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<br />UrttFOnnt COVENANTS. Borrower and Lender covenant and agree as tollows:
<br />1. Payment of Pdndpal and Interest. Borrower shall promptly pay' when due the 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 />on any Future Advances secured by this Martgage.
<br />2. Funds for Taxes and Ittwraace. 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 fulh
<br />a sttrrt (herein "Funds") equal to one-tueif[h 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, all as reasonably estimated initially and from
<br />time [o time by Lender on the basis of assessments and bills and reasanable estimates thereof.
<br />The Funds shall be held in an institution 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 premiums and ground rents. tender 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 on the Funds and applicable law
<br />permits Lender to make such a charge. Barrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest on the Funds shall he paid to Borrower, anti unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall nut be required to pay Borrower any interest ar earnings nn the ~'^nds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the .~unds and the
<br />purpose for which each debit to the Funds was made. The Funds arc 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, assessments, insurance premiums and graund 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, ai Borrawer's option, either
<br />promptly repaid to Borrower or credited to Borrawer on monthly installments of Funds. if the amount of the Funds
<br />held by Lender shall not be sttfficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessarc to m~~ke up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requuting payment thereat.
<br />Upon payment in full of all soots secured by thts :atortgage. Lender shall promptly refund to Barrower any Funds
<br />held by Lender. If under paragraph I g hereof the Property is said or the Property as atherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property ur its acyuisition h}' Lender, any Funds held by
<br />Lender at the time of application as a credit against the su :secured b}' this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender fiat m payment of amounts payable to Lender by Borrawer
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nate. and then to interest and
<br />principal on any Future Advances.
<br />J. Charges; Lktts. Borrower shall pay all taxes. asessments rind other charges, fines and Impositions attributable to
<br />tht Property whicis may attain a priority over this Mortgage, and leasehold payments nr ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not patd m such manner. 6c Borrower making payment, when due, directly to the
<br />payce thereof. Borrower shall promptly funttsh to Lender all ounces of amounts due under thls paragraph, and in the event
<br />Borrower shall make paymtent directly. Borrower shall prompth~ furnish to Lender receipts evidenang such payments.
<br />Borrower shall promptly discharge any hen ~chlch has pnanty over this Martgage; pruvtded. that Barrower shall not t,e
<br />required to discharge any such lien su tang as Burrower shall agree in wrung to the payment of the obligation securtd by
<br />such lien in a manner acceptable to Lender, or shall in grn d faith crones[ such lien by, ar defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or torfetture of the Property or an}' pan thereaf.
<br />5. hazard Insurance. Borrower shall keep the mtpravements non evisung cr hereafter erected on the Property insured
<br />against toss by fire, hazards included within the term "extended wverage". and such ether hazards as Lender ma} require
<br />and in such amounts and for such periods as Lender may r~uire: provided, that Lender shad oat reyulre that the amount of
<br />such coverage exceed [hat amount of coverage regmred to pay the >uots secrued by thts \fangage.
<br />Tile insurance carrier providing the insurance shah he chosen by Borrower subject r appraval Sy lender: prevlded,
<br />[hat such approval shall sot be unreasanahly withheld ,433 premiums on insurance polities shall he p:ud :n the manner
<br />provided under paragraph 2 hereof or. if not paid in such manner, b} Borrawer making payment, when due. directy ro the
<br />instuance carrier.
<br />All insurance pohctes and renewals thereof shall be in icon acceptable to Lender and shalt rslude :, s[andsrzi mortgage
<br />clause in favor of and m farm acceptable to Lender. i_endzr ,hall hate the right to hold the policies and rcncwals there. f.
<br />and Borrower shah promgtiy furnish to Leader alt renewa3 naucas sad all receipts of paid prernulm.. in the event of toss.
<br />Borrower shall give prompt notice to the insurance earner and Lender. tender ma} make nraol al loss d not made promptly
<br />by Barrower.
<br />Unless lsnder and Borrower othena-i,t agree in a troop, innurantn proceed, shalt be applied to restoration or repair of
<br />the Property damaged, pruvtded such restarauon or rcpatr a aumonucaBy feasible :and the stcunt} of this \fangage ~,
<br />not thereby impaired. if such restoration or rcpatr a not economicaii} feanlble ar tt the secunq' of thl, Mongagt would
<br />be impaired. [he insurance pnxeeds shall be applied to the stints secured b} thls `ier[gage. ..:th the excess, if any. pa,d
<br />to Borrower. If the Property is abandared h} Borrower, or ~i Borrower !ads to resl:ond to 1_cnder wnhln all da}'s frr:m the
<br />date notice is mailed lt}• Lender to Borrower that the msurantc carrier odors :a settle a cialm for a»uraaet benefits, Lender
<br />is authorized to called and apply the insurance prxzeds at 1_ender-s option etthcr to reswraG.~n or repair a( the Propern
<br />or io the stuns secured by this Mortgage.
<br />Gales, Lender and Borrower atherwise agree m writing, an} such appticaion ri' prxeeds to principal shell not eotcnd
<br />or postpone the due date of rite nwnthl}' installments rctertrd to in paragraphs l and ~ hereof ur change .he amount of
<br />such inslal3rtterts. If under paragraph 16 hereaf the Prapen} is acquued b} Lender, at3 right, tole and :Itterest at Born,w er
<br />in aril to an}' insurance pa}icies and in and to the praceeds thereof resulting Tram damage to the Properly poor to the sate
<br />or acquisition shall pass to Lender to rite extern of the sum, secured b} this }Tortgage unuiedtateh prior to such sale or
<br />a.°quiitian.
<br />6. Prehervation and Diainteoance of Property; Leasehold;; Condominiums; Planned Li[tit Derelopments. Borrower
<br />shall keep the Poepeny in good repair and shall not commit waste or permit tmpuirment or deterioration of the Propert}
<br />and shah comply wifh the provisions of any lease If the Martgage a stn a 3casehoM. 7f thu :'.-fortgagd r on a +mu in ..
<br />condominium ar a planned unit development, Borrawer shall perform all rd' Borrowers r+hbgauons under the declarat wiv
<br />or atvenaats creating or gaverring the cond:,m~mum a- planned nun development. the by-law, and regeilauttn; ,., the
<br />wndominiunt or planned unit development, and canstiment documeno. It a ranaiaminium ar planacd unit development
<br />rider is executed lay Borrower and retarded together wish than Martgage, the c~avanants :,rid agreement, „i such rider
<br />shall be incorporated into and shall intend and_upplement the coaenants and agreements of this la4ortgaga us it the ttder
<br />woe a part hereof.
<br />7. Pztoledion of Lender's Security. If Barrower fads to perform the wvenanw and .,greeuierts contzuncd in this
<br />Mortgage, or if any action of proceeding is tommcnted which muterialiy affect., 1_endcr', interest in the Propert}.
<br />including, but not limited to, eminent domain, insolvency. code enforcement, or err;mgemenis ar proceedings unvi:mg a
<br />baokrapt or dezeden4 then Lender at Lender's option, upon Hance u, Born,wrr. may make such appt,ua n; cs, drshwse su:h
<br />sums and take such action as is neeessan• to proteti Lender's mteres, including„ #.+ut not hmitrd to. chshurscntr.m ++t
<br />reasonable attorney's tees and entry upon the Prvpeny to make rtpaus. Is Lender required nwrtgage insurance a-
<br />condition of making the loan secured by this Mortgage, BlrrDwel sttai! pay the premiums reyu:red ,~ matmaui ui,h
<br />insurance in effect until such time as the requirement for such uuurunct tetmmatcs m ae,:ordsucc with Borrower's ,dud
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