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<br />Utvrroanr Covr.NeNis. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest. Borrower shall promptly pay when due the principal of and interest en the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided m the Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Ta:es and Insurance. 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 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 one-twelfth of yearly premium installments for mortgage insurance, if any, aB as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or accounts of which are insured nr 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 pttmiums and ground rents. Lender may not charge Yor so holding and applying the Funds, analyzing said account,
<br />or verifying and-compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to matte such a chazge. Borrower and Lender may agree in writing at the time of execution .of this
<br />Mortgage that interest on the Funds shall he paid to Berrowcr, and unless such agreement is made or applicable law
<br />requires such interest to he paid, Lender shall not be required to pay Borrower any interest or earnings ern the Funds. Lender
<br />shall give [o Borrower, without charge, an annual accounting of the Funds showing credits 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 ns secured
<br />6y [his 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, assessments, insurance premiums and ground rents, shall exceed the amount required 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 Borrower or credited to Borrower on monthly installments of Funds. If [he amount of the Funds
<br />heM by Lender shall not be sufficient to pay taxes, assessment, insurance premmms 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 [he date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full ot" all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Propene ss sold or the Praperty is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by
<br />Lender at the time of applicaUOW as a credit against the sums secured by this .Lortgage.
<br />3. Ap~licalion of Payments. Unless applicable law provides otherwise, all r_~yments received by Lender ,order the
<br />Note and paragraphs 1 and 2 hereof shall 6e applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable on the Vole. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />3. Charles; Deus. Borrower shall pay all taxes. assessment ap.d other charges, fines and miposittuns attributable to
<br />the Property which may attain a priority over this Aortgage. and leasehold payment or ground rents, if any, in the manner
<br />provided under pazagraph 2 hereof or. if not pasd in such manner, by Borrower making payment, when due. direcfly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all nottces of amount due order this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shail.prampdy !urnash to Lender reczip[s csddenctng such payment.
<br />Borrower shall promptly discharge any lien which has priorty over this Rlongage; pravtded, [hat Borrower shall not be
<br />requittd to discharge any such lien so long as Burrower shall agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lizn h}', or defend erfnrcemen[ of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the her, or torfenure of the Property or any pan thereof.
<br />5. lilaaard lueurauea Borrower shall kzep the Improvements nuu e;isung nr hereafter erected on the Property insured
<br />against loss by $tt, hazards included within [he term "z.<tended coverage", ar_d such othtr hazards as Lender may require
<br />and in such amaunt and for such periods as Lender may rzquitr, provided, that Lender shall na reyuire that the amount of
<br />loth coverage axcetd that amoum of coverage regwred to pay the isms secured 5y thts Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Burtouer sublect to approval by Lender, provided.
<br />that such approval shall not be unreasonably withheld. All prenuums on insurance pniires shalt be paid m the manner
<br />provided under paragraph '_ hereof ot, d trot paid in such manoe[, by Burrower making payment, when due. dtrectly to the
<br />m5nranee Carr/tr.
<br />AH insurance policies and renewals thereof shall he m faun acceptsblc to Lender and shall utctude a standard mortgaga
<br />clause in favor of and in form acceptable to Lender. Under shall franc the nght to he?id the ooiicies sod renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal nuuees and al! ree:elpts of pasd premium;. la the event of loss.
<br />Borrower shall give prompt notice to [he insurance carrier and Lender. Lender ms} make prowl of loss a nut made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree en a rxmg, insurance grntezds shall be applied to restoration .>r repair of
<br />the Property damaged, provided such reuurattan nr repau is ecnnumttally (eastbie and rite ,ecuru}• of thu Mortgage ,:
<br />no[ thereby impairtd. If s[tch restoration ar repair is acr zx:oaomiculiy ieassble or tt the secure}' o[ this Mortgage would
<br />be unpaved, the insurance procee3s shall be applied to the sums secured b} this ~lorsgage, eetth the excess, ti any. pasd
<br />to Harrower. if the Property is ahandaned b} Borrower. rx ii Borrower fails to rzspund [a i.endzr wtthm 30 da}s from the
<br />date native is mailed by Lander :o Borrower that rite insurance carrier otters [o se[tlz a clam[ for insuranct henefits, Lender
<br />is authorized to collect and apply the insurance prixeeds at Lender's nptton tuhzr to restoration or repay of the Property
<br />or io the stuns secured by this Mortgage-
<br />Unkss Lender and Borrower oihenasse agree m wasting, an} Guth agglication „f pn,czeds to prtncfp.+l shaft not extond
<br />or postpone the duz date of tltz monthi} installment referred w to paragraphs aad_ hereot ur changz the amount of
<br />such installment. if under nazagraph i3 hereof the Prupu[y is st.luued h} Lender, al! tight, uric and Interest ni Bormwet
<br />in attd to arty insurance policies and in and to the ptc:.teeds thereat rzsui[tng from damage ro the Proper[} pr:ar to the ante
<br />or acquisition shall pass to Leader to the zs[ent nl [he Burns suurzd »} this 4f nr[gage tmntediatel}' prior t<, such saiz cv
<br />aGQnlSittOO,
<br />6, Preaervatitw and }lttraienance of Propen}; t.cayeholds; CondomioiurrLx; Planned Utdt Deceiopmentti. Borrower
<br />shall keep -ttte Properly in goad repair and shall oat cnmati[ uastt ur permu tmp:urmznt or dttzriorauon of the Property
<br />and shall comply with ffie provisions o-f any lease tf ihu Murtgagz „one iaaszhcid. li tilts Mortgage t+ no :+ unit m a
<br />condominium x a planned unit development, Barro:.et shai3 pt:rfcrns all t>i Aurr::wers :tblrgauuns uncle; the dcclarau~,n
<br />ar coveaanU creating ar gottrnsng [he oondornsr,sum or plan ,ed unit dzvetopmcm. tlrz by-laws and teguiatios of the
<br />condoittittium or planned unit development, and tansti[uent do;:untews. if a condominium or piarmad ,mil dcveiopntcnt
<br />ride a executed by Barrowcx and ruorded togzthcr u,ib then Mortgage, the coveuants and agrazmeu:~ ,It Such rider
<br />shall be iacarporated into and shall amend and supplzment the covenants and agrcerttenis of the Mortgage as a the rider
<br />were a part hereof.
<br />7. Prolectbu of I,ender'a Security, Ii Batrawer lasts to perform the covenants anti agrccment .untamed In this
<br />Mortgage, or if any action or proceeding t cnmmeuced whi h matcrielly sRec[s ttnd~•t': uitcrest in the; Proper[}.
<br />including, bal. not limited tp, e[uinent doma.n insolvent}, code a t~rczm ^t ~r ar.a tb ntcitts , t i r t:zcdings intul<ing :,
<br />bankrupt or deczdent, then Lender a[ Lender'> option, upon n.+tice is Aurro.se-z. naay n.ake su.h :,,+pcarances. rhsbursu +uth
<br />stuns and take suck[ action as is necessary to protcxa L_:,der's mirreni, .ndudmg, but taut lun,tcd to, dlsbura•mcnt ~a
<br />reasonably aitottley'S foes and entry upon the Properly to make repair,. it i,ender required suurtgagc insurance us .i
<br />condition of [Waking the loan soured b} this Mottgage, Acrrrowtr ,hell pa} [ire preminms mywrcd to maint:un +.:ch
<br />insurance in effect until such tithe as the retluiremeat for such msutance ternxnates m .rcccxdancc ,elth Both,+wer'a .end
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