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<br />UwBOrat Covarrxtrrs. Harrower and Lender covenant and agree as follows:
<br />I. Payment M Princlpai a~ Interest. Borrower shall pramptly pay when due the principal of and interest on the
<br />indeb*.edness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of attd intttest
<br />on any Future Advances secured by this Mortgage.
<br />2. Ernn~!s fw Tares and Insasanee. Sttbject to applicable law or fa a written waiver by Lender. Borrower shag pay
<br />to Iznder on the day monthly installments of ptiacipa! and interest are payable under the Note, unlit the Note is paid in fu1I,
<br />a sum (herein "Funds") equat 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 itsurance,
<br />plus one-twelfth of yearly premittm installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Linder on We basis of assessments and bills and reasonable estimates thereof.
<br />The Fuchs shall be held in an insiiiution the deposit or accounts of which are insured or gttaranteed by a Federal or
<br />stale agency (including Lender if Lender is such an insiitutionj. Lender shall apply the Funds to pay said taxes, assesstttents,
<br />insuraace premiums and ground rents. Lender may not chazge for so holding and applying the Funds, analtting said account,
<br />ar 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. 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 taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings ea the Funds. Ixnder
<br />shall give to Borrower, without charge, an annual accounting of tfie Funds showing credits and debits to tbe Funds and the
<br />purnase 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, shat[ exceed the amount required to pay said taxes,
<br />assessments. insurance Qremiums sad ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promp8y repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by >•~nder <hall nnr M aagi~~nt t axes, assessments, insurance premiums and grcund rents ' th:.y fall w
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency witfiin 30 days from [he date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in fuH of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under pazagraph 3 R hereof the Property is sold or the Property i; otherwise acquired by lender, Lender
<br />shalt apply, no later than immediately prior to [he 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 this Mortgage.
<br />3. Appficafioa of Payments. Unless applicable law provides otherwise, all payments received try Lender under the
<br />Note and Qaragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under pazagraph Z hereof, then to interest payable an the Note, then to the principal of the Note, and then io interest and
<br />principal an any Future Advances.
<br />3. Charges; Liens. Bonawer shall pay all taxes, assessments and other charges. fines and impositions attributable to
<br />[he Property which 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 paid in such manner, by Borrower making payment, when due, directly to Ute
<br />payee thereof. Borrower shall promptly furnish to Lender all notces 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 discharge any lien which has priority over this Mongage; provided. that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shall scree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Lender, or shall in good faith concest such lien by, or deftnd enforcement of such lien in,
<br />legal proceedings which operate to prevent the eniorcement of the lien or forterture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may reuufre
<br />aztd in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured 6v this MartEage.
<br />The insurance carrier providing the insurance shall he chosen by Borrower subject to sppceval by Lender: provided.
<br />that such appro. al shall not be unreasonably withheld. Ali premiums oa insurance policies shall be paid .r. the manner
<br />provided under paragraph 2 hereof or, if no[ paid in such manner, by Borrower making payment when due, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and $orrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of less,
<br />Borrower shall y>ive prompt notice to the insurance carrier and Lender. Lender 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 Properly damaged, provided such restoration or repair is economically feasible and the security of this ?vlartgage is
<br />not thereby impaired. If such restoration or repair is not economically feasible ar iC the security of this Mortgage would
<br />be impaired, [he insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
<br />to Borrower If the Propertn• is abandoned by Borrower, ar if Borrower [ails to respond to Lender within 36 days from the
<br />date notice is mailed 6y Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
<br />is authorized [o collect and apply the insurance proceeds az Lender's option either to restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to pnnctpal ,hall not extend
<br />of postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrcnver
<br />is and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale ur
<br />acquisition.
<br />6. Preservellan and M1taintenance of Properly; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in goad repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any lease: i[ this Mortgage is un a leasehold. If this Mongage is on a unit in a
<br />condominium ur a planned unit development Borrower shall perform all of Borrower's ebligatiens under the declaration
<br />or covenants creating or governing the condominium or planned trait development the by-laws and regulations of the
<br />condominitun or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shag be incorporated irate and shall amend and supplemem the covenants and agreements of this Aortgage as ~f the rider
<br />were a pan hereof.
<br />7. Protecfion of Lender's 5eettrlty. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially xdects Lender's urterest ut the Proptny,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />barrkrttpt or decedent, then Lender at Lender's option, upon notice to Borrower, may matte such appearances, disburse such
<br />sutras and take such action as is necessary ea protect Lender's interest including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Boroower shat( pay the premiums required to maintain such
<br />insurance in effect until such ctme as the requirement for sash insurance terminates in accordance with Borower's and
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