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<br />(INIFURivt Covewntrrs. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment 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. Fends fter'i'9ass anti Aresurattee. Subject to applicable taw or to a written waiver by Lender, Borrower shall pay
<br />io Lender on the day monthly installments of principal and 'interest are payable under the Nate, unlit the Note is paid in full,
<br />a stun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />'mac Ea:.;r, and a...tend rents a~-~ t;. °roy~=.y, i€ any, plus car-€•wflfth of yearly premium instailttiynGC for haaard insuratt~„
<br />plus one•tweifth of yearly grtmium iristalimenis far mortgage insurance, if any, alt as reasonably estimated inhiaity and from
<br />time to time by Lauder on the basis of assessments and bills and reasonable estimates thereof.
<br />'Site Funds snail be field in as institution the deposits ar accounts of which are insured or guaranteed by a Federal ar
<br />state agency (including Lender if Lender is such an institution). Lender shah apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground reins. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />ar verifying and compiling said assessments aad bins, unless Lender pays Borrower interest on the Funds and applicable law
<br />perrrtuts Lerxler to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest nn the Funds shalt be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to tae paid, Lender shall not be required to pay Borrower any interest or earnings on fire Funds. Lender
<br />sbail give to Borrower, without charge, as annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose €or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by il;s Mart~ge.
<br />Sf ehe atnount of the Funds held by Lender, together with the future monthly installments of Funds payable poor to
<br />the due dates of taxes, assessmenu, 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 Boeeawet's option, earner
<br />grampUy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Ftmda
<br />head by Lender shall not be sufficient to gay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shat) pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender iv Borrower requesting payment thereof.
<br />Upon payment in full of alt sums secured by this Mortgage, Leader shad promptly refund to Bvrrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwiise acquired by Lender, Lander
<br />shalt apply, no Later than immediately poor to the safe of the Property or i€s acquisition by Lender, any Funds htld by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Alegiieation of Payments. Ltnless applicable taw provides otherwise, all payments received by Lender under the
<br />Nate aad paragraphs I and 2 hereof shall be applied by Lender first is payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then tv the principal of the Note, and then to interest and
<br />principal an any Future Advances.
<br />4. ibaages; I3erffi. Bvrrower shall pay ail taxes, assessments and other charges. fines and impositions attrihutable to
<br />the Property which tray 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 Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shad promp€ly furnish to Lender alt notices of amounts due under this paragraph, and in the-event
<br />Borrower shalt make payment direct!~•, Borrower shall promp€ly furnish to Lender receipts evidencing such payments.
<br />$orrower shat! promptly discharge any tier which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured `-
<br />s=!ch lien in a rnaaner acre-ne~'+le ra t PndPr ~r ~t>=1t ;o goad fat:h cane>sr s~,ch lien by, ^_r ~fettd enfarc~*nent of s~~lt Is_sn in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />S. Haxard i~snesnsce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />agasnst lass by fire, hazards included within the tetra "extended coverage", aad such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shad not require that thz amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />T}re insurance carrier providing the insurance shall be chosen by Borrower subjec€ to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shalt be paid in the manner
<br />provides under paragraph 2 Iterenf or, if ant paid in such manner, by Harrower making paymertt, when due, directly to the
<br />insurance carrier.
<br />Ail insurance policies aad renewals thereof shall be :n form acceptable to Lender and shad include a standard mortgage
<br />clause in favor of and ir. form acceptable to Lender. Lender shalt have the right m hold the goticies and renewals thereof,
<br />and Borrower snail promptly furnish to Lender ail renewal notices and al! receipts of naid premiums. In the event of loss,
<br />Borrower shad give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lander and Borrower otherwise agree in writing, insurance proceeds shalt be 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 />lu imparted, the insurance proceeds shah 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, yr if Borrower fails to respond to tinder within 30 days from the
<br />date nofice is mailed by Lender to Harrower *.hat the insurance carrier offers to settle a claim far 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 runts secured by this Mortgage.
<br />Utttcss Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shalt not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs !and 2 hereof or change the amount of
<br />su;.hrnstailmenu. I# urtder paragrap?'t i ° itar..of the Property is acquired by Lauder, ai! tight, 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 to the sale
<br />ar acgtrisitian shall pass to Lender to Use extent of the sums secured by this 4ortgage immediately poor to such sale or
<br />acquisition.
<br />6. Preaetroatios aad Mainteaattce of Property; I.ea~holds; >;oodaminitrats; Planned Unit DevQlaprttents. Borrower
<br />shaft keep the Property is good repair and shall not commit waste ar permit impairment or deterioration of the Property
<br />sail-shah comply with the pravisioas of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />candaminium or a p}armed unit davelapmeut, Borrower shall perfaem at! of Borrower's obligations under rite declaration
<br />ar covenants creating or governing the candontinium or planned unit development, the by-laws and regulations of the
<br />cottdaminium or groaned unit development, and constituent documents. If a condominium ar planned unit deveIopmen[
<br />rider is executed by Harrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shaft be incorporated into and shalt amend and supplement the covenants and agrceroeitts of this- Mortgage as if the rider
<br />were a part het:
<br />?. Pro~etton of Lender's Seearity. If Borrower -fails to perform the covenants and agreements contained tit this
<br />114ortgage, or if any action or procet:dittg is commenced which materially affects Lender's interest in the Property,
<br />including, but oat timixed to. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />birtttttupt ar der; drat, then Leader ai I~nder's option, upon rwtice tv Borrower, may make such appearances, disburse such
<br />sums and take such action as is trecessaty to protect Lender's interest, inciadiag, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />ctmdition of malting the loan secured by this Mortgage, Borrower shalt pay the premiums required to maintain such
<br />itrstuance in eirtect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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