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<br />Urar[~ortaf C'ov~Nn~nsrs. Barro^rver and Lender covenant anti agree aa~ follows:
<br />i, Pay°utcat of Prina~ipal and Interest. Borrower shall. promptly pay when claw. the principal of .and imcrcxt an the
<br />indebtedness evidenced by zhe Naze, prepayment and late charges as provided in ttte `tote, and the principal of aad interest
<br />an any Future Advances secured by [his Motgage.
<br />2. F`aads for Tales and Insurance. Subject to applicable Saw or to a written waiver by Lender, Borrower shall pay
<br />to Lender on zhe day monthly installments of principai an3 interest are payable under the Note, until the Note is paid in full,
<br />a earn ~}terein "Funds") equal fo one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus o~-twelfth of yearly premium installments for mortgage insurance; if any, al! as reasonably estimated initially and from
<br />time w time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution [he deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency linctuding Lender if Lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or veri€ying and compiling said assessments and hills, unless Lender pays $orrower 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 shall he paid to Borrower, and unless such agreement is made or applicable law
<br />requfres such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />snail 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 secured
<br />by this Mortgage.
<br />If the amo~~nt 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, shat! exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fat! due, such excess shall be, at Borrowei 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 shall not be sufficient to pay taxes, assessments, insurance premiums and ground rent, as they fall due,
<br />Rnrrnoivr chgll nav Intender any amount necessary to make uo the deficiency within 30 days from the date nonce is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />snail 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 this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall 6e applied by I-ender first in payment of amounts payable to Lender by Sorrewer
<br />under pazagraph Z hereof, then to interest payable on the Note, then to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />3. Chatgea; Llens. Borrower shalt pay all taxes, assessments and other charges. fines and impositions a[tributabie to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided tinder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thet•eof. Borrower shall promptly furnish to Lender nit notices of amounu due ender this paragraph, and in the event
<br />Borrower shall tt:ake payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payneen[ of the obligation secured by
<br />such lien 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 [hereof.
<br />5. Ilazsrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
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<br />and m sueit amounts and for such peritxis as ieuuet uwy ~cyui o, t;,o.idad, t ;- '- -- ;.,, ;ry;:ir:. ............ .
<br />such coverage exceed that amount of coverage required to pay~the sums secured by this,Mortgage.
<br />The insurance carrier providing [ha insurance shall be chosen by Barron°er subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies she!! be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, b}• Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />A71 insurance ^^lici~ and renewa.s thereof shall !~ ir•, Earn[ Acceptably to Lender and steal! include a standard mortgage
<br />clause in favor of and in form uceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
<br />and nutia"wet shall ptaaitpiiy furnish tv Lender ail renewal notices and ail receipts of paid premiums. In the event of less,
<br />Bat3vwer she!! give pro pi notice to the iasuran~~ cattier and I.etidet. i.ender matt make proof of loss if not made ptamptiy
<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 such restoration or repair is no! economically feasible or i[ the security of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to the sums secured by this Mortgage, µ'ith the excess, if an}•, 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 Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restorahon or repair of the Property
<br />or [o the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I and ?hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to nay insurance policies and in and to the proceeds thereof resulting tram damage to the Property prior to the sale
<br />or acgtusiuon snail pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and b(tdntenance of Property; [xa~holds; Condomioiurost Planned Unit I)evelopmerts. Borrower
<br />shall keep the Property in gaud repair and shall not commit waste or permit impairment or deterioration of the Property
<br />aad shah 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 s planned unit development, Borrower shall perform al! of Borrower's otrligatians under the d2cla:atiatt
<br />or covenants creating or governing the condominium or planned trait 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 shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />9. Pmtectlon of Lender's 5ecarlty. 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 limited to, eminent domain, insolvettcy, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may maze such appearances, disburse such
<br />sutras and take such action as is necessary to protect Lenders interest, including, bue 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 making the loan secured by this Mortgage; Borrower shall nay the premi~~ms required to maintain such
<br />insurance ir. effect u==^,til such limo as the [equirement far such insurance terminates lit accordance with Borrower's and
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