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<br />Uxrrott.nt Covertwxrs. Borrower sad Leader covenant and agree as follows:
<br />1. Pay*mcat of Prltatdprl ad IMercaf. Borrower Mall promptly pay when due tbe principal of and interest on the
<br />ietdebtedness evidenrxd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />oa say Ftnurc Advances secured by this Mortgage.
<br />Z. Fnnb for Tames and Insnr~ce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Linder on the day monthly installments of ptirecipaI and interest are payable under the Note, until iht: Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, sad ground rents on tbe Property, if any, plus eve-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premi,un installments for mortgage insurance, if any, ail as reasonably estimated initially artd from
<br />Time to time by Lender or. the basis of assessments and biNs and reasonable estimates thereof.
<br />Tbe Funds shall be held is an institution the deposits or accounts of which are insured or g-aaranieed by a Federal or
<br />state agency ;including Lrnder if Lender is such an institution). Lender shall apply ine Funds to pay said taxes, assessments,
<br />itsurance premiums and ground rents. Lender may not charge for so bolding and applying [be Funds, analyzing said account,
<br />or veeifying and compiling said assessments and bills, unless Lender pays Borrower imer~t 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 iaferest on the Funds shall be paid to Borrower, and unless such agreement is made or app)icable law
<br />requites such inkrest to be paid, Lender shall not be required to pay Borrower any interest or eamiags 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. Tbe Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Linder, together with the future monthly installments 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 />assessments, insurance premiums and ground rents as they fall due, such excess shall 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 Tinder shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender fo 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 Iinder. 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 to the sale of the Property or its acquisition by Ixnder, any Funds held by
<br />Lender a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. Applictrtion of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Cinder 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 />4, C~gea; Bens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or grouted 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 [his paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shalt promptly fumish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall net be
<br />required to dischazge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lies in a manner acceptable to Lender, or 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 thereof.
<br />5. I9azard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />againatloss by fire, hazards included within the term "extended coverage", and such oilier hazards as Lender may require
<br />and in such amounts and for such periods as Linder 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 />'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
<br />that such aoproval shall not be euereasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />prorided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payrnent, when due, directly to the
<br />ittsuratsce carrier.
<br />AB Insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of sad in farm auxptabie to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Linder all renewal notices and all receipts of paid premiums. [n the event of Inns.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<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 proceeds 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 Lender within 30 days from the
<br />date notice is mailed by Leader to Borrower that the insurance carrier offers to settle a claim fur insurance benefits, Lender
<br />is authorized to collece and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of prceeeds to principal shall 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 patsgrap6 18 hereof the Property is acquired 6y Lender, all right, title and interest of Borrower
<br />in slid to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or at:quisitioa shall pass to Lender to ilte extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Ptreaervatfon and Maintettantt of Property; L,ettatholds; Condotnietiums; Planned Unit Devebpmenls. Borrower
<br />shall keep the Property ire good repair and shag not commit waste or permit impairment or deterioration of the Property
<br />sad shell comply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium or a planned trait development, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating of 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 trait development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shat! be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a ptnrt hereof.
<br />7: Frotection of Leaders Secttrity. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not 4mitcd to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or det:ed~ent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and .take suth action as is necessary to protect Leader's interest, including, 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 />condition of tusking the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />ioauratece is e,Yect uadt such time as the requirement for such insurance terminates in accordance with Borrower's and
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