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<br />Utvmoam CoveueHTS. 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 [he Note, and the principal of and interest.
<br />on any Future Advances secured by this Mortgage.
<br />~' 2. Fonds for Taxes and losuranee. Subject to applicable law or to a written waiver by Lender, Borrower shall -pay
<br />[o Lender on the-day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a-s»trt (herein "Funds') equal to one-twelfth of tfic yearly [axes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus uric-twelfth of yearly premium 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 guaranteedby a-Federal or
<br />state agency {including Lender if Lender is such an institution). Lender shall apply the 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 he 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 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 [o pay said taxes, -
<br />. assessments, insurance premiums and ground rents as the}' fall due, such excess shall be, at Borrower`s option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. tf 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 />Borower shall pay to Lender any amount necessary to make up the deficiency within 30 days from [he date notice is mailed
<br />6y 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 paragraph IS 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 Properly 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 law provides otherwise, all payments receive? by Leader under the
<br />- Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment oC amounts payable to Lender by Borrower
<br />under pazagraph 2 herecf, 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 all taxes, assessments and other charges, fines and impositions attributable to
<br />[he Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in [he 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 [heredf. 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 Tien which has priority over this Mortgage; provided, that Borrower shall not be
<br />squired to discharge any such li..n so long as Borrower shall agree in writing to the -payment of the obligau~ ,ceased by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest 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 par[ thereof.
<br />- S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Poepecty insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may' reyuure
<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 reyuired to pay the sums secured by this Mortgage.
<br />- The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />- that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Burrower making payment, when due, directly to the
<br />insurance carrier.
<br />_ All insurance policies and renewals thereof shalt be in form acceptable to Lender 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 shalt promptly furnish [o Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof oC loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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 ecotwmically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall 6e 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 of Borrower fails to respond to Lender within 30 days from the
<br />- date notice is mailed by Lender to Borrower that the insurance carrier offer to settle a claim for insurance benefits, Lender
<br />is authorized to collect and appty 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 t and ~ hereof or change the anount oC
<br />such installments. If under paragraph 18 hereof the Property is acquired 6y Lender, all right, title and interest of Borrower
<br />- in and to any insurance policies and un 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 severed by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />b. Preservation and Maialenance of Property; Leaseholds; Condominiums; Planned Unit Uerelopments. Borrower
<br />shall keep-the Propeny in good repair and shall not commit waste ur permit impairment or deterioration oC the Property
<br />and shalF comply with the provisions of soy lease if 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 obligations under the declara[ign
<br />or cpvenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium-or planned unit development, and constituent documents. ff a condominium or planned unit development
<br />ridec_-is execuked by Borrower and recorded together wtth this Mortgage, the covenants and agreements of such rider
<br />shah 6e irsgorpotated into and shat! amend and supplotuent the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof:
<br />7: Protection of Lender's Security. I[ Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially atlects Lender's interest in t}te Property.
<br />including, bui.nof limited tq, eminent domain, insolvency, code enforcement, or arrangetnents or proceedings involving a
<br />btutkrvptor deuedont, thep Lender at L.epder's option, upon notice to Borrower, may make such appearances, disburse such
<br />stings sad take such action as us necessary tq protect Lender's mreresi, mduding, but nut ;united u>, disbursement of
<br />reasonable attorney's fans and entry upon thtx Yroperry to make repairs. If Lender required morgage insurance as ;t
<br />comlitioa of making the lean secured by this Mortgage, Borrgwcr shall pay the premiums required to maintain such
<br />inauraaca in effaet until such tetne as the requirement Car such insurancae terminates m accordance with Borrower's and
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