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<br />Ut+rtoxns CovFantrrs. Borrower and i.ender arrenant and ogee as follows:
<br />1. 1'aymeei of Pr~tilpel and IMereaL Honuwer shall promptly pay when due the principal of and interest on Ito
<br />indebtedtcess evideaeed by the Note, prepaytttent and late charges as provided in [he Nate, and the principal of and interest
<br />~ any Fttn:re P.dvances secured by [his Mongage.
<br />2. Fates for Taffi and fasaasce. Subject to applicable law or to a written waiver by Lender. Borrower shalt pay
<br />to Lender on the day monthly installments of principal and interest are payable under the Note, umd the Note is paid in full.
<br />a sum (fierein "Funds' equal to one-twelfth of the yearty taxes and assessments which may attain priority over this
<br />Mortgage, and grotmd rents on rite Pro-Derry, if any, pars one-twelfth of yearly premium installments for hazard instEranm,
<br />plus one twelfth of yeazly premium installments for mortgage insurance. if any, alt as reasonably estimated initially and from
<br />time to tune by Lender on the basis of assessments and 'Dills and reasonable estimates thereof.
<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 Ixnder is such an institution}. Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance gremiums and ground rents. Lander 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 applicable taw
<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 Ix paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not he required to pay Burrower any interest or earnings on the Funds- Ixnder
<br />shat! 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 fee the sums secured
<br />by this Mortgage.
<br />If Itie 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. shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due. such excess shalt be, at Borrower's option, either
<br />promptly repaid to Borrower ar uedited to Borrower on monthly installments of Funds. Lf the amount of the Funds
<br />held by Lender shall rot be sufficient to pay taxes. assessments, insurance premiums avd ground rents as they fall due.
<br />Borrower shag pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender io Borrower requesting payment thereof.
<br />Upor. paymen: in fuA of all sums secured by this Mortgage. ].-ender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 18 hereof the Property is sold nr the Properq~ is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of [he Property or its acyuisition by Lender, any Funds held by
<br />Lender at the time of appiicarion as a credit against [he sums secured by this Mortgage.
<br />3. ApplicaNoa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by I-ender first in payment of amounts payable to Lender b}• Borrower
<br />under pazagraph 2 hereof, then to totems payable on the Note. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. UHarges; Iieos. Borrower shall nay ail taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority aver this Mortgage. and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if net paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shalt promptly famish to Lender all ponces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly. Borrower shall promptly furnish to tanner receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has pnority over this Mortgage; provided. that Borrower shall not be
<br />required to discharge any such lien so long as Aarroever shah agree in writing to the payment of the obligation secured by
<br />such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ar defend enforeemem of such lien in.
<br />legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property ar any part thereof.
<br />S. hazard Ittsuraace. Borrower shall keep rite tmpravements now extsung or hereafter erened on the Property insured
<br />against loss bV fire, hazards included within the term "extended coverage'. and such ether hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that I ender shall pat require that the amoum of
<br />such coverage rxreed that amount of coverage requirei to pay the wms secured by tins Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval 6y L.ender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall he paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such manner, by Harrower 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 anti in form acceptable to Lender. Lender shall have the right [o hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices anJ alt receipts of paid premiums. In the event of loss.
<br />Harrower shall give 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 Burrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, provided such restoration ar repair is economically feasible and the security of this Mortgage is
<br />net !hereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. if the Property is abandoned by Borrower, or it Harrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters m settle a claim for insurance henelits, 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 soots secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application o[ proceeds to principal shall pat extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and ?hereof or change the amount of
<br />such installments. 1( under paragraph I g hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />is oral w any insurance policies and in and to rim 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 prier to s+!eh sale or
<br />acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unil Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste ar permit impairment or deterioration o[ the Property
<br />and shalt comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shall perform all 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 trait development, and constituent docwnents. If a condominium ar planned unit development
<br />rider is r-rotated by Borrower and recorded together with this Mortgage, the covenants anti agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agretntents of this Mortgage as if the rider
<br />were a part hereof.
<br />9. Pretectlaa of Leader's Secntity. ]f Sorzower fails to perform the covenants and agreements contained in this
<br />Mortgage, nett any action or proeeediug is commenced which mtderially affects L,ender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, thou Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
<br />suss :cod take such action as is necessaz}• to protect Lendrrs interest, ins;ailing, but not limited to, disbursement of
<br />reasonable attorney s fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a
<br />condition of making the loan secured 6y this Mortgage, Harrower shalt pay the premiums required to maintain such
<br />insurance in eHtct until such time as the requirement Cor such insurance terminates in accordance with Borrower's and
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