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i.:sumd or guaranteed 1?y A Fecieral or state uge~?c~~ ~inclu~liu~ I.en~i~~• if I.ender i~ ~w•h ;tn i??.iitutia~i. Len~l~r
shall apply the Fuml~ to pn~• said taxes, ussessments, insura~i~e ~m~~niam~ and gtoinid iY~nt~. I.en~ier shall inake no
charge for so hoiding and ap}flying the Fu~ids or rerifying anil eom~>ili~ig ~nid u~cs~meui. a~id hill~. I3orms~•er and
I.ender tz~a~• xgrc~e t~ writing at tlie timc of execution of this ~IortRaRe that internst uu tl~~~ Fun~l~ ~hul) 1~~~ ~~.ti~l to
13ormN•cr, xncl unless .uch agrc~ment is made, I.endrr ~i~all not b~~ requim~i to ~~ay Borro~r~~r :~n~• n~tE•re.t ou th~~
Funds. Lemler shnll ~i~•~ to AorroHer, without charge, nn Hnnua) Accounting of the Fun~l~ ~h~?~~•in~; rr~~lit~ nnci
debits to the Fands ;ind the ~~ur~~ose for ~ hicl~ each debit to the Funds was made. Ti~r Fim~is :irn ~~led~~~l z. ;icldi-
tionai security far the sums securc~ hy this \'iottguqe.
tf the xmount of the Funds held by I.ender, togethcr ~~ith the future monthi~• iu:t;~lliuent~ of F'und~ pn~able
~~rior to the due datcs ot taxes, a.4sessments, inSUTRlICe premiums and ~round rents, ~liall exccecl th~ amount m-
yuired to pay sai~i taaces, assessments, insurance ~~~c:uiums nnd ~round rents as the~ fnll ~lue, s~~ch excess sltiati be,
xt Rorrower's oE?tion, cither pmmptly repaid to Borro~~er or rrediteci ta Borro~~•ci• oi~ monthh~ ir~stnllments of
Funds. If the amou»t of the F»nds held b~~ I.ender shall not be sufficicnt to ~~a~ taYe<. u~~es~mm~ts, in~urance pre- '
~~~iums and ground rents as the,y fall ~lue, Borrower shail pay to I.ender an}• nmo~~nt nece~sar~• to mzkc up the
deficiency within thirt~• days after notice from 1.ender to Rorro~ser requcstin~ pav~uent thereof_
Upon payment in i~ill of all su~us secureci h~~ this \Iortgt~~e, I.ender shnll ~~romptl~- refund to Rorro~~er :~nt~
Funds held by I.ender.
It under ~iaragr»ph l8 hereof tl~e Prop~rtti• is sold o~• tlte Property is other~vise acquired b~• i.ender, l.ender
:hal! apply, no l~fer thn» immediAtely ptior to thc ~ale oi th~ Yropert~• or itc lu~~~ui~ition I.c~n~icr. :tm• Fund~ ,
held b~ I.ender at the timc ot up~,lication as a cre~lit :~Rain~t the ~ums ~e~w•~~i h~• ihi~ \iortga~c.
3. Application of Payments. Unless ap~~licabl~ la~~ j~rovide: other~~•i~e. .~11 ~~,~~~m~nt~ recei~•c~1 1?~• i.ender
uuder tlie \ote .~nd ~?:~ri~gr~i~~hs 1 and 2 hereof st?all he t~~~~~lieci i~~• Len~ier first in ~ia}•ment i~f amount~ ~~a~~:~ble to
I,ender b~ Borro~cer tinder ~?an~graNh 2 hereof, ti~en to intem~t ~~.?~•:ibt~ on the Natc ;in~t o?i Future :1~irauces. if
iu?y, a~~d then to the ~?rinci{u.l of the \'ote znc! to the j~ritlcip:el of F~~ture Atlr~nce~, if an~.
4. Charqes; Liens. BorroH~er s1~R1) pa~• al! taxes, a~~ess~ucnts :uu) otl~er cl~ar~es, Gnes and i~npocitions attrib-
iituble b the Propert•~• ~~•hich may :~ttain !?riorit~~ o~•er this \lortga~e. and Kroun~l rents, if an~ , at I.ender's
option iu the mnnner ~~ro~•idecl under ~~ara~rnph 2 liereof or 1?~• Rorro~~•er ~nakin~ pn}~ment, ~~•hen ciue, direetly to
the payce thercof. Borro«•cr ~4i~ll E~rom~~tly fun?i~h to Lendrr ,ill nntices of a~uoi~nt~ ~tue u»der this ~~arn~rapl~.
