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<br />2Jtvtr;•oamt CovErr.~vTS. Borrower and Lender covenant and agree as fellows: e ' ~s ~ _ ~ ~ =~ ~~
<br />1. iPayaeeat a£ P'rinc%gat and Interest. Barrow~er sha31 promptly pay when due the prsncipai of and interest an the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. ~~ for Taxes and Insarance. Subject to applicable law ar to a written wziver by Lender, I3errower shall pay
<br />to Leader an the day monthly insta€Iments of principal and interest are payable under the Note, until the *+ate is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may affair. priority over =his
<br />Mortgage, and ground rents an the Property, if any, plus one-twelfth of yearly premium installments far hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance,. if any, atl as reasonably Estimated initially and from
<br />time to tinge by i_ender on the Eaasis of assessments and hills and reasonable estimates thereaf.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured ar guaranteed by a Federal ar
<br />state agency (including Lender if Lender is such an institution}. !..ender shall apply tlse Funds to pay said taxes, assessments,
<br />insurance premiums and ground. rents. Lender mag• Hat charge for sa balding and applying the Funds, atta3yzing said account.
<br />or verifying and compiling said assessments and hills, unless lender pays Borrawer interest on the Funds and applicable law
<br />permits Lender m make such a charge. Borrawer and Lender may agree in writing at the time or execution of ?his
<br />Mortgage that interest on the Funds shalt be paid to Borrawer, and unless such agreement is made ar app3icatrle taw
<br />requires such interest to be paid, Lender shall not he requir•~d to pay Borrawer s,n ~ interest ar earnings +?n the Fz:rnds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the funds showing credits gnat debits to the :ponds and the
<br />purpose for which eacfii debit to the Ftends was made. The funds are pledged. as additional security far the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by I.cttder, together •.vith the future monthly installments at" Funds payable prior to
<br />the due dates of tttwzes, assessments, insurance premiums and grotancl vents. shall exceed the amount required to pate sand axes,
<br />assessments, insurance premiums and ground runts as they Pali due, reach excess shall be, at Borrower's option, ~;ither
<br />protnptIy repaid to Borrower or credited to l3orrou=er on ntanth9y inst;atiments of Funds. If the amount c?t the Funds
<br />held by Lender shall not be sufFtt:ient to pay taxes, assessments, insurance premitms and ground rents as they fall due.
<br />Borrawer shall pay to Leader any amount neccssa.r~= to n-rake up tite defscicncv rm~itltan 3C? days Srom the date notice is waited
<br />13y Lender to Borrawer requesting payment thereat.
<br />Upon payment in full of all sums secured by this ?4fortgage. i_cttder shall promptly reftsntt to Borrower :any Futtds
<br />held by Lender. if under paragraph 1& hereof flee Property is Bald or t;rc Property is otherwise tacat~ired by Under, Lender
<br />shall apply, no later than immediately prior to the sale of the Property c,r its acquisitia^ hy° Lender, any Fttnds held by
<br />Lender at the time of application as a credit against the sums secured try this ~lc~rrtgage.
<br />3. Applic~tinu o£ PaytnenCS. ttnlcss applicable Jaw pravitles athenkisc;, aU payments feceived by Land.,r utacler the
<br />;`lute gad paragraphs i and 2 hereof shall be applied by Lender first in payment or amoums payable to Lettcier by Borrawer
<br />under paragraph Z hereof, then to interest payable on the Nate. than to the principal a=s the Nate. anal then to interest ;and
<br />principal on any Future, Advances.
<br />4. +Cl-arges; Liens. Borrawer shall pay till t},xes, trsstssments and o her char~cs. fines anti trnpotiitiz~ns aft^btttable to
<br />the Property wlxich may attain a priority over this 't-4artgaye. ,:and iz,aseita3al payments tar ±~round rents, if an„ ~n the manner
<br />provided under paragraph ?hereof or, if' not paid in such inanrcr, by Borrawer making pavmet:t. ~:vhen due, afirecil;- to the
<br />payee ChereoP. Borrower shall promptly furnish to !-ender ati notices rif amotants due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly !ts;-trisH to i_ender receipts evidencin such payments,
<br />Borrower shall promptly discharge any lien which has priority 4:ver this Martgaget pray=.czed, that Borrower shall Hat be
<br />required to discharge any stash lien so long as Borrower shall agree in ysriting to the payment of the ohiination secured b~-°
<br />such lien in a mannee acceptable to !.ender, or shat! in ga,ed faith contest u h :ten by, cr defend entarcc:rnent ai such lien in,
<br />.legal proceedings which. operate to prevent the anfarcement of the lien or forfeiture caf the Property or env part thereof.
