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<br />UNIFORM COVENANTS. 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 ~nterest
<br />on any Future Advances secured by this Mortgage.
<br />%. Funds for Taxes and Insunnce. 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 rents on the Property, if any. plus 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 time by Lender on the basis of assessments and bills and reasonable- estimates thereof.
<br />The Funds shaH be held in an institution the deposits or accounts of which are insured or guaranteed by a Federaror
<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 3_CCOIJOt,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on t?e Fun.ds 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 PI:' -applicable- law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings <?n 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 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 or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not 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 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 Property 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 received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amollnts 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 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, i[ not paid in such m,mner, 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 shaU 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 any such lien so long as Borrower shall agree in writing to th~ 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 Property or any part thereof.
<br />S. Hazard losUl"8nce. Borrower 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 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 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 for:n aCl.::eptable to Lender and shaH include a standard mortgage
<br />clause in favor of and in form acceptable ro Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and 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 />Vnle.ss lender and Borrower otherwise agree in writing, insufi.ln~e 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 s.uch restoration or repair is nol economically feasible or if 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 Bormwer, 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 otTers to sellle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to re;:storation or repair of the Properly
<br />or to the sums secured by this Mortgage.
<br />Unless Le_nder and Borrower otherwise agree in writing, any such application of proceeds 10 principal shall not extend
<br />or postpone the due date of the monthly instaUments referred to in paragraphs I and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is aC4uircd 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 Properly prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this !\"1ortgagc immediately prior h) such sale or
<br />acquisition.
<br />6. Preservation aod Maintenance of PropertJ; Leaseholds; Condominiums; Planned lJnit ne\'elopmenls. Borrower
<br />shall keep the Property in good repair and shaH not commit v."aste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage i.~ on a leasehold. if this Mortgage is ul\ .1 unit In i\
<br />condominium or a planned unit development, Borrower s.hall perform all of Borrower's obligations under the dcclumtion
<br />or covenants creating or governing the condominium ~)r planned unit development. the by-,Iaws and regulations of the
<br />condominium or planned unit development. and ~onstjtucnt documcnl~. If a condominium or planned unit development
<br />rider is executed hy Borrower and recorded together with this Mortgage, the covenalllS ,tnd agreements (If such rider
<br />sball be incorporated into and shaH amend and supplement the C'ovenants and agreements of thiS Mortgage as if lhe rider
<br />were a part hereof.
<br />7. Protection of LeDder's S<<urity. If Borrower fails to perform the covenants and agreements. c(lntalncd in [his
<br />,Mortgage. or if any action or proceeding is commenced which mah:rially affC4.:.:ts Lender's. interest in the Propert)',
<br />including. but not limited to, eminent domain, ins.olvency, code enforcement, or arrangemems or proceedings involving a
<br />bankrupt Of decedc:-nl. the:n Lender at Lender's option, upon notice to Borrower, may make such appcaru.nccs. di-sbur~c sUI.::h
<br />sunu and take such action as ii necessary to protect Lender's Intercst, including.. but not limited to. disbursement of
<br />reasonable .Uomey's fees and entry upon the Propert)' to make repairs, Ii Lender rC'"Iuircd mortgage insurUlice .is ~I
<br />condition of making the loan sc.."Cure:-d by this Mort8a.gc~ Borrower s.haU pay the premiums reqUIred to mainta.in MKh
<br />insurance in ctfett until :such time as the requirement for such insurance terminates ill ~\cc_Qrdan-i.:c \\'ah Borrowers and
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