:u?d in the f:vent Borrowcr sh,ill mak~ pn~n~ent directh•, Rorrmrer ~hnil ~~rom~~tlv furnicl~ to l:ender r~~ceipt~ evi-
dencing sucl~ (~aytnents. Rorro«~er ~hnl! ~~roi~iptl~- ~lic~l~ar~e an~- lii~n ~rhich has ~~riorit~ over thi~ \~ort~a~;e: pm-
videcl, t!?at. Aorrotiser ~hall not bc rM~uirerj to ~ii~cl~ar~;~• un~• ~~i~lt licn ~o long as Borm«er ~6all agree in writin~ to
the p:~yment of the oUligation secured by such ticn in manner ;tcce~~t:~ble to T.ender, or shall in goo~ faith contest
such lien I?y, or defend enforcen~ent of ~uch lien in, le~al ~?roceMii»~, «hic6 o~~er~te to ~irecent the enforcement of
the lien or forfeitum ot' the Yroperf~~ or any ~~nrt thercof.
5. Hazard Insur~ce. Borrower ;t~alt i:ee~~ ti?c i~n~~ro~•cinent~ nu~~- ixistin~; l~ereafter erecteci on the Pron-
~~rt~• in,~n•ed :~gainst loss la}• fire. hxzarris inclt~deri ~vit_hin the tern~ "extended coverage", un~i sucl~ other I?nzards as
(.eiider ~~ia~~ re~~uire .ind in ~uch an~o?mt~ and for ~ucl? ~~erial~ a~ L~•n~ler n~a~• require; proride~l, that i,ender shall
not require that the amotntt o! "s~~cl~ ~o~•ern~n~~ ~~rcec~~i tli:it :~~uot~nt oi co~•cragc requireci to pa~ the siims secureci b`~
tl~is ~Iort~gage.
The insuruuce carrier {~ro~•i~lin~ th~ insur.illCf' ~ht~il I~~• ~~hoseu f?~~ Borro~~er subject to approvat lnr t.ender;
~~ro~•i~ie~l, that ~uch appro~•al shatl n~,t !~e nnrcasou:?blr ~eithheld. A~l premiums on insurance policie~ ~i~all be paid
at I.ender's oF?tion i~1 thc ~un?i~ier ~>rori~le~1 ~~n~le~~ >>ara~r:?~,h 2 l~ercof or i~~• Rorra~~•er mukin~ ~ia~rn~ent. ~vhen due.
~lireetl,y to the iusurancc sArrier.
All in~ur~uce }~alicies .in~i rt•?ic~~•,il, tlit~ir~,f ~h:il! hc• in foi•n~ :ir~•~•~~tahlF~ to I.en~ler .?n~l ~hall in~h~d~• :i .taiular~i
?nortRage clause i?i fa~•or of an~l iri 1oru~ acc~e~>t:ible to I.en~lc~r. Lemier ~Iiali ha~•c tt?c~ ri~l?t fo I~ol~i thc ~~oticie~ ami
renewll~ thereof, ;uu{ Rorro~crr :hall ~tiron~~~ti~• f~n•ni~ii to i.en~ic•r a1t rene«~al notice~ an~i ;ill receipt~ of pzid pre-
iniums. In thc erent of lo;~, liorro~~~cr =li;cll ~;i~~~• ~rro~n~~t ~iuticc t~~ nc~~ jilFliT3llr(~ carrier arni I.ender, snd i.ender
~u;?~- ~,~ake ~~roof ~~f lo~~ if i~ot »iadi~ ~~co~n~~ti~• h~- 13on•on•er.
j3nless I.ender au~i Rorr~~~~~e~i• otl~t~n.i•f• :i~r«,~~ in ~~•ritinR. i~~~~~r:uir~• ~~ro~•ce~l~ •hall b~~ :i~~~~lied to ir~toration or
re~~air oi the~ Yr~?~rert~- ~Luu:~g~~~l. i~n~~•i~l~•~i ~urli rf~~toratiun ~n• r~•~~air i= ri~t?nonii~~alh• fea~ihl~~ :i1NI tllE' ~eciirit~- of
this \iortgagc i~ not fl~ereh~• ieu~,:iire~i. (t ~uci~ re~foraition or re~~air i- not ec~mumicalh• fea~ible or ii the seeuritt-
z,f fhis ~tort~a~e n•~u1ct in~ inl~,:~irc~t. t~u~ insur:in~~• ~~rocce~l~ ~l~:i!! l~~~ :t~~j~lie~l to tl~c sun~c securetl h}~ tl~is \1ort~age.
