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iusut~i or gunrnnteecl hf a Fe~lei:il or •ttuc :~geiic~• Iiu~•lu~liu~; I.~•u~l~~r if I.cn~ler i: •u~•1~ :u~ institutionl. T.c~?~ler
shall apply the Fun~ls to ~~a~ ~ii~l tnxes, us,e~•ment~, in,~u~:uu•~~ ~~m~uiuu~• :uul ~;mun~l iY~i~t•. Lcnder ~l?all makc no .
chsrge for so holdi~ig nu~l ap~+lyi~~b the Fu~~d, ur ~~erif~•i:i~; :ui~l ~•om~?iliu~; ~ai~l u~c:~~w~~nt. and bills. 13orron•er and
l.ender niu~ :~gree in ~~riting at t!?c tiu~c of cxccution of ihi~ \I~n•tKaKe tlu~t int~•r~rl on the Furnl~ •hall IK+ ~?xid to
I;orro~~~er, iuui unle.s such :~~recmcnt i~ madc. I.~n~ier slu~ll not IK, IYY~UIIYY~ ~O ~)i?~• I3orro~ver .in~• iutemst o» thr
Fuuds. Len~ler ~hall gi~•c to Rorro~eer, ~vithout ~Lar~c, i~~~ :~nna:~l ucco~~nting oi ti~e Funds ~Lo~~•in~ er~~iit~ t~ud
debits to tho Fund~ iind thc ~?urposc for tvhich ~nch ~Ici~it to the Funds ~~•as iundc. Thc ~uicis arc jilc~f~;c~l ns nddi-
tional security tor the sums secured by this ~(ort~ngc.
If the amount. of thc ~mds held b~ i.ender, togethcr ~vitl~ th~ [ut~nr. u~onthl~ inst:illmenis of Funds payable
t.. tl~n ~h~e datw~ n~ tsYes. itsSCS8111Cills, insuraure >>i~en~iuuis and ~coun~i mnts, shnll exceed thc nmount re-
quirecl to ~~av ~aid tuxcs, nss~ments, insurancc ~~re~nimns :uul ~round rents as they fall due, suci~ excess snnli he, -
at Borro~~er's option, either proroptlv repaid to I3orro~~er or r~~lited to Borro~ver on monthly instnllments oi
F~nds. If the nmou:~t ot thc Funds held h~~ I.ender shn11 nok I~e •uffici~nt to ~~nv tnxes, ~s.cc~s~uents, insurnnce pre-
miums And ground rents ns ti~e~~ fnll due. Borrower shal) ~~n~• to i.ender anv nmount ncEess~ry to make up thc
deficie~~cy ~vithin thirty days after uoticc from I.ender to IIorro~~cr requesting ~~nyment thereoi.
Upon payment in fail ot ull swns secured bv this \iortgage, l.ender shnl) ~~romptl~~ retund to Ronower an~•
~I~nds held by I.ender. ~
If under parngraph l8 hereof the Pro~~crt~• i~ sold or the Yro~~erty is other~vise nequired by i.ender, Lender
sliall apply, uo later thnn inuneciiatelt prior to the ~ale of the Propert~ or its :~cqui•ition bt I.ender, nnv Funds
held by i.ender nt. the time of npplication a~ n credit ngain~t tl~c ~ums securc~t b~ thi~ ~1ortRage.
3. Application of Payments. Unlec~ a~~~~licablc la~r pi~~~idc~ othenvise, all ~~a~ mentc recei~~eci b~ Lender
under thc l~ote nnd pn~~ugrnpl~s 1 nnd 2 hereof ~hnll l,c ap~~licri hp 1.ender fint in pnyment of amounts ~iaynblc to
I.encter by Borro~vcr m~der pnrngraph 2 I~ereof, then to interest pu~i~blc on thc \otc nn~1 on ~rtut~c Advances, if
any, and then to the ~~rincipal of thc \Tote nnd to tbe ~~rincipal of Futut~c Advnnces, if any.
