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<br />UNIFORlif CAVE:IANTS. Borrower andZender covenant. and agree as follows:
<br />1. Paymcet of Ptinclpalaed Infcrest. Borrower shalt promptly pay when due the principal of and interest. on the
<br />indebtedness evidenced by t&e Note, prepayment and-late charges as provided in the Note, and the principal of and inieresf
<br />on any Future Advances secured by this-Mortgage.
<br />I+ 2. )Nlueds fps Taxes and `Inauraece. 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 °Fitnds") 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 yeartypremium 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 6m€ by Lender on the-:basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shall: be held ro=an'institution the deposits or accounts of-which are insured or guaranteed by a Federal or
<br />state agency (including LenderifLender issuch 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 anal applying the Funds, analyzing said account,
<br />of verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fonds 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 />Mortgagethat interest on [he'Funds shall bepaid to Borrower, andunlesssuch agreement is made or. applicablelaw
<br />requires such interesrto be paid, Lender shall not. berrequired to pay Borrower any interest or earnings omthe Funds. Lender
<br />shall give to Borrower;withoutcharge, an annual accounting of the Fundssfiowing credits aoddebits to the Funds and the
<br />purliose for whicheach debit [o the Funds was made. The Funds are pledged as additional security for the`sums secured
<br />by this Mortgage. '
<br />If the amount of he Funds held by Lender, together with the future monthly. installments of Funds payable prior to
<br />the dtre dates of taxes; assessments, insurance premiums and ground rents, shall exceed the amountrequired to pay said taxes;
<br />`assessments, insurance premiums and .ground rents as they fail due, such excess sha16 lie, at Borrowers option, either
<br />promptly. repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held hY; Lender shall not'be sufficient to pay taxes, assessments, insurance premiums and. ground .rents as they.; fall due.
<br />_.Horrowershall pay to Lenderanyamount necessary to'make up thedeficiency within30'days fremthe datenotice ismailed
<br />by Leedef to Borrower requesting payment thereof.
<br />-Upon payment in full of all sums secured by-this Mongage; Lender shalt. promptly refund. to Borrower any Funds-
<br />held by Lender: If under paragraph 18 hereofthe Property. issold or. the Propertyisotherwiseacquired:.by Lender, :Lender
<br />shalt apply,. no later than immediately prior to- thesale. of the Propene.. or its acquisinon byLender, any Funds: held by
<br />Lenderar he time of application as a crediragainst tfie sums secured by this Mortgage.
<br />3..'Ap~iic~tion of Paytneets. Unlessrapplicable taw provides otherwise, all.payments-received by' Linder under the
<br />Note and pazagraphs l'aad'2 hereof shall be applied by Lender first igpayrnent of amounts payable to Lender by Borrower
<br />under. paragraph2 hereof,.then to'interestpayable on the:Nots, thento the principal`of theNote, and then to interest and
<br />principal' on any Future Advances..
<br />4. 'Charses;:Iiees. Borrower shall pay all taxes,.assessments and.othercharges;.fines-andimpositiens attributable to
<br />the Property which may attain a priority over this Mortgage; and leasehold payments or ground rents: if nay, 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 />payee thereof. Borrower shalLpromptly fumtsh to Lender all mottoes of amounts due under this paragraph and in the-event
<br />- Borrowershall makepaymenc directly. Borrower shall promptly..furnish to Lender receipts evidencing such. payments.
<br />Borrower shall promptly discharge any`lieo whicFr has priority over this Mortgage; `provided, that.. Borrower shall not be
<br />-. required [o'dischazgeany: such lien solong as:Borrowershaltagree inwriting to [hq-;payment`aF the:obiigatiomsecured by
<br />such lien inn manner acceptable to Lender, or shall in good faith contest. such lien by, or defend enforcementof 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 fnauoece. Borrower shall keep the improvements now existing orhereafter erected on the Property insured
<br />against less by ftre, hazards included within the: term "extended coverage''; and ouch ether. hazards as Lender may reywre
<br />and in sueh'amounts and for such geriods as Lendec may require; provided, that Lender shaltnot require. that the amowrt of
<br />such coverage exceed that amount of coverage required to pay,ttie sums secured'by this Mortgage.
<br />The insurance comer providing the insurance shall 6e`chosen by Borrower'sabject to ,approval by Lender; provided,
<br />.that such approval-shall not be unreasonably withheld...All premiums,on insurance policies-shall be paid: inahe manner
<br />provided under paragraph 2'hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurancecarrier.
