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<br />Ii::IFOfiM Covr:rvw>r•:5. Borrower and Lender covenant and agree as follows:
<br />i. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest an the
<br />indebtedness evidenced by the Note, prepayment sad late charges as provided in the Note, and the principal of and interest
<br />oa any Future Advances secured by this Mortgage.
<br />2. Funds for Taxes and 7osarauce. Subject to applicable law or to a written waiver by Lender, Borrower shag pay
<br />to Lendtr on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full,
<br />a sum !herein "Funds") equal to one-twelfth of the yearly taxes and asscssrrtenu-which may attain priority over this.
<br />Mortgage, and ground renu on the Property, if ang plus one-twelfth of yearly premium installments for hazard instrranct,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated iaitfaliy and from-
<br />time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall 6e held in an institution the deposits or accounu of which are insured or guaranteed by a Ftdera} of
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assezstnents,
<br />iasuranx premiums and ground reins. Lender may not charge for so holding and applying the Funds, analy>;ng said atcount
<br />or verifying and compiling said assessments and bills, unless Lender pays Borrower interest oa the Fuodi sand applicable law.
<br />permits Ixnder to make such a charge. Borrower and Lender may agree in writing at the time of execution of ibis:
<br />Mortgage that interest on the Funds 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 to pay Borrower any interest or earnings on the Funds. Linder
<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 this Mortgage.
<br />If the amount of the Funds held by Lender, mgaher with [he future monthly installments of Funds payable prior to
<br />the du dates of taxes, assessmeau, i:surance premiums and ground rents, shall exceed the amount required to pay said to :~,:
<br />assessments, insurance premiums and ground renu 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they faB due,
<br />Borrower shall pay to Lender anp• amount necessan• to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting paymem thereof.
<br />Upon payment in full of all sums secured by' this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Ixnder. If under pazagraph 18 hereof the Property is sold or the Properq~ is otherwise acquired by Lender, Lender
<br />shall appl}', no Later than immediately prior m the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of PaymenLS. Unless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall Ix applied by Lender first in payment of ameunts payable to Lender by Borrower
<br />under pazagraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Charges; Liens. Borrower shall pa}• all taxes, assessments and other charges. 5nes and impositions attributable to
<br />the Property which may attain a prionte over this Mortgage. and leasehold pay.ents or Ground rents, if any, in the manner
<br />provided under paragraph Z hereof or, tf not paid in such manner, by Borrower making pa}•ment, when due, directly to the
<br />pa}•ee thereof. Borrower shall promptly furnish to Lender all nonces of amounts due under this paragraph, and is the eveca
<br />Borrowtr shall make payment directh'. Borrower shall promptly famish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over This Mortgage: provided, that $orrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in ~erit.ing to the payment of the 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 prtveat the entorcement of the lien or #orferture of the Preoetty or any pan thereof-
<br />5. Hazard Iasurantt. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss 6y fre, hazards included within the term "extended coverage", and such other hazard<_ as Leader may require
<br />and in such amounu and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of ceverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier providin¢ the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower 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 and in form acceptable to Lender. Lender shall have the riebt to hold the policies and renewals thereof,
<br />and Borrower shalt promptly furnish to Lender all renewal nonces and all receipts of paid premiums. In the event of 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 Borrower.
<br />Unless Lender and Borrower otherwise agree in wriuag, insurance proceeds shall Fx applied to restoration or repair of
<br />[he Property damaged, provided such restoration or repair is economically tensible and the security of this Mortgage is
<br />no[ thereby impaired. if such restoration or repair is not economically tensible ar it the secunn• of this Mongaae would
<br />lx impaired, the insurance proceeds shall be applied to the sums secured by t6ts Mortgage, wnh the excess, if any, paid
<br />to Borrower. If [he Property is abandoned M' Borrower, or if Borrower tails to respond to Ixnder within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carnet offers to seine a claim for insurance benefits, Lendtr
<br />is authorized to collect and apply the insurance grocetds at Lcndtls option either to restoration or repair of the Properly
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone [he due date of the monthly installments referred to in paragraphs 1 and 2 hereof ar change the amount of
<br />such installments. if under paragraph 18 hereof the Propert}• is acquired by Lender, all right, title and interest of Borrowtr
<br />is and to any insurance policies and in and to the proceeds thereof ruuhing Irom damage to the Property prior to the sale
<br />ar aegtusidon shall pass to Leader to the extent of the stems secured by this Mortgage immediately prier to such sale or
<br />acquisition.
<br />6. Preservation and Maiatenantt of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste or permit impairment or dererioration of the Property
<br />sad shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
<br />condomiaittm or a planned uai[ development, Borrower shall perform all of Borrower's obligations under the declaration
<br />of covenants creating or governing rho condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned amt development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall Ix incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a past hereof.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's imersst in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />6sakrupt 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 protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
<br />aaaditian of making the loan secured by this hlongagt. Borrowtr shall nay the premiums rc.quired to maintain such
<br />insuraa-.e in effect until such tune as thr requtremeae far such insurance terminates in accordance with Borrower's and
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