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<br />UxmaaM Covrx+xrs. Borrower and Lender covenant and agree as follows:
<br />1. Fzyment of Frincipal and Interest. Borrower shag 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 imeresi
<br />on any Future Advances secured by this Mortgage.
<br />2. Fends for Taaes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt 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-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 />Alas one-twelfth of yearly premium installments for mortgage insurance. if any, aB as reasonably estimated initially and from-
<br />time to time by Lende* on the basis of assessments and bills and reasonable estimates [hereof.
<br />The Funds shalt 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 instiution). 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 rite Funds, analyzing said account,-
<br />or verifying and compiling said assessments and bats, unless Lender pays Borrower interest on the Funds and applicable lavd~
<br />permits Lender to make 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 be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower 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 the Funds and the
<br />purpose for which each debit to the Funds was made. The 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, 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 ezcess shall be, a[ Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Louder shag not fie sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due;
<br />Borrower shall pay to Lender any amoun: necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Flrnds-
<br />held by Lender 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 of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by [his Mongage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under-the.
<br />Nate and paragraphs 1 and 2 hereof shall be applied 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 sod
<br />principal on any Future Advances.
<br />4. Charges: Llens. Borrower shall pay as taxes, assessments and other chsrges, fines and impositions attributable to
<br />the Propem which may attain a priority over this Mortgage, and leasehold payments or ground ants, if any, in the manner
<br />provided under paragraph 2 hereot or. if not paid in such manner. by Borrower making payment, when due. directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments.-
<br />Borrower shall promptly disct•.arge any lien which has priority over this Mortgage; providsd, that Borrower shall not be
<br />required to 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, ur shs!l in good faith contest such lien by, ur 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected art the Property insured
<br />against ions by fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
<br />aril in such amounts and tar such periods as lender may require; provided, [hat Lerdcr shall net reyulre that the amount of
<br />such coverage exceed that amount of coverage reyuired to pay the sums secured by this Mortgage.
<br />The ;nsurancP carrier providing the insurance shall be chosen by Barra:ver s[tbject Ca approval by Lender, prUVided,
<br />that such approval shat! not he unreasonably withheld. All premiums tin insurance policies shall be paid in the manner
<br />provided under paragraph ~ hereof or, tf rut paid in such manner, by Harrower making payment, when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewah thereof shall be in form acceptable to Lender and shall include a stanefard mortgage
<br />clause in favor of and in form acceptable to Lender. 1-ender sh;dl have the right to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lander, Lender may make proof of loss if pat nmde promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically teasihle and the security u! [his Mortgage is
<br />not thereby impaired. li such restoration or repair is not economically feasible fir rt the security of this Mortgage would
<br />be impaired. the insurance prexeeds shall be applied to the sums secw~ed try [his 'ttongage. wnh the excess, iE any, paid
<br />to Borrower. If the Ptap4rty is abandoned by Harrower, or it Borrower la;ls to rr;;p;>nd to Louder .atthrn 3U days from the
<br />date notice is mailed by Lender to Borrower that the insunnae carrier often u± .eulc :. claun for insurance henetits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option edhcr to restoration or repair of the Property
<br />ar to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such application ,+P proceeds to pnnapul shalt oat extend
<br />or postpone the due date of the nwnthly installments referred [o in paragraphs ! and '_ hereot ar :hsnge the amount of
<br />such installments. I( under paragraph 18 hereot the P[uperry n acywred by Lender, ail right, title and interest of Borrower
<br />in and to nny instuance policies and in and to [he proceeds thereof resulting from damage to the F'nilxrty prior to the sale
<br />or acyttiaition shall pass to Lender to the extent of the sums secured trv this Mnrtkatte immeclietely nrutr to such sale ur
<br />acquisition. -
<br />~. Prg&ervaiirin sad Afaiateaattee o€ Property: Leaseholds; Condominiums: Planned iinii iSevtluptnents, orrower
<br />shall keep the Property in good repair and shall not commit waste ar permit m[patrment ur deterioration of the Property
<br />and shall comply with the provisions of any tease rt this 64ortgsge is an cs leasehold. IC this Mortgage is an a unit iu a
<br />condomioium or a pianoed unit developman[, Burrower shall perfunn all n[ Borrower's obitgauans under the deciarauon
<br />or coveaaois creating ur governing the condominium or planned unit development, the by-lows .rod regulutinns of the
<br />condominium nr planoed unit development, and cwtstituem dtx:umenes. if a condominiwtt or planned amt deaclopntout
<br />rider is executed by Borrower and recorded together wuh this Mortgage. the euveuants auil agreements of such ndcr
<br />shall be incorporated into and shall amend and supplement the covenants and agreements nt this Mortgage as s( Ute rider
<br />were a par[ hereof.
<br />7. Protection of Lender's Security. if Borrower tails to perform the covenants and agreements contained m this
<br />Mortgage, or if any action or proceeding is commenced which materially alier.(s Lender's interest in the Property,
<br />iticiuding, but not limited to, eminent domain, insolvency, code enl~rcement, or arrangements or proceedings nrvulvmg a
<br />bankn[pt or decedent, then Lender at Lender i option, upon notice to Harrower, may make such appearances, Disburse such
<br />sums and take such action as is necessary to protect Lender's interest, including, but nut limited to, disbursement tit
<br />reasonable attorney's fees and entry upon the Property to make repairs. if Lender required mortgage rnurance as .r
<br />condition of making the Goan secured by this Iviorigage, Borrower shall pay the premiums requrred to mainta,n such
<br />incur-once in eBeci unlit such time as the requirement for such insurance tennmates m accordance wrth Borrowers and
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