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<br /> 0 U[+iroxnt CovEtanrr7s. Borrower and Lender covenant and agree as follows :
<br /> r-� 1. P�yment of Piincipal aod Interest. Borrower shall promptly pay when due the principat of and interest on the
<br /> � indebtcdness evidenced by the Note, prepayment aad late charges as provided in the Note, and the principal of and intemst
<br /> � on aay Future Advances secured by this Mortgage.
<br /> � 2. Fnnds for T�n and Insuranca Subject to applicabte law or to a written waiver by Lender, Boaower shall pay
<br /> to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br /> � a sum (herein "Funda") equal to ono-twelfth of the yearly taxes and assessments which may attain prioriry over this '
<br /> ap Mortgage, and ground rents on the Property, if any, ptus one-tweifth of yearly premium installments for hazard insurance,
<br /> 1� plus ono-twelfth of yearly premium installments for martgage insurance, if any, all as reasonably estimated initially and from
<br /> time ro dme by Lender on t6e basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (induding Lender if Lender is such an institution ) . Lender shall appty the Funds to pay said taxes, assessmmts,
<br /> insurance pnmiums 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 bilis, unless Lender pays Bonower interest on the Funds and applicable law
<br /> permits Leader to make such a charge. *3orrower and Lender may agree in writing at the time of exewtion of this
<br /> Mortgage that interest on the Funds shall be paid to Borroweq and unless such agreement is made or applicable law
<br /> requira such interest to be paid, Lender shall not be requimd 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 Fuads was made. The Funds are pledged as additioaal security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by Lender, together with the fuwre monthly installments of Funds payabie prior to
<br /> the due dates of taxu, assessmenLs, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance promiums 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 /> hUd by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground renu 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 Horrower requuting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgage, Lender shall promptty refund to Borrower any Funds
<br /> held by I,endec If under paragraph IS hereof the Property is sold or the Property is otheravise acquircd by Lender, Lender
<br /> shall apply, no Iater tran immediateiy prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> ' � Lender at the time of application as a crtdit against the sums secured by this Mortgage.
<br /> 3. Application of Paymenffi. Unless applicable law providu otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shali be applied by Lender first in payment of amounts payable to Lender by Borrower
<br /> under paragraph 2 hereof, thea to interest payable on the Note, then to the principal of the Note, and then to interut and
<br /> principal on any Future Advances.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Ptoperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> provided under paragraph 2 hereof or, iE not paid in such manner, by Borrower making payment, when due, direcUy to the
<br /> payx thereof. Borrower s6all prompdy furnisb to Lender all notices of amounts duc under this paragraph, and ia the event
<br /> Borrower shatl make payment directly, Borrower shall prompQy furnish to Lender receipts evidencing such payments.
<br /> Botrower shall prompdy 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 Lender, or shall in good faith coniest such lien by, or defend enforcement of such 2ien in,
<br /> j legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br /> 5. Hazard Iavurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> � against loss by Rre, ha2ards included within the term "eatended coverage", and such other hazards as Lender may reqaire
<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 Bonower subject to approval 6y Lender; provided,
<br /> ' Wat such approval shall not be unreasonably withheld. A�l 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, direcUy to the
<br /> , insurance carrier.
<br /> ; All insurance policies and renewals thereof shall be in form acceptablc to Lender and shall include a standard mortgagc
<br /> �; clause in favor of and in form acceptable to Lender_ Lender shall have the right to hold the policies and renewals thereof,
<br /> , a� and Borrowez shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptty
<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 feasible and che securiry of this Mortgage is
<br /> , ; not thereby impairod. If suc6 restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> > be impaired, the insu�ance procceds shall be applied to the sums sewred by this Mortgage, with the excess, if any, paid
<br /> x to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> date noHce is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br /> is authorized to collect and apply the insurance proceeds at Lender's option either to ratoration or repair of the Property
<br /> ; or 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 eaetend
<br /> ior postpone the due date of the monthly installmenu ceferred to in paragraphs 1 and 2 hereof or change the amount of
<br /> such instatlments. If under pazagraph 18 hereof the Property is acquired by Lender, all right, tide and interest of Borrower
<br /> y in and to any insurance policies and in and to the proceeds thereof resultiug from damage to the Properry 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. Preservation and Malntenance of Property; Leaseholds; Condominiums; Plsnned Unit Developments. Bonowet � �
<br /> : shai! keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br /> j aad shall comply with the provisions of any leax if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a
<br /> condominium or a planned unit development, Borrower shall perform all of Borrox•er's obligations under che declaration
<br /> '` or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br /> ; { condominium or plamed unit devetopment, and constiwent documents. If a condominium or planned unit devdopment �
<br /> S rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider -
<br /> �t shall be incorporated into aad sha11 amend and supplemenc the covenants and agreements of this Mortgage as if the rider _ - k" -. . � •
<br /> ; were a part hereof. ^ �,�- �:
<br /> � 7. ProtecHon oE Lender's Secudty. If Borrower fails to perform the covenants and agreements contained in this � * .
<br /> Mortgage, or if any actioa or proceeding is commenced which materially affects Leader's interest in the Property, �
<br /> including, but not limited to, eminent domainy insolvency, code enforcement, or arrangements or proceedings involving a �
<br /> i • baokrupt or decedent, then I.ender at Lender's opGon, upon notice to Borrower, may make such appearances, disburse such =;'+�
<br /> � sums and take such action as is necessary to pwtect Lender's interest, induding, but not limited to, disbursement of ° �
<br /> � nasonable attomey'a fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a ' " `
<br /> � , conditioa of making the loan secured by this Mortgage, Borrower sha11 pay the premiums required to maintain such ' . � �
<br /> ; _ ineuranee in effect until snch time as the requirement for such insurance torminates in accordance with Borrower s and
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