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<br />Uxrt=oaxt Covenntvrs. Harrower and Lender covenant and agree as follows:
<br />I. Payment of Prlucipal and Interest Borrowtr shalt promp@y pay when due the principal of and interest on the
<br />indebeedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />on any Future Advances soured by this Mortgage.
<br />2. Fiords for Z'a><es slid Insurance. Subject [o applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender an the day monthly installments of arincipal and interest are pzyable under the Note, until the Note is paid in foil,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground renu on the Property, if any, plus one-twelfth of yearly premium irstallments for hazard insurance,
<br />plus one-twelfth of yeazly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from
<br />time to time by Ltnder on [he basis of assessments and bills and reasonable estimates thereof.
<br />Zile Funds shall bt held in an institution the deposiu or acceuau of which are insured or guaranteed by a Federal or
<br />:.+att agency (including Levdtr if Lender is such an institution). Leader shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground cones. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or v'erifyiag and compiling said assessments and bills, unless Lender pays Barzower interest on the Funds and applicable !aw
<br />permits Lender [o 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 Harrower, 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 an the Funds. Lender
<br />shalt give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purport for which each debit to the Funds was made. Zhe 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 fu¢ure monthly installments of Funds payable prior io
<br />the due dates of taxes, assessments, insurance premiums sad ground rents, shall exceed the amount required to pay said taxes,
<br />ac«s.:...eats, insura*tce premiums and ground rents as they fall due, such excess shat! be, at Borrower"s option, either
<br />promptly repaid to Borrower or credited to Borrower an monthly installments of Funds. If the amount of ¢he Funds
<br />held b}' Lender shsl! not be sufficient to pay saxes, assessments, insurance premiums and ground renu as they fall due.
<br />Harrower shall pay to Lender any amount necessary to make up the deSciency within 30 days from the date notice is mailed
<br />by Lender to Horrowtr requesting payment thereof.
<br />Upon payment in frill of alt sums secured by this Mortgage, Lender shall promptly refund to Borrower say Funds
<br />held by Ltnder. If under paragraph lg hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shalt apply, na later than immediately prior to the sate of the Propert}' or its acquisition by Lender, any Funds held by
<br />Ixnder at the time of application as a credit against the sums secured b}' this Mortgage.
<br />3. Application of Payme¢ts. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by t~°.rder first in payment of amounts payable to Lender by Borrower
<br />wader paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal oa any F.~,;:a Advancer.
<br />d. Charges; I3eas. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable eo
<br />the Property which ray attain a priority over this Mortgage, and leasehold payments or ground rents, if ary, in [he 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 thereof. Borrower shall promptly furnish to Lender all rouses of amounts due under this paragraph, and in the event
<br />Sot-mwer shall make payment 3irecth', Eorzower shall promptly fumish to Lender receipts evidencing such payments-
<br />Barrowu shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrowtr shalt not be
<br />required to discharge any such lien sa long as Borrower shall agree in writing to the paynieni of the abligaton secured by
<br />such lien in a manrter acceptable to Ltnder, or shall in good faith contest such lien ~y, or defend enforcement of such lien in,
<br />Iegal prose:dings which operate to prevent the enforcement of the Lien or forfeiture of the Prapetty or any part thereof.
<br />5. Huard r..~.m.,r._ Borrower shall keep the improvements new existing or hereafter erected on the Property insured
<br />against lost by fire, hazards iticl[rded within the term "extended coverage', and such other hazards as Lender may require
<br />sad in such amounts and for such periods as Lender may require; provided, [hat Lender shall not inquire that the amount of
<br />such contrage exceed that a-mount of coverage required to pa}• the sums secured by this Mortgage.
<br />Zhe insurance carr;tt providing the insurance shall ix chosen by Borrower subjtet to approval by Lender, provided,
<br />that such approval shah net he unreasonably winSheld. Ati premiums on insurance policies shall he paid in the manner
<br />provided under paragraph 2 hereof or, if sot paid in such manner, by Borrower making payment, when due. directly to the
<br />i4eTUianet t~rriv.
