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<br />Ut~raoart Covt:r:rwrs. Borrower and Lender covenant aatd agree a fa}lr..ws:
<br />1. Payment of Paincilpal and Interest. Borrower shall promptly pay when due the principal of noel interest on the
<br />indebtedness evidenced by the Not€, prepaynpent and'. Iat€ charges as provided in the Il~iote, and the princupal of and interest
<br />on any Future Advances secured by this Mortgag€.
<br />2. Funds for'I'axes and Insutanc€. Scbject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on 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") eyual to one-twelfth of [he yearly faxes and assessments which may attain priority over this
<br />Mortgage, and ground rents nn the Property. if any, plus one-twelfth of yearly premium irstalimenis for hazard insurance,
<br />plus oneawelf[h of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from
<br />time to time by Lender on tl:c basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall he held in an institution the deposits 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, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analy._;ng said accoune,
<br />or veri€yin¢ and compiling said assessments and bills, unless 1-ender pays Borrower 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 be paid to Borrower, and unless sucfi agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pzy Borrower any interest or earnings on the Funds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing cred•,ts 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 />6y 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 lases, 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 Barrower 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 rents as they fall due,
<br />Borrower shall pap to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Leader to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this ivfortgage. t-ender shall promptly refund to Borrower any Funds
<br />held by Lender. If ,Roder paragraph IFS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no late: than immediately prior to the sate of the Property or its acquisition by Lender, any Funds held by
<br />Lender a[ 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 naragraohs I armed ~ hereof shall be applied by Lender first in payment of amounts payab!e to L ender by Sorrowcr
<br />under paragraph ?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. Charges; Liens. Borrower shalt 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 payment: or ground 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 tinder this paragraph, and in the event
<br />Borrower shall make pay,nent 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 shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to [he payment of the obligation secured by
<br />such lien is 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. Hazard Insurance. Borrower shat! keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyures
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shad not require that the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that s!tch approval shall not be unreasonably withheld. Ail premiums on insurance policies shall be paid 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 />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favee of and in form acceptable to Lender. Lender shall have the right ut held the policies and renewals titerof,
<br />a_nd Aorrewe-r she!! p pi!v furnish ~^ l..erder a!! r.,..ewal ^ ^es and all receipts of paid cremiums. In the ~. t of I~~.
<br />Borrower shall give prompt nefice to rite insurance carrier and~Lcnder, Lender may make proof of kus if net rnaia"promptly
<br />by Sorrowcr.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration oc 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. It such res[oratinn or repair is oat camomicaflp fcusibin or if the security of this Mortgage would
<br />6e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, patd
<br />to Borrower. If the Property is abandoned by Borrower, or if Barrower fails to respond to Lender within 30 days teem the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, i-miler
<br />is authorized to collect 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 I-ender and Barrower otherwise agree in writing, any such application of proceeds to prmetpal shalt not extend
<br />or postpom:the due date of the monthly installment; referred to i^ paragraphs I and '_ hereof or change the amount at
<br />such installments. li under paragraph 18 hereof the Property is acquired by lender, all right, title and interest of Narrower
<br />in and to any insurance policies and in noel to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acyuisitinn shalt pass to Lender to the extent of the sums secured by this Mortgage intmediatciy poor to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Sorrowcr
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall c€mply with the provisions z*f any lease if this Mortgage is an a lcascltold. If this Martgagc is ur= a unit in :e
<br />t:andominiutu nr a planned unit development, Bon'ower shall perform alt of Borrower's ohhgatinns under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-taws and regulations elf the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit developmem
<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 shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protecfion of Lender's Security, If Ronower fails to perform the covenants and agreements contained in this
<br />Mortgage„ or if any action or proceeding s commenced which materially affects Lender's interest in the Property,
<br />including, but not Limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary [o protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fens and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a
<br />condition of making 4he Loan svctrred by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurancesn effect until such tune as the requirement Tor such insurance terminates in accordance with Borrowers and
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