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<br />Utomoart Covat+ne+'rs. Borrower and Lender covenant and agree as follows:
<br />1. Paymeet of Prlaeipal and Interest. Borrower shall promptly pay when due the principal of and interest oti 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. Feeds for Tms and Itssataace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder 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 giaund rents on the Property, if any, pins one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to dme by Lender an the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shag be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal oe
<br />stale agency {including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insutaace 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 zo be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall- give to Barrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit [o 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 by Lender, together with the future monthly installments of Funds payable prior to
<br />[he due dates of faxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower ar credited to Barrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sttfRcient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Barrower 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 Barrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund [o Borrower arty Funds
<br />held by Lender. If under paragraph 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 Propem or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments Unless applicable taw provides otherwise. all payments received by Lender under the
<br />Note and paragraphs L aad 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 to the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />4, Charges; Liens. Borrower shall pay ail taxes, assessments and other charges. fines and impositions attributable to
<br />the Property which may allele 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, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge say such lien so long as Borrower shalt agree in venting to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith wmest such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pare thereof.
<br />5. Harard I~uraece. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fits, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
<br />and m such annuals and for such periods as Lender may require; provided, that Lender shall not require [hat the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums served b}' this Mortgage.
<br />The insurance carrier providing [he insurance shall be chorea by Borrower subject to approval by Lender; provided,
<br />that such approval shah not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided user paragraph 2 hereof or, if not paid in such manner, by Barrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clattst in favor of and in fern acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Leader all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Barrower 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 otherwise agree in writing, insurance proxeeds 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 ar repair is not economically feasible or iE 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 withia 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to rnllect aad apply the insurance proceeds at Lender's option either [o restoration or repair of the Property
<br />or to the stuns secured by this Mortgage,
<br />Unless Leader and Borrower otherwise agree [n writing, any such application of pra:eeds to principal shall not extend
<br />or postpone the due date of the monthly installmeats referred [o in paragraphs 1 and 2 hereof or change the amount of
<br />Bitch installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in aad to the proceeds thereof resulting from damage to the Property prior to the sale
<br />ar acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acqu~ition,
<br />6. Preservation and Maintenance of Property; Leaseholds; Condamiuiums; Planned Unit Developments. Borrower
<br />shah keep the Property in good repair and shah not commit waste or permit impairment or deterioration of the Property
<br />and shall eatuply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />wudatniitittm or a planed trait development, Borrower shall perform all of Borrower's obligations under the declaration
<br />of covenants creating ar governing the condominium or planned snit development, the 6y-laws and regulations of the
<br />txuttiomiaitun ar planned unit development, sad constituent documents. 1f a condominium or planned unit devetopmeot
<br />rider u ex~uied by Barrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shill be incorpo~ra;ad into and shag amend ru-td supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof..
<br />7. Ptetretian of Leader": Secacity, It Barrower fails to perlarm the covenants and agreements cautained in this
<br />Morigago, ar if any action or procetsding is commenced which materially affects Lender's interest in the Pntpertp'.
<br />includia{i, but rat limited to, emintnt domain, insolvency, code enforcement, or arrangemuus or proceedings invoking a
<br />batpitrupt or docedeut, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums anti take :rich action as is necessary to protect lxnder's interest, including, but not limited to, disbursement of
<br />raasmrabie attotgey's fees artd entry upatt the Froperty to make repairs, It Lender required mortgagt insurance as a
<br />cad<Rdit%Irn of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />iasurat>ae in effect until sttclt time as the tequitetttent for such insurance terminates in :[ccordance wish Borrciwer's and
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