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<br />t)ivmroxm Covsrtnitas, I3oerawer and Lender covenant and agree as follows:
<br />1. Faymemt of ~rtcipal and Interest. Borrower shall pramptly pay when due xhc principal of and interest on the
<br />indelbtedness evidenced by the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on any Fututx Advances secured by this Mongage.
<br />2. T+~t~ foz Tames and Insteraaee. Subject to applicable !aw or to a written waiver by Lender, Borrower shall pay
<br />to I.t:nder ixtthe day monthly installments of principal and interest are payable under the Note, until the Nate is paid in full,
<br />a sum {herein "Fonda"l equal to aria-twel€th of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground renes on the Property, if any, plus aria-twelfth of yearly premium installments for haaard insurance,
<br />plus-onx-twelfth of yearly premium iastallrnents for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />rime to tithe by Leader on the basis of assessments and bills and reasonable estir,tates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federa3 or
<br />state agency {irtctttdeng Lender if Lender is such an institution}. Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiuttu and ground rents. Lender may rice charge for so holding and applying the Funds, analyzing said account,
<br />or vt:rifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />pemtits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution. of this
<br />Montgage that interest on the Funds shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such intereaK to be paid., Lender shall not be 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 o£ the Funds held by Lender. together with the future monthly installments of Funds payabie prior to
<br />the cote dates of taxes, assessments, insurance premiums and ground rents, shat! exceed the amount required to pay said taxes,
<br />assesments, insurance premiums and ground rents as -they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. if the amount of the Funds
<br />held by Lander shaLr not he suf$aaeat to gay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Bntrower shall pay to Leer any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leger fo Borrower requesting payment thereat.
<br />Upon payment in full of all sutns secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />tteid by Lender. if under paragraph i8 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, tto 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 bfortgage.
<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, titan to interest payable on the Nat:.. tF.er. to the principal of the Nate, and t;;-,en to interest and
<br />principal on any Futtve Advances.
<br />4. Charges; Y3etn. Borrower shall pay ski taxes, assessments and ether charges, fines and impositions attributable to
<br />she Property which may attain a priority over this Mottgage, and leasehold payments or ground rents, if soy, in the manner
<br />provided under paragraph 2 hereof or. if not paid in such manner, b}• Borrower making payment, when due, directly to the
<br />payee thereof. Botsawer shall promptly furnish to Lender alt notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall pramptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt pramptly discharge any lien which has priority aver this Mortgage: provided, that Borrower shall not be
<br />required to dischazge any such lien so long as Borrower shall agree in writing to the payment o€ the obligation secured by
<br />such teen in a manner acceptable to Lender, ar strait in good faith contest such lien by, ar defend enforcement of such ties in,
<br />legal pxtxcedings which operate to prevent the enforcement of the Sien or forfeiture of the Property ar any part thereof.
<br />5. Ilaaatrd Iasaraace. Borrower shall keep the amprovement, now existing or hereafter erected on the Property insured
<br />agatnstloss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />sad in such amounts artd for such periods as Lender may require: provided, that Lender shall not reyuire that the amount of
<br />such coverage exceed that amount of coverage required io pay the sums soured by tries Mortgage.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shalt 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 payrnem, when due, directly to the
<br />insurance cazrier.
<br />All.. insurance policies and renewals thereof shalt be in form acceptable to Lender and. shall include a standard mortgage
<br />clause in famr of and in form acceptable to Lender. Lender shall have the right. to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender alI renewal notices and all receipts of paid premiums. In the event of lass,
<br />Botsower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made pramptly
<br />by Bonower_
<br />Utiless Leader aztd Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, providai such restoration or repair is economically tcasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is net economically feasible or if the security of this Mortgage would
<br />be impaired, the itawtance 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, ar if $orrower fails to respond to Lender within 30 days from xhc
<br />dais notice is mailed by Lender so Borrower that the insurance carrier offers to acute a claim for insurance benefits, Lender
<br />is authorized to cotlect attd apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to itu sums secured by this Mortgage.
<br />Unless Lender attd Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due. date of the monthly installments referred to in paragraphs 1 and ? hereof or change the amount of
<br />such installments. If under paragraph t$ hereof the Property is acquired by Leader, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage so the Property prior to the sale
<br />or acgttisxteon shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior is such sale or
<br />~•
<br />h. PRasrvat&n< sad. Aiaia[eoaat:c of Property; Leaseholds; Cnndnminiams; Plartaed Unit Developments. Borrower
<br />shag Yelp the Property itt gaud repair and shall not commit waste or permit impairment or deterioration of xb_> Property
<br />and. shall comply with the provisions of any lease if this Mortgage is an a leasehold. if this Mortgage is on a trait in a
<br />coad+~tatittiunt of a planne3 unit develnpmens, Borrower shalt perform all of torrower's obligations under the deciaratian
<br />ar coveuants creatiiag or governing the condominium er planned unit development, the by-laws and regulations of the
<br />ccmdatttinittm ar planned unit. developtent, and const'stuent documents. if a condonxinitun or planned t~nix development
<br />rider is exixuted by Borrow°er sad recorde<'i tagettter uiih this Mortgage, the covenants and agreements of such rider
<br />sjtsll tserneorptsraxtd into and. shalt amend axed supplement the covenants and agreemenu o€ this Mortgage as if the rider
<br />wrrc a part Iaereo#,
<br />~, E'ytaladlatt of. Leatiez*a Secarityr. If Borrower fails to perform the covenants acid agreements comained in xhts
<br />Rlpftgsgs., of if any action or proceeding is rommezacetl which materially aHecis (..ender"s interest in the Pzoperxy.
<br />xlehtdang. bust :tot Iittxated to, eminent domain, insolvency, Cade en(orceruent, oc arrangenrtnts or proceedings involving a
<br />bankrupt ar dxcdcnt, then Lender at L•ettder's option. upon notice to Borrower, many rnake stu:h appearances, disbtszse steels
<br />wens arrd take utrcb azrsion as is necessary to protca-t Lea;der~ mtrresi. anclnvdYng, but aaot limited ia. di.~sirursenxant of
<br />ssaxrartihle zuoa-ncy~s fees and entr;+ aspcw the Protxsry to make repairs. if Lender required mortgage insurance ac .z
<br />conifataan of tnslung that lo~atz seettred by this Mortgage, Boae?uer stsall pay the prctniums rcquircd tcs maiztiazn sazch
<br />aesynryrsre in zfiarct ur.cil settle time as zlxe requirenyertt fear sotcb rnsuxancrc terminaut am sceordanec wztet B>?rrrswnrs ztnd
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