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<br />84-t~u1042
<br />UNIFORM Covevnnrs. Borrower and Lender covenant and agree as follows:
<br />1. Paymeet of Prine~al and Interest. Borrower shall promptly pay when due the principal of and interest nn the,
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of-and-imerat - '
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to [.ender on the day monthly installments of principal and interest are payable underthe Note,-dntfk~tF[e'.Note is paid in full,
<br />a step[ (herein "Funds"} equal to one-twelfth of the yearly taxes and asussments which may ,;attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium`instaBmenfs`for hazard insuratix,
<br />plus ox-twelfth of yearly premium installments for mortgage insurance, if any, all as reagonably.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 the 6uods'-to-pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applyingatie:Runds;:analyzingssid 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 agceemenr- is- made or applicable law-
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earningaori; the Funds,- Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and--.defiits-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 [axes, assessments, insurance premiums and ground rents, shall exceedtfie amount r4gnired [o pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall .be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments. of •Funds. iE the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiumsand ground ients`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 rnailed
<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 paragraph I8 hereof the Property is sold or the Property is otherwise acquired by tender, Lt;ndpr
<br />shall apply, no later than immediately prior to the sate of the Property or its acquisition by Lender, any Funds :held>6y
<br />Lender at the time of application as a credit against the sums secured by [his Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 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 [he 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 />the Property which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manxr
<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-paymtents:
<br />Borrower shall promptly discharge any lien which has priority over [his Mortgage; provided, that Borrower shall -nor-be
<br />required to discharge any such lien so long us Borrower shall agree in writing to the payment of the obligation secured. 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 Properly or any part thereof.
<br />5. Hazard Insurance. Bortower shall keep the improvements now existing or hereafter erected on 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 required to pay the sums secured by [his 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, tf not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance cazrier.
<br />All insurance policies and renewals thereof shall 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 />sad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event 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 otherwise agree in writing, insurance proceeds shall 6e 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 proceeds shall be applied to [he 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 within 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 collect and apply 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 prindpal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and Z hereof or change the amount of
<br />such installments- !f under paragraph 18 hereof [he Property is acquired 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 />acquisition.
<br />6. Preaervafioa and Maintenance of Property; Leaseholds; Condominiums; Planned Unit llevelopmenls. Borrower
<br />shall keep the Property in good repair and shall not commit waste or 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 Ivfortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominitm or planned unit development, and constituent documents. [f a condominium or planned unit development
<br />rider is- executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be .incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />?. PttaNcNoo- of Leader's Security. If Borrower fads to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry apart the Property to make reparcs. if Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Boreower shall pay the premiums reyutred [n maintain such
<br />insurance in effect until such tune as the requirement for such insurance terminates to axardance wuh Borrower's and
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