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<br />84~04590
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as foHows:
<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. Funds for Taxes and Insurance. 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 estiniated 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 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 a.ccount,
<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 inte(est or earnings on the Funds. - Lend~r
<br />shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits-to the -Furids--:aild'-th~
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security far 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 ta- pay said'tax~~
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's optian', either
<br />promptly repaid to. Borrower or credited to. Borrower on monthly installments of Funds. If the- amount of :the 'Fuhds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they - fall: due,'
<br />Borrawer shall pay to. lender any amount necessary to make up the deficiency within 30 days from the date notice--is-maile4'
<br />by Lender to. Barrower requesting payment thereof.
<br />Upon payment in full or all sums secured by this Mortgage, Lender shall promptly refund to. Borrower any Funds
<br />held by Lender, If under paragraph 18 bereor the Property is sold or tloe Pro, ,rty is otherwise acquired by Lender, Lender
<br />shall apply, no. later than immediately prior to the sate of the Pro' ty O~ .,) acquisition by Lender, any Funds_ held by
<br />Lender at the time of application as a credit against the sums seLu;' ~_, by this Mortgage.
<br />3. App!i~ation of Payments. Unless applicable law provides otherwise. all payments received by Lender -under the-
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereoI, then to interest payable on the Note. then to the principal of the Note, aod then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borro\\'er shall pay all taxes, assessments and other charges. fines and impositions attributable -to
<br />the Property which may attain a priority over this ~-tortgage. and leasehold payments or graund rents, if any, in the manner
<br />provided under paragraph 2 hereof or. jf not paid in such manner, by Borrower making payment, when due, directly,to the
<br />payee thereof. Borrower shall promplly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shaH prorJptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall nat be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />sllch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ar defend enforcement of such lien in.
<br />legal proceedings which aperate to prevent the enforcement of the lien or forfeiture of the Praperty or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass 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 nat require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums s~cured by this .Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrawer subject to approval by Lender; provided1
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />pravided 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 form acceptable to lender and shall include a standard martgage
<br />clause in favor of and in form acceptahle to 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 praof of loss if not made promptly
<br />by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar 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 the sums secllred by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by' Borrower, or if Borrower fails (0 respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carner oii'ers to settie a claim for insurance benefitsl Lend\:f
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restaration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherViise agree in writing, any su~h application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred tiJ in paragraphs 1 and:! hereof or change the amollnt of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lend~r. 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 priar to the sale
<br />or acquisition shall pass to lender to the extent of the sums secured by this !\:lartgage immediately prior to such sale or
<br />acquisition.
<br />6. Presen'ation and :Maintenance of Propert)': Leaseholds; Condominiums; Planned Unit De\'elopments. Borrower
<br />shall keep the Praperty in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shaH comply with the provisions of any lease if this Mortgage is on a leasehold. If this !vfortgage is on .1 llOit in a
<br />condominium or a planned unit development, Borrower shall perform all of Borrowcr"s l)bligations under the declaration
<br />or coo;;cnants creating or governing the cI)ndominlum or planned unit development. the by-laws. and regulations of the
<br />condaminium or planned unit development. and constituent documents. If 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 />shall be incorporated into and shall iuncnd and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borrov\"cr fuils to perform the covenants and agreements cont<.lined in this
<br />Martgage. or if any action or proceeding is commenced which matcriall)' affe~ts Lelldcr'~ interc:"t in the Property,
<br />including, but not limited to. eminent domain, insolvency, code l'nforcemcnt, or armngemcnts or pnxcedings. involving a
<br />bankrupt or decedent, then Lender at Lender'::; option. upon notice to Borrow.::r, mll~' make Slh.:h ;lppCaraJH.:c~. disburse slIch
<br />sums and take such action as. is nece~sary to protect Lender's interest, lndudlllg, but !l01 lmll1cJ to. disbursement llf
<br />reasonable attorney's fees and entry upon the ProperlY to m.aKC ft:pairs. Jf Lender reqUired tll\.lngagc insurance as a
<br />condition of making the Joan secured by this Mortgage. BorHmer shai! pay the prCmltilnS H'qulfeiJ to maintain such
<br />insurance in effect until such time as fhe rCijuircmcl1t for sllch Insurance !errninatc~ in :n.:~ordtlll(C With Borrower's a.nd
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