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<br />. Urrtpoat~t Covuavnrirs. Borrower and Lender covenant and agree as follows:
<br />1. payment at` principal and Interest. Borrower shall premptlyf pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and tare charges as provided in the Note, and the principal off and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonda ffor Trues and itssontoce, Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Leader oa the day nt<xtthly installments of principal and interest are payable under the No[e, until the Note is paid in full,
<br />a stun Qherein '°Funds°') equal t~ one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and gerund rents an the Property, if any. plus one-twelfth of yearly premium installments for hazard: insurance,
<br />plus one-twelfth of yearly peemittrtt installments far mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />Z7te Funds she@I tae held in an institution the deposits or accounts of which are insured or guarantced by a Federal or
<br />state agency (including Lender if Lender is such an instirution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurana;e premiums and ground rents. Lender may nut charge for so holding and. applying the Funds, analyzing said account,
<br />or verifrfing and compiling said assessments and balls, unless Lender pays Borrowe- 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 shalt be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest ro 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. 1'fLe Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Ftmds 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, shalt exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as ehey fall due, such excess shat be, at Borrowers option, either
<br />promptly repaid to Borrower or credited ro 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 />Harrower shall. pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shalt promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately peior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured 6y this hortgage.
<br />3. Appilcation of payments. Linless applicable law provides otherwise, all payments received by Lender under the
<br />Note and garagtaphs 1 and 2 hereof shall lx applied by Lender first in payment of amounts payable to Lender by Borsower
<br />under paragraph thereof, then to interest payable an the Note, then to the principal of the Noee, and ehen to imercst and
<br />principal on any Future Advances.
<br />4. C6arses; Lktts. Borrower shall pay alt 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, if not paid in such manner, by Harrower making payment, when due, directly io the
<br />payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shelf make payment directly, Borrower shall promptly "furnish to Lender receipts evidencing such payments.
<br />Borrower shaft 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 the payment of the obligation secured by
<br />such lien in a manner arxeptable to Lender, or shall in good faith contest such Tien 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 />5. )3aaard insurance. Borrower shalt keep the improvements now existing or hereafter erected oft 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 steal! not require that the amount of
<br />such coverage exceed that amount of coverage required to pay [he sums secured by this Mongage.
<br />"ltte insurance carrier providing the insurance shalt be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. Alt premsums 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 form acceptabfe to Lender and steal{ include a standard mortgage
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish io Lender all renewal notices and ail 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 eat 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 the 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 sates secured by this Mortgage.
<br />Unless Leader 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 1 and 2 hereof or change the amount of
<br />sash installments. If under paragraph 18 hereof the Property is acquired by Lender, all eight, eitle 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 sate
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mongage immediately prior to such sale or
<br />acquisition..
<br />6. preaenatian and Maintenance of Property; L.eaceholds; Goodominiums; Planned Unit Developments. Borrower
<br />shall peep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />amI shall comply with the provisions of any tease if this Mongage is on a }easehold. If this Afongage is on a unit in a
<br />coadoatinium oc a glanced unit development, Borrower sha21 perform a13 of Borrower's ohligarions under the declaration
<br />or covenants Creating or governing the condominium er planned unit development. the by-laws and reguiaeions of the
<br />condonauium or planted 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 />shalt be incattpazaied into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />wue a gart hereof.
<br />7, protection of Lendre*s Secarity, If Borrower fails to px:rform the covenants and :cgreements contained in this
<br />Mortgage, or if any action or proa:ceding is commenced which materially affects Lender ~ interest in the Property,
<br />includ"utg,, but not limited to, eminent domain„ insolvency, code Inforcemern, or arrangements or proceedings involving a
<br />baut~rtspt of decedent, then Lender at Lewder°s trptiaty open notice to Harrower, may make such appearances, disburse ouch
<br />sums and terse such action as i3 necessary to prcrtrct l..ender'+ interest, inctud;nt„ but nor limited ea, .3isburceme-nt <+f
<br />reaavrtable attorney's fees and entry upon the Property' to make repairs. if Lender required tnonga~ insurance :rs
<br />condition of ruakitrg the loan secured by thix Mortgage, B<Snower shall pay the. premiums required to maint:nn str.:h
<br />3aret¢aitC¢ in et$eet until such. timC as ttzc reyuirernont for such tnsurancc termiaates +n ;tcrt~rdane with Borr.?wcr''s :ind
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