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<br />Utatroaat CovENeters. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest. Borrower shall promptl}• pay when due the principal of and interest on the
<br />indebtedness evidenced 6y the Note, prepayment and late charges as provided in the Nate, and the principal of and interest
<br />on any Ftrture Advances secured by this Mortgage.
<br />2. Funds for Ta:es and Ltsutance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Leader on the day monthly installments of principal and interest aze payable under the Note, until the Note is paid in full,
<br />a sun; (herein "Funds"} equal to one-twelfth of the yearly taxes and assessments which ma}' attain priority over this
<br />Mortgage, and ground rents on the Property, if any. plus one-[wcifth of yearly gremium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and fmm
<br />time to time 6y Lender on the basis of assessments and bi!!s and reasonable estimates thereof-
<br />The Ftmds shall be held in an institution the deposits or accounts o[ which are insured or guaranteed by a Federal or
<br />state agency (indirding Lender if lender is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />irsurance ptemittms and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said accotmt,
<br />of verif}ing and compiling said assessments and bills, unless Lender pays Borrower interest an the Funds and applicable law
<br />permits Lender to makt 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 ix paid to Borrower, and unless such agreement is made or applicable law
<br />requires stilt interest to be paid, Lender shall not be required m pay Borrower any interest or earnings on the Funds. Lander
<br />shall give is 13arrnwer, withrut charge, an annual accouraing of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Futtds was made. 71ie Funds arc pledged as additional securit}' for the sutra secured
<br />by this Mortgage.
<br />If the amount of the Funds held by tender. to¢ether 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 pa}' said taxes,
<br />ass~nents. insurance premiums aril ground rents as the} faN due. such excess shall be, at Borrower"s option, either
<br />prnaiptiy repaid to Borrower or crsdited to Borrower on manthi}' installments of Funds. If the amount of the Funds
<br />held by L.eWder shag not be strffirxcit to pay texts, assessments, rmurance premiums and ground rents as [hey fall due,
<br />Borrnsrer shalt nay to Lender any amount necrssan to make up the defiarncy within 30 days Irom the date notice is malted
<br />by Leader to Barn~wer tsgtrcsting pa}ment thereof-
<br />Upon payment >n full of all stmu secured by thts Mortgage, l..endcr shall promptly refund to Bortvwer any Funds
<br />hehl by Lender. It under parRgraph ig i>_tu,f the Preprm is sold or the Properly is otherwise acqurced by Lender, Lender
<br />shut ~v_ na lam rhsn : ~.,,..,t:ry: 1> r=or v, ah.- s>!le ,u zhc Praoert}' at its acquist[ion 6y Lendrr, an}' Funds held b}•
<br />Leader at the tune of application as a credit agaznss the sums secured t+}' thss Mortgage.
<br />3. A~ticatise of P;vt~ Unless appliubk law pas„itos altrrwie, all paymcnts received by Lrndar under the
<br />Mott and paragraphs 1 and . trercot shs7! br applrtd by 1 ~ndu first to payment o: smounts payable to Lendrr by Bortnwer
<br />tmdtr paragraph ~ htreof_ then io inter,est payabk nn the `oft, tSen m the principal of the Note, and then to interest and
<br />principal oa any Future Advatwes.
<br />0. CAWi;e~ Liens. Bormv.cr shat; pay all taxes, assesstmnts and other :hargts. fitre_s and Impositions attributable to
<br />the Pmperiy which may attain a prit.+rity over ably ~iorigage. and leasehold payments or ground rents, if any, in the manner
<br />prvsitied under paragraph ? hermf or. ,i not paid m such manner. by Baittawtr making payment, when due, directly to the
<br />payee thereof. Burroartx shall grumptl} furtusF, to Lender ail nrnri'es of amounts due under this paragraph, and in the event
<br />Borrower shall make pa}men~ dlra'tlc. aaraHer shall promptly fumrsh zo Lender receipts tvidtncing such payments.
<br />$orroas shall promptly 4isckrarix env 1reA >sttich has pr4ant} o,rr rhis Mortgage; provided, that Borrower shall not bt
<br />required to discharge ant' such lien so long as B.irrox•tr shall egret in wnung to the payusrnt of the abligatior. scoured by
<br />srrb lip in a tnantxt acrxptabk to Lender, . r sbait ir. goad faith camcst such lien h}, or defend enforcement of such lien iW,
<br />legal proceedings whi:.h aperatr in prr>tnt the tnforctmtn: of the i:ca or forfature of the Properly ar any pan thereof.
<br />3. Baori luwtaacr. 13atra>aer shall keep tfu Impm>em.ms new txisung ar hereafter erected an the Pmperty insured
<br />agains3 loss be Errs, harsrtis iraatuded wrdsrn the term "extended .average", and such other hazards as Lendrr ms} require
<br />and to such amaunu and for such perx>ds as f.endtr may rtyuirc; prodded, that Lendrr shall not esquire that the amount of
<br />stlr3i oaarrage eassrd that amount of a„-wage rtquutd u+ pay the sums stcurrd by thts Alortgagt.
