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<br />Untfoant Cov>:r;wxrs. Borrower and Lender covenant and agree as foBuws:
<br />1. Payment of Principal 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 Note, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2, Fonds for Taws and Iaarraace. Subject to applicable law or to a written waiver by Lender, Borrower shall nay
<br />to Lender on the day monthly installments of principal and interest are payahle under the Note, anti[ the Note is paid in full,
<br />a sum Cnerein "Funds") equal [o 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 insurance,
<br />plus one-twelfth of yearly premium ins_311menis for mortgage insurance. if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates [hereof.
<br />The Funds shall be held in an institution the deposits or accounts 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 no[ charge far 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 applicable law
<br />permit Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />c ~ Mortgage that interest on the Ftmds 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 [o 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 are pledged as additional security for the sums secured
<br />,_ by thts Mortgage.
<br />If the amount of the Finds 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, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Leader shall oat be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary [o 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 I8 hemof the Property is sold or the Property is otherwise acquired by f ender, i_ender-
<br />shall apply, no later than tmmedia[ely prior to the sale of the Property or in acquisition by Lender, any Funds held by
<br />Lender a[ the time of application as a credit against the sums secured by this Mortgage.
<br />3. AppBcation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs t and 2 hereof shall be applied by Lender first ir, payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable w the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />~. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impr~itions 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 Z hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under [his 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 Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of [ho obligation secured by
<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 forfeiture of the Property or an}' part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvemetns now existing or hercaf[er erected on the Property insured
<br />against loss by fire, hazards included within the term '@stended coverage", and such other hazards as Lender ma}' regrira
<br />and in such amounts and for such periods as Lender may reyuire; provtded, that Lender ;hall not reyuire that the amount of
<br />such coverage exceed that amount of etnerage required to paq the nuns seaired by this Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject [o approval by Lender, provided.
<br />that soak approval shall nc? be unreasonably withheld. All premium. on insurance policies shall be paid m the manner
<br />provided under paragraph ?hereof or, if not paid in such mam?er, by Borrower making payment, when dun, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall be in form acreptable to LenJer and shall include a standard mortgage
<br />clause in favor of and m form acceptahle to Lender Lender shall havt the right eo hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish m Lender all renewal nooses anJ ;tll receipts o[ paid premiums. In the even[ of foss.
<br />Borrower shall eive 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 />[he Property damaged, provided such restorauon or repair is economically feasible and the security of this Mortgage ~s
<br />not thereby impaired. If such restoration or repair is not economically feasible or d the secunq• of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured 6y this Mortgage, with the excess, if any. paid
<br />to Borrower. If the Properq• is ahandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender m Baruwer the[ the insurance carrier ollen nt settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either W restoration or repair of the Propert}
<br />or [o the sums secured h}' this Mortgage.
<br />Unless Lender and Borrower otherwise agree m writing, any such applicmion of proceeds to principal shall net extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 ;rod ?hereof or change the amount of
<br />such installments. If under paragraph IS hereof the Property is acyuucd b} Lender, all right, title and interest of Burrower
<br />in and to any insurance policies and in and to the proceeds thereof resuhing from Jan[age to the Property prior to the sale
<br />or acquisition shall pass to Lender ;n the extent of the sums secured by this Mortgage immediately prior to such sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Propert}; Leaseholds; Cbndominlnms; Planned Unit Developments. Borrower
<br />shall keep die Proxrty in good repair and shall no[ commit waste or permit impairment or deterioration of the Property
<br />and shat! comply with the provisions of any lease if this Mortgage i~ on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all o[ Borrower's obligations under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulauom of the
<br />condominium or planned unit develapment, and constituent Jucuments. If a condominium or planned unit deve!oprnent
<br />rider is executed 6y Borrower and recorded together with this Mortgage, the covenants amt agreements of ;nth rider
<br />shall t>r incorporated iota and shall amend and supplement the covenants and agreements of this Mongage as tf the rider
<br />were a part hereof.
<br />7. Yroteetion of Lender's Secadly. if Bnrzower fails to perform thn covenants and agreements cunmined in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Propery,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is necessary to prorect Lender's• interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon [he Property to make repairs. IC Lender reyuired mortgage insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
<br />insurance in effect anti( such time as the requirement for such insurance terminates in accordance with Bcrrower's and
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