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<br />UNmoatrt Coverretvrs. Borcower and Lender covenant and agree as follows:
<br />1. ~t of Prlnclpal and Iwterest. Borrower shall promptly pay- when due [he principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
<br />am any Future Advances secured by this Mortgage.
<br />2. Fanis for Trues and Irdwnnce. Subject to applicable law or to a written waiver by Lender, Bottower shall pay
<br />to Lender on the day monthly installments of principal and• interest are payable under the Note, until the Noce is paid in full,
<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 rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus otratwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time 6y Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />17re Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (incttrding 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, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest oa the Funds and applicable law
<br />permits Lender to make such a chuge. Borrower and Lender may agree in writing nt 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 />requirca such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shag give to Borrower, without charge, azi artnuat accounting of the Funds showing credits and debits to th .ands and the
<br />' purpose for which each debit to the Funds was made. Tire 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, assessmrnts, insurance premiums and ground rents, shall excted the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall du., such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited [o Borrower on monthly installments of Funds. If the amount of the Funds
<br />heM by Lender shat! no[ be sufficient to pay taxes, assessments, 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 Leader to Borrower reSuesting payment thereof.
<br />Upon payment in full of all wens secured by this Mortgage, Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under puagraph 1 S hereof the Propem• is sold or the Property is otherwise acquired by Lender, Lender
<br />stroll apply, rto lattr than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hdd by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppYtalton of Pay~ensa. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragnplu I and 2 hereof shall be apptitd by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on nay Future Advances.
<br />0. C~ I3etae Borrower shall pay alt taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, in the manner
<br />provided under puagraph 2 hereof or, if not paid in such manner. by Borrowtr making payment, when due, directly to the
<br />pays thereof. Borrower shall promptly furnish to Lender all notices of amounts due [order this paragraph, and io the evens
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall prompdy dischuge any lien which has priority over this Mortgage: provided, that Borrower shall not be
<br />required ip discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, ar 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. Hasard losaare. Borrower shall keep the +mprovements now exisring or hereafter erected on the Property insured
<br />agaiastloss by fire, hazards included within the term "exttnded coverage", and such other hazards as Lender may require
<br />and in such amounts and for wch periods as Condor may require; provided, that Lender shall not require that the amount pf
<br />such coverage exceed that amotmt of coverage required to pay the sums secured by this 'Mortgage.
<br />The insuttutce carrier providing the imurance shall be chosen by Borrower subject to approval try Lender; provided,
<br />that such approval shay not be unreasonably withheld. All 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 />iasurincro career.
<br />AB insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clatae in favor of and is form acceptable to Lender. Lender shall have [hc right io hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Linder all renewal nonCeS and ail receipts o[ paid premiums. In the event of loss,
<br />Bomowa shall give grump[ notice to the insurance carrier and Ltrder. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unkas Linder artd Borrower otherwise agree in writing, insuranct proceeds shall be applied to restoration or repair of
<br />ltle Property damaged, provided such testontion or repair is economically feasible and the security pf this Mortgage +s
<br />not thi:rtby impaired, If such restoration or repair is not tronamicali}' feasible or if the security of this Mortgage would
<br />be empautd, the insurance proceeds shall be applied to the sums secured by this Mongage, w-ith the excess, if any, paid
<br />to Borcower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 da}'s from the
<br />daft notice is mailed by Lender tp Borrower that the insurance carrier afters to settle a claim for insurance benefits, lender
<br />is atdhorized to collxt and apply the insurance grocetds at Lender's option eitber to restoration ar repair of the Property
<br />or to the sums stcured by this Mortgage.
<br />Utiless Lender and Borrower otherwise agrce m wri*_ing, any such application of proceeds to principal shall eat extend
<br />or postpare the due dare of lhr momhiy installments rt[erred to in paragraphs i and ?hereof ar change the amount of
<br />such installments. If utrder paragraph l8 hereof the Property is acquirtd by Lender, all right, ti:1e and inttrest of Borrower
<br />in aced to any insurance policies and in and to the proceeds thereat resulting from damagt to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the store sct:ured by this Mortgage immediately prior sa wch sale or
<br />acquiation.
<br />L Pssaervarian ad 1Narferannct of Property, Ltasehoids: Condo®iniamS; Planned Unit Devebprrreats. Borrower
<br />shall keep the Property in good repair and shall trot commit waste pr permit ittrpairment or deteripracion of the Property
<br />and shall comply with the provisions of any lease if ibis Iviortgagt ts' an a leasehold. if this Mortgage is on a unit in a
<br />c9adorninitun ar a planed unit development, Borrowtr shall perform all of Borrowers obligations under the declaration
<br />trr covenants creating or governing the ;.cirtdaminium or planned unit development, the by-laws and regulations of the
<br />condortunurm or planned tout development, and constituent dauments. If a cvndaminium or planned unit development
<br />rider is executed by Borsower and recorded together with this Mortgage, the covenants and agretmtnis of such rider
<br />shag be incorporated into and shall amend and supplement the covenants and agrtements of this Mortgage as +f the rider
<br />wen a part hereof.
<br />7> Preiecdan of Leaiefa Secnriry. if Barcower farts to perform the covenants and agreements wataincd in this
<br />Mor1{age, or if anY action or proeeedeng is aammenced which materially affects L.cnder's interest in the Proptny,
<br />in6luding, but not 1'mxited t0. eminent dotrrain, insolvency', cudt enfprcernent, or arrangements or proceedings invalvmg a
<br />bankrupt or decedenq thin Lender at Leader s option, opt+a notice to Borrower, may make such appearances, d+sbursc such
<br />sums and take arrch action as is necessary to protect I.entier's interest, mvluding, but not limited to, disbursement of
<br />reaaasrabk attorney's fors sad entry opal: the Property io make repa+rs. If Lender required mortgage insurance as a
<br />condition of making the lawn secureil by° this Mongage, Bpn~aucr shat! pay the premiums inquired to maintain +u~h
<br />iasyranee is effect until such time as tbe requitement for such msuranct terminates m accordance wuh Barrnver's and
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