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<br />Uxrnoxnt Covaxexrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Ptincilnl sad 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 .nd interest
<br />on arty Future Advances secured by this Mortgage,
<br />2. Feada for Tatces sad Lawrence. Subject to applicable law or ro a written waiver by Lender, Botrawer shall Pay
<br />to Leader on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a 6ar11 (herein "Fonda") equal 20 one-tweIhh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground tents on the Property, if any, p?us one-twelfth of yearly premium installments for hazard insurance,
<br />plus one twelfth of yearly premium installments fur mortgage insurance, if any, all as reasonably estimated tmually and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounu of which are insured cr guaranteed by a Fedual or
<br />state a~ocy (including Lender if Lender is such an instimtion). Lender shall apply the Funds to pay said taxes, assessments,
<br />umttrance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or verifying and compiling said assessments azrd bills, unless I.tLdcr pays Borrower interest on the Funds and applicable law
<br />ptmtits Leader to make srtch 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 Borrower, and unless such agreement is made or applicable law
<br />rEquirss such interest to be paid, Lendu 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 and the
<br />purpose for which each debit to the Funds was made. ;lee Funds are pledged as additional 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 due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assea:smeaa, instttance pretnuttms and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Hotrowu or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />helot by Len~r slzail not be sufficient to gay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Harrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dace notice is mailed
<br />by I.eodu ifl Borrowu regt~stiag payment thtrrnf.
<br />Upon payment in fall of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />Geld by Lender. If utrder 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 outs acquisition by Lender, any Funds held by
<br />Leader at the tug of application as a credit against the sums secured by this Mortgage.
<br />3. APpBatlon of Psyme~. Unless applicable law provides otherwise, all payments received by Lendr.r under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender firs[ in paymem of amounts payable to Lender ~y Borrower
<br />ttttder paragraph 2 hereof, then to uaterest payable on the Nate, then to the principal of the Note, and then to interest and
<br />prindpat on any Future Advances.
<br />4. ~ S3ras Borrower shall pay alt taxes, asscssrrlcnts and other charges, fines and imp~itions attributable to
<br />the Property avhich may attain a priority aver this Mv,Ygage, acrd leasehold payments or ground rents, if any, in the manse:
<br />ptoaided tinder paragraph 2 hereof or, if nar paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower Mall promptly fr~rsish to Lender all notices of amounts due under this paragraph, and in the event
<br />Bdrawtr shall mate pa}°meat durectly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Btxtoasrt shall promptly discharge any lice which has priority over this Mortgage; provided, that Borrower shall not be
<br />ttslttvetl to discharge any such tiro so btrg as Borrowu shall agree in writing to the paymtnt of the obligation secured by
<br />rrh lim is a meaner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia,
<br />legal ngs which operate to prrvent the enforcement of the lien or forfeiture of the Property er any part thereof.
<br />S. Baoti Ltsanaee. Borrowu shall keep the improvements now existing or hereafter erected on the Property insured
<br />against bas by fire, beards mciuded within the tetra "exietrded coverage", and stub oilier hazards as Lender may require
<br />~ is tatclr at~unts and for such periods as Lendu may require; provided, that Lender shat? nM require that the amount of
<br />inch txvtragt eueed that amotmt of rnverage required to pay the sums secured by this Mortgage.
<br />The insuranct cattier providing the ittsuraacr shall be chosen by Borrower subject to approval by Ltrtder, provided,
<br />thu srteh approval shall not be unmsottably withheld All preniutns oa i~urance policies shall be paid in the manna
<br />provided ttttdu paragtapit 2 hereof or, if rtat paid in such manner, by Borrower making paymtnt. when due, directly to the
<br />itatanaaoe ~.
<br />AB isrnastxe policies and renewah thereof shall be is form atxeptabk to Lender and shall include a standard mortgage
<br />t~rx m flavor ~ and is imm act:bk to Lender. Lender shall have the right ro trawl ttz poliM1-"ir, and renewals thtrusf.
