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<br />Uxtr+oaM Covartexss. Borrower and Letader covenant and agree as follows:
<br />1, Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />Qdebtednesc evidenced by the Note, prepaymene and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secwed by this Mortgage.
<br />2. Faa~ fot•'Tazts and I®te. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to fxrtder on the day monthly installments of principal and interest aze payable trader the No[e, unlit the Note is paid in full,
<br />a sum (herein "Funds"} equal to one-tweifrh of the ytariy rases and assessments which may attain priority over this
<br />'.Mortgage, and ground rents tm the Property, if any- plus one-twelfth of yearly premium installments far hazard insurance,
<br />pltu sae-twel#th of yearly preigtium ittstailrrtenis for root=gage insarasice, i€ any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bins amt reasonable estimates thereof-
<br />'Ilse Funds shalt be hefd in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />also agency (incltxling Lender if Leader is such an institution). Lender-steal! apply-the Funds to pay said taxes, assessments:
<br />itssurartce premiums and ground rents. Lender may trot charge for so holding and. applying the Funds, analyzing said account,
<br />or verifying sad compiling said asscssraents and bills, unless Lender pays Borrower interest oa the Funds and applicable taw
<br />permits Leader to make such a charge. Borrower and Lender may agree in writing a[ the time of execution of this
<br />Itfortgage that. interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall rot be required to pay Borrower any interest or earaings an the Funds. Lender
<br />sl!alt give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
<br />Iatrptsce for which each debit to the Funds was made. T'he Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by bender, together with the future monthly ittstatlments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assesmeats, insurance premiums and ground rents as they fall due, such excess shalt be. 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 Lender shag not be suffuieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrowor,-trail pay to Lender any amount necessary to make up the deficiency within 3U days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon paytmtu in foil of alt sums secured by this Mortgage. Leader shall promptly refund to Borrow°r any Funds
<br />held by Lender. I€ under paragraph 18 het•~f the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shag apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by :his Mortgage.
<br />3. Agplica#ion of Payuaeuaffi. Unless applicable law provides otherwise.- ail payments received by Lemke under the
<br />Note and paragraphs T and 2 6ereaf shalt be spelled by Lender first in payment of a,:tounts payable to Lender by Borrower
<br />under paragraph ~ hetsmf, then to interest payable on the Mote, then to the principal of the Note, and then to interest and
<br />prmespat on any Future Advances.
<br />4. Chuges* I.&m. Borrower shall pay nit taxes, assessments and outer charges.. fines and impositions attr'sbutable to
<br />the Property which may attain a priority over this Mortgage, and leasehatd payments or ground rents: if any, in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, by $or€awer making payment, when due, directly to the
<br />payee thereo€. Borrower shall promptly fttrttish to Lent -r ail notices of amounts due under this paragraph, and in the event
<br />Borrower shag make payment directly, ?oPrower shaft promptly famish to Lender receipts evidencing such payments.
<br />Borttrwer shall prartptly discharge any Lien which has Priority over-this Mortgage; provided, that Borrower shall not tie
<br />regttirai to diuharge any such Tien so Tong as Harrower shall agree in writing to the payment or the obIigazian secured try
<br />such nett is a mant~r a~ptal~'^ to Lander, ar shall in gyrod faith auntest such lien by, or defend enforcement of s+sch Ii~f in,
<br />legal proceedings which operate to gic.ent u~ e.fo..~ ni o€ the !i=n or forfeitur? of the Property or any part thcreo#.
<br />5. Hazard Iasarance. Borrower steal! keep the improvements now existing or hereafter erected on the Property insured
<br />agaiat Toss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and is such amounts and for stub periods as Lender may requim; Provided, that Leader shall net require that the ataount of
<br />seals coverage exceed that amount of coverage required to pay ttte sums secured by this Mortgage-
<br />TLe imursace carrier providing ~ insurance shag be chosen by Berrawer subject to approval by Lender, provided,
<br />tlsat ntc,h approval shall not be unreasonably withheld. .411 premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Borrower making payment, when due, directly to lire
<br />insmaace carrier.