<br />All insurance policies anddenewttls thereof shall be in form acceptable to Lender and hall indude astandard-mortgage
<br />-clause imfavor of and in form acceptable to Lender. Lender shall have the right,tu :hold the'policies and renewals thereof;
<br />.and Borrower sha1P promptly furnish to Lender all renewal notices and all. receipls_ofpaid: premiums.' In tfie even[ of loss,
<br />Borrower shalt gi~'eprompt notice to theiosuraneexarrier end Lender: Lendermaymake proo[ oftoss if not made promptly -
<br />by Borrower.
<br />Unless Lender and Borrower otherwise:agree inventing, insurance proceeds shall. be applied to restoration-or repair of
<br />the'Property damage, provided-such restoration qr repair is economically feasib}a and the'securiry of this'Mortgage is
<br />nvtYhereby impaired. If such restoration or repair isnoicconomicaily feasible or_if`the security of this ,Mor[gagewould
<br />: be impaired, the.iosutanceproceeds shall:be appliedto thesums sanireu h5 thisMortgage,with the excess,-ifany, paid -
<br />to Borrower. if the: Property is abandonedby Borrower, ar rt` Bonq@~er fails to. respond to :Lender within 30 days frornthe
<br />date nonce is mailed by Lender toBorrower that the insurance carri€r offers to settlea claimfor insurance benefits; Lender.
<br />is authorized to collect and apply theinsurance proceeds at Lenderi option either torestoration or repair of the Progeny
<br />or to the sums secured by. this Mortgage.
<br />Unless Lender and borrower otherwise agreeinwriting,-any. loch applicationiof proceeds-to principalshatl not extend-
<br />or postpone [he due date.of the moachty. installments referred to in paragraphs 1 and 2 hereof or change the. amount of
<br />such installments. IftmderpazagraphT8:hereof the Propertyisacyuired;by l.,ender, all right, title and'interestbFBorrower.
<br />in and toany insurance policies and in andao the :proceeds thereof resu(tngJrom damage tot.he Property:. prior. to the sale
<br />or acquisition shallpass to Lcoder td the extent of ahe sums. secured by thrv; ~lurigage iminedsately prior [o such sale or
<br />acquisition.
<br />6• Preservation and Maintenance oEProperty; Letueholds; Condominiums; Planned Unit-Devdolements. Borrower
<br />shell keep the Property in good repair and shall not commit waste orpertnrt impairment or deterioration of the Property
<br />and s:rall complywith the provisiotrs:of any leasc3f this: Mortgage rs on a leasehold: 1f this Mortgage is on a unit in a
<br />condominium oFaplannedcnit development, Borrower shalt:perfarm a11oI Borrower's obligatiensunder the dedaraticrn
<br />or covenants creatingor govemingthecondominium or planned unitdevelopment. the ny-laws andregulations ofthe
<br />condominium or planned utut development, and coitstitpen[ documents: `If a condominium or planned unit development
<br />ride: is executed by Borrower and recorded together with this. Mortgage, the covenants and agreements of such rider
<br />shag be incv:porated into and shall amend and supplement zhe envenoms and agreements. of this Mortgage. as it the rider
<br />~scre a part hereof. ;.
<br />7. Protection of Lenders Seeurity. IF Borrower fails to perform the mvcnaNS and agrcenrcnts amtatncd in this
<br />Mor€gage, nr if any aut.~n or proceeding is commenced .which metcriall, ,rflects Lentier~ urteresC'in the Progeny-,
<br />-including, but not limited to, enunent domain, iusofveney, codecnlurcemenf,~r arrmgem€nts or proceedings involving a
<br />hankrupt or decedent, then hander at Lender's option; uppnnotieeto Borroticr, mayrnake such appearances, disburisc: such
<br />sunvs and tike such action. as is nccessary• to protect Lender's tnrerest, .including; but not limited. to, ilisburscnrent cC
<br />reasonable a.tonrc}''s tees. and. entry upon: the Pruperty to make repairs. if t.egd€r r~graired mortgage nsuratrct a} a
<br />cunditien of makingtha loan securedbythts Mortgage.Borrower shell pay tits prcuuums rcqui;rrdto maintain such
<br />insurance tit cficct until suchtime as the requirement for such insurance terminates in :ucordance with Borrower's an<1
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