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<br />Ur+teoanr Covrarvrrs. Bortower and ?.ender covenant and agree as follows:
<br />I. Payment of Priaefpal sod Interest. Borrower shall promptly pay when due the principal of and interest on the
<br />indebtedness evidenced by the Note, prepayment and tale charges as provided in the Note, and the principal of and interest
<br />on any Future Advances secured by this Morgage.
<br />2. Faads for Taus amt Iasaranee. Subject to applicable law or to a written waiver by Lender, Bortower shall pay
<br />to Lender on the day monthly installments of principal and interest aze payable under the Note, until the Note is paid in foil,
<br />a sum (herein "Funds") equal to one-twelfrh of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground yens on the Property, if any, plus one-twelfrh of yearly premium installments for hazard insuratce,
<br />plus one-twelfth of yearly premium installmens for mortgage insurance, if any, all as reasonably estimated initially and from
<br />fime to time by Lender on the basis of assessments and bills 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 Lender is such an institution 1. Lender shall apply the Funds to pay said taxes, asaesameas,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Furtds. analyzing said account,
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permis Lender fo 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 be paid to Borrower, and unless such agreement is made or applicable taw
<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 credis 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 this bortgage.
<br />It the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />zhe due dates of taxes, assessments, insurance premiums and ground rents, shall exceed tile- amount rsq:trod to pay said taxes,
<br />assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either
<br />promptly repaid to Borrower or credited to Borrower on- monthly insmtiments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borzower shall pay to Lender any amount necessary to make up [he 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 18 hereof the Property is sold or the Property is othetwise acquired by Lendeq Lender
<br />shall apply, no later than immediately prior to the sale of the Property or itsacquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Afongage.
<br />3. Appiicatioa 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 in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable nn the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Chatgesq Lions. Borrower shat) pay all taxes. assessments end other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, i f any, in the mancer
<br />provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due. directly m the
<br />payee thereof. Borrower shall promptly fumsh to Lender all nouces of amounts due under this paragraph, and in the event
<br />Borrower shall make payment direalY, Borrower shall promptly famish to Lender receipts evidencing such paymens.
<br />Borrower shall promptly discharge any lien which has pnonty ever this Mortgage: provided, that Borrower shall not 6e
<br />required ro discharge any such Tien so long as Borrower shalt agree in •.vnung to the payment of the obligation secured by
<br />such hen m u manner acceptable to Lender, or shall in good faith canton such lien by, or defend enforcement of such lien m,
<br />legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or an}• part thereof.
<br />5. Haxard Irtstrrance. borrower shall keep the +mprovements now existing ur hereafter erected nn the Property insured
<br />against loss 6y fire, hazards included within the term "extonded average`. and such other hazards as Gender may •eyuvre
<br />and m such amemns and ter such periods us Lender may reywre: provided, that Lender shall nu[ rcgwre !hat the anxn+nt of
<br />.such coverage exceed that amount of coverage rcyv+nd to pay the sums ,ee[+red t+y this Mnrt~ag%.
<br />The insurance earner providing u+e insurance shall i>e ehoxn by Burrower sub}ect to approval by i.ender, provided.
<br />that such approval zhail not be unreasonably withhold. Ail premwms on inxumnce polices shalt he paid m dte manner
<br />provided under paragraph 2 hereof ur, d no[ paid in such manner, by Burrower making payment when due, dvecdy to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof sh:dl be m form acceptable to lender :md shall include ;+ stanJanl mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shalt promptly furnish [0 1_ender all renewal nouces and all receipts of paid premwme. In the event of loss,
<br />Borrower shah give prompt notice to the insurance carrier and Lender. Lender may make pn+ot of loss d not made promptly
<br />by Borrower.
<br />Unless Lender anJ Borrower otherwise agree in wrung, insurance proceeds shall be applied Io resonation ur repair of
<br />the Propr:rty damaged, provided such restorauon or repar ~s economically fcanble and the secants of ihn Mortgage i.