<br />life rtstiranx carrier providing xlae insur~azrx shall be chaser by Borrower subject to approval b} Lendrr, provided,
<br />that such approval shall net br ==nrta`i,nably w~lililsrid. Ai] premiums on insurance elicits shall t~ paid in the manner
<br />providdt under paragraph 2 hexsaf ar.:f erne paid in such ;Wanner, by BartUwer making payrritot, when due, dittl.il}• to the
<br />itraasrant~ carrier~
<br />.Ali itttauanrt pobcsza and mfewals thernif sisal br in farm ar.~rptablr to Lendrr and shall include a st::sdan! mangagt
<br />'insist ist favor of and ra forst a:ceptabJt to Lctadtr. Ltnr~r shall have the right to Ix+ld the paliries and rtrtrwsis thrreot,
<br />a~ Battorvtr sdfal! pramprlw iurarsh to ttndet ail rtnrwal tiotrces and all rtctipts ai paid premiums. In the e>rni of lass,
<br />Bntxtrwra s3ull 3tvt prornpt notcx to the uutuance cart:rr ate tender. ttndrr ma} make pra,ai of loss ii oat made laamptly
<br />by Borrn~vcs.
<br />Unlen Laftitr and 13orr4wst .ulrtrswst agrce in carting, insurance pn><roeds shat! br applied to miaratian or repair of
<br />the Axfpee•t}° damagul, prot'zd~ suit trsrarauan ar rrpau r c~;anamir311y frasihk and the scttuity of they hlorigsgt is
<br />not thu~tby unPured. Lf stn-ti ztsu-u~atnan w ispau is net econvnicalh frastble or if the secant} of th:s llorigage would
<br />are impairai, ibe insruaeae prorxals shall ire applied to the sums secured t+y they ?slotigagt, uuh the ea°ess, if any, peed
<br />w 8cnnwer. If the Property is atu~.xsQi b} Hormwer. or ri Borrower fatly ra rtspand to i.cttder within 30 days Irom the
<br />[late notice u tnailtd bw Lwdtt to Harrt+rvrr that the Insurance carrier t:Ifrr: to seffit s claim for ;nsuranoe betrtfits, Lender
<br />is afrthoriaed to collect sad apid}' the msurarice pas'eeceds at Lender's option ttthtr to rtstaratton ar repair o2 the Prnpeny
<br />tv at ffie suns st~ured by dais kiorrgag:
<br />L.rt~iesx Lender and Borrower ather,zx agrtt m wasting, any st><h applu.atian I>f ptusxeds to principal ,hall nix extend
<br />~ praepamt life due lax of the tnantttfy iW.ctallmtnts rtfcrrad to to paragraphs i and- fitreof or change the amount at
<br />web installments. if under paragraph !g hereat the Praptm- as acyurred ht Lendrr, all right, tole and tnterusi of Barrawrr
<br />in and ter any ;~,r.r,~ ptgieies and in and to iht proraeds tlxreat resulting from damage to the Proprn} prior hs the salt
<br />tar two shat! ]mss m Lender to tht latent of the susWS se.•'tutd by ihu !«fortgsgt :mmedtatety prier to ,urh yak or
<br />f. ant Mal~rfce of iPrnpet!}; IraseholdG Cnadomiaiu®c; P4notd Unit Devetopmeots. Bormwrr
<br />shah katp the Property in goad re}tair and shall Woe cotWmit waste ar ptrmtz tmpairttunt or deteriorauon of the Property
<br />and sbaB comply with the emulsions flf any least if this Marigagt es an a Iraseho}d. It thu Mortgage i> an a unit in a
<br />or a platmed unit dtweltfpmcat, Borrower shall perform al.! of Barmwrr's ut;l:g:suorts under the dreiaratior.
<br />err eavenants cttatufp, or goiruniag the candc+minium ar planned amt development, the t+y-taus and regulations r+f [fir
<br />at planaai ~ Wit, nerd coastiturnt ~4~:.unsrars. If o awtdarrinium ar planned ur;:t ~xvrl.>paxnt
<br />IYdCt 9S Z~LL9ritd lay BtYi3Wtl' aril ra-arduf together wltlt this Mortgage, the covenants and agretmente of such rldtr
<br />slgdi bt irfroa'pnratad intp aiad shaft amend and supplement the rnvenants and agreements of this Mortgage us ii the rider
<br />woe a pelt tftxanf.
<br />?. Pruucliaa of Leniea"a Secsrity. If $ormwtr fstls w perform the covenants and agreemeria aantalned m this
<br />Mtrrlgay~e, m if any alAitm or proceeding is ccunnitnetd which maitrially atTects Lenders ~ntrrrst in the P+npem,
<br />igeiadinE, but oat lirtfitiu! t0. eiaineni domain, insolvency, .ode enforcement, ar arrangements or proceedings ttnolving a
<br />bataknipt ~ deotdait, then Leader ai teot}er's option, upon notice to Borrower, may n+ake such appearan; es, disburse such
<br />tart aryl take each action as is itcaessar}• to prtuut Lenders tnirrest, tncludtng. but not limned to, dtsbursemrnt ai
<br />r'psmabie attorneys €ses and entry upon the Property to make repairs. Il i.ender required mortgage insurance a. n
<br />condfiion of inakiag the loan secrued by ibis Mortgage, Barrowcr shat! pay the premiums reywred u. maintain such
<br />iatnxaWa in effect until such time as the rtyuuei»eat for such insurance irrminaies in accordance wash Borrower's and
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