<br />All insurance policies sad renewals thereof shah Ue in form acceptable to Ltnder and shall include a standard mortgage
<br />.:iartse in favor of and in form acceptable to Ltnder. Lender shall have the right io haid the policies and renewals thereof,
<br />sad i3orromr shall promptly furnish m Lenaer ail renewal notices and ail receipts of paid premium>. la ifte tvxd of lass,
<br />Borrrnxer shad gist prompt notice to the insurance carrier and Lender. Lender may maize proof of lass if not made promptly'
<br />by Boaower.
<br />Unless Ltnder and Borrowtr otherwise agree in writing, insuranx practtds shall be applied to restoration or repair of
<br />the Property damaged, provided stxh restoration ar repair is economically feasible and the security of this Mortgage is
<br />not ihtreby imgaited. If such nestaratian or repair is net economically feasible or if the security of this Mortgage would
<br />ix impaired, the insurance practeds shall ix applied to the stuns secured by this Mengage, xith the excess, if an}', paid
<br />to Berrc+iver. If the Property is abandoned b} Borrower, or if Borrower faits to respond to Lender within 30 den's from the
<br />date txitict is mailed by Letidcr to Borrower that :lie insurance carrier offer to settle a claim Ior insurance lxnefits, Lender
<br />is authorizwti to trolltct and apply the insurance grtzxeds at Lentltr's optior. ei[hcr ro restoration or repair of the Proper}'
<br />or to the stuns secured by ibis Mortgage.
<br />Unless Ltnder and Borrowtr others ie agree in writing, any' such application of prxeeds to principal shalt not extend
<br />os postppae the due date of iht monthly tarts:}menu referred to in paragraphs 1 and ? l;treof or change the amoum of
<br />wch irsstaliments. If undo paragraph 18 Itrreof the Property is acquired by lender, alt right, title and interesE of Borrower
<br />in sad to any ir>5urance p~icies and in and ?n the pra;eetis thereof resulting from damage tc the Proper?}' prior to the sale
<br />or aegirisition shall pass to Lender to ehe extent of the stems secured by this \lortgage immediately prior to such sale or
<br />acgtusitma.
<br />B. Pl~v~ae and Meee of I'ro#oeriy-, LtareSotds; Condomimu~; PMnMd Unit lhveloptuent5. Sorrower
<br />shall keep the Property is goad repair and shalt not caminit waste or permit impairment or de[eriaratian of Ilse Property
<br />and shalt eamp}y with the pmvisiaas of any tease if this M, r€gagt is on a iearehold. !f this Mortgage is an a unit in a
<br />condominium or a planned unit development Barroxer shat! perform all of Borrower's obligations under [he declaration
<br />er vaen:n:a crtating ar gov:,rning the ~^`t~;nitaium ar planssed :....t deveMapmtnt, the by-laws and *.eg!~iations of the
<br />~tdottainiuta or planxd oat[ development, and constrtuent documents. If a candomintum or planned :met development
<br />rider is eiteetittd by Sotmwu and ruorded tozthtr with this Mortgage, the covrnanu and agreements of such rider
<br />shall bt incnrpa~tastd iris and shaA amend amt suppicrnent the coveranu and agreements of this Mortgage as it the rider
<br />xrtre a part hereof.
<br />1. Pnaheftios tiE I.euder's Ste. 1f Borrowtr fails to perform the covenants and agreements contained in this
<br />I~lOttgagt, of if any ttetiaa or pracxedirig is cornmeaced which mzteriaity affects Lender's interest in [he Property,
<br />incttidirig, bur cwt limited to, emiriertt domain, itisotvency, code enforcement, nr arrangemrtu or proceedings involving a
<br />bankrupt ar decedent, then Lttadtr at Lender's option, upon notice to Borrower, may males such appearances, disburse such
<br />strms and take each action as Jr tiecessarv to protect Lenders interest, including, but not limited ta, disbursement of
<br />zeastxiabie simtney's fees grid entry rtpan the Property is make repairs. if Lender required mortgage insurance as a
<br />wnditian of taatmg the loan secured by this Mortgage. Harrower shall pay the premiums required to maintain such
<br />iasurarxce ire efleeut tmli3 such time as the regtii.^etttat far such insurance ttrininates in accordance with Borrower's and
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