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<br />Uxtr-taxis CovFN.~xrs. Borrower and Lender covenant and agrre as feilaa3:
<br />1. Pa}•ir~r of Principal and Inferesr. $osrawer shall promptly pay when due the pritcipal of and inures[ on Lhe
<br />indebtedness evitlenrxd. by the Note, arepayment and Late charges as prtwided in the 'Vote, and the pzincipai of and interest
<br />an any Funire Advances secured by this Morrgage.
<br />2. Fonds foe Taxes and Insurance- Sub}ect to applicable law ar to a written waiver by Leader, Borrower shag pay
<br />to Leader on the day monthly ins;ailments of principal and interest are payable under the Nou, until the Note is paid in fui9,
<br />a star {herein "Funds' equal to one•twelfth of the yearly taxes and assessments which may a[•ain priority over this
<br />Sfortgage, and ground renu on the Property, if any, plus one-twelfth of yearly premium ins[alimenu for hazard insurance.
<br />plus tae-twelfth of yearly premium iastalimenu tar rrtortgaae insurance. if any, =_tf as reasonably estimated initially and €rom
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an insti±ution the deposits or accounts of which are insured or euaranteed by a Federal or
<br />state aseacy (irduding Lender if Lender is such an institution). Lender shall apply the Fund; to pay said saxes, assessments,
<br />insurance aremiums and ground renu. Lender may not charge for so holding and applying the Funas, analyzing said account,
<br />or verif}~ag and compiling said assessment and bills, unless Lender pays Borrower interest on the Funds and applicable taw
<br />permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />3ioagage that interest on the Funds shall be paid to Borrower, and uafess such a¢reement is made-or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamines on -the Funds. Lender
<br />shall give to Bortower, without charge, an annual accounting of the Funds showing credit and debiu to the Funds and the
<br />pprpose for which each debit to the Funds was made. The Funds are aledged as additional security for the sums secured
<br />by this 3ortgage.
<br />Tf zhe amount of the Funds held 6y Lender, together with the furore monthly installment of Funds payable prior to
<br />the due dares of taxes, assessments, insurance premiums and ground renu, shat! exceed the amount reottired to pay said taxee,
<br />assessmeau, insurance premiums and ground rent as they fal{ due, such excess shall be, at Borrower's optidn, either
<br />promotlc repaid to Borrower or credited to Borrower on- monthly installments of Funds. If the amount of the Funds
<br />held by Lender shaII not be sufficient to pay taxis, assessment, insurance premiums and ground rents as they fall due,
<br />Borraw~ shalt pay *.o Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />6y~Lender to Borrower requests. g payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage; Lender shall promptly refund to Borrower any Funds
<br />ha€d by Lender. If under pazagraph 18 hereof the Progerty 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 Payment. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof ;hall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />tmrJer pazagraph Z hereof, then to interest payable on the Note, then to the principal of the Note, and Theo to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall nay alt taxes, assessment 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 shalt promptly furnish to Lender all notices of amounu due under this paragraph, and in the even[
<br />Borrower shall make payment directly, Borrower shall promptly furnish [o Linder receipts evidencing such payments.
<br />Borrower shall protnpdy discharge any lien which has priority over this Mortgage; provided, that Bortower shall no[ be
<br />required io 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, or she!! in good faith conus[ such aan by, or defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or env pact thereof.
<br />S. &azard Insurance. Borrower shall keep the improvements now existing or hereafter erecred en the Property insured
<br />against loss by fire, hazazds included within the term °extended coverage", and such other hazards as Lender may require
<br />and in such amounu and for such periods s Lender may r<quire;provided that Lender shall not require that the amount of
<br />such cowerage exceed that amount of coverage ;equired to nay the sums secured by this `:lorigage.
<br />The insurance cazrier providing the insurance shall 6e chosen by Borrnwer subject to approval 6y Lender, provided,
<br />that such approval sh21 not he unrea_<onzbly withheld. A!1 premiums en insurance peLcies steal! ne paid in the manner
<br />provided antler paragraph 3 hereof or, if not paid in such manner, by Borrower making payment, when due, directly 20 the
<br />insuravice carrier.
<br />All insurance policies and renewals thereof shall be in total acceptable to Lender and shall include a standard moriga;e
<br />clause in #avor of and in form acceptable to Leader. Lender shall 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. t^ [he even[ of loss.
<br />Borrower steal: give prompt notice to 'he insurance carrier and Lender. Lender may make proof of loss it no[ made promptly
<br />6y Borrower.
<br />Unless Lender and Borrower othervis-e agree in writing, insurance proceeds shalt 6e applied [o restoration or repair of
<br />the F[operty damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not [hereby impaired. If such restoration or repair is not economically Fensible or i[ the security of this ~Sortgage would
<br />be impaired, the insurance proceeds shall be applied to [he sums secured by [his Mortgage. with the escess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower [ails to respond to Lender within 3~ days from the
<br />date notice is mailed by Lender tp Borrower that the insurance Carrier offers to settle a claim for insurance benefit, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the slams secured by this Mortgage.
<br />TJnless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall net extend
<br />or-.postpone the due date of [he monthly installment referred to in paragraphs I and 2 hereof or change the amount of
<br />such installment. If under paragraph 18 stereo[ the Property is acquired by Lender, ail right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the safe
<br />or acquisimon shall pazs to Lender to the eaten[ of the sums secured by this Mortgage immediately prior to such sale ar
<br />acquisition.
<br />6. Preservation and d'Iainfenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Ptopeu}• is good repair-and shall not commit waste or permit impairment ar deterioration of the Property
<br />and shalt comply with the provisions of any lease if this Mortgage is tin a leasehold. If [his Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform alt 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 or planned unit development, and constituent documents. If a condominium nr planned unit development
<br />rider is eaecuted.~by Borrower-and recorded together with this Mortgage, the covenant and agreemenu of such rider
<br />shall ba incorporated into and-shall amend and supplemem the covenanu and agreements of this Mortgage as if the rider
<br />wecea part hereof.
<br />7. Ptoteeti6n of.LendePs-.Security. If Borrower sails to perform the covenants and agreement contained in this
<br />Mortgage. or if any action or proceeding is commenced which materialty affect Lender's interest in the Property,
<br />indttding. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt ar decedent, then Lendee arLeeder's option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of
<br />reasonabt+e attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as' a
<br />eondiiion of mnking~, the Loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />iaasuranae• in-effect vets! sveF.--time as the requirement #ar-such insurance terminaus ir, accordance v.•ith Borrowers and
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