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<br />lixrroau Covax.sxrs. Borrower and Lender covenant and agree as follows:
<br />1. 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 tktis Mortgage.
<br />2. Ftmds for Ta=es and fnsarance. Subject to applicable law or to a written waiver 6y Lender, Borrower shall pay
<br />to Lender on the day monthly installments of principal and imerest are payable under the Note, until the Note is paid in fulh
<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 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). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may net 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 imerest 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, ar. 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, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxis, assessments, insurance premiums and ground rents, shat{ exceed the amount required to pay said taxes,
<br />azsessments, insurance premiums and ground rents as they fall due, such excess shall 6e. at Borrower's option, either
<br />promptly repaid to Bo: rower 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 pay 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 ail sums secured b}• this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. I( under paragraph 18 hereof :he Property is sold or the Propert}• is otherwisz acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Proprn}• or its acquisition by Lender, any Funds held by
<br />Lender at the nine of application as a credit against the sums secured by this Mortgage.
<br />... Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under thz
<br />Note and paragraphs i and 2 hereof shall be applied 6y Lcnder first in payment of amounts payable to Linder by Borrower
<br />under pazagraph ?hereof, then m 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. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable ro
<br />the Property which may attain a priority over this Dortgage. and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 3 hereof or, if not paid in such manner, 6y Borrower making payment, when due. directly to the
<br />payee thereof. Bnrmwer shag promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower ,hall make payment directly, borrower shall promptly iumish to Lender receipts evidencing such payments.
<br />Horrower shall promptly discharge any lien u4uch has pnnrity over this Mortgage; provided, that Borrower shall not be
<br />reywrzd ti+ discharge env such :ion sc long as Borrower shall agree in anung m thz payment of the obligation se vied by
<br />such hen m a manner acceptahle Io Lcnder, or .hall in good faith costal such lien hy, or defend zniorcemrnt of such lien in,
<br />legal praccedtnga which operate u> preyznt the enforcement of the lien or forfzihirc of the Property or any part :hereof.
<br />5. Hazard Insurance. Horrower shall keep the unproyementc now ~exisung or hereafter erected on thz Pnspert~' mwrod
<br />ag;unst loss 6} pre. hazards included within the term -'extended un•rru~;e'~, and such other hazards us Ixnder inn}' reymre
<br />and m such amounts and f r such periods as Lcnder may raywre: provided, Char Lender shall not reyuire that the :.nxfant of
<br />such coverage exceed that amoum of coverage reyuired m pay the corns centred he this Mortgnge.
<br />The insurance tamer providing the insurance shall be chosen by Borrower .object io approval by Lzndrr: provided.
<br />that sucfi approval shall not be unreasonably withheld. All premiums on insurance policies ,hall he paid m the manner
<br />provided under paragraph 2 hereof or, if not pa«I in such manner, by Borrower making payment, when due. directly to the
<br />insurance carrier.
<br />All insurance pohnes and renewals thereof shall be in form acceptable «+ L.cndcr and shall indudr a standard mortgage
<br />clause m favor of and m form acczptable ro Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly (urmsh to Lcnder all renewal notices and all receipts of paid premiums, In the cvzm of loss,
<br />Borrower sh;dl glee prompt notice to the insurance earner and Lcnder. Lender may make pivot at loss it not made promptly
<br />by Horrower.
<br />Unleu I_endzr and Bormwcr otherwise ague in wrung, insurance proceeds shall he applied m restoration or rep:ur of
<br />the Properly damaged, pmvuied such restoration or repair is econonuadly fe:uiblc .utd the secant} of ihs 1Asrgsgr :,
<br />not thereby' impaired. If such rrstor;uwn or repair is not eeonunucali}' ieavMc or d the ,count} of tlus Mungsge would
<br />he impnued, the insurance proceeds shall be applied to fhc sums secured by this Mnttgage. wnh the excess, it .iny. paid
<br />m Borrower tt the Property is :dtaudonod M lk=rn+wer. ur it Borrnwrr auk n+ rsp<ntd m I-ender wuhin fu da>+ ^-:an the
<br />date nonce is madad by I-ender to Horn+wer that the ufsur,utce earner alters to ,rttlr ,. claim for utuunnce henrtits. Lcnder
<br />is authorized n, collect ;md apply the msurunuc proceeds at Lender's opuun cnhrr to rq«rtanon ar repair ~n the Prnprrts
<br />or to the soots secured by this Mortgage.
<br />lhdess Lcnder and Horrower otherwuc agree m wnGng, any such .rpplicwian al proceeds to pit nctpal sh,Ji sat extend
<br />ur postpone the due date of the monthly installments reiencd to m paragraphs 1 .fed ! hereof of change tha• nntaont +a
<br />such mstaHmznis. If under paragraph tK hrrraf the Pmpert} is acqutrctl oc Lender, ail right, title end nxrrest ~+f Borr:~ti er
<br />in and w :etc msurutee policies and in and to the prtmcrds Ihereut resuhing from damage to the Proprns pool to the ,.+la
<br />or ucgwsmon shall puss to Lander to the extent of the solos secured by this Muf tgagc nnnrrdiutelq pear to ,nth sale or
<br />acquisition.
<br />6. Presen~admt and Maiotrnancc of Property; Lruselwlds; Condominiams; Planned Unii Urrrlopmrnts. tint rawer
<br />shall keep the Property in good repair and chap not commit waste or permit impounnent or detenor:won of the Pmlktty
<br />and shall comply wnh the provisions nt ;m}' Icase d the Mortgage is on a leaxhuld. II this Mortgage n ou .. nnu m .+
<br />condominum ++r a planned amt aevelopmrnt. Horrower shall pzrtorm all of &+rmwcr's ,+hhga«ons under Uu derlainuan
<br />ur covenants crcaung or gnvznung the condomnuum or planned mot Jevclopment, the by-laws and rrguhuion. of the
<br />condominium of planned unit development, and constituent documents. II a condonnnium or planned unit devrlupntrm
<br />rider is executed by Borrower and recorded mgrther wnh this Mortgage, the mvenanu and agreements at such odor
<br />shall be inwrpurmed m« t and shall amend and supplement the coyznams and .tgreernrnts .+f this Mortgage as it the rider
<br />wire x p:u't hereof.
<br />7. Protection of Lender's Security. it HuROw'Cr tails w perform the eovatanis and agreements cunuuned m this
<br />Mortgage, or if any action or proceeding is mmmenerd which materially affects Lender's user ast in the Properly.
<br />including, but nor limned to, emutent domain, insolvency, code enlorecmem. or ;urangements or pnrc:erdings invoh~ing x
<br />bankrupt or decedent, then Linder at Lendei s option, upon notice w Borrower, may make such nppear:mccs, disbunc such
<br />sums and take such action :u is necessaq~ to protect Lender'. ?ntcres[, including. Lsut not limned «, dishorsement :+.
<br />reasonable attomevs roes and entry upmt the Pmpzrt} to utukc rcpmu. If Lcnder reyuired mengage imurancr .ts ~
<br />condition of m;ilcing the loan secured h}' this Mortgage, Borrower shall pay the prei'niums reyuired to maintain vieh
<br />insurance in effect until such time as the royuirernent for each insurance tzrminatrs m accordance with Horra+wcr'c :aid
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