<br />All insurance policies and renewals thereof shalt 6e in form acceptable to Lender sad shall include a standanl mortgage
<br />clause in favor of and in farm acceptable to Tender, Lender shaft have the right to hold the policies and renewals thereof,
<br />and Borrower shalt promptly furnish to Lender all renewal notices and alt zceipts of paid preniums. }n the event of l~s,
<br />Borrower shall give prompt notice to the insurance carrier and Under- Lender may make proof of lass if not made promptly
<br />by Borrower.
<br />Unless Lender 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 sorb rector. lion or repair is not economicaGy feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall bt applied to the sums secured 6y this Mortgage, with the excess, if any, Paid
<br />to Borrower. If il~ Property is abandoned by Borrower, ar if Harrower faits fo respond to Lendei within 30 days from the
<br />date mtir~e is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance txnehts, Lender
<br />is authorizai to .~atkxt sled apply the insurance proceeds at Lender's option either to restoratmn or repair of the Property
<br />or to tlw sums secured by this Mortgage.
<br />Unless Lender sad Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ctr postpone tlx dtte date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />stems iastaBmeats. if srabr paragraph IS hereof the Property is acgetued by Lender, all right, title and interest of Borrower
<br />is attd to any insurance policies. and 'sn amt to the proceeds thet~f reststting from damage to the Property prior to the sate
<br />as acatrisition shall peas to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />6: P~ anti 'Mal~enaaee ~ Pto@ecty; Leasehtaltl>" Condomf~~s', Plaas~ i.}nk ;t>evebptaesk. Borrower
<br />sha}t_~op the-property. m goad repair sad ahaB not commit wade or permit impairment or deteriorations Q the uPtropertg
<br />sad-shall CttmplY with :Ile provigiotta t,+f any tetras if this Mortgage iS on a leasehold. I#~tlri5.-Mortgage - .
<br />eondomiaium $r a_plann~ unit development, Borrower shalt perform att. of &srrower's obligation; under the declaration
<br />or taoYeaatrts ~reatiag or governing the condominium or plancaed unit development, the by-laws and- regulations of -the
<br />condOathtittm w' plarr~ed bait developm.`n*t, arid: rna~ituent tfoetrtaents. ri a c~ndaminium or planned-unit developtneat
<br />with this- Mortgage, the. covenants amt agreements of suds -rider
<br />ritltar is.exeeuted by Borrower- and recorded together
<br />shaH'be-i~o;go:~d info atsd-efts!( aracad a~ supplemaat fI~-cm'eaaats and agceemon~ a# this Meitgtge as if the rider
<br />vtern g part }zt. .- `
<br />?: Ptn of (seder's If Borrower fails to perform the covenants and agreements tontain~ is this
<br />- ;~,,. ~ if arty aatiati or gtotliug is e~amed whack materially a$ Lender's interest 'tn rile Prnoerty,
<br />iack~rg, Iatt tact limited- tn, emiaosst>damaia, iasolvbrrcy, code ea€tSreement, or arrangements or prn8s involving a
<br />ere , rhea I.andm ai l~der's option, upon atasfice to-Borrower; may make gtreh appearances. dssbmse such
<br />sstrmr :anti- take stitch action as is - -'Y to ~, 3:eu~r's interes#, inclndirrg, but not limited to, disbursement of
<br />reaaonable attorney"s fees sad entry upon the-Property to ittiake repairs. II Lender required mortga~ insurance as a
<br />coadit~n of rnakiag the ban secuisd by titia Mortgage,: Borrower shag. pay the premiums acquired to maintain such
<br />ammance in efTect until stash tip as tI~ txgitiraaten€ for -such insurance terminates in accordance with Borrower's sad
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