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<br />Uuraaax Covt:xivrs. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Printipa] and Interest. Borrower shalt promptly oay when due the principal of and interest an the
<br />indebtednzss esideaced by the Note, prepayment and late charges os provided in the Note, and the principal of and interest
<br />on any Futuro Advances secured by this Mortgage. -
<br />2. Funds fa; Taws and Instuaace. Subject to applicable law or to a written waiver hY Lender, Borrower shat[ pay - _
<br />to Lender on thz day monthly installments of principal and interest are payable under the Note, anal the Note is paid in lull,
<br />a stun (herein "Funds"} equal to one-twetfrh of the yeariy~taxes and assessmenu-which may atfaiq priority over this
<br />Mortgage, and ground renu on the Property, if any, plus one-twelfth o€ 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 froms
<br />rsme to time by Lender on the basis of assessmenu and bills and reasonable estimates thereof.. -
<br />The Fveds shalt be held in an institution. the deposiu or accounu of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shalt 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, analysing said account,
<br />or verifying and campiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicableIaw
<br />petmiu Linder to make sueh 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-o^ the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits [o.Yhe Funds anti-she
<br />purpose for which each debit to the Funds was made. The Funds arz pledged as additional sectuity for the- sums secured - - _
<br />liy 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, shalt exceed the amount required to pay said taxes,
<br />assessmenu, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower or. manthly installments of Funds. If the amount of the Funds
<br />held by Lender shall net be sufF.cient to pay taxes, assessments, insurance premiums and ground renu as they fall doer
<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 requesting payment thereof.
<br />Upon payment in foil of all sums secured by this Mortgage. Lender shall promptly refund to Harrower any Funds
<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 immzdiatel}' prior to the sale of the Propetty or its acquisition by Lender, any Funds held by
<br />Leader at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Paymea" Unless applicable law provides otherwise, alt payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied 6y Lender fin[ in payment of amounts payable to Lender by Horrower
<br />under paragraph 2 hereof, then to interest payable on the Note, thin to the principal of the Note, and thin to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pay all rases, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the manner
<br />provided under pazagraph 2 hereof 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 al! notices of amounts due under this paragraph, and in [he event
<br />Horrower shall makz payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymznu.
<br />Borrower shall promptly discharge any lizn which has priority over this Mortgage; provided, that Borrower shall not be
<br />required tv discharge any such lien so long as Borrawer shat! agree in a-riling to thz payment of the obligation secured h}'
<br />such ties in a manner acceptable to Leader, or shall in good faith contest such lien by, er defend enforcement of such lien in,
<br />legal proceedings which operatz to prevent the znforcement of the lien ar forfeuure of the Property ar any part thereof.
<br />~. Aazard Insurance. Borrower shall kzep the improvemzna non- existing or hereafter erected on the Properly insured
<br />^st less by 59, hazards included within the term "zxtendzd couzragz", and such other hazards a- Linder may requirz
<br />and in such amounts and far such periods as Lender may require. provided. that Leader snail ro[ require [hat thz amottn[ of
<br />such ca+eragz z,cc;ed that amount ut eaveraee required to oay the sums secured 6y this Mortgage.
<br />The insuraa~ carrier eroviding the insurance shat' 6e chosen 6y Burrower suhicct to approval h_y Lender provided.
<br />that such approval shall nut be unrez;onably withhzld. Ali premiums an insurance policies shall be paid in the manner
<br />provided under paragraph 3 }temof or, it nut paid in such manner, by Borrower making payment, when due, Jirec:h: to the
<br />insurance cazrier.
<br />All insurance polities and renewals thzrevf shall be in form acceptable ro Lender and shall include a sta;:dard martga,z
<br />clause in favor of and in form acceptable to Lender. Linder shalt have [he right to hold the policies anJ renewals thercuf,
<br />and Borrower shall prompd}• furnish to Linder a!I renewal notices and all receipts of paid premiums. In the event of Ivss.
<br />Borrower shall give prompt natice to the insurance carrier and Lender. Lender may make provY of loss if nut made promptly
<br />by Borrower.
<br />Unless Lender and Borrower othens•ise egret in writing, insutancz proceeds shalt bz applied to res[oration ur repair of
<br />the Propzrry damaged, provided such restorauvn or repair is economically feasible and the security of thts Mortgage is
<br />not thereby impatred. If such restvrativn or repair is nv[ economically fzusi6le or if the security of this Mortgage would
<br />be unpaired, the insurance proceeds shall be applied tv the sums secured by this Mortgage, with thz excess, ii any, paid
<br />to Borrower. If the Properly is abandoned 6y Borrower, ur if Borrower tails to respond to Linder within 30 days from the
<br />date notice is mailed by Lender ro Borrower that thz insurancz carrier offers tv seulz a claim for insurance 6enetits, Lender
<br />is authorized to collect and apply the insurance pruczzds a[ Lender's option either to resroration or repair of the Proputy
<br />or to thz sums secured by this Mortgage.
<br />Unless Lender and Harrower uthenvisz agree in writing, any such application o[ prucezds to principal shalt rot zxtznd
<br />or postpone thz due dale of the months}- installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such instaltmeuts. If under paragraph l8 hereof the Property is acquired by Lender, all right, tide anJ imzrzst o[ Borruwzr
<br />in and to any insurancz policies and in and to the proceeds thereof resulting from Damage to the Property prior to the sa!z
<br />or acquisition shall pass to Lzudzr to the extent of the sums szcurcd 6y this Mortgage immzdiarcly poor to such sale or
<br />acquisition.
<br />b. Presen~aBan and ~iaiaicnance of Prvpzrty; Loasxholds; Candmniniums; Ptannzd UnK Ueveinpmznts. Burr?,; cr
<br />shall keep the Property in good repair and shall not commit waste ur permu impairment or deterioration of thz Property
<br />and shall cvmgly with thz provisions of any tease if this Mortgage is un a leasehold. !t this ~tartgaae ix un a unit in a
<br />condominium or a planned unit dzvzlopmant, Borrower shall perform all of Borrower's ebligat:ons under the Jed aranon
<br />or caveoants creating or governing the condominium or planned unit developnent, the by-{aws and regulations of the
<br />condaminium or elanned unit development, and constituent documents. If a condominium ur planned unit do<alopment
<br />rider is zxeeueed by Borrower a:sd :zcorded together with this Mortgage, the cuvznanu suJ agreements of .uch r.:.r
<br />shall be incorporated solo nerd shall amend and supplemen[ [he covenants and agreements of ihu bfurtgagz :ts tf the rider
<br />were a patt heron-f.
<br />?. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained :n this
<br />Mortgage, or if any anion or proceeding is wmmznced which materialty affeeu Lender's imerest in tine Propeny.
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings imvlv~na a
<br />bankrupt or dzeedsnt, thin Lender at Cender's option, upon no[iee tv Borrow_r, may make such appearances, Jishursc such
<br />sums and take such action as is necessary to protzct L-znder's interest, including, but not limited to, Jisbursemrnt o,
<br />reasonable attorney's Fzzs and entry upon the Property to make repairs. if Lender rcyuired mortgage imur ance a., .+
<br />ec3di€iaa cf tanking the loan secured ty this :*iertgs3~, Burrawcr shall pay the prcrtiutns rzquue.i to mautta::: >..
<br />iruurar,ca in v _et. usiil such tuna as the rquiremztu tar such insurance ecm+inatzs in accerdancc with Bur rv~.;zr-s .+nJ
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