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<br />Uxtrat[M Covsxnxrs. Borrower and i.ender covenant and agree as follows:
<br />1. Payraetat of Prtmipat and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />ittdebtedntss evidenced by the Note, preoaymenz 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. fi'eads for'laaes and Insurance. Subject to applicable law or 4o a wri#ten waiver by Lender, Borrower shall pay
<br />io Lender on ttae day monthly installments of grincipal and interest are payable under the Note, until the Note is paid in full,
<br />a s=tn (hereto "~t€eug") :goal #a arm tw:',fth of ttrz year~y €axes and assessments w blot` may a€tain priority over ibis
<br />Moregsge, 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, aii as reasonably estimated initially and from
<br />time to iirtre by Leader on the basis of assessments and t>Alis 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 shalt apply the Funds to pay said taxes, assessments,
<br />insurance promiums and ground rents. Lender may not charge for sa holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments and bills, unless Lender pays Borrower interest oa the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writittg st 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 sash imerest to tx paid, Lender shall not bs requited to pay Borrower any interest or earnings on the Funds. Lender
<br />shalt give ro Borrower, without charge, an annual accounting of the Funds showing credits and debits fo the Funds and the
<br />p'-'° f.,r wh_+ch each debit to t~ Funds was made. 'P.Lr Funds are pledged a; additional security for 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 />zhe due dolts of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly instalments of Funds. If the amount of iht Parole
<br />held by Ltndee shall not be su[@cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Linder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Linder to Borrower requesting paymem thereof.
<br />Upon payment in foil of nit sums secured try [iris Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Ixadtr. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the tithe of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable taw provides otherwise, all payments received by Lender under xhe
<br />Note and paragraphs ! and 2 hereof shat) be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable an the Note, then ro the principal of the Note, and then to interest and
<br />principal on env Future Advances.
<br />~. C~t'gest I3etss. Borrower shall pay all taxes, assessments and ether charges, fines and impositions attributable to
<br />else Property which rttay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the maarter
<br />provit}td under paragrap#: 2 hereof or, if not paid in such manner, by Borrower makin;; payment, when due, directly zo the
<br />pagce thereof. Borrower shall promptly furnish eo Ltrtder ail notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly fumislt to Lender receipts evide[tciag such payments.
<br />Borrower shall promptly discharge any 3ien which has priority over this Mortgsge: provided, that Borrower shalt not be
<br />required to diseha_rge anu s„ch lien ~, U±rtg as Lz„rmwer that ~ _ ... _.. ,.^.g ±^ 'he payment of ttte ebl:gatior ....; ut~d by
<br />such lien in a manner acceptable 4o Lender, or shall in good faith •comest such lien by, or defend enforcement of such Lien in,
<br />legal proceedings which operate to prevtn€ [he enforcement of the hen or forfeiture of the Property ar any part the:.~_..
<br />g. Hazard Iaee, i3orrowtr shall keep the improvemenu now existing or hereafter erected on the Property insured
<br />against Toss by free, hazards irteiuded within the term "extendcrl coverage", and such other hazards ss Lender may require
<br />and in such amounts and €or such periods as Lender map restuire; provided, that Lender shall not require that the amount of
<br />such coverage excced that amount of coverage required to pay the sums secured by this Mortgage.
<br />'lie insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that sash approval shall not be- [ta_m~~nattly w~it?aheld. All premiu.~ns on i.surance pebs~ shalt k;e paid in the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance polies:s and renewals thereof shall be in form acceptable to Leader and shalt include a standard mortgage
<br />clause In favor of and in farm acceptable to finder. Lender shall have the right to hold the politics and renewals thereof,
<br />and Harrower shalt promptly furnish to Lander all renewal notices and aii receipts of paid premiums. in the event of loss.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make graof of }oss if not made ptnmptly
<br />by Borrower.
<br />Unless Lender and Borrower aiherwise agree in writing, insurance proceeds shat} be applied io tzstaeation or repair of
<br />the Property damaged, provided such restoration or repair is ecanomicatty feasible and olio security of this Mortgage is
<br />naf *.heteby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />be isapaircd, the insurance proceeds shall be applied to the sterns secured by this Mortgage, with zhe excess, i# any, paid
<br />to Borrower. If iht Property is abandoned by Harrower, ar (t Borrower faits [o respond ?o Lcndtr xithin 30 days tram the
<br />date xmtice is mailed by Lender to Borrower that the insurance carrier otters 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-sums securFxi by this Mortgage.
<br />Unless Lender attd Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />cr gostpotte t;~ due dace of the monthly installments referred to in paragraphs 1 and 2 heroof or change the amount of
<br />sucta installments. If under paragraph t8 hereof the Property is acquired by Lender, al! 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 prior fo the sale
<br />or acquisition shall pass to Lender to the extent of [he sums secured by ibis Mortgage immediately prior to sash sale or
<br />acquisition.
<br />b. Preaervat#on and Mafotensnce of Preperty; I =aseholds: Condoml~utps; Planned Uaft Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property
<br />and shalt comply with the provisions of any (ease if this Mortgage is oa a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shat! perform alt of Borrowei s obligations under the declaration
<br />or covenants creating or governing the condominium or pianaed unit development, the by-laws and regulations of the
<br />condominium or planned unit development. and consrtituent doeumeats. 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 tm ineorpvrated taro and shall ameni:#-sad 4upplemtnt the covenants and agreements of this Mortgage as if the rider
<br />wart a part herestf.
<br />?- Pmtectloa of Ixader's See@rity. I, Borrower fails to perform the covenants and agreements contained :n this
<br />Mortgage, or if any action or proceeding is co€ttmetssed which materially affects Lender's- interest in the Property,
<br />ipcluditig, but not limited to> einintnt slntnaitt, insolvency; code enforcement, or arrangements or proceedings involving a
<br />baakntpt or decedenl;'then Lender si j~euder's option,-upon notice to Borrower, may make such appearances, disburse such
<br />ssmss-and take such action as is necessary to protect Lenders in[zrest, including, but not limited to, disbursement of
<br />resatxtabfe attorney's fees and entry upon the Property to -make repairs. If Lender required mortgage insurance as a
<br />eottdition of making the lean secuued by this Mortgage„ Borrower shall pay the premiums required to maintain such
<br />sstsurance in effect unlit such time as the requirement for such insurance terminates in accordance with Borrowers and
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