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<br />UVtFOaM CovExnv'rs. Borrower and Lender covenant and agree as foltows:
<br />I. Payment of Prlndpal and Interest Borrower shall pzompHy 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 interest
<br />on any Future Advances secured by [his tortgage.
<br />Z. Funds for Taws and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shat! pay
<br />to Lender on the day monthly inv[allments of principal and interest are payable under the Note. until the Note is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and eround rents on the Property, if any. plus one-twelfth of 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 from
<br />Time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits yr accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender it Lender is such an institution). Lender shall apply the Funds m pay said taxes, assessments.
<br />insurance premiums and ground rents. Lender may not charge for sv holding and applying the Funds, analyzing said account,
<br />or 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 iha[ interest on [he 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 arc pledged as addi[ional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender. [ogether with the future monthly installments of Fiords payable prior to
<br />[he 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 fail due. such excess shall 6e, a[ Borrower's option, ei[her
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficiat to pay taxes, assessments, insurance premiums and ground rents as they felt due,
<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 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 Funds
<br />held by Lender. If under paragraph 1S hereof the Property is sold or the Propern• rs 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 this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph '_ hereof, then m interest payable on [he Note. then to [he principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Chstges; Liens. Borrower shall pay all 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 ants, it an}•, in the manner
<br />provided under paragraph 2 hereof vr. if not paid in such manner. by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event
<br />Borrewer shall make payment directly, Borrower ,hall promptly furnish to Lender receipts evidenang such payments.
<br />Borrower shall promptly discharge any Gen-which has pnoriry over this Mortgage: provided. [hut Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall aeree in writing to [he payment of the ohhga±ron secured 6y
<br />such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the hen or torfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter trec[ed on the Property insured
<br />against loss by fire, hazards included wnhm [he term "extended coverage". and such other hazards as Lender may reuuire
<br />and in such amounts and for such periods as Lender may require; prodded, that Lender shall not require that the amount of
<br />such coveraee exceed Lhat amount of coverage requved to pay the sums secun~d by thrs R~#urteavs.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to apprava! by Lender: provided.
<br />ti`tat such apprv:•a] shall no[ be unreasvnahh~ withheld. Aii premiums on insurance poiiors ,hail be paid 'n the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, 6y Borrower making payment. when due..h recde eo the
<br />insuraece carrier.
<br />All insurance policies and renewals thereof shall be w form .,CCeptablc to Lander and shall tndude ., ~tami:vd nu>ngage
<br />clause in favor of and .n form acceptable to Lender. Lender +hall have the right m hold the pollees .,rid renewals therenl.
<br />and Borrewer shall promptly furnish to Lender all renewal ounces and alt receipts of paid prenuum, In the even of loo,
<br />Borrower shall give prompt notice w the insurance Curncr and 1_ender. Lender mnc make proof „( Ivss it not m;:de pnnnpdy
<br />by Borrower.
<br />Unless Lender and Borrower othenvuC agree m wnnng, imurance proceed, shall be apnried m r ~a,ruion or repair vt
<br />the Properly a..maged, provided such restoration or repair a eamomtrdly leasable and the ,county of thu Mortgage is
<br />not [hereby impaired. If such restoration or repay is not ccononucallp feasible or d the x•eunn~ of thin Mortgage would
<br />be impaired, the insurance proceeds shaft be applied to the sums secured be this Mortgage, w~nh she excess. iF any, peed
<br />[o Borrower- If the Property is abandoned h}~ Borrower, or d Borrower tails m respond m Lender wuhm 3U dove Iron the
<br />dtuc nonce ~s mailed hr Lender n' Borrewer that the insurance :::vricr utFers to xtde ,: cF.nm for insurance benefits, Lender
<br />is authorzed ti, collect and apply the msur:une proceeds .u Lender's option crthcr to restoration or repair of the Property
<br />or to the sums secured hq this Mvngage-
<br />Unless Lender and Harrower othenv~se agree m a~nnng, an} such application of proceeds m pnne~nal +hail not colonel
<br />or postpone the due dale of the monthly installments reicrrcd h, m paragraphs I and ~ hereof ur change the ,unoum of
<br />such nntaliments. It under paragraph ig hereof the Property a ucywred i,y Lender, all right, title and interest of Rorn,u er
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Prolxrn~ prior to rite sale
<br />or aaiuisition shall pass to Lender to the extent of the sums secureal he thu if ortenge nnntediatch~ pour to ,uch sale or
<br />acquisition.
<br />6. Presen~alion and t1aintenance of Yropcrty: Lcaceholds; t'ondontiniums, Planned L!nit Derdopmenis. Rot eau ri
<br />shat: keep the Pmpc :y ir, good rcpaer :tnd ;hall not Comma caste or pertmt mtparnnent or dcteriarauon oP the Property
<br />and shall comply with the proviswns of any lease d Ihrs Mortgage ~, on .t leasehold. If tau, MortgagC is on .i unn m .r
<br />Condominium or a planned amt development. Borrower shall perform till of Borrvwacr~s al9igaunns under the declaration
<br />or covenants creating or governing the condonumunt nr planned nnu development. the by-law> and regulation ai the
<br />condominium or planned unit development. and constituent documcnn. ti a amdurnmium or phmncd unit duvrlopmm~t
<br />^der is executed by Borrower and recorded [ogether wnh thtx Mortcuge. the covenants and agreements of ,uch rider
<br />shat! be incorporated into and shall amend and supplemem the coo-enants and agreements of ;his Mortgage as ii the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security, if Borrower tads u, perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding a commenced which materially affects Lender. interest in the Property.
<br />including, but not limited to, eminem domain, insolvency, code an forcement, or arrangements or proceedings invoh~ing
<br />bankrupt or decedent, then Lender at Lenders option, upon notice w Borrower. mar make such appearances. disburse such
<br />sums and take such action as is necessary to protect Lender's interest, mctuding, but not limned tn, disbursement oY
<br />reasonable attorney's Eees 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, Borrower shall pay the premiums requved to mainnnn such
<br />insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrower's and
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