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defmd enfomement of such lien ia,
<br /> ' legal proceedings which operate to prevent thc enforcement of the lien or forfeiture of the Propeny or any part thereof.
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<br /> 5. Hazard Insu�ance. Borrower shall keep the improvements noN� existing or hereafter erected on the Property insured
<br /> against loss by 5ro, 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 Mortgage.
<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 unreasonabty 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 /> iusurance carrier.
<br /> ^ All insurance policies and renewals thereof shall be in form acceptab�e [o Lender and shall include a standard mortgage
<br /> clause in favor of and in form acceptabte to Lender. Lender shall have the right to hold the policies and renewals thercof.
<br /> and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> i Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompUy
<br /> by Borrower. .
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> the Property damaged, provided such restoration or repair is economically feasibte and the security of this Mortgage is
<br /> not thereby impaired. If such restoratian or repair is not economicxlly feasible or if the security of this Mortgage would -
<br /> be impaired, t6e insurance proceeds 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 nouce is mailed by L.ender to Horrower that the insurance carrier offers to setUe a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the insurance proceeds at Lender's option either to restarrtion or repair of the Property
<br /> or to the sums secured by this Mortgage.
<br /> Unless I.ender and Bonower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> or poatpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> such installments. If under paragraph IS hereof the Properry is acquired by Lender, alI right, tide and interest of Borrower
<br /> ' in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale
<br /> � or acquisition shall pass to Lender to ffie extent of the sums secured by this Mortgage immediatety prior to such sale or '
<br /> acquisition.
<br /> � ' 6. PreservaBon sod Maintenance of Property; Leaseholds: Condominiums; Planned Unit Devdopments. Bottower � ��
<br /> ahall 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 leasehold. If this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> X or covenants creating or govecaing the condominium or planned unit development, the by-laws and regulations of the �
<br /> s condominium or planned unit development, and wnstituent documents. If a condominium or planned unit development
<br /> ` rider is wcecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider - ^
<br /> > "'4,
<br /> j ahall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider `_- �'
<br /> j were a part hereof. ' �'' " :
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<br /> 7. Protectlon of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br /> Mortgage, or if any aMion or proceeding is commenced which materially atfiects Lender's interest in the Properry,
<br /> ? including, .but not limiud to, eminent domaPh, insolvency, code enforcement, or arrangements or proceedings involving a
<br /> i bankrupt or decedmt, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such , � '�
<br /> ; sums aad take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of � `
<br /> , reasonablt attorney's fees and entry upon the Property to make rcpairs. If Lender required mortgage insurance as a , , '
<br /> . condition of making the loan secured by this Mortgage, Borrower shatl pay the premiums required to maintain such �` �
<br /> insuraace in effect until such time as the iequirement for such insurance terminates in uccordance with Borrower's and
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