«~it}t #!ie exce~s. if si~t•. ~?ai~l to Borroti~•cr. If thc~ Yro~~ert~ i~ :il,an~lone~i h.- 13orro~~~er or if Rorro~~-cr faik to respond
to I,enc~er ~cithi~~ 3(? ~ia~•~ aftcr ~?oticc h~• I.ender to Borro~rer that the in~ursncc carricr ofFet~ to ~ettle ~ rlaim for .
i~isuranee Le~~efit~. I.ender i~ anthorize~i to co11eM anci appi}- th~• insur:~nce ~rroeeeds ~t t.e~tder'~ o}~tion either to
restoration or repair of the Pro~>ert.}• ~~r to the ~uni~ securc~i I~~• thi~ \torfgagc.
Unless Lender an~i Rorron•ec other~~-ise agree in cvritin~, an}• ~uc1~ arplicztiott of ~lroreed~ to ~~rincipal shall
not exteud or E~ostponc the due clate of t1?cr monihl~• installmr.nt~ refcrre~l to in ~inr:~~ra~~h~ 1 nnd 2 hereof or chan~e
the smount of such in~talbnents.
If un~ler ~,sragra~~h 18 hereot thc Yro~~ert~• i~ acyuire~i 1~~• I.encicr. ail ri~ht. title ancl interest ot Botro~~•er in
; :ln~i to am- in~ur:?nre~ ~~olicic~ an~i in anci to thc ~~ro~ced~ th~~~rof ~to th~• cxtcnt of tiu~ ~um~ ~ecureci i?}~ this \iort-
~;a~e imme~li.~~eh- ~~rior tcr ~ue(a ~afc~ or aequi~itio~~? resultin~ frnn? ~Isinr?~c to thc~ Yro~~ertr tirior to the sale or
:~c~~uisif.ion ~hali ~~as~ to I.en~~er.
' 6. Preservation aad Maintenance of Properiy; Leaseholds; Condominiums. liorro~~~cr ~liall kee~~ thc Yrop-
crty i~~ ~;oal re~~air and shn11 not ~~ern~it or con~mit ~~~~iste, imJniinnent, or ~ieterioration of the Propert~• and shall
com~?ly «~ith the ~?ro~~ision~ of u~n• lease, if this ~lortgage i~ on a lef?sel~ol~i. If tl~i~ \toctgage i~ on a eondominium
iiuit, Borro~cer ~hall ~~erfortn all o: IIorroK•cr'c ob)igation~ unrler the ~Iccluration of condomininm or master deeci.
the {?y-la~~-~ :uu1 re~;ulation~ of th~~ condominium ~~roject :lnd constit~u~nt ~iocu~nent~. ~
7. Protection ot Lender's Security. If Borrower fail< to ~ierforn~ the covenunt~ ,i~i~1 s~reements contained in 4
this \tortguge, or if am• action or ~irocerclin~ ic co~n~t~encecl ~~•hi~h ~i~ztcri:~llt' Afiert~ I.enrler'~ interest. in the Prop- ~
erL_y, includinK. }>ut not limitec) to, e~uinent dauai:i, insol~'enc~-, ca1~• ~•nforcement. or arran~:ements or proceed-
ings i?i~~olvinK a hankrupt or decedent, then I,ender at l.en~ler'~ o~~tion. upon notice to Borro~.•er. ~ua~ make such
:?~~pearances, disbur~e such ~um< aml tt~ke ~u~L :~ctiou a~ i~ necessar~• to ~~rotect I.ender's in!erest, includin~. but
not limited to, disbursement of rensonahle sttornc~~'~ fec~ anci cntn- u{~on the Yro~ierk.r to make repairs. Any
amounts distiursed b~ I,ender ~?ursuant to this (~arsgrapli 7. ~~•ith intere~t thcreon. shall her,ome aci~iitional indebt-
edne~s of Borro~~•er secure~i h~• this ~lortgagc. Unlc~s Borro~~er nn~1 I.encler agree to other terni~ of payment, such
amounts ~ha11 be payable upon notice from Lender to Borro~~•cr rcqucstin~ payment thereof, ~nd shall bear inter- -
est from the ~Inte of ~lisbiirsement at thc ratc <tatec! in thc \otc unle~s ~,ayment of interest flt such ratc ~r-ould bc
contrary to applicable la~~, in u•liich e~•ent such ~unoimt~ ~l~alt hcar interest at thc I~i~hest rate ~~ermissible b}~
applicable lan. \othing cont~ine~i in thi~ l,aragra~h 7 ~lizll rec~uire Lender to inct~r any ex~~ense or do any act
hereunder.
900K 22~ PJ~Cf