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<br />UvrFatt!.s Covevr.vrs. Bowater and Leader covenant and agree as follows:
<br />i. Paymea! of Prtarlpal and InttreaL Hvrrawtr shall promptly pay when due the principal of and interest an the
<br />indebtedness evidenced by the Note, prepayment artd talc charges as provider( in the .Pert, and the principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fonds for Tazes a~ Iaaurttitue. Subject to applicable law or to a written waiver by Lender. Botrowtr shall pa}•
<br />to Iznder on the day monthly insialltntnts of principal and interest art payable udder the Note. until the Note is paid in fu6,
<br />a sum (herein "Fonds") 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 oho-twelfth of yearly premium instailrnents for hazard insurance,
<br />plus one-twelfth of yearly premium instatlments for mortgage insurance, if any. all as reasonably estimated initiatly anal from
<br />time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
<br />The Funds shat( be held in an institution the deposits er accounts of which are insured or guaranteed by a Federal ar
<br />state agency (including Lender if Lender is such an institution), tinder 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 bi?Is, unless Lender pa}'s Borrower imtrest on the Fundsand applicable law
<br />petmi[s 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 Ire paid to Burrower, and unless such agreement is made or applicable law
<br />requires such interest to bt paid, Lender shalt not be required to pay Borrower any interest or earnings on the Funds. tinder
<br />shall give to Borrower, withvut 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 art pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Cender, together with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums aqd ground renu, shah exceed the amount required to pay said saxes,
<br />assessments, iRSUrance premiums and ground rents as they fall due. such excess shall be, at Borrowers vption, either
<br />prompty repaid to Borrower or credited to Burrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be stil5eient [o pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrawer shall pay to Londe; any amount necessary io make up the deficiency within 3C days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment iR full of all Bunts secured by this Mortgage. (.ender shall promptly refund to Borrower any Funds
<br />held 6y Lender. If under paragraph I S hereof the Property is sold or the Properly is otherwise acquved by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition h}• Linder, any Funds held by
<br />Lender at the time of application as a credit against the sums secured b}• this Mortgage.
<br />3. Application of Payments. Unless applicable law provides vtherwise. all payments received by Lender under the
<br />Note and paragraphs 1 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 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 pay all taxes, assessments and other charges. fines and impositions attributable io
<br />the Property which may attain a priority over this Mortgage. and leasehold payments ar 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 />payw !h„ af. Borrower shall promptly furnish to Lender all natices 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 sha?i promptly discharge any lien which has priority over this Mattgage: provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the ubiigation secured by
<br />such tiro 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 cf the lien or forfeiture of the Property or any part thereof.
<br />3. Hazard huurence. Harrower shall keep the improvements nvw esistiag or hereafter erected on the Property insured
<br />against loss by fire, hazazds included within the term ' ~ex!tnded coverage". and such other hazards as Londe. may require
<br />and in such amounts and for such periods :ts Lender may require: provided, that lender Shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />The insurance carrier orovldrRg the insurance shall be chosen by Borrower subject to approval by ?xndtr; provided,
<br />[hat such approval shad not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph Z hereof or, i2 Rat paid ir. such manner, by Borrower making payment, when due, directly *.e the
<br />insuraact carrier.
<br />Ail insurance policies and renewals thereof shall be in Yorm acceptable to Lender and shall include a standard mortgage
<br />e?ause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renew~.4s thereof,
<br />and Borrower shall promptly Furnish to Lender all renewal natices and all receipts of paid premiums. In the event of loss,
<br />Borrower shall give prompt notice to the insurance cazrier and Lander. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless i.ender and Borrower otherwise agree in writing, insurance proceeds shall bt applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is ecanomicaliy feasible and the security of this Mortgage i.
<br />no[ thereby impaired. If such restoration or repair is not ecanomicully teasiblt or if the security of this bfortgage would
<br />be impaired, the insurance proceeds shall be applied to [he sums secured by this Mortgage, with the excess. if any, paid
<br />to Borrower If the Property is abandoned by Borrower, or it Borrower tails to respond to Lender within 3U days Crom the
<br />date notice is mailed by Lender to Borrower that the insurance currier offers to settle a claim for insurance benefi h, Lender
<br />is author ized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Properly
<br />or to the sums secured 6y this Mortgage.
<br />Unless Lender and Borrawer otherwise agree in writing, any such application of proceeds to principal shall not extend
<br />-or postpone the due date of the manthfy installments referred to in paragraphs 1 and 2 hereof or change [he mnount nt
<br />such installments. It under paragraph Ig hereof the Property is acquired by Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the practeds thereof resuking from dannrge to the Yroptrry prior to the sale
<br />of acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such salt or
<br />acquisition.
<br />6. Preservation and Maintenaace of Properly: Leaseholds: Condominiums; Planned Urtit llerelopmtnts. Borrawer
<br />shall keep the Property in Bond repair and shall not commit caste or permit impairment ar deterioration of t`.te Praptrty
<br />and shah euntply with the provisions of any-least it this Mortgage is on a leasehold. H this Mortgage is mr a unit in a
<br />condominium or a planned unit development, Bouvwer shall perform all of Borrower's Rbligutiuns under [he declurauon
<br />or covenants creating or governing the condominium or planned trait development, the by-laws and regtdations of [he
<br />condvminituR yr planned unit deveopment, and amstituent dacumcnts. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants aad agreements of such rider
<br />.shall Ire incorporated into and shall amend and supplement the covenants and agreemenu of this hLortgagc as rf the rider
<br />. t,a ...s
<br />7. Protection of Lender's Security. If Borrower fads to perfvrm the covenants and agreements rnntained in this
<br />Mortgage, or if -any action or pro:.eeding is commenced whis:h materially otters Lander's interest in thz Propene,
<br />including, but not Mimi[ed to, eminent domain, insolvency, axle enforcement, or arrangements os pre::ctdings involving a
<br />bankrupt yr dtr.~edent, then Lender at tender's optiaq upon notice to &rrrower, nray make such appearances, disburse such
<br />stuns and take such action as is necessary to Protect f.endtr's interest, including. but not limned to, dsbursemem of
<br />reawna6lt a{tomty"s fees and entry uwrn the Propery to make repairs. tf I..cndtr rcyuircd mvrrgaet insurance as a
<br />carsdition o[ making the taau secured by this Marlgagt, Btrrrcrwer shall pay the prenriunrs reyuircd to maintain such
<br />ina+.uantz in a?x`ut onii? such tints as tbe rcyuirenient tar such insurance terminates .n ;+~tordancc with 8vrrcwer's :rod
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