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ius~u•e~l or guuranteeci h~ a F~~cleral ar •tule :?~em~~• liu~~lu~liu~; L~•~ul~•r il i.eu~ler i• :u~~l~ :w iu~titutio~?1. i.rnder ;
,hall nppl~~ the Funds to ~?a~• ~ai~l t.ixe~, :?•~c~sn?eut~. imui•:~n~•~• ~?iY~mium• und ~;nnu~~l mnt.. I.en~ler shnli mnke no i
cl?nrge for so l~ol~lin~ iwd a~?~~i~~ii~~; ll?c Fund~ or ~•erii~•iu~; :u?~i ~•ou~~?ili~~~; ~ai~l ua•c~.•iueut~ ;tixl hills. Borro~~•er and ;
L~~nder mu~ :~g~' in ~~ritin~ ut thc tiinc of cxcctNion of Ihi~ \IortKi?~;~• thtit i»t~~iY••t ~~n thc F~auls ~hull Ix• pai~l to ;
Iior~Y~~~•cr, iuul unl~:. :uch ~~gmemcnt i~ n~ude. I.c~nd~~r ~hnll not I?c~ ir~~uircvl to Borro~r~r ~+u~• intem~t on thr ;
F?u~cls. I.ender ~hnll ~i~•c to Bon~otcer. ~~•ithout ch:u~{;c, im t~nnuul ac~~ounting of the Funils ~i?o~vin}; crc~iitc nnd 3
~lebits to tl?e Fimds .?nd tlie ~?lirposc for ~vhicl?.ca~l~ ~lehit to thc Funds ~~•ux mnde. Thc Funds .ire ~~lecl~cd as nddi-
tionAl security for the sums securcci by this \[ort~:igc. ~
If the a~nount of thc Funds I~eld b~• I.ender, tofietlier ~~•ith Ilu• future mouthh• insti~lln~euts of Funds payable
prior to thc ~tuc dntcs oi tnxcs, ussecsments. in~~unncc ~n~emium~ uncl ~round mnts, shall excced thc amount re-
quired to ~~ay ~?id taxes, :~ssessments, in~urance ~?~rmi~au~ :u~~l ground rents as tl~ey iAll duc, such excess sbnll be,
at Borro~ccr's o~~tion, cithcr pro~uptl~ repaid to I3orro~~•cr or c•redited to Borro~vc?• on ~nonthl~ instnllments of
Funds. Ii the aniount ot the Funds l~eld h~ I.ender shnll not lx~ ~ufficicnt to ~~n~ taxes, nssec>u~ents, insurnnee pre- ~i
iniums and'~round rents ns thev fnll due, Rorro~~•er shall pn~ to T.cnder nn~ amount necessary to mnke up the ~ ~
deficiency within thirty days :tttcr noticc fron~ I.endcr to Rorro~ver requesting ~~syment thereof.
Upon ~~ayment in fult ot all sums secureci hy this \tortga~c, i.ender shnll promptlv retund to I3orro~v~r :tny ~
Funds held I~y 1.ender. ~
If imder pamgrnph 18 ltercot the Pro~icrt~ ir so1~1 or tl~~ Yropert.v is othcr«isc ~cquired by j.ender, I.ender
.hall appl~~, no lt?ter ihan inunediatel~ prior to thc ~nlc of tl?e Yro~mrt~• or its acqui~ition b~• I.en~ler. iny Fimds
held by I.ender 1t the time ot ~pplicntion n~ a crc~lit .i~ai~ist thc ~luu~ ~~ewr~i b~• thi~ \iort~a~e.
3. Application of Paymenta Unlc~~ a~~~~lic:tblc la~~• ~~ro~~idc~ c~thenvise, sii ~?arincnt~ receivect b~- i.endcr ~
auder the l~ote anci pnragrapl?s i an~i 2 hereof shall 1?e applic~cl h~ I.ender fint iu p~pment of amoants pnynhle to }
T.encter Uy Iiorroner under parngrapl~ 2 hereot, tl~en fo intemst ~~:?~•ahle on the \olc ~n~t on Tutum :ldvauces, if -
:tiny, and then to thc principal of thc ~iote ~n~i to tl~c ~irinci~~nl of Fuh~rc Ad~•aucc~, if ~ny.
