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<br />UNIFOttM COVExANTS. Borrower and 'under covenant and agrm as follows:
<br />i. Paytrtent of Principal and interest. Borrower shall promptly pay when due the principal of and interest on tht
<br />indebtedness evidenced by the Note, prepayment and late charges as provided in the Nate. and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Funds for Taws and Imvtance. Subject t0 applicable law or to a written waiver by Lender, Borrower shah pay
<br />to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full,
<br />a aura (herein "Funds") equal to one-twelfth of the yeary_ taxes and assessments which may attain priority over tfiis
<br />Mortgage, and grotmd rrnts on the Property, if any, plus one-twelfrh of yearly premium installments for hazard insurance.
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, ail as reasonably estimated initia$y and &nm
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates tfierwf.
<br />Tne Funds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender i£ Lender is such an institution}. Lender shall apple the Fa[tds to pay said taxes, assessmrnts,
<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 Leader pays Borrower interest on the Funds avd applicable law
<br />permits Lender to make such a charge. Borrower and Lender may aeree in writing at the time of execution of tItis-
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreemem is made or applicable law
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oo 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 u•as made. The Funds are pledged as additional security fdr the sums steered
<br />by this Mortgage.
<br />ff the 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 shall be, a[ Borrowers 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 Lender shall not be sufficient to pay taxes, assessmenu, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessan• m 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 ail sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph ] g hereof the Property is sold or the Property is 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 67
<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 1 and Z hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nott, and then to interest and
<br />principal on an7 Future Advances.
<br />4. Charges; Liras. Borrower shall pay all taxes, assessments and other charees, fines and impositions attributable to
<br />the Propem• which may attain a pnority over this Mortgage, and leasehold payments or ground reins. if any- in the manner
<br />provided tinder paragraph 2 hereof or. if not paid in such manner. 6y Borrower making payment, when due directly to the
<br />payee ihereoi. Borrower shall promptly furnish to Lender all notices of amounts due under this 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 prioriry over this Mortgage: provided, that Borrower shall not be
<br />required to discharge any such lice. so long as Borrower shall agree in writing to the paymem of the obligation secured by
<br />such Iieo 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 lien or forfeiture of the Propery or any part thereof.
<br />5. $azard Insuranre. Borrower shall keep the improvements nou• existing or hereafter erected on the Property insured
<br />aeainst loss by fire, hazards included within the term "extended coveraee'", and such ether hazards as Lender may require
<br />and in such amounts and ter such pericis as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amvum of coverage required tv pay the sums secured by this Mcr[gagt.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval 6y L.endtr; provided.
<br />that such approval shall not be unreasonably withheld. All premiums en insurance peliciea shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Burrower making payment, when dire, directly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage
<br />clause ir, favor of and in form acceptabh to Lender Lender shall have the neht to hold the policies and renewals thereof,
<br />and Borrower shall promptly furnish to Lender all renewal nouces and all receipts of paid premiums. In the event n[ loss,
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrowet.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Properly damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is not cconvmtcally feasible or d the securty of this Mortgage would
<br />tit impaired, the insurance proceeds shall be applied to the sums secured b} this Mortgage, with the excess, if any, paid
<br />to $orrowtr. If the Property is abandoned by Borrower, or it Borrower tails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Linder
<br />is authorized to collect and apply the insurance proceeds at Lender's option tither to restoration yr repair of the Yropem•
<br />or to the sitrru secured by this Mortgage.
<br />Unless Lender avd Borrower otherwise agree in writing, any such application of proceeds tv principal shall not extend
<br />or postpone the doe date of the monthly installments referred to in paragraphs 1 and 2 herevt or change tht amount of
<br />such installments. if under paragraph 16 hereof the Property is acquved by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to [he Property prior to the sale
<br />Or acquisiton shall pass to Lender t0 the extent of the sums secured by this Mortgage immtdiatcly prior to such sale or
<br />acquisition.
<br />S. Pteaervation and Maintetrattee of Property; Leaseholds; Condominiums; Planned Uttit lleveiupments. Borrower
<br />shall keep the Property in good repair avd shall not commit waste or permit impairment or deterioration of the Pmpen}'
<br />and shall comply with the provisions of any Rase iP this Mortgage is on a leasehold. if this Dortgage is vn 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 yr planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and retotded together with this Mortgage, the covenants and agrcements of such rider
<br />shalt be incorporated into and shag amend and supplement the covenants and agrcements of this Mortgage as d the rider
<br />were a part hereof.
<br />7. Protection of Letaiet'e Security. If Borrower fails to perform iht covtnams and agrcements contained in [his
<br />Mortgage, or if nay action or proceeding is commenced which materially affects Lenucr's imerest in the Yropeny,
<br />including, but not limited [o, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Leader's option, upon notice to Borrower, may make such appearances, disburse such
<br />sums and take such action as is rat :ess<ry to protean Lender's interest, including. but not limied to, dtsburscmcn[ of
<br />reasooable attorney's fees and entry upon the Property to make repays. If Lender required mangaec insurance as a
<br />condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required u, maintain such
<br />insuranet in efieet until such time as the rrquirtment for such insurance terminates ir, accordance uuh Bor;owr> and
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