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<br />Uxmoabr Covexex•rs. Borrower and Lender covenant and agree as follows:
<br />1. Pigwnt d PcMdpal ad Iderest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and Tate charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. IRntia for Tawas aa/ Itiweance. Subject 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 stun (herein "Funds") equal to one-twelhh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and grotmd rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus Otte-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />Ume to Gore by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Ftmds shall be held in an insU[ulion 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 prcmitune and ground rents. Lender may oat charge for sa holding and applying the Funds, analyzing said account,
<br />or verifying and compliog said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permit Lender to make Stich a charge. Barrovicer and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds sball be paid to Borrower, and unless such agrcement is made or applicable law
<br />requires such interest tc be paid, Lender shall not be required to pay Aorrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to [he F 's sad the
<br />purpose for which each debit to the Funds was made. ILe Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />IE 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, iristirance premiums and ground rents, shall exceed [he amount required to pay said taxes,
<br />assaaments, iruurance premiums and ground rents as they fall due, such excess shall be, at Borrowei s option, either
<br />ptamptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held bq Lender shall not be sufficient to pay saxes, aearccments, insurance premiums and ground rents 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 Leittlu to Borrower requesting payment thereof.
<br />Upon paymem in full of all sums secured by this Mortgage, Lender shat) promptly refund to Borrower any Funds
<br />6ek! by Lrnoer. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale pf the Property or its acquisition by Lenrier, any Funds held by
<br />Lender at the tune of application as a credit against the sums secured by this Mortgage.
<br />3. A~Beatiss d PayaseNa. Unless applicable law provides otherwise, ail payments rceeived by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment pf amounts payable to Lender by Borrower
<br />under paragraph 3 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />prindpal on any Futtrte Advances.
<br />d. Chasges; Iles. Borrower shall pay alt taxes, assessments and other charges, fiats and impositions attributable to
<br />the Property which may attain a priority over this Mortgage. and leasehold payments pr ground rents, if any, in the manner
<br />provided order paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, ditceUy to the
<br />payee thereof. Borrower shall promptly furnish to Lender ail notices of amounts due under this paragraph. and in the even
<br />Borrower shall make payment directly, Borrower shall promptl} furntsh to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any Lien whia;h has priarrty over this Mortgage; provided, that Borrower shall not tx
<br />requited to discharge any such lien so long :u Borrower shall agrce in wrung to the paymentof the obbgation secured 6y
<br />Stich lien in a manner acceptat>it to Lender, or shall in good faith contest such lien hy. or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement o[ the heu or forfeiture of the Prnpetty ar any part thereof.
<br />i. 1flasfd 6wsa~re. Borrower shall keep the improvements now txistina or hereafter erected on the Property ensured
<br />agaimt loss by fire, hazards included within the term "extended coverage". and such ether hazards as Lender ma}' require
<br />and in stick amounts and far such periods as 1_emit: may reyuim; provided, that Leniler shall oat reyuirc that the amount of
<br />stidt Coverage excced that amount of coverage required tp pap the Soros zecured by thss Mnngage.
<br />The inuurance carrier providing the insurance shalt be chosen by Borrower subject m approval by Lender, provided,
<br />that s»ch approval shag sot tx unreasonably withheld All premiums an insurance pplictes shat! he patd .n the manner
<br />provided under paragraph 2 hereof or, tf twi paid in such manner, by Bprrawer makmg payrneni, when due, Directly to [he
<br />insurance carrier.
<br />AB insurance policies sad renewals thereaI shall be in farm acceptable tp Ltrder and shalt rnclude a standard mortgage
<br />clause io favor of a~ is form acxptable tp Lender. Lender shalt have the right to bald the policies and renewals thereof,
<br />std Borrower shaft promptly furnish to Lender aft renewal natiees and ail meters of paid premiums. Ire the event of loss,
<br />Borrotwr shall gave prompt notice to the insurance tamer and Ixnder. Lender ma} make proof of loss ti opt made promptly
<br />by Borrowv.
