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<br />Uxtnoxmt Covex.ixrs. Borrower aad Lender covenant and agree ss follows:
<br />1. Payment of Prlneigal and Interest. Borrower shall promptly pay when due the principal of and interest an the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and int€t+ast
<br />on any Future Advances secured by this Mortgage.
<br />2. ~ for Taste: arts Insurance. Subject to applicable law or to a written waiver by Leader, Borrower shall pay
<br />to Lender on the day monihty installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds"} e4ntal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />lYlorigage, and ground rent3 on the Property, if any. plus oleo-twelfth of yearly premium installments for hazard insttrance,
<br />plus ou°gitwclfth of yearly prGmiutn itts',a'-_#me;#ta for rariga~ inszra~~, i€ any, all as rt:astsnably estimated initiPlly and from
<br />time to time by Lender on the basis of assessments and bills and reaonabie estimates 41•.ereof.
<br />The Funds shall be held in as institution the deposits ar accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Leader is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />itsurance prertiituns and ground rents. Lender may rat charge for sa holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Bottower ineerest an 4he Funds and applicable law
<br />permits Lender to make such a charge. Borrower aad Lender may agree in writing at 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 />requtres such interest to iX paid, bender shall not be required to pay I?ottower any interest ar 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. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If th.~ amcum of the Fuad~° held by Lender, together with the future monthly installments of Funds payable prior to
<br />the due dates of laces, assessments, insurance premiums and ground rents, snail exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fail due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower ar credited to 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 fail due,
<br />Battavrer shall pay to Lender any amount necessary- to make up the deficiency within 30 days from the date ttotice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shaft promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1S hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br />shall apply, no late: than immediately prior to the sate of the Property or its acquisition by Lender, env Funds head by
<br />Lender at the titre of appticaiioa as a credit against the sums secured by this Mortgage.
<br />3. Appiicatlai of PayaeuK. Unless applicable law provides otherwise, ail payments received by Lender under the
<br />Note sad paragraphs I and ?hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; J~erts. Harrower shall pay all taxes, assessments and ocher charges. fines and imposieions atuibutabie to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments er ground rents, if any, in tt>v meaner
<br />provided under paragraph 2 hereof or, if rat paid in such manner, by Borrower making pay~trtent, when due, direcdy ?o the
<br />payee thereof. Borrower shall promptly furnish ko Lender all notices of amounts due under this paragraph, and in the went
<br />Barrawer shall make payment directly, Borrower shall promptly furnish za Lender receipts evidencing such payments.
<br />Harrower shall promptly discharge any lien which has priority over this iUfortgage; provided, that Borrower snail not bs
<br />required €o discharge any such lien sa tong as Barrawer shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall ir, guns faith contest such Tien b>, or defend enforcement of such Ifen t^
<br />Iegnal t,;,.ceed=~:.r;., watch oY,~~~..a preve..t rtte e.,rnr~menr os tl,._ lien or f~,tFature_ of *_tte Property or any part thereo€.
<br />§. iilazr~d Ittssraace. Hottower shall keep the improvements now existing or hereafter erected on the Praperiy insured
<br />against toss by fire, hazards included within the teem "extended coverage", and such other hazards as Linder rosy require
<br />and in such amounts and fax such periods as Lender may require; pravideu, that Lender shall rat require that the amount of
<br />such coverage exce~--~tti that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Harrower subject to approval by Lender, provided,
<br />that such appeoval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid nn such manner, by Battawer making payment, when due, ditec*1y to the
<br />iris=~rat=-°~ early-.
<br />AB insurance policies slid renewals thereof shall be is farm acceptable to Lender and shaft 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 p€amptly furnish to Lender all renewal notices and all receipts of paid premiums. in the even of toss.
<br />8ottower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if rat made promptly
<br />by Borrower.
<br />Unless Zander and Borrower otherwise agree in writing, insurance prece:ds shall be applied €o restoration or repair of
<br />the Property damaged, provided such restoration er repair is economicailp feasible and the security of this Mortgage is
<br />not thereby impaired. if such restoration or repair is not econamieaflp feasible or if the security of this Rortgage would
<br />be impaired, Cho insurance proceeds shall be applied to the sums se:.ured by this Mortgage. with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Harrower 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 atttlrorized to eallect and apply the insurance proceeds az Lender's option either to restoration ar re_pair of the Property
<br />or to iI~ sums secured by this Mortgage.
<br />Uttiess 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 1 and 2 hereof or change the amount of
<br />such installments. if under paragraph i8 hereof the Property is acquired by Lander, ail right, title and interest of Borrower
<br />in amt to any itsurance policies and i=: slid to the proceeds ihereaf resulting tram damage to the Property prior to the safe
<br />yr acquisition shall pass to Lander Lo Ehe extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />~. Preservatlo® and Mainteuaace of Property Lerrefialds; Condominiums; Fianna! Unit I}tvaloptrxots. Borrower
<br />shalt keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />axed shall comply with the provisions of any Rase if this Mortgage is on a Ieasehald. If this Mortgage is on a unit in a
<br />condominium or a planned unit ileveiapment, Borrower shall perform all of Borrower's obligations under the declaration
<br />ar ctivenanffi creating ar governing the condominium nr planned unit developmem, the by-taws and regulations of the
<br />condominium or otanaed unit development, aad constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower sled recoxded together with ibis Mortgage; the covenants and agreements of such rider
<br />shag be incorporated into and shah amend -and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />?, PaoteMiou of LeHdeda 5ecnrtty. If Bosower fails to perform the covenants and agreements contained in this
<br />Mortgage, ar if any ac6an or proceeding is commenced which rriaterially af€ects Letder's interest in the Property,
<br />including, but riot litirited 10, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or daedent, then Irtuler at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as u necessary to praiecz Lender's interest, including, but not limited to, disbursement of
<br />reasonaate attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by ibis Mattgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such time as the requirement for such insurance terminates in accordance with Sormwer's and
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