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<br />79--~ l~ t.l .~ ~ .p ~
<br />Uxrsaxrt CovExertrs. Borrower and Lender wvenant and agree as follows:
<br />1. Payment of Frlncdpal a~ Interest. Borrower shall pramptly 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 />~ I?~~ fnr T~~ ~~ I~tl~Ce. Subject to applicahle law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Mote, until the Note is paid in full,
<br />a stem (herein "Funda'~ equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Properly, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />pltrs one-twelfth of yearly premiurn installments for mortgage insurance, it any. all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits ar accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lander may not charge for so holding and applying the Funds, analyzing said account.
<br />ar verifying and compiling 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 shalt be paid [o Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or 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 ami the
<br />purpose for which each debit to the Funds waz made. the Funds are pledged as additional security far 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 doe dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said tares.
<br />assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either
<br />promptry repaid to Borrower ar credited [o 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 fall due,
<br />Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. 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 io the sale of the Property or its acquisition by Lender, any Funds held by
<br />Linder at [he time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBc~ion of Payments. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs i artd 2 hereof shall 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 Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />6. Charges; Gros. Borrower shalt pay all taxes, assessments and other charges, fines and impositions attributab}e to
<br />the Property which may attain a priority over this Mortgage, and Ieaseholo 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 shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts e.•idencing such payments.
<br />Borrower shat! promptly discharge any Tien which has priority over this Mortgage: provided. that Borrower shall not be
<br />required to discharge any such l"eon so long as Borrower shall agree in writing to the payment of the ahiigation secured by
<br />such lira in a manner acceptable to Lender, oe shall i^ 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 ar forfeiture of the Property or any part thereof.
<br />5. Iiar~rd Insurance, Boaower shall keep the improvements novr existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such perms az Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such approval shall not be utueasonably withheld. -AII premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such ma.~r[er, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />AII insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shalt have the right to hold the policies and renewals thereof,
<br />and $o; rawer shall pramptly furnish to Lend°.r al! renowal notices and a!1 receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptty
<br />by Harrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 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 />be impaired, the insurance ptocexds shall 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, or if Borrower fails to respond to Leader within 3Q days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for instuance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propery
<br />or to the sums secured by this Mortgage.
<br />Unless Leader and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of [he monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />Such installments. If under paragraph 18 hereof the Property is acquired by Lender, a!t right, title and interest of Borrower
<br />in and to any instrraace policies and in amt to the proceeds thereof resulting from damage [o the Property prior to the sale
<br />ar acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservttaiou ~ Ibfalntens®ce of Propeeiy; Geasehol~; Condaruiniums; Ptantrcd Uult l;~velopments. Borrower
<br />shall koeQ the Property in good repay and shall not commit waste or permit impairannt or deterioration of the Property
<br />and shall comply will[ the provisions of any tease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a plaotted emit development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. 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 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part Ixreof.
<br />7. Pry a[ Leudter°s Socardy. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or prodding is commenced which materially affects Lender's interest in the Property,
<br />insrhtdir[g, but not limited to, emi~nt domain, insolvency, code enforcement, ar arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearancev, disburse such
<br />stmas and take sttch action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />seasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance az a
<br />condition of making the loan secttred by this Mortgage, Borrower shall pay the premiums required tc maintaic such
<br />ittsttraase in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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