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<br />Ut~uraaar CavetvnNTS. Borrower and Lender covenant and agree as follows:
<br />I. Paymest of Prtneipal and Interest. Borrower shalt promptly 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 interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Frieda for Taus sod htsannce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Leader on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a stmt (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents ott the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mongage insurance, if any, alt 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 Fnods shall be held in an institution the deposits or accounts of which are insured or guaranteed 6y a Federal or
<br />state agency (inclnding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground renu. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />perrrtits Lender is a-,a:c ~w:h a cna;ge. P,oroaer and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Ftmds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall glue to Borrower, without chazge, an annual accouming 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 pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held 6y Lender, together with the future monthly installments of Funds payable prior to
<br />ehn ._+.,. A,rec a{ s?xec, assessments, insurance premiums and eround rents. shall exceed the amount regnired to pay said taxes,
<br />assessmenu, insurance premiums and ground rents as they fall due, such excess shall 6e, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on momhly installments of Funds. if the amount of the Funds
<br />held by Lender shall not 6e sufficient to pay taxes, assessments, 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 Leader to Borrower requesting payment dtereo[.
<br />Upon payment in full of all sums secured by this Mongage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph Ig hereof the Properly is sold ar the Propert}• is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the salt of the Property yr its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit agatnst the sums sectued by this Mortgage.
<br />3. Applkation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and pazagraphs I sad Z hereof shalt be applied by i_ender first m payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable an the Note, then tv the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />+I. Charges; Lkos. $orrower shall pay alt taxes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority ever this Mortgage, and leasehold payments or ground ants, if any, in the manner
<br />provided under paragraph 2 hereof nr, tf not patd m such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borcower shall promptly furntsh to Lender all nvuces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Bturower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnvrity over this Mortgage; provtded, [hat Borrower shall not be
<br />regnired to discharge any such Tien sa tong as Borrower shall agree in writing tv the payment vl the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ar defend enforcement of such lien in,
<br />legal proceedings which operate tv prevent the enforcement of the Len yr forfeiture of the Prapeny or any part thereof.
<br />5. ]lia:ard J'nsrrraaee, Borrower shall keep the improvements nvw existing or hereafter erected an the Property insured
<br />against loss by fire, 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 requred to pay the sums secured by this Mortgage.
<br />The insurance cazrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that suck approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, tf not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals therevf shall be in form aaeptable to Lender and shat! include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. 'tender shall have the right to hold the policies and renewals thereof,
<br />and Borrowror shall promptly furnish to Lender ati renewal nouces and all receipts of paid premiums. In the went of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower atherw•ise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such res[orauon or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. tf such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall tx applied to the sums set:ured by this Mongage, with the excess, iF any, paid
<br />to Borrower. If the Prapeny is abandvned by Harrower, yr i( Borrower fails to respond to Lender within 30 days lrom the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance henefits, Lender
<br />is authorized to colltxt and apply the insurance proceeds at Lender's option zither to restoration or repair of the Prapeny
<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 Z hereof yr change the amount of
<br />such iastalimeats. If under paragraph tg hereof the Properly is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insutattce policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or aegttisition shag pass to Lender to the txtem of the sums secured by this Mortgage immediately prior to such sale yr
<br />a.qui~t~t.
<br />S, larerervat[nn and MaLNetsaace of Prnperi7; Leaschold~ Gondomlaiutas: Planned Unit I?evelopments. Horrowzr
<br />shag leap the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Prapeny
<br />and shall comply with the provisions of any lease if this Mortgage is vn a leasehold. If this Mortgage is an a unit in a
<br />eoodaimiofum or a planned unit development, Borrower shalt perfvrm alt of Borrower's vbligativns under the declaration
<br />or cimenaats orating or govtrrting the condominium or planned unit development, the by-laws and n:gulatians of the
<br />condoattinium or ptaaoed unit dcvolapttunt, and evnstituent documents. If a condominium or planned unit development
<br />r~ is estxuted b}t Borrower and retotxie;! together wuh this Mongage, the covenants and agreements of such rider
<br />shall be iaow•par+itad into and shall amend and supplement thr covenants and agreements of this Mongage as tf the rider
<br />wtsre a part hereof.
<br />1: ~ aC Lendtrr'a SernrNy. if Harrower fails to perform the eavenants and agrcetttents contained in this
<br />Alorfgt6ge„ err ~ say artiao or ptoasecfing is vromtitenced which materially atfects Lender's interest in the Property,
<br />itsrludiag. but not limited to, eminent datttaw. insolvency. rude znforcetttent or arrangements err proceedings involving a
<br />tgtnltt~t or ~s:adatt, than Lwder at l.ander's option, upon notice to Florrvwer, may make such appearances, distwrse such
<br />sums sad faire stsclt action ss b ne4mssary to prvtezt l.endar's imerrst. including. but not iinutrd to, d:sbut'semznt vt
<br />raaavaa#dis attor'LMSy's foss asd entry upon eha Prapeny to make repairs. Ft 1~nder required mangagr insurance as a
<br />cop$ltiioa of tualtitsg tbt loan sas;ucad by this Mongage, Bontrwtr shalt pay the premiums r~zquued u, maintain such
<br />~ utt e$4et tmtil such time as the ttogntreoaent for such insurance terminates in accontancz w°tth Borrwer'. and
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