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<br />L'rzti:axti CovrHrHrs. Borrower and Lender covenant and agree as follows:
<br />1. Paymetat of Prinelpal and Inlerest. Borrower shall promptly pay when due the principal of and interest an the
<br />indebtedness evidenced by the Nete, grepaymenz and lace charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />Z. Ponds for'Csaes sad Itvsurance. Subject to apalieabte law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are nayable under the Nate, until the Note is paid in full,
<br />a swn {'neretn "€unds") equal zo one-twelfth of the yearly taxes and assessments which racy attain priority over this
<br />Mortgage, and ground rents an the Pmperty, 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, all as reasonably estimated initially and from
<br />dme to time by I,ettder on the basis of assessments and bills and reasonable estimates thereof.
<br />"I'he Funds shaIl be held in an institution the deptssits or accounts of which are insured or guaranteed by a Federal or
<br />state agency {including Lender if Lender is such an instimtion). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />er verifying and comgriting 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 in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall be paid to Barrawer, and unless such agreement is made ar applicable taw
<br />requires such interest tc be paid, Lender shall not 6e required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an snnual accounting of the Funds showing credits and debits to ehe Funds and the
<br />purpose fttr which each debit to the Funds was made. The Funds are pledged as additions{ 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 />the duo dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and gmund rents as they fall due, such excess shall be, 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 by Lender shalt not be sufficient to pay taxes, assessments, insuranec premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amauni necessazy to make up the deficiency within 30 days from the date notice is mailed
<br />lry Lender to Borrower requesting payment thereof.
<br />Upon payment io full of all sums secured by this Mortgage, Lender shall promptly refund to Barrosver any Funds
<br />held by Lender. If under paragraph 1$ hereof rite Property is sold or tine Property is otherwise acquired by Lender, Lender
<br />sltalI 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 time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, atI payments received Gy Lender under the
<br />Note and paragraphs t and 2 hereof shag be applied by Lender first in payment of amounts payable to Gander by Borrower
<br />under paragraph 2 hereof, then to interest payable an the Note, then to the principal of the Note, and than to interest and
<br />principal an any Future Advances.
<br />4. Cltargzs; Ltetts. Borrower shall pay ail taxes, assessments and ether charges, fines and impositi;,ns attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or gmund ren.y, if any, in the manor
<br />p€ovided under paragraph 2 hereof or, if. not paid in such manner, by Borrower making payment, when due, directly to the
<br />pzyee thereof. Borrower shall promptly furnish to Lender alt notices of amounu due under this paragraph, aad in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower sha}I promptly discharge any lien which has priority over this Mortgage; provided, that Batmwer shall not ...
<br />require3 to discharge say scrit lien sc long as B;rrorer shall agree in :.,icing ca th; payment of the abhgatian sue,=red by
<br />such lien in a matmer acceptable to Lender, ar shall in good faith contest'such lien by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part theteaf.
<br />§. ItTazatd Iaxutrauce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such outer hazards as Lender may require
<br />and in such amounts and for such periods as Lander may require; provided, that Lender shall not require chat the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />T2te insurance carrier providing the msurance shat be chosen by Borrower subject to approval by Lender, pmvided,
<br />that such apprxtvaI shall cwt be unreasonably withheld. All premiums on insurance policies shal4 be paid 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 />insurance carrier.
<br />Ail instrance policies and renewals thereof shat) be in form acceptable to Lender and shall include a standard mortgagx
<br />clause in favor of and in farm acceptable to Lender. Lender shall have the right to hold the policies and renewals fhtreof,
<br />and Barrawer shaft ptamptly furnish to Lender alt rerewai notices and ail receipts of paid premiums. In the event of loss,
<br />Sorrawer shall give prompt notice io the insurance carrier and Lender. Lender may make proof of 3oss if not made promptly
<br />by Borrower.
<br />i.inlass Lender and Borrower otherwise agree in wr~iing, Insurance proceeds shall be applied to restoration or repair of
<br />the Pmperty damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />net thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage wauid
<br />be impaired, The insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any, paid
<br />to Borrawar. If the Property is abanzloned by Barrcwer, or if Borrawet faits to respond to Lender within 3U days fmm the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized ro collect and apply the insurance proceeds ai Lender's option either to restoratton or repair of the Prolerty
<br />or m Ylte stuns sectuetl by this Martgsge.
<br />Uaiess Lender and Borrower athenvise agree [n writing, any such applicaron of proceeds to principal shalt not extend
<br />or postpone the due daze of the monthly installments referred to in paragraphs 1 and Z hereof or change the amount of
<br />such installments. If under paragraph l8 hereof the Prop=rty is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof rtisulting from damage to the Property prior to the sale
<br />ar acquisition shat( pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />S. Preservation a~ R-Sa®tanance of Property; Leaseholds; Candaminiums; Planned Unit I?ev,elopmeats. Borrower
<br />shalt keep the Property itt good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comp#y with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />c-ondaminium or a planned unzt daveltpxttent, Borrower shall gerfarm all of Borrower's obligations under the declatarion
<br />or covenants creating or governing the condominium or planned unit developtuenz, the by-laws and regulations of the
<br />condominium cr planned unit development, and constituent documents. If a condominitun ar planned unit development
<br />rider is executed by Harrower attd 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 fiereaf.
<br />'T. PrMection of Letter's Security, If Borrower fa7s to perform the covenants and agreements comained in this
<br />Mortgage,. ar if any aciian ar proceeding is commenced which materially affects Lender`s interest in the Property,
<br />inclttdittg; but net limite3 ta, eminent domain, insolvency, Coale enforcement, or arrangements or proceedings involving a
<br />bankrupt ar deceilenF; then Lender at Lender's opiian, upon notice to Borrower, may make such appearances, disburse such
<br />sums aad take such action as is necessary to protect L.ender's interest,-including, but net limited ta, disbursement of
<br />ressoaable attorney`s fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />condition of making tine loan secured by this Mortgage, Borrower shall pay the prerniurns required to maintain such
<br />insurance in effect until such time as the requitement for such insurance terminates in accordance with Horrower's and
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