<br />anti Hwrowtx sha1F promptly furnish w Leader al! renewal noriar and all roceipts of paid premiums. In the event of loss,
<br />Btrtroaver ahatl give prompt noticx to the insurance carrier and Leader. Leader may make proof of toss if not made promptly
<br />by Borrower.
<br />Ulm Lender and Bosrtnvu otherwise agree in writing, insurance prooxds shai? be applied to restoration ar repair of
<br />the Propnry damaged, provided such restoration or repair is economically feutbk and the security of this Mortgage is
<br />not thQeby impaired. Tf stair test~ation or repair is net eeoaomicaliy feasible or tf the security of this Mortgage would
<br />be itttipaittd, the insurance pre~oetds shall be applied to the sums swured 6}' this Mattgage, with the cxcas, if any, paid
<br />to Btxrower. if the Property s abartdorsod by Borrower, or if Borrower fain to respond to Lender within 30 days from the
<br />bait mfiit s mailai bi Lemtkr to Horroaer that the insurance :artier offers to seek a claim for insurance be~fiu, Leader
<br />i& aatLoziaad to collect sad agdv the insurance proceeds at Leader's option titlur ut mWration or repair of the Property
<br />tar m the sums settrttd by this Mottgagc.
<br />U~ss Leader asui Born^'#rr mhtrwise agrtt ir: uxitiag, any such application of proceeds to principal shall not extend
<br />or Pie the doe daft of tIx monthly Imtat_ir~r+ts refuted to in paragraphs i and ~ hereof or [hang[ the amount of
<br />ant3t u~. )f tender paragraph 1g hereof the Property is acquired by Lender, aIl tight, title and interest of Borrower
<br />is and to any imurattce pttliciea and is and to the proxeds thereof raultiag from damage to the Property prior to the sale
<br />or aupssitiem shell pass to Isatdrr w the txteat of the sums secured by this Mortgage imrtstdiattly prior to such sale or
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<br />fi. Pssaervatlaa sari Mtrasemee of PrsPotJ; Lesaekddc Cotedeaaieht~ Plaa~d Uatt Devsbptatats Borrower
<br />shall keep the Ptopmty in gtxad repair and shall trot commit weak or permit impairment or deterioration of the Property
<br />sad ~ ommply with the prerie~ of say lease if this Mortgage is on a kasebold. If this Mortgage is on a unit in a
<br />coademiaium or a plttaard unit develapnomt, Bolmkter shalt perform atl of Borrower's obligaaons under the declazation
<br />tar toassaaRS tasting ~ govasing the coatk+miaittm or planned unit develop~tr4 the by-laws and regulations of the
<br />coodaml'aittar or planned atait t6t, and constituent docrmcents. !f a condominium or planned unit development
<br />rider is mcewed by Botroarar sad recoadeb togxtfxr with this Mortgage, the covenants and agreements of such rider
<br />shall ha isoorpotated late and ahati amid amd sttpplanem the coveuanta and agreeatrents of this Mortgage as if the rider
<br />+wB a part h~aaf>
<br />7. ['sa~ar d Ltrniara Satadi~. If Borrower fails to pufotm the covenants and agretmenta contained in this
<br />ar i$ lay atxlea ar psaetat}i~ is cotttmtnad which mnttrially affects Lender's interest in the Property,
<br />isc, dot not litta+ted t0. datasia, ittaolvttxy, cods enforaraent, or arrangements or proceedings involving a
<br />oe dxzdmt, then Linder at Ltnde~'s option. upon aaice to Borrower, may make such appearances, disburse such
<br />stales sal take ~ aAioa ~ if ~ protect Lender's interest, including, but not ?united to, disbursement of
<br />taauenahle atiamay's fees and entry u<_-ua the Propeny to make repairs. If Lender required mortgage insurance as a
<br />t5oaditiaa ctf maYbg the aen secwsd by this Mengage, Borrower shall pay the premiums required [o maintain such
<br />i in elect tmtil such time as the tegttiretatm for such insurance temrinates in accordance with Bormwer's and
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