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<br />UttmatM Cavettxttts. Borrowtt and i,ender covenant and ago as follows:
<br />1. taymeat of MerlgM sad tsltraf. Borrower shalt pranptlY pay when due the prineipal of attd interest nn tht
<br />indrbtedrrcrs evidenced by the Note. prepayment and late charges as provided in the Note, and the prirrcipil of aad 3atersat
<br />ar any Putters Advances secusW by this Mortgage.
<br />2, FnsM ter Tap sad leaeres. Sabjcet to applicable law or to a written waiver by Lender, Brmowu shall pay
<br />to Ler.~r rnr tM day raoath3y irisiailments of principal and intere3[ are payalrk under the Note, until the Noe is paid in fuH.
<br />a stmt therein "Fundy^f egtul to ono-tweihh of the yearly taxes and assesanimts which tray attain priority ovtt thin
<br />Mortgage. and ground rents on the Property, if any, plan one-twNfth of Yearly premhtm itutalfinenb for hazaM irrsuraoa,
<br />plus orte-twelfth of yearly premium installments for mortgage insurance, if any, ati as reasonably estimated ingislly and from
<br />time to tirtre by Leader on the hosts of attsuaments and bilk and tssmonable estimates [hereof.
<br />The FurMs shall be held in an institution the deporitr or amounts of which ors irtturcd or gwraetetd by a Federal or
<br />state agency (irtciuding Lender if Lender is stxh an itrsiitmion). Lender shall apply the Fattds to pay said taxes, assm»ret[ts,
<br />insurance pt>~aiams and gonad rents. Lendtt may net charge for m holding and applying the Fonds, analyzieg said account,
<br />or verifying and compiling said assessments and bills, uNeas Leader pays Borrower interest oo the Funds slid applipble law
<br />permits Lender to make such a charge. Borrower and Lender may agra in writing at the tirtu of executron of this
<br />Mortgage that interest on rice Furtds shalt be paid to Borrower, acrd unless sttc6 agreement u made or applicable law
<br />requires such lateral to be paid, Lttrdtr shall na be required td pay Borrower any interest or earnings on the Ftmds. Letttkr
<br />shag give m Borrower, without charge, an annual accounting of the Funds showing credits and debits to the FtmQa sad the
<br />purport for which each debit zo the Funds was made. The Funds are pledged as additional security for the strms 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 />iht doe dates of taxes, asseuments, insuranu premiums and Bound rents, shat' exceed tht amount required to pay said taxes,
<br />aaseasrnenu, insurance prcmiunrs and ground rents as they fail dare, such excess shall be, at Borrower's option, eithtt
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shalt no[ be sufficient to pay tarts, asaessaaents, insurance premiums and ground rents as they fats due,
<br />Barrowta s1aaJ pay to 1_eruler any amount necessary to make up the defiacncy within 30 daps from the date notice is mailed
<br />by Lender to Harrower regtrtsiing payment thereof.
<br />Upon paymtent in full of ail sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />tne3d by Lender. If under paaagaph 18 hereof the Properly rs sotd or the Proptr[y is otherwise acquired by Letsder, Lender
<br />shag apply, no later than immediately prior to the sale cwt the Prope m' or its acgwse[ion by Lender, any Funds held by
<br />Linder tit the time of application as a credit against the sums saluted try this Mortgage.
<br />3. ApplkatMee of Paymar9s. Unless applicable law provrdn irtherwist, all payments received by Lander under the
<br />Note uad paragraphs 3 and 2 hereof shall be applied by Lender first rn payment of amounts payable to Lendtr by Borrower
<br />under p~aragaph 2 hereof, then to interest payable on the Note. then to the pnncipul of the Nate. sad then to interest and
<br />prinnpal on any Future Advances.
<br />4. Charon; t3ees. Borrower shall pay all taxes. assessments and other charges, fines and impositions attnbutable to
<br />irn Property which may attain a priority over this Mortgage, and leasehold paytrreats ar ground rents, if any, in the maatrer
<br />pmvidtd under paragraph 2 hereof or, if not paid in such manner, by Borower making payment, when due, dirally to the
<br />pays thereof. Borrower shall promptly furmsh to Lender all notices of amounts due under this pazagraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly fumrsh to Lendtr receipts evidencing such payments.
<br />Borrower shall promptly dischz; ge any lien which has pnonty over this Mortgage; provided, that Borrower shall not be
<br />regwred to discharge any such lien se long as Borrower shall agra m w+amg to the payment of the obligation secured by
<br />suers !ten in a manner acceptable to ixndtr, or shall in good Earth contest such lien hp, or defend enforcement of such lira in,
<br />legal practedings which operate w prevent the enforcement cf :ht :ie^ t:r farttuure of the Property or any part thereof.
