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<br />Utvtrox!et Covst+atvrs. Borrower and Lender covenant and agree as follows: ~2 { j ~' ~~ ~ "
<br />L Payment of Principal and Interest: Borrower shall promptly pay when due the principal of and interest on the
<br />indebtednessevidenced by2he Note,prepayment andla[e cfiarges as providedin the Noee, and the principal ofandinterest
<br />on any Future Advancesaectired. by this Mortgage.
<br />2. Fends Por Ta:es a~ Insurance. Subject to applicable taw or to a written waiver by Lender, Borrower shale pay
<br />to Lender on the day. monthly installmentsof principal and interest are payable under [he Note, until the Note is paid infutl.
<br />a sum (herein "Funds") equal to one-twelt`th 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, ail as reasonably estimated initially and from
<br />time to time by Lenderon ffie 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 gttaranteed,by a Federalor
<br />state agency (including Lender if Lender is such an institution). Lender shall apply [heFunds to pay said taxes, assessments,
<br />insurance premiums andgtrotmd rents. Lender may not charge for so holdingand applying the Funds, analyzing said account,
<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 m .writing at the time of execution of-this
<br />Mortgage that interest on the Funds shalt be paid [o Borrower, and unless such. agreement is made or applicable law
<br />requires suchinterest to be paid, Lender shall notbe required to pay Borrower any interest ur comings on the Fonds.Lender
<br />shall give [o Borrower, without charge, anaonual accounting of the Fundsshowing creditsanddebiss to theFunds and. the
<br />purpose. for which each debit :o. the Funds was made. The Funds are pledged as additional security for the sums secured`
<br />bythis Mortgage.
<br />If the amount ofthe Funds held by Let:der, together with [he future monthly installmenss of'Funds payableprior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceedthe amount required topay. said faxes,
<br />assessments, insurance premiums and .ground rents as they fall due, such excess shall ix; 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 Leodershatl not be sufficient topaytaxes, assessmenss,insurancepremiums and groundrenis 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 Leader to Borrower requesting payment. thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Harrower any Funds
<br />held. by Ixnder. If under pazagraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior tothe-sale of the Froperty oYiis acquisition by Lender,-any Funds held by
<br />Lender at the time of application as a credit against. the sums secured by thisMOrigage.
<br />3. Application of Payments. Unless applicable taw 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 />underparagraphThereof. thento interestpayableon tbeNote; then to the principal o[ the Note, and then tointerest and;
<br />principal on any Future Advances.
<br />-4. ClfuRes;Lieas. Borrowershall pay all taxes. assessments aadothercharges, fines aodimpositionrattributabie to
<br />the Property which mayattain a priority over this Mortgage, and leasehold payments or ground rents. if any: in the manner
<br />providedunder paragraph 2 hereof or, if not paidm such manner,.bpBorrowermaking payment; when due: directlyiothe
<br />payee thereof. Borrower. shall promptly furnish to Lenderall nouces oEamounss due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower. shall promptly furnish-to' Lender receipts: evidencing. such: payments.
<br />Borrower shat[ promptly discharge any Tien which has priority over this Mortgage;. provided, that )iorrower'shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing. to ttie paymem o]' ahe obligation secured hY
<br />such lien: in a manner acceptable to Lender, or shall in good faith comesLsuch lien hy; or defend enftarcementof such lien in,
<br />legal proceedings which operate to prevent the enfuzcemenr of she: hen or fodt:i[ure of the Property. or any part thereof.
<br />: 5. Hazard lasarance. Borrower shall keep the improvements now existing or hereafter ercded nn the Prnperty insured
<br />against loss by fire, haiardt included within the term "extended coverage", and such other hazards as Lender may. require
<br />and in such amounts and forsuch periods as Lender. may require; prov;~cd, that Lenderahall not require. that. the amount of
<br />such coverage exceed4hat amount of coverage required to pay the sums >ecured,by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject-to approval by Lender; provided,
<br />thatsudt approvaLshall notbeunreasonably withheld. Ail premiums on insurancepoliciesshalltie paidin themanner
<br />-provided,under pazagraph 2 hereof or, if not paid irrsuch manne;t by Hdrrower making payment, when due, directly to the
<br />insurantt carrier.
<br />All insurancepolicies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor ofand in form acceptable to Lender Lender sha{I have the. right toF:old the policies and renewals thereof.
<br />and Borrower hall promptly furnish ttt Leader all aenewat notices and all receipts of paid premiums. in the event of loss::
<br />Borrower shall give prompt notice to the insurance carrierand Lender. Lender may. make proof of 3oss if not made prornpt.y
<br />bgBorrower:
<br />Unless Lender and $orrower otherwise agree in. writing,. insurance. proceeds shall. be applied to 7cstoratiott or repair of
<br />the Property: damaged, provided such restoration or repair is economically 4easible and the security of this Mortgage is
<br />northereby impaired. If such restora[ionor repair isnat ~roonomicallyfeasible or ifzhe securityof this Mortgage would
<br />be. impaiired,.themsurance proceeds shell be applied to the sums sccuredb}'.this.;4lortgage, 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 fromlhe
<br />date nopce is mailed by Lender to Borrower that the. insurance carrier offers: to settle a rialto for insurance benefits; Lender
<br />is authorized[ocollecf andapply`theinsurance proceeds at.Lertdersoption either io restorationor repair oftfie Property
<br />orao the sumssecured:by this.Mortgage.
<br />Unless LenderandBorrower. otherwise agree in writing, any such application of proceeds toprincipal shall. not extend
<br />or postpone thedue date of the monthly installments zeferred to in paragraphs 1 and 2 hereof or change the amount: of
<br />such installments..lfunder paragraph i3 hereof the Properly is acqused by Lender, ail 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 p: for to ifie sale
<br />or acquisition shalt,pass to Lender to the extent of the sums secured' by this Mortgage smmediately. prior to such sale. or
<br />acquisition.
<br />6. Preservation sod Maintenance of Property; Leaseholas;. Condominiums; Planned Linn Developments. Borrower
<br />shallkeeptheProperty in goodrepair andshall,not commit waste or permitimpairmenror deterioration of the .Property
<br />and shall comply withthe provisions of any lease if this Mortgage is on a leasehold. [f this Mortgage is bn a unit in. a
<br />condomuiium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing. the condominium or. planned trait development, the by-laws and: regulations of the
<br />condominium or planned unit development, and constituent documents If a' condominium or planned uni± development
<br />rider. isexecutedbvBorrowcr and. recorded together with this Mortgage, the covenants and agreements of such rider.
<br />shall be incorporated into and. shall. amend and supplement the covenants and agreements of this Mortgage as if the. rider
<br />were a part. hereof.
<br />7. Protection of hende2s Security. Tf Borrower fails to perform ahe covenants and .agreements contained in this
<br />Mortgage,: or if any action or..proceeding is commenced which. materially affects Lender's interest in the Property,
<br />indading, but not limited to, eminent: domain, insolvency, code enforc:emerzr, or arrangements or proceedings involving a
<br />bankrupt or decedent; then Lender ai Lender's option, upon notice to Borrower, may make such appearances. disburse such
<br />sums and take such action as is necessary to protect Lender's interest: including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Properly to make repairs. 1f Lender required-mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance. terminates in accordance with Borrower's and
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