<br />Urikss Leader and Borrower otherwise agree in venting, insurance prxteds shall be applied ip restoration or repair of
<br />the Property damaged, provided such restoration or repair is econpmicaUy fexstbie and the security of this Mortgage is
<br />not thereby impaired. if sticlt rrstarazion or repair is oat ezonpmi:ally teasibte ar if the security' of this Mortgage would
<br />6e impaired, the insurance proceeds shall be applied to the sums secured by thrs Morgage. with the excess, if any, paid
<br />to Borrower. 1f the Property is abandoned b} Harrower, pr ii Borrower fails to respond to Lender within 3U daystrom the
<br />data notice is mailed by Leader ip Harrower that the insurance carrier pgers to senle a claim far insurance benefits, Lender
<br />is atithoriud to collect a~ apply the insuntnt prorxYds at Lender's option eithu to restaranaa er repair of the Propene
<br />or to the sums secured by this Mortgage.
<br />Ualtns Londe. sad Borrower pthetveise agree to venting, any su: h appliwtian of ptpcseds to prmcip-rt shalt not extend
<br />tr-posspoge Ute due date of Use nianthly installments referred io in paragraphs S and 2 herepf or change the amount of
<br />such i•+~+-ilme!+rs. If under paragraph Ig hereof the Property u acquired by Lender, all right, title and interest of Borrower
<br />in slid to any iasuraact policies attd in atui to ttte psoctedx thereof resulting frpm damage to the Property prior to the lade
<br />of acgttisiti~ shah pass to Isnder Sa the extent of the sums secured b} this lfattgage imnredrately prier to such sale ar
<br />acgisiaititxt.
<br />6, Haapvaliai err ;1liMnfaaY of Psperty; Leace[saldth Condomieitrtas: Planned Lint Developmems, Borrower
<br />shall keep the Propertysn good repair and shall not commit waste pr pertnrt tmpairnient or deterioration of the Property
<br />slid shalt caatpiy whit the paovisioas of say tease if this Mortgage rS an a !„asehctld. if Chi; Mattgage is en a unit in a
<br />eontioapinium or a glanced unit development, Bazrpwer shalt pedarm alt pf ilorrower's ohltgauons under the declaration
<br />ar v~vutants ereaisgt ar governing ifrr :.ctndam.rri;;m c+r plannrf unit dcvFioptntnt. the b€-laws and regsalatipsts of the
<br />wndominirun or plaaced unit devdopoaeni. and constituent documents. Is' a t+ndaminium ire 1>lanm~ unit dtvtlopment
<br />ride[ is exavted by Borrower and re;.arded tpgethtr with this Mprigagt, the cpvtnanu and agttentenu of such rsder
<br />x6alf biE iocorparateel into attd shall intend and supplCmeat the cavtnanis and agreements cif this Murtgagt as if the rider
<br />were a part hereof.
<br />7. !'sgretdast d L.[ader's Sacsritf, if Borniwer fails to preform the covenants and agrttmtnts caniained ut this
<br />~ of if any action or pixx:eoding u ramntenced which materially affects Lender's mtett;s[ in th:; Pt,+ptny.
<br />indudiag, btrt not lirttited ta. kmiittnt domain, insalvta.:y, .t+de entaruement, pr arrangements t+r prc>certhngs uivc;lving a
<br />bankrupt or dect:.dent, then Lender ai I.eotkr's aptipit, upon mulct ti+ Bvrrawei~, mat make such appearancra, disburse nacre
<br />stems attd take Stroh action as is tecessary is protetY Leniftr'>: rtue-reel, uractd:ng, t+ur opt linseed to, drshsarse merri rat
<br />xeawnable attorney`s ilex and entry upptt [ere Pet=pony zp make r~Parrs, if lstrtdtr required mottaagc insuuauce to ._
<br />ecxulition of making .the; loan stcure:# by this Mongagt, Brs[ttveer shalt pay the premiums requu'c:.t t,? ntat`uta,n si.th
<br />imtutatice in +affaGt until Stich time as the requiretpcnt 6or such insurance retminatev m r<ccordancc uittt Bcrrr *uer. .,rd
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