4. Charges; Liens. AOTiO~V@T SIIAII pRV AII tilXC~. assc~ments an~l otl~er chnr~es, fines nnd impositions nttrib-
utuble to the Property ~vhich mav a?ttnin a ~~riorit~ over tlii~ \tortgi~ge. ~nd ~round rents, if AnY, at~ I.ender's
option in the mnnner ~nn~~ided under pArugrapL 2 Lereof or h~• Rorm~~•cr ~nnkin~ ~iny~nent.t lzen due, directly to
the payce tliercof. Borro~vcr shnll ~iromptlt~ ftu•nisl~ to I.endcr :~ll notices of nmounts due under thi~ paru~raph,
and in the e~~ent Borro~~er ~hnll ~unk~ payment directh•. Aorro~ccr ~ht~ll ~+rom~~th• furnisl? to i.ender receipts evi- . ~
dencing such i?ayments. Borrower shaU ~~rom~~tly ~iischnrgc :tim• lien ~vhich hns ~~riority ovcr thi~ ~tort~nge; pru- ~
vided, th:tt Borrotter shall not I~c requirt~i t~ disch~~~gc an~ ~i~cl~ licn so lon~ ns I3orm~ver shall agrce i~i writin~ to ~
~ the payment ot the obligat.ion secured i~~ sucl? licn in a wauuer acee~~tsble to i.ender. or shall in ~ood fnith contest !
such lien byt or defend enforcemcnt of sucli licn in. le~al ~~ra•cectin~~ ~~•hi~h o~icr:~te to prevent the enforcement of
the lien or forieiture of fhe Yropert~~~ or ant ~~nrt thereoP. ~
5. Hazmcd Insurance. Bon~o~~er ~hali kee~~ thc iwpro~•ement~ uo~~• existing m• 1?em:~ite~• erected on the Prop- ~
crt.~- ins~urci ngainst la~ Uy fire, Lnzurds included ~vithin the tern~ "extendeci coverage", and such other haznrds t?s ~
T__a.._....... .V,,,..:n, ~~»~m~t~ nnd for sucl~ nerial~ a• i.cuder n~~~- require: pro~•ide~i. thnt I.ender shall ~
i~i:iiiii:i iiicii sa.i~:zsaa. za..-.. - ' -
not require tl:~t the nmount of such co~~erage exceed tlint a~uount of ~overn~e requirecl to pay thc sums secured by
this ~iortgage.
The insurance carrier ~?rovidiug tl~c inswnnce shnll bc ~hosen 1>v Borro~ver suhject to ~pprova) by I.ender:
providecl, that such approval shall not t~e iu~rea~sonAbl~ ~vithheid. All premiums on insurance policics shall be paid
ut l.ender's option in thc roaimer pro~~ided w~der ~?aragrnl~h 2 hercof or h~~ Borro~~•cr ~u~?kin~ ~i~yment, ~vhen due.
directly to the insurance carrier.
!111 insurnnce ~~olicics and ~~ene~~al~ thereoi ~h.ill I~e in foriu u~•~•~~~~table to i.cn~ler an~l ~h:?11 i~~clude a ~tandaiYt
u~ortgage cinuse in i~v~?r of an~l in form .iccc~~table to I.en~ler. T.ender ~lhnll ha~•e the ri~ht to I~old the ~~alicies and
j renewAl~ thereof, and Borroa•er ~hal1 ~n•on~~~th- iurni~h to i.~~n~ier :?Il reize~~•al uotices and all receipts of paid pre-
; u~iums. In the e~•ent of lo~, I3orro~~•er ~li:?ll gi~•e ~rrom~?t uotice to thc in~urance cnrrier an~l i.ender. And i.ender
~ may n~ake proof of lo~ if not. ~uadc promptly h}• I3orrowcr. .
Unless I.ender anci Borro~vcr otl?entisc agrcc in «ritin~;. ius~u:u~cc ~n~or.ced~ shRll I?c ap~~liecl to restor~tion or
~~epAir of the Yro~?crt~ ~lau~agecl. ~~ro.-i~lc~l ~uch rc~toratia? or m~~air i~ c~ouomiralh• fea~ihle and the ~ecurit~ of
this \[ortguge is uot thereb~ im~?ni~~l. If sucL restor.?tion or m~iair i~ not ccouowicsll}~ fcasible or if the security
of this ~lortgage ~~ould I~c impaired, tl~c insurance ~iroccc~l~ ~hall 1?r ap~~liecl to thc su~us sccured M thi~ \Zortgage.