<br />not thereby impa+fed. If such restoration or repan is not n:onotmeally icas+ble or d the secants of this Mortgage would
<br />be +mpaired, the insurance prac^eds .,hail be xpphed to the soots secure) h}' this Mortgage, vote the ezcew, if any, paid
<br />[o Borrower. If the Propariy is abuvdoned by Borrower. or is Borrower I:n la to rnspatd to Lemler within i0 daya from the
<br />date notice a mailed by Lender m Borrower that the insurance carrier oilers n, settle ;+ clam for insirance beneti U, Lender
<br />is authorize) to collect and apply the insurance proceeds :u Lender's opuun ender m rcstorumn or repatr u( the Prcrix;m
<br />or to the soots secured by this Mortgage.
<br />Unless Lender and Burrower otherwise agree m wnhng, any such applicator of proceeds In pnnupal shall not raa•nJ
<br />or postpone the due date of dte minutely installments rc[erzcd In m paragraphs 1 anJ 2 herein or chaugr the :unuum of
<br />such instu{hnents. If under paragraph IN hereof the Property +s :mywred by Louder, all right Inle :aid uucrest of Born,wc
<br />in and w any insurance policies and in and :~.> the proceeds thereat resulting hum damage to the Pn+lrixns pru~r a, +hc ,.Jc
<br />of acyniaitiun shalt pa» to l.cuder to the eaten! of the soots secure) 6y this Mortgage invuediately pour ;~ such ,ale ai
<br />acquisition.
<br />b. Preservadon and Sftdntenance of ['roperty: Leas holds; i'ondmniniums; Planned I'~nit Ues dupmenta. Hanuwci
<br />shall keep the Property in good ropair and shall not commit waste ur pernm impairment ur Jctenurauon ul rt,e I'rupeny
<br />and shall comply with the pfovivons of any lease r( this Mortgage i. on a leasehold. II the '.Iurtgage i oil m .
<br />condomiatwn ur a }±lanned unit devdopmenl. Borrower .hill perlonn .JI al Borrower-s obbguuuns under the Jvc Lu:WOn
<br />or covenants creating or governing the condumuuum ur planned unit devclupmco6 the by-low. and regulauun.. of the
<br />condominium or planned unit development, and eonsti llu•nt Joe unum i,. II a eundominium or planned unu Jos efopn+enl
<br />odor a ezeouted by Borrower and recorded together wnh Tins Mortgage, the a .en:uus :uul agiecnuun of . tote nJa
<br />shall be incorporated into and shall amend anJ suppicutent the cu, enants and agreements of item hloi tgago as a the nuc
<br />were a part hereof.
<br />7. Prolee6on of Lender's Security. If Borruwre+ fai6 m pdorm the covenams :utJ egreenreuts aontmneJ u+ the
<br />Mortgage, or i( any action or proceeding is commencrJ u4ueh m:nenall> .Jteela IenJm's uucrrst i+ the P,u[x~r~}.
<br />including, but no[ limited [o, eminent domain, maulvency, code ro 4rrcement, ,~ arraugancnts ur pnn:codings invuls mg u
<br />bankrupt or decedent, then 1_ender at Lender's option, upon ounce u, Bur+owet, nrn} n+.+ke sudi ap(xunuxrs, .lubw se , tali
<br />sums and take such action as necessary to protect Lendet. ~ntc est, ~+dudmg. bin not hmueJ lo, drsbuncmem nl
<br />reasonable atiomey's fees mtd emry upuu the Proparty to make rcpaus II I endet rcyuirreJ mortgage in,m none .~
<br />eondit+an of ntakiog [hc (oar secured by Ih+s Mortgage. Benew.r shalt pa. the preuuunu ~cyuueJ ;o maintain .ante
<br />insurance in effect until such time as the reyuirument for such insurance tc nuna+es ui aea+rdanee wnh Bouxrwee', enJ
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