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<br />Uxtroxsr CovExenrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Priacipai and Interest Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Vote. and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and Instuance- Subject to applicable taw or to a written waiver by Lender. Boaewer ;halt pay
<br />to Lender on the day monthly installments of principal and interest arc payable under the Note, un[if the \nte 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 ground rents on the Property, if any, plus one-twelfth oC yeary 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 fire basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shalt be held in an institution the deposits or acwunt of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall 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, analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicahle law
<br />permits Lender [o make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage [hat interest on the Ftmds sfiail 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 pp~ 3nrrower am' interest ur ezrnings on the Funds. Lender
<br />shall give 4o Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Ponds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additions! security for the sums secured
<br />by this bfortgage.
<br />If the amount of the Funds held by Leader. together with the future monthly installments of Funds payable prior to
<br />the 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 frill due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installmen[< of Funds. ft the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments. insurann• nremiums and ground rents as they fall due.
<br />Borrower shall pay ro Lender any amount necessary to make up the defiaeney within 3U dal'. from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of ail sums secured by this Mortgage. Lcndcr shalt promptly refund to Borrower any Funds
<br />held by ;.ender. If under paragraph 15 hereof the Propeny is sold er the Prencrr s otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the ;ate cf the Propeny or its acymstticn by Lcndcr. any Funds held by
<br />Lender at the time of application as a credit against the sums secured br thiv itartgaec.
<br />3. Application of Payments. Unless applicable law prociJes otherwise all payments received by Lender under the
<br />Note and paragraphs I and 2 hereof shall be applied by lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable nn the tiute, then to the principal of the Note. and then to interest and
<br />principal on any Future Advances.
<br />i. Ce`,ar-ges; f~~n=, Borrower shall pay all c+xes.:ssessmcnts ;end other .hargcs. fines :mJ rmposiuens attributable to
<br />the Propert}' which may attain a priority over this liongage. and Icaehuki payments or ground rents, if any. m the manner
<br />provided under paragraph Z hereof or. if not yard in such manner, b} Borrower making payment when due. d;,-ecdy to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amount due ender thrs paragraph. and in the event
<br />Borrower shall make payment directly. Burrmver shall promptly furnish to l.cnder receipts evidenang such payments.
<br />Borrower shall promptly Discharge any lien which has pnonty ucer ;his lfongage: prt~aded. that Borrower shall net be
<br />required to discharge any such lien sc long :is Borrower shall agree in +vmnc to the payment ei the obligation secured be
<br />such lien in a manner aceepta6le to Lender ur shall in gnirJ faith nsn[es[ such hen hy, nr defend enforcement of such Tien in,
<br />legal proceedings which operate to pre+•en[ the enh+rcement u( the lien or for'ierture oC the Propeny or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the tmprm~emenn now e+rsung ur hcnaf[cr crcacd on the Property insured
<br />against Toss by fire, hazards included within the term "extendal coverage-', and such other hazards as Lander may nyuire
<br />and in such amounts and for such periods as Lender may reyuirc: pro+tded, that Lcndcr shah !tut require that the smean; of
<br />such :overage exceed that amount of coccrage requred to pu}' the sums .ecurcd he thrs 'tifort~+aoe.
<br />The insurance earner providing the msunmcc chali he chosen h+ Borrower subject *.u approval by Lender, provided.
<br />that such approval shall nn[ he unre:uunal,ly wiet,hc!d. A!I prennums :'n loco r::nce p:~!ic:es she!! be paid ~n the manner
<br />provided under paragraph 2 hereof or. rf nut yard in such manner, by Berrnnver making payment when due. dr redly to the
<br />insurance carrier.
<br />All insurance policies and renewals [hereof shall be in form uccept:rblc m Lcndcr and ,hall mchtde a .tandard merigaee
<br />clause in favor of and in form accept-.tble to Lcndcr. Lcndcr shall ha+c the right to hold the policies and mnc•.+ak thereof.
<br />and Borrower shall promptly furnish to Lender all renewal snores .,nJ all rccerpts ai paid preen nuns In the c:cm of toss.
