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<br /> Q Ut�ru+oW.t COVExnrlis. Borrower and Lender covenant and agree as follows : �
<br /> ri 1. Payment of Princlpa! and Interest. Borrower shall promptly pay when due the principai of and interest on the
<br /> � indebtedness evidenced by the Note, prepayment and late chacges as provided in the Note, and the principat of and interost
<br /> I ,� on any Futnre Advances secured by this Mortgaga
<br /> � 2. Fmds for Ta=es aod Insorance. Subject to applicable law or to a written waiver by Lender, Borrower 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 fult,
<br /> a aum (herein "Funds'•) equat to ono-twelfth of the yearly taxes and assessmenu which may attain prioriry over this
<br /> � Mortgage, and ground renta on the Property, iF aay, plus one-tweifih of yearly premium installments for hazard insurance,
<br /> CD plus onatwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> � time to time by L.endet on the basis of assessments and bills and reasonable estimat�s thereof.
<br /> The Funds shall be hdd in an institution the deposits or accounts of which are insured o� guaranteed by a Federat or
<br /> state agency (including Lender if Lender is such an institution ) . Lender shalt apply the Funds to pay said taxes, assessments,
<br /> insurance premiums and grouad rrnts. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessmrnts and bills, unless Lender pays Borsower 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 uecution of this
<br /> Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> rcquires such interest to be paid, Lender shall not be required to pay Borrowrr any interest or eamings on the Funds. Leader
<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 Funds waz made. 'i'he Funds are pledged as additional suurity for the sums secured
<br /> by this Mortgage.
<br /> 3f t6e 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 /> assessroents, 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 monthty installments of Funds. If the amount of the Funds
<br /> held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
<br /> Bonower shall pay to Lmder 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, Lender shall promptty refund to Borrower any Funds
<br /> iheld by L.endec If under pazagraph 18 hereof the Property is sold or the Property is atherwise acquired by Lender. Lender
<br /> shall apply, no later than immediatety prior to the sale of the Property or its acquisition by Lender, aoy Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> � 3. Applicatfoo 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 Borrower
<br /> under paragraph 2 hereof, then to interest payable on the Note, then �o the principal of the Note, and then to interest and
<br /> ptincipel on any Future Advances.
<br /> 4. Charges; Iieps, Botrower shall pay alI taxes, assessments and other charges, fines and impositions attributable to
<br /> , the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> , provided under paragraph 2 hereoF or, if not paid in such manner, by Horrower making payment, when due, direcdy to the �
<br /> ; ' payee thereof. Horrower shall promptly fumish to Lender alI notices of amounts due under this paragraph, and in the evrnt
<br /> " Borrower shall make payment directly, Borrower shall promptly furnish ro Lender receipts evidencing such payments.
<br /> ; ; Borrower shall prompUy 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 contest such lien by, or defrnd rnforcement of such lien in,
<br /> �- legal proceedings which operate to prevent the enforcement of the Iien or forfeiture of the Pro ert or an
<br /> �' p y y part thereof.
<br /> „ 5. Ha�rd Insurance. Horrower s6all keep the improvements now existing or hercafter erected on the Properry insured
<br /> � against toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require i
<br /> ° and in such amounts and for such periods az Lender may requim; provided, that Lender shall not require that the amount of
<br /> Ff=� such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> p' T6e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br /> `_,' that such approval shall not be unressonably withheld. All premiums on insurance policies shall be paid in the manner `i'�
<br /> i` 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 acceptabtc 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 /> i: and Borrower shall prompUy furnish to I.ender all renewal notices and all receipts of paid premiums. In the event of loss,
<br /> Borrower sha11 give prompt no[ice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br /> �' by Botrower.
<br /> k Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> �F the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgagc is
<br /> � not thereby impaired. If such restoration or repair is not economically feasible or if the security 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. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> 5 date notice is mailed by I,ender to Bwrower that the insurance carrier offers to settle a claim for insurance bene6ts, Lender
<br /> ' � is authoriud to collect 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 date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> � such instaltments. If under paragraph 18 herwf the Property is acquired by Lender, a11 right, title and interest of Borrower
<br /> in and to any insurance policies and in and to the proceeds thereof resulting from 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 sate or
<br /> acquisition.
<br /> ��_ � 6. Preaervalloa and Malntenance of Property; Leaseholds; Condominlums; Planned Unit Developments. Borrower � � �
<br /> shall keep the Property in good repair and shall not commit waste or permit impairment or detcrioration of the Property
<br /> � and s6a11 comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br /> �n condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br /> or covenants creating or governing the condominium or planned unit development, the by-laws and mgulations of the �
<br /> condominium or planned unit development, and constituent documents. If a condominium or planned unit development y"'� i
<br /> rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider = - ;� . � -
<br /> ahall be incorporated into and shall amend and supplemrnt the covenants and agreements of this Mortgage as if the rider �:-�` r �
<br /> were a part heceof. �
<br /> 7. Protection of Lender'a Security. If Bortower fails to perform the covenants and agreements contained in this
<br /> Mortgage, or if any action or proceeding is commenced which materially aft'ects Lender's interest in the Property, , .��
<br /> induding, buf not limited to, eminent domain, insolvency, code enforcement, or arrangemmts or proceedings involving a ,�,, ,,
<br /> � � bankrupt or dxedent, then Lender at I.ender's option, upon notice to Borrawer, may make such appearances, disburse such � `
<br /> j sums and take auch acdon as is necessary to protect L.enders interest, including, but not limited to, disbursement of ""'
<br /> a reatonable attorney's feea and entry upon thr Property to make repairs. If Lender requircd mortgage insurance as a � '°"
<br /> condition of rtaaking the loan secured by this Mortgage, Borrower shall pay the premiums requirod to maintain such
<br /> :3 insurance in effect until such time as the requircment for such insurance terminates in accordance with Borrower's and
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