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<br />Ut+moxnt Covt:xnNrs. 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 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. Elands for Ta=es and Innaanee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender 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 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 installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the bast. of assessments and bills and reasonable estimates thereof.
<br />The Funds shall he held in an institution the deposits or accounts of which arc 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 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 law
<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 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. 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 secttnty for the sums secured
<br />by this Mortgage.
<br />If the amount of the Fun& 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 [hey 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 fall due,
<br />Borrower shall pa}• to Lender any amount necessary to 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 18 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 by
<br />Lender at [he time of application as a credit against the sums secured by this Mongage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs 1 and 1 hereof shall be applied 6y Lender first in payment of amounts payable to Lender 6y Borrower
<br />under paragraph '_ 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. Borzower shall pay all taxes, assessments and other charges, fines and imposiiwns attnbutable 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 2 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 sll notices of amounts due tinder this paragraph, and in the event
<br />Borrower shall make payment directly. Bon ower shall promptly lumish to Lander receipts evidencing such pavments-
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage: prrnnded. that Borrower shall not 6e
<br />required ro discharge any such lien so lung as Borrower shall agree in writing to the payment of the obligation secured 6y
<br />such lien m a manner acceptable m Lender, ur shall in good faith contest such lien hy, or defend enforcement of such lien in,
<br />legal proceedings which oper:ue to prevent the enforcement of the hen or forfeinvc of the Properq• or :m} part thereof.
<br />5. Hazard Insurance. Borrower shall keep the tmprnvements now r:isting or hereafter erected on the Property insured
<br />against loss h}' tire, hazard, included within the term "extended awerige", and such other hazards as Lender may require
<br />and m such amounts and for such pencils as Lender may require: provided, that Leudar ,hall eat myuire that the amount of
<br />such coverage exceed that amount of cmerage reyuired to pay the gums steered by this Mortgage.
<br />'rho insurance carrier providing the insurance shall be chosen 6y Borrower subject to approval by Lender. provide'
<br />that such approval shat( not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph Z hereof ur, if not paid in such manner, 6y Borrower making payment, when due, dvectly to the
<br />insurance carrier.
<br />All insurance policies and renewals thereol shall be in them aceepuiMe to Lender :md shall include .i ;taraiard mortgage.
<br />clause m favor of and in form acceptable to Lender. Lender shall hate the right to hold the polities and rencwaM thereof,
<br />and Borrower sha!I promptly furnish to Lender all renewal notices and all receipts tit paid premuuu.. In the erem tit lox.
<br />Borrower shall give prompt notice to the insurance carrier and Lender. Lender mar make proul of loss it not made pn,mpd,
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in scnting, insurance proceeds shall be applied to restoration or repair oY
<br />the Properly damaged, provided such restoreuon ur repair is economically feasible and the >ecunty of this Mortgage n
<br />not thereby impaired. If such restoration ur repair is not econumtcallp feasible or rt the secunty of this Mortgage would
<br />he impaired, the insurance proceeds shall be applied to the sums secured b}' this Mortgage, wuh the cu'ess, if am, paid
<br />to Borrower. If the Pmpern' is :d+uuduncd by Borrower, or ii 13orrnwer fails [n respond to Lender wuhm 3U daps Innu she
<br />date notce i, madcd by Lender to Borrower chat the insurance Darner alien m settle a claim for irotirance beuctits, Lender
<br />is uuthonzed to collect and apply the insurance proceeds at LcnJer'z opuun either to restomuon of ropuir of the Property
<br />ur to the sums ucured by this Mortgage.
<br />lhdess Lender and Horrower otherwise agree in wnting, any such application of proceeds iu pnucipal ,hall nut extend
<br />ur postpone the due dart of the monthly installments referred to m paragrtphs 1 and .hereof ur change the ,mount of
<br />such installments. It under paragraph Ig hereof the Property is acyuied by Lender, all nght olio :tad interest of Harrower
<br />in and w any unurance policies aad in :aid m the proceeds Ihemot resulting fain danr,+ge to the Properly prior to he ,alo•
<br />or acyutsnion shall p»ss w Lender to the extent of the was secured by this Mongage nnmediateb' poor u. ,uch ,ale ur
<br />ucquisif ion.
<br />6. 1'resen'aHun amt 1laiatentmce of Property: 1-rasehalds: /.'undmniniums; Planned Vtdt Uevelopments, Borm•s cr
<br />shall keep the Property in good repair and shall not commit caste or permn impairment or detcriorahun u( the Prudxny
<br />and shall comply with the provisions ul any lease d chi, Mutigagu is on a lexsc6old. 1( thix Mongage ie cm a amt in a
<br />condominium ur a planned unit development, Borrower ,hall pcrfonn all tit Burnwwt's obhgunans under the dert:u'xuan
<br />ur covenants creating or governing the condominium or planned unn development [he by-laws and regulatiuu, of the
<br />wndominium or planned unit development and constituent document,. I(a condominium or plamxd unn .kvrlol+nmm
<br />rider is executed by Borrower and recorded together wnh [hu Mongage, the covenants tool agreements tit ,urh nJer
<br />shall tax incorporate) min and shat! :uncnd anJ supplement the covenants :rod agreements tit this Mortgage as it the rider
<br />were a part heron[.
<br />7. Protection of Lender's Security. If Horrower fads- u+ perfoi~ ;the cmenauts uvd agreements contained in chi,
<br />Mongage, or if ay action or proceeding a commenced which materially alfcds LenJm's interest in the P~ofxxrt},
<br />including, but nut limited to, eminent domain, iusokcucy, code enlomement. or :urmgements or proceedings involving a
<br />bankrupt or decedent then Lender at Leader's opuun, upon notice u+ Horrower, may make such appearances, disburse xwh
<br />sums and mke such action as is necessary to protect lender's interest including, hm nut limned u+, disbuncment nl
<br />reasonable attorney's fees and entry upon the Properly to make rcp:urs. It Lender reyuired mortgage insurance a.
<br />comiitiun u( making the loan secured by this Mortgage, Horrower shall pay the premiums reyuired to maintain such
<br />itsurance in effect until such time as the requirement for such insurance eerminares in accordau~e w,[h Burr--,woe's told
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