<br />~. Hazard I~umn~ce, Borrow>ec shall keep the improvements noFV existing t?t hereafter erected on the r rrsperty insured
<br />against lass by tire, hazards included within the term "extended covral;e"• ttnd such other Hazards as Lender may req•,iire
<br />and in such amounts and for such periods as Lender inay require: lrovided, that Lender shall not require that tfEe amo.~nt o?
<br />such coverage exceed that amount of coverage required to pay the stems secured !7v this Mortgage.
<br />The insurance carrier providing the insurance shall be i:hasea 'try- Borrower subaect to appravai by Lender; pra•oided.
<br />that such approval shall not be unreasonably a>ithheld, ~~.ll premiums tin insurance palis;ics shall he paid 3n the =Wanner
<br />provided under paragraph 2 hereof or, if tzat paid in such manner. by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereaf shall be in farm ~acceptaiale to Le.;der .end shall include .i standard mortgage
<br />clause in favor of and in form acceptable to Tender. i_ender shall. have the right to hold the policies and renewals tr,;rec>f,
<br />and Borrower shall promptly furnish to 'Lender all renewal notices and afl receipts of paid premiums, in the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and 1_ender, l,endc:r may make praaf of loss if not trade promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restaratian ar repair of
<br />the Property damaged, provided such restoration or repair is eeonomicaliy feasible and the security of this Islortgage is
<br />not thereby impaired. if such restoration or repair is not ecanotricaity feasible ar if the security of this i4iortgage would.
<br />be impaired, the insurance proceeds shall be applied to the sums secured by' this Mortgage, suith the excess, if any, paid
<br />to :Borrawer. 1f the Property is abandoned by Borrower, or if Borrawer fai3s to respond to Lender within 30 days *rom the
<br />date notice is maile$ by Lender to Borrower that the insurance carrier offers to setite a c€aim for insurance benefits., Lender
<br />is authorized to collect ¢utd apply the insurance proceeds at Lender`s option either to restoration srr repair of the Property
<br />or to the sums secured. by this Ivlortgage_
<br />13nless Lender and. Borrawer otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of ttte monthly installments refereed to in paragraphs i anci Z hereof ar change the amount of
<br />sucl2 installments. if under paragraph 18 hereof tlsc Property is acquired by Lender, alt right, title and interest of Borrawer
<br />in and to any insurance policies and in and to the proceeds thereaf resulting from damage to the Property prior to the sale
<br />or acquisition sb.all pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate ar
<br />acquisition.
<br />6. Pireservatian ann Maintenance a£ Property; Leaseholds; ~ondantiniums; Planned Unit I)evelapmenfs, Borrower
<br />shall keep the Property an good repair and shall not commit waste ar 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 is a
<br />condominium or a planned unit development, Borrower shalt perform all of Borrower's obligations under the declaration
<br />or covenaits creating or governing the. condominium or planned unit development, the by-laws and regulations of the
<br />condominium as planned unit development, and constituent documents. If a condominium ar planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreernenis of such rider
<br />shall be incorporated into and shall amend and supplement the covenants and agreements as this Mortgage as if the rider
<br />were a part htreaaf:
<br />7. 'Protcetiittier of Ixn+der's Security. If Borrower !'ails to perform the covenants and agreements contained in this
<br />Mortgage, ar if auzy ar~tion or proceeding is cammeneed which materially attests Lender's iiiterz;st in the Propert}';
<br />;ncluding, but nfat limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />oanictcpt ordecex~,.nt. thten Lender at l.endcr's option, upon natiee to Borrawer, may make sash appearances, disburse such
<br />~~zasras acrd tyre t;U~t=E3 ar'~ticsn as iS rteaessary in protect Lender's interest. including- buC Hat limzte+3 fo, <iisbnrsernent crf
<br />t~;r~ -3i-,ie ;ttr~anrt~y~~+ fees and cr,-try upon the Property to rnzc3ce repairs- if L.ettker reyuirrd rnc,rtgago rntiuranee :es .t
<br />_:.~irslzt~on .~f n:~r;:rg e lean •rcurril by tl?rt ~i[artgage. Barr<swer sirali flay the E^~rrmiunts required to rnaritirn ht:c'i3
<br />aas;zrancc ail ir_t ~~~rii ,...:~m+r ::. •nc c~uucrnent fior tiuch an~surar!ce termixr.it+:~; :ra accordance witt€ Bc=rrower`~~ „r:d
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