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<br />Uis'rPOR.dt Covaxnvrs. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Prirrctgal and Interest Borrower shalt promptly pay wl~n due the principal of and interest an the
<br />indebiedre-ss evidenced by the Note, prepaytnent a~ laze charges as provided in ttte Note, and the principal of and iatd~st-
<br />on any Ftnure Advances secured by this Mortgage.
<br />2. iraads for Ts3es amm It>3arance. Subject to appiicabte law or to a written waiver by :.cadet, Borrower shall pay
<br />to Lender an the day monthly installments of principal and interest are payable under the Note, until the Note-is paid in full,
<br />a sum Cnerein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority aver th-s-
<br />Mortgage, ar-d ground rents an the Pmperty, if any. plus one-twelfth of yearly premium insta-Itztents for hazard ittsurarrce,
<br />Pius one-twelfth cf yearly pretnium installments for mortgage insurance, if any, ail as reasonably estimated ittttiaBy and from
<br />time m time by Leader on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounu of which are insured or gttazanteed by a Federal or
<br />state agency (irciudirg Lender if Lender is such an iutimtian). Lender shall apply the Funds to pay sa-d taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analywtg said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applipble law
<br />permits Lender to make such a charge, Borrower aced 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 taw
<br />requires such interest to be paid, Lender shall not ce required to pay Borrower any interest or earnings on thcFtuzds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fords and ilte
<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 />ffthe amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />he due dates of taxes, assessments, insurance premiums and ground rents, shalt exceed the amount required to pay said taxes,
<br />assessments, insurance premi-vms and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid io Borrower or credited to Borrower on monthly installments of Funds. -f the amount of the Funds
<br />held by Lender shai- not be sittFcient to pay ta_es, assessmen*s, insurance premiums and ground rents as they fa-- due,
<br />Harrower shall pay to Lender any amount 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 6y this Mortgage, Lender shalt promptly refund to Borrower any Funds
<br />heldby 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 ai the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Pay~rrsents. Unless applicable law provides otherwise. ail payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts gayable to Lender by Borrower
<br />under paragraph Z hereof, then to interest payable an the Note, then to the principal of the Note, and then to interest and
<br />principal an any Future Advances.
<br />A. Charges; Liens. Borrower shall pay atI taxes, 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 paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy 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 famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such Tien so long as Borrower shall agree in writing to the payment of the obligation secured isy
<br />such lien is a manner accep*.able io Lender, or shall in good faida 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 nr any part thereof.
<br />5. Hvard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against lass by fire, hazards included within the term "extended coverage'". and such i~iher hazards as Lender may require
<br />and in such amounts and for such periods as Leader may' require: provided, that Lender shat! no[ require that the amoum of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower ,object to approval 6y Lender: orovided.
<br />that such approval shag not be unreasonably withheld. Ail 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 io the
<br />insurance cazrier.
<br />AB insurance policies and renewals thereof shalt be in form acceptable w Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right m hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish [o Lender all renewal notices and all receipts of paid premiums. in the event of loss,
<br />Borrower shall give prompt notice [o the insurance carrier and I-ender. l.endcr may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property ilamaged, provided such restoration or repair ~s economically feasible and the security of this Mortgage is
<br />not thereby impaired. if such restoration or repair is not economically Feasible ar tf the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wtth the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, ar if Borrower fails to respond to Lender within 30 days Irom the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle ^ claim for insurance benefits. Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Leander and Borrower otherwise agree in writing, any such application of proceeds to prncipal shall oat extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount ul
<br />such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Burrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to~ the sale
<br />or acgttisitian shall pass to Lender to the extent of the sums secured by this lvlortgage immediately prior to such sale ar
<br />acqui~"tiion-
<br />~. Yreservatlnn and fi2aintenaree of Property; Lcavehnlds; Condominiums; 4'feuned !)nit I?evelapments. Borrowct
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment ar deterioration of the Property
<br />and shall comply with the provisions of any lease if this Mortgage is on a (easehold. if this Mortgage is mt a unit in u
<br />condominium or a planned unit deveopment, Borrower shall perform all of Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium nr plarmed unit development, and cons?ituent documents. if a condominium or planned unit development
<br />rider is executed 6y Borrower and recorded rogether with thts Mortgage, the cmenants and agreements of such nder
<br />shall be incorporated into and shall :upend and supplement the covenants :md agreements of this Mortgage as d the rider
<br />were a part hereof.
<br />7. Prokeetion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or praeeding is commenced which materially xlTects Lenders interest in the Property.
<br />including, but not-limited ta, eminent domain, insolvency, code enforcement, or arrangements or proceedings iuvulving a
<br />bankrupt ar decedent, then Lender at Lender's option, upon notice to Borrower. may make such appearances, disburse such
<br />stuns and take suer action as is necessary to protect Lender's interest, including, but nut limited to, disbursement ul
<br />reasonable attorney`s fees and entry upon the Property to .make repairs. -f Lender reyuired mortgage insurance as a
<br />condition of making-the I^.,3.n €ecured by this tvforigage, Borrower shall pav t!!e premiums regasir>=d to maimain such
<br />ina::ra^.ca is elect until ,sL w~tima. as~ihe ;equiremett! far such insurance fermi--^.ates ir, accerda::cc with Borrower's and
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