<br />Borrower shall give prompt notice to the insurance earner and 1 Winder. Lander non m;tke penal of loss rt not nu,dc promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insuranac proeceJ, shall be applied to rrsmr:nion or repair of
<br />[he Property damaged, provided such restoratiun or repnu a economr:.+lly rt:utblc and the ,ecurip of [hrs Mortgage :,,
<br />not thereby impaired. If such restoration or repair rs not rcononvcalq icasrhle ur it the security of the Mortgage would
<br />be imparted, the insurancr. proceeds shall 6e applied to the sums secure) b} thu Mortgage. wnh the c~cess, if any. paid
<br />to Borrower. If the Property rs abandoned h} fiorrmrer, or rt Burrower lark to respond to l.endcr within 3l1 da}'s Iron the
<br />date notice is mailed by Lender to Borrower that the insurance earner nllers to settle a drum for uuumncc henc•fit, Lcndcr
<br />is authorized to collect and apply the insurance proceeds tit 1_enJerA option sober to restorauun or repair of the Propcrn
<br />ur to the sums secured by this Mortgage.
<br />Unless Lender and Borrower othen+isc ngrec m .+rnmg. ;m} such ,rpphtanon of proceeds to principal ,h:Jl nut a,tend
<br />or postpone the due date of the menthk msrallmcnt, rcten'ed ro in I+araeraphs ~ ,rid hereof ar change the amount of
<br />such installments. IC under paragraph I8 hereof the 1'rupeny r, aaiuucd by I_cnder. all right ntle :wd uncrest nt Hurruw et
<br />in and to any insurance policies ;end in and to the pracetJs thereof resulting Irum eiamage to the Property pony to the sale
<br />or acquisition shall pass to Lcndcr to the cxcent of the sums secured b} ihrs Mungagc rmmadi:ueh poor n. such ,;de or
<br />acquisition.
<br />6. Preservation and 'rfaAllenancc of Property; Leasehuids; Cuudominiunt; Planned t;nit T)cvelopmenrs. tiny nn+cr
<br />shall keep the Property in good repair and shalt nut commit waste or pcrntn unpatrmem or dettnoranun ui nc~ Prepare
<br />and shall comply with the proyisrens of any lease rt ihu Mortgaea +, ,rn .r !cnsehold. Il thn Murt once n tin .i non n .~
<br />condominium ur a planned amt decclopmem. Borrouor shall pertonv till of Burrow cr9 ohhgauons under rite de+faruron
<br />or covenants creating or guvenung the condominunn or phmncd amt devdopmcnr. the by-laws ,rnJ n•gulauon, .+t nc~
<br />condominium ur planved unit development, and conxt it arm documents. II undununium or planned r nn dc~rl„pmenr
<br />rider is executed by Burrower and recorded together w•uh the, hlongagu. ;hc co+enants .nrd egruernenn rrl .rrch rider
<br />shall be incorporated into and sh:dt amend and ,upplentent the u?+en:uus and agreements of rhrs Monexgc as .I nc~ ri,kr
<br />were a pan hereof.
<br />7. Protection of Lemler's Security. IC Borrower farh u, perlnnn the covenants anJ .tgrcanents amtar nrd m ihr,
<br />Mortgage, er if any action or proceeding rs atmmenced +vh:eh materialh allects LenJcr's ~ntcrest m the Pnrpcm.
<br />lucluding, but not limited ro, eminem domain, insulvcncy, code enirn ccotent, ar .arangemcnts ..r proccedutgs a aol+ing a
<br />bankrupt or decedent then Lsnder at lender's option, upon nonce to Burrow-er, m;,} make sn~h appeacutces. dnhurse wch
<br />sun[5 and take such action :u is necessaq' to protect Lender's mtcresr, inc-ludmg. hu: not 6nuteJ tu, dubuncnumi tit
<br />reasonable attorneys Cecs and entry upon the Property to make rcpaus. II Lcndcr reyui rrd nn+m~age invrrance a, ,:
<br />condition of making [he loan seeuretl by tins Mon;;tge, Burrow cr shall pa} the premiums rryuirod iu maintain sudt
<br />insurance in effect until such time as the reyuiremem for wch insurance icnnmates m :+eo~danee wrth Horrouers and
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