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<br />Ur[tt=oarvt COVENANTS. Borrower and Lender covenant and agree as follows:
<br />L. Payment of Principal and Interest. Borrower shall promptly pay when, due the principal of and interest on the
<br />indebtedness evidenced by the No!e, 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 />2. Fonds for 'f'azes attd Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />io Lender nn the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly [axes and assessments which xnay attain. ptivrity over this
<br />Mortgage, and ground tents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-[welf:h of yearly premium installments for mortgage insurance, if any, all as reasonably estmated initially 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 accounts of which are insured er guaranteed by a Federal or
<br />slate agency (including Lender if Lender is such an institution). Lender shall apply the Funds [o 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 verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and app'icable law
<br />permits Lender to make suc}i a charge. Borrower and 1-ender may agree in writing at the time of execution of this
<br />Mortgage [hat interest on the Funds shall be paid to 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 [o Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose fur which each debit tv [he Funds was made. The 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 reyuired 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 Lender shell not be sutl:cient to pay taxes, assessments, insurance premiums and ground ants 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 to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly re[und to Borrower any Funds
<br />held by Lender !f under paragraph Ig hereof the Property is sold or the Prvperry is otherwise acgwred by Lender, Lender
<br />shall apply, nv la!er !teen immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credt against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender undrr the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender firs[ in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, [hen 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 />d. L'harges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Propery which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the mantxr
<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 ,-~o[ices of amounts due under this paragraph, and in the event
<br />Borrowrr shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not br
<br />required to discharge any such lien so long as Borrowrr shalt ague in writing to the payment of the vhligation secured by
<br />such lien in a manner accep[nble to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,
<br />legs! proceedings which operate tv prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Lrtsannce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />.,<! !..« hs~ fire ha~arr[< ;nrlu;ted within the term "extended coverage", and such ether hazards as Lender may reyutre
<br />and' ie such amounts and for such pretexts as Lender may reyuire; provided. that Lender shalt not requtrc that the atnouot of
<br />such coveragr exceed the[ amount of coverage required ro pay the sums secured by this Mortgage.
<br />"17te insurnnce carrier providing the insuranrr shall be chosen by Burrower subject to approval by Lender; provided,
<br />chat such approval shall not br unreasonably withheld. Ail premiums vn insurance policies shall be paid in the manner
<br />provided undrr paragraph 2 hereof or, if not paid in such manner, by Borrowrr making payment, when due, directly tv the
<br />insurance cturier.
<br />.ALt insurance policies and renewals ihrrczt steal; be in faun ac<-eptabl:~ iv LendF-r ;m[i shall inchtde a standard t:[art3age
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies rod renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event 6t 1055,
<br />Borrower shall give prompt notice to the insurance carrier and Lendrr. Lender may make proof of Ions if not madr promptly
<br />by Borrowrr.
<br />Unless Lendrr and Borrower otherwise agree in writing, insurance pnxeeds shalt be applied to restoration yr repair of
<br />the Property damaged, provided such restoration ur repair is cconomicaliy feasible and the security of this bortgage is
<br />not thereby impaueci If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br />br impaired, the iuxirance proceeds shall be applied to the sums serurrd by th+s Mortgage, with the excess, if any, paid
<br />tv Botrvwrr. if the Property is abandoned by Borrower, or it Borrower tails to respond to Lendrr within 30 days from the
<br />datr notice is mailed b}' Lender to Borrowrr that the insurance carrier utters to scu1C a claim hx insurance benefits, Lender
<br />is authorized tv collect and apply the insurance proceeds ut Lender's option either to resroration or repair of the Property
<br />or w the xums secured by this Mortgage,
<br />Lhiless Lendrr and Earrowcr otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />ur postpone the due date of the monthly instalimrnts referred to in paragraph, I ;utd ~ hcrro! yr change the an[vunt of
<br />such instalimrnts, 1t under paragraph IN hereot the Proprrty a acyuued by I.euder, all right, title nrd interest of Boxrowzr
<br />in and to any insuranrr policies and in anct to thv° prt[crrds thereof resulting fn,m damage ro the Proprrty Prior [a the sale
<br />or ucyuisitivn shall pass to Linder to the extent vt the sums secured by this Mortgage immedigtely prwr to such sale yr
<br />acquisition.
<br />6. Preservation and (1falatrnanc. of Property; I.easrholds; Coadominlums; Piaaned Unit Ihve-opmeafs. Burrower
<br />st[till keep the Preper!y iu gc°rd repair and shelf nut conmeit r.-ante ar permit impairment nr drtertvration z.;•' the Property
<br />and shall comply with the Provisions of any lease if Ihts ititortgagz is tin ;[ leasehold. If thi> hiortgaf;e is on .t unit in a
<br />condominium or a platmed unit drvrlopmrnt, Borrowrr sha{I perfvnn all of Borrower's obhgatiens undrr the [ieoluration
<br />or covenants creating yr governing the cvndmninwm or planned um[ drvrlopmrnt, the ire-laws and regulations of the
<br />condominium or planned unit develvpntent, and cvnstiwznt dv~'umcnts. If a condominium t,r planned unit dcreinpnunt
<br />rider is executed by Borrower and recorded together wuh this Mortgage, the covenants raid agrcemrnts of such rider
<br />shall be incorporated imp and shall amend and supplemznt the covenants and agrrrmrnts of this Mortgage as t[ the rider
<br />were a part hcnrof.
<br />7. Protection of Lender's Security. IF Borrower fails to perform [he covenants and agreements contained in [his
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's inures[ in the Prapert}'.
<br />including, but not tinted to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a
<br />bankrupt or decedent, then Lender at Lendtr's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action ss is necessary to protect Lender's interest including, but nut limited to, Disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If [,ender reyuirzd mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect until such tone as the reyvirement for such insuranrr terminates in accordance with Borrowers and
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