«ith the excess, it any, paid to Borm~rcr. Ii tlie Yro~~crt}• i~ ahau~ioned 1?~- Borro~~•er or if Borro~~er fails to respond
to Lender ~~ithin 30 duys atter notice hr I.ender to Borro~~•er tliat the iusi~rancc carrier offers to settle a claim tor
insurance benefits, I.ender is autl~orized to collect and ap~?l~ th~~ insurnncc ~?rocceds at i.ender's option either to
restor:ition or re~?nir of the Propert~ or to tLe sun~~ sec•ure~l b~• tl~i~ \tortgage.
Unles.s I.ender :?nd Borro~~er other~~•ise agree in ~rritin~. an~ such ap~~lic:ition o[ ~~rocced~ to principal ~hall
not extend or ~?ostpone the duc datc of thc ~nontl~l~- installment~ refcrrc~i to in ~x?rngraphs 1 aud 2 l~ereof or change
the amount of such instuliments. ~
If w~der ~~aragraph 18 hereof thc Yro~~crt~• i~ acquire~l hy I.cndcr. all right. titlc an~l interest of Borro~~er in
and to an~ insurznce policies :~ud in au~l to the ~?roeee~l< th~•reof ~ta tlu• ~~xtent of tlir ~uni: •eeure~l hy tt»s ~tort-
~age imn~ecliatel~ ~~rior to ~ucl? ~alc• or .icqtti~itioni re~ultiu~; fron~ ~(a~naec to th~• 1'ropertt• ~~rior to thc ~ale or
:?cyuisition shall ~~ass to I.ender_
6, Preservaiion and Mcantenance of Property: I.easeholds; Condominiwns. i3orro~~er ~lial! kee~i the Yrop-
erty in gooci repair and sha!! not ~?ermit or commit ~~~aste, in?p.ii~~nent. or ~leterioration of tl?c Property and shall
comply tiFitl~ the ~~rocisions of am• Icase, it thi~ ~lortgage i~ on a leasehuld. If tlii~ \tortgage i~ on a condominium
~ unit, Borro~~er shall perforn~ all of_Borro~~er'~ obligatiou~ ~u+~ler the ~leclaration of condominiun~ or master deed.
~ the 1?y-l~~rs .?nci regulation~ oI tl~c condomini~uu ~rroject an~l constit~~rnt documents.
7. Protection of Lendei s Security. If Borro~~er fail~ to ~~crform the co~•en:~nt~ an~l :tgree~nents containeti in
this ~Iortgage, or if an~• action or ~~rorecdiug i~ co~u~nencc~l ~~~hi~l? materiall~' affecf~ Lender's interest in the Prop-
erty, including, but not limitcYl to. eroinent dauaiu. i~~~oh'en<'~'• c'al~' cnforcen~cnt. or arranc;ements or proceeci-
iugs im•olving a l~ankrupt or decedent, tl?en I.c~ider :it I.ender'= o~~tion. u~~on notice to 13orro~~•er, n~:~~• ~nake sucli
,~~?}~earances, disbure such ~uni~ a~x~ take ~~~~1~ actiou as i~ nece<~a~ti• to ~~ratect T.ernler's interest, including. lyut
not limitecl to, disbursenrent of reasonahie attorne}'~ iec~ :uul c~ntn• i~~~on the I'ro~?ert}• to uiake repair:. An}
amounts disburse~l b~ I.ender ~nirsuant to thi~ para~ra~~h 7. «-itl~ intcrc-t tl~ercou. sl~~ll I~e~omc ad~iitional indebt-
eclne~s of Borro«er secure~l I~~• thi~ ~[ortgage. ilnirs t3orro~~~er an~l Len~lcr agre~ to other ter~m of ~~a~ ment, such
amounts slutll be payable u~~on notice from t.ender to Borro~~-~r re~~nesting ~~a~ment tl~ercof. an~i shAll i~car inter-
est irom tl~e date of disbi~nenient at thc ratc ~tated in thc \~t~ t~nlc~~ ~?,~}•u~ent o[ interest :?t sucl~ ratc ~vould bc
contrary to applic:~ble la~~•, in «'hich c~•ent ~ucl~ :~n~ount~ ~l~all 1?car intere~t at tix• hifihest ratc ~~ermissible by
a?pplicable la~~. \othiu~ containe~l in thi~ ~~ar:?gra~~l~ 7~h311 rec~uire I.ender to incur am e~~~ense or do nn}• nct
hereunder.
- ' . EecK 234 PncE 1668 <?33
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