<br />5. Hiarard lawrance. Borrower shat! kelp the Improvements now exisang ur hereafter erec;red on the Property insured
<br />against loss by 5rc, hazards included witfrur the term 'extended coverage". and such other hazards as I-ender may regwre
<br />and in such amounts and for such periods ax Lendtr nrey require; provided, shat [..ender .hail nc[ require that the amat:nr of
<br />such caveragt tscttd that amatrnt :'E coverage rergwred to pay the sums secured h}~ this bortgage.
<br />Tut insu: once cazrier providing the insurance shall ire chosen by Sarrower sabject ur approval by Lendtr, provided,
<br />that such approval shall not be unreasonably witktheld. All premiums on insurance aolieres shall be paid m the manner
<br />praxided tinder paragraph 2 hereof or, if twt paid in such maotrtr, by Harrower making payment, when dot, <3irtctiy to the
<br />iasuranu. carrisr~.
<br />All inwrartce pdicies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />cla»se in favor of and in form acceptable to Lender. Lander shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly' furnish to Lender all renewal notices and alt receipts of paid premiums. In the event of loss,
<br />Borrower shat! give prompt entice to the insurance carrier and ixndtr. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pr octeds shall 6e applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair a economically feasible and the security of thrs Morfgage !s
<br />not thereby imparted. if such restoration ar repair is not economically feasible or ~f the security of this Mortgage would
<br />be impaired, the rruuranu proceeds shall be applied to the sums soured by this Mortgage, wuh the excess, if any. paid
<br />to Borrower. if the Property as abandoned by Hauower, or if Borrower fads to respond to Lender wuhrn 3U days from the
<br />date rsa[ru: is mai3ec3 .',y Ltndtr to Borrower that the insurance carrier otters to settle a claim for insurance henehts, Lender
<br />is autbariztd to cel!ect acrd apply the insurance proceeds st Lender's opticn either to restoration or repair cf the Propery
<br />or to the sums secured by this Mortgage.
<br />Linkts trader and Borrower otherwise agree m writing, any such applicavon of proceeds to pnnctpal shat! not extend
<br />or postpone the due date of the monthly installments referred to m paragraphs ! and ? barest or .hange she amount of
<br />such tnstallmtats. tt undo pazagraph t8 hereof the Property Es acqu:rcd b} Lender, al! nght, aria and interest et Harrower
<br />in and to tiny insurance policies and in and is the proceeds thereof resulrtng from damage to the Proper} prior to the sate
<br />or acquisition shall pass to l.tader to the extent of the sums seturtd by thin Mortgage imrnedrately poor to wch sale or
<br />acgttisttion.
<br />6, Praervatloa grad MaitrEeoaacs of Property; l.eaceboldti Cnedomiaiums: Planned Unit Developmtou. Borrower
<br />sh:til kttp firs 3'topttty in Bart repair and shall not commit waste er permit tmpatrtrrent or dtter3orarron et the Property
<br />and s3ta3t comply wtth the provisions of any least rt this Mortgage tin a leasthuld. It this Mortgage unit r + a
<br />candarainium w a piantred emit dtvelopmtnt, Borrower shat! perform ail of Borrowers obhgatians under [ht dularanun
<br />of covenants creat6-rg or gavernsng the cundomrnium or planned amt devciopmtnt, the by-taws and regulations ei the
<br />coruiotairtium ar planned unit deveiopttxnt, and constituent dceutrtenis. if a condominium or planned amt Jevelopmtnt
<br />rider is exauted by Borrower and rtcordsd tagtiher wuh this Morfgage, the covenants sad agreements of such rder
<br />shall be rucarpacakd into and sha13 alnettd and supptemem the covemnts and agreements at thu Morgage :u if the rder
<br />wart a part 3ttrevf.
<br />7, PratsicUw d isedtt'a 5snrky. if borrower fatly to perform zhe covenants and agreements coatamed .n this
<br />Mortgage, ar if any action or pracadrng is cumtneuctd which matenatiy affects tender's Interest in the Proptrt.
<br />including, hue oat hmrted to, etntnsnt domain, insolvtn y. eodc cnfw. cetntnt, er arrangements+~ ar prcxeedings .nvoh mg a
<br />han0[rupt or ducdsnt. eaten 3tnGer at trader s option, upon natsce to Rorrowtr. ma} make such appearances, drshurse .wch
<br />scans arm rake suc4 action as tr nectssar} to protect Lender's mttrest_ ~ncludrng., but not limned to, drsbnrsement :a
<br />rtasattahit atw[oty's fats and entry upon the Property to maltt capons. It Lender required mortgage insurance :.
<br />s=tmdrtwa «t ntak;rte tits Loan sea:rusd try thn Mortgage, l3urraxtr shall pa. tht premmmn reymre.i to mamtssn sn.:h
<br />ierssrarttic to tiSece ::aril such ttmt :rx care rtqutrement fns .,rcb insurance iermrnatts in accordance wuh Barc war', and
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