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<br />Urrtt~oaM Coverretvrs. Borrower and Lender 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 />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 Mcttgage.
<br />2. Phrase for Tares artd Insaraonce. Subject to applicable law or to a written waiver by Lender, Borrower shat] pay
<br />to i.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a srun (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mo[*_gage, a^d grot:.^.d renu on the Property, 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 />time to Ume by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposiu or 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, assessmenu,
<br />instrratrce premiums a[td ground rents. Lender may not charge for so holding and applying the Funds, analyzing card account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make sueh a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage thnt interest on the Funds shall be pzid to Borrower, and unless such agreement is made or applicable law
<br />requites such interest fo be paid, Lender shall not be required m pay Borrower any interest or earnings on the Funds. Lender
<br />shag 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 secrired
<br />by this Mortgage.
<br />If the amount of the Funds Geld by Lender, together with the future monthly irstallments of Funds payable prior :o
<br />the due data of rases, assessmenu. insurance premiums and ground renu, shall exceed the amount required to pay said taxes,
<br />asst ...,eau, insuraece premiums amt ground 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 b}' Lender shall not be sufficient to pay taxes, assessmenu, insurance premituns and ground renu as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notict is mailed
<br />tsy Lender to Borrower regtresting pa}•ment thereof.
<br />Upon payment in full of alt sutns secured by this Mottgage, Lender shall promptly refund to Borrower any Funds
<br />bead try Lender. If under paragraph t3 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sa}e of the Property or its acquisition by Lender, any Funds held by
<br />i~icr ar rot rirrte of application as a credit against the sums secured by this niongage.
<br />3- A~piigaioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shat) be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />uackr paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />prin~pal on any Future Advances.
<br />d. C6ugea; t3eas. Borrower shad pay all taxes, assessmenu and other charges, fines and imposinons attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold paymenu or ground renu, if any, in the matr~r
<br />ptrnided under paragraph 2 hereof or, i# not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thettof. Borrower shalt promptly furnish to Linder all notices of amounu due under this pazagraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly famish to Lender receipu evidencing such paymenu.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borsower shall not be
<br />regt»red to discharge any such lien so long as Borrower shaft agree in writing to the payment of the obligation secured 6y
<br />such lien in a manner a,:ceptahk to Leader, or shat! in good faith contest such lien by, or defend enforcement of such lien in,
<br />kgai proceedings which operate to prevcm the en#orcement of the lien ar forfeiture of the Property or env part thereof.
<br />S. Heard Psmaanee. Borrower shall kxp the improvements now existing or hereafter erected on the Property ircured
<br />against loss by lilt, hazards irtduded witltin the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounu and for sash periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount o1 coverage required to pay the sums secured by [his Mortgage.
<br />The iffiurturce sar[ier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
<br />that such approval shall not be unreasonably withheld. Alt premiums on insurance policies shall be paid in the manner
<br />ptmidtd under paragraph 2 hereof or, if not paid in such meaner, by Borrower making payment, when due, directly to the
<br />insuiance t~rrie:.
<br />AB t~~~r*Tce policies and renewals thereof shall be in form acceptable to Lender and shall include a standazd mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />a~ Borrower shall promptly f~raish to Lender alt ttnewa! no[icrs and a!1 receipts of paid premiums. In the event of toss,
<br />Borrower shat! give promlx notice to the itmtratt~.e carrier and Linder. Lrnder may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender sad Borrower otherwise agrce 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 [he security of this Mortgage is
<br />not t6veby impaired. If Stich restoration or repair is not economicatl}• feasible ur if the security of this Mortgage would
<br />be impaired, the insirt•ance procceds shall bt applied to the sums secured by this Mortgegc. with the excess, if any, paid
<br />43 Borrower. If the Property is abandotxd b} Borrower, ar ii Borrower fails to respond to Lender within 30 da}'s from the
<br />date notice is mailed by Ixndez to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder
<br />is autlmrized to collect and apply the insurance proceeds at Lender's option either [o restoration or repair of the Property
<br />or to the slims secured by Utis Mottgage.
<br />Unless Lender a~ Borrower otherwise agt~ in writing, any such application of proceeds to principal shall no[ extend
<br />or postpone the dtte dart of the m.,nthly installmenu referred to in pazagraphs 1 and '_ hereof or change the amount of
<br />sutUt installtireau. If under paragraph 1 g btrt~f the Property is acquired by Lender, alt right, title and interest of Borrower
<br />in and to arty insurance policies and in and ;o the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acgnisititxa shall pass to Lender to tbt extent of ibe stutss secured by [his Mortgage immediately prior to such salt or
<br />acgtuaition,
<br />6- hrxrvalloa and 1-Yaiiateaaace of Property; leaseholds; CRadominiuttist Planned Unit Developmeatc Borrower
<br />shag keep the Property in good repair and shall no[ com[n:t waste or permit impairment or deterio.+ation of the Property
<br />amt aball comply wiUr the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit ir. a
<br />cond~»ait[m or a planned unit dev-dopment, Borrower shall perform all of Borrower's obligations under the declaration
<br />x>: ca:'esanu crtatlnL or governing Che eondorninium or planned unit development, ttte by-laws and regulations of the
<br />rnndotninit~ or pJaar .r trrtit development, and constituent documents. If a condominium or planned unit development
<br />ride is extcuttd ~ ~orNwet a~ recatded together with this Mortgage, the covenanu and agreements of such rider
<br />slrr)1 ba iacorporatod into and shall anu>MI and supplement [ht mvenanu and agreements of this Mortgage as if the rider
<br />wen a part htroof.
<br />3. Pralterlltrta of I.wdtx's Seerriey. If Borrower fails to perform the covers*.rs and agreements contained in this
<br />M*> ~ U say act or ~octtdiag is cammertced which materially affecu Lender's imertst in the Property,
<br />iaCludinp, Fart not Iitaittd W, etaintnt domain, itrsotvency, code enforcement, or arrangements or proceedings involving a
<br />laankrvpt or decodetit, then I.endcr Hi L~dtr's option, upon notict to Borrower, may make such appearances, disburse such
<br />some attd take Stith aztion as is necxssary w protect Lenders interest, including, but not limited to, disbursement of
<br />reasonabk attarrtey's [cea sod entry upon tlm Properly to make repairs. If Lender required mortgage insurance as a
<br />condition of making the inert sectaeti try this Mottgage, Borrower shall pay [he premiums reyuired to nraintain such
<br />insurance is e'8ect tmtii such time as the tcgttiretnent for such insurance terminates in atcordence with Borrower's and
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