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<br />Ur+rnow.t CoveHetvrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest. Borrower shall 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 />2, Fmda Eor Tana and ittaannce. 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 full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground tents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yeazly premitun installments 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 held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply [he Funds to pay said taxes, assessments,
<br />insurance premiums 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 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 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 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 was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of [he 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 [he amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited [o Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall no[ be 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 Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 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 Lender, any Funds held by
<br />Lender a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBcation of Paymeaty. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and pazagraphs t and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph ?hereof, then [o interest payable on the Note, then to the principal of the Note, and then [o interest 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 Property 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, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Burrower shalt promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Tien winch has priority over this Mortgage; provided, that Borrower shall no[ be
<br />required to discharge any such lien so long as Borrower shalt agree in wrung to the payment of the ot•-gallon secured by
<br />such lien in a manner acceptable to Lender, or shall in goc?d faith contest such lien by, or defend enforcement of such lien iq
<br />legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
<br />5. Bayard losnrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss 6y 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 a, Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required [v pay the sums secured by this Mortgage.
<br />The insurance cazrier providing [he insurance shall be chosen 6y Borrower subject to approval by Lender; provided,
<br />that such approval shall no[ be unreasonably withheld. All premiums on insurance pvlicies shall be paid in the manner
<br />provided under pazagrap6 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lander and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish [o Lender all renewal nottces and all receipts of paid premiums. In the even[ of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make provf of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prviceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically Feasible and the security of this Mortgage 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 procceds shall be applied to the sums secured by [his 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 />dace notice 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 op[ivn either [o restoration or repair of the Properly
<br />or to the sums secured by this Mortgage.
<br />titiless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred tv in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all 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 sale or
<br />acgt»sition.
<br />6. Praervadon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />sha-1 keep the Property in good repair and shall not commit waste or germit impairment or deterioration of the Property
<br />and shaft comply with the provisions of any lease it 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 obligativns under the declaration
<br />or eavenants creating ar governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or plaEtned unit development, and constituent doctmients. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together wtth this Mortgage, the covenants and agreements of such rider
<br />3h811 be intmporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereai.
<br />7. PraMeliatt of i.tnder'a St:curily. ]f Borrower fails to perform the covenants and agreements contained in thts
<br />Murt$a$a, or if any action or proceednrtg +s comtnenced which materially adects Lender's interest in the Property,
<br />incltidia$. but not limited to, eminent domain, insoWetrey, code enforcement, yr arrangements or proceedings involving a
<br />battkNpt or dtxedent, then Leader at Leader"s opsinn, upon notice to Borrower, may make such appearances, +hsbttrse such
<br />surmi and takC such actitm as is necessary to protect Lender's interest, including, but not limned to, disbursement at
<br />raaaanabk attotnay's lrrs and entry apart the Property tv make repairs. [f Lender reyuircd mortgage insurance as a
<br />cattdition of making the kwn sceuracl by thts Mnri$age, Barrvwer shaft pay the premiums requtred to mainEam loch
<br />manna in ettect until such tittle as the requiretrknt far such insurance ternnnates m accordance with BOrtrr?Wer'S and
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