~.~i~t3~x' ~jeT1A. R/ITMIYP.T c{IRII I)A~' 11~I ~itXt',~. 1~C.'~iii~iii~ :iiiii Otii~i' Ciiiii'~L'S. ~i7CS i~:ii~ Di7ij:~iL30.2S :!tT2b-
utable to the Property ~vhich may 1tt~in priority over this \iortgagc. a~id ground rents, if an~•, at Lender's
option in the mAnner providecl under parngr~ph 2 hcrcof or 1~~• Borro~~cr ~nakinfi ~~nyment, ~vhen due, directly to
the payee thereof. Borro~~~cr ~l~all ~iromptly furnisl~ to I.endcr all notice~ of ~mounts ~iue tmdcr this paragraph,
and in the e~~ent Borro~ver shull n~ake pnvment directl~. Rorm«cr ~hall ~~rom~itly ft~rnisL to I.er.der receipts evi-
dencing such payments. Borro~ver shnll ~~ton~ptl~ cliscl~arge un~ licn ~~hich has priorit~y over this \iortgA~e: pro-
vided, thAt Borro~rer shall not l~c reyuireci to dischnrfic an~• ~uch licn so long as Borro~rer sl~all ~gree in ~vriting to
the pnyment. of the obligation secured by sucl~ lien in a wani~er acceptahle to I.ender, or shail in ~ooci f~ith contest. '
such lien hy, or ciefend enforcement of such lien in. legal ~~mceetling~ ~~hich o{iernte to l~revent the enforcement of
the lien or forfciture of thc Propert~ or an~ pnrt thereot.
S. Hazard Insuraace. Borro~ver ch:?11 kee~~ thc impro~•ewent~ no~~• existin~ or herentter crec~eci on tl~e Prop-
crt~• insiurci ngainst loss by fire,l~AZards includecl ~vithin the tern~ "extended coverage", und such otl~er h~zards a5
I.ender may require nnd in such a~uounts and for sucL ~?erials :is i.endcr n~a~• require; pro~~ide~l, ti~nt i.ender shall
not tequire that the :timount oi si~cl~ co~•cragc exceect ttiac amount. oi ~~overa~e reqaireci [o ~~ay iiie ~ii~ii~ ~c~~:~: ~:y -
th~s ?~io~age. ~
The insurauce carrier providing tlie insw•auce shnll lx~ chosen 1?y Borrower suhject to approval by I.ender;
pm~•ided, that. such spproval shall not. be unreasonabl} «ithheld. All premiums on insurance policics shall he paid
at I.ender's option in thc manner pm~ ided under ~~arag~n~~h 2 he~rof or by Borro~~ cr ~naking ~~~yment., ~vhen due,
directly to the insurance carrier.
All insurance ~?olicies and rene~~•:?1< tl?ereof ~hall lx~ in ioi~u aecc•~~tablc to I.eu~ler and ~hall incladc standard
~nortgage cl~use in fnvor of 1nc1 in tonu acce~~tahle to I.ender. Lcuder ~l~all ha~•c tLe ri~ht to hol~i the ~~olicies and
Ij renenals thereof, and Borro~~er ~hall ~~rom~~tl~ furnish to i.en~ler :?Il rene~~•al noticcs and all receipts of paid pre-
E ~niums. In the c~•ent of loss. Borro~~•er sluill gi~•e ~~rou~~~t notice to the insurance carrier and I.ender, and I.ender
~ mAy ~uake ~~roof ot lo~s if not- wadc pron~pth~ h~ Borroo~er.
Unless T.ender and Borro~ver otherc~isc agrec in «riting. iu~u~:~ucc ~n~occeds shal) bc ap~?licci to restor:~tion or
repair of the Pro~~ert~ ilauu?ge~l. ~?ro~-i~ictil sucL re~toratiou or ~r~r.iir i~ econou~i~slh• ica~if~lc an~l the ~ecurit~ of
this ~[ortguge is not tLereb}• impnireci. If such mstoration or rc~~:?ir i~ not c~onomicall~• feasible or ii the security
of this \[ottgAge «ouid bc impaired. tLc i~~surnncc ~~rocec~l~ ~hall Ix~ applied to thc_suius secured b~ thi~ 3iort~age,
with the excess, it any, paid to Borron•cr. If tl~e Yroperty i~ shan~loneci h~- Iion•o~~•er
or if Bormi~er fails to respond
to l.ender ithin 30 days after notice b~• I.cuder to Borron•cr that thc insurauce ~carrier oflen to settlc a claim for
insurance I>enefits, I.ender is autl~orized to collect and :?pph- tlir insurancc ~~roceecis At I.ender'~ option either to
restor:~tion or repair of ti~e Propertr or to tl~e sum5 sccw•ed bt• tl~i~ \(ortgagc. -
Unless Lender and I3orro~~er other«•i~e agrce in ~vritin~, au}~ ~uch application oi ~?rocceds to ~~rincipal~shall
not exEend or postpone the due ~late of thc montl~l~ inst~iln~cut~ retcrreci to in p:~ragraph~ 1:?nd 2 hereof or changc -
the amo~int of such instuliments.
If under parngruph 181~ereof the Yro~~ert~• is aequire~l h~• I.cudcr. .ill ri~ht, iitle ~n~1 interest of Borro~~er in
and to ~n~ insurnnce ~~olicies and iu aml to the ~~rnceed~ th~•~Y:oi Ito tli~~ extent of the ~um. ~ecurecl h~• thi~ \iort-
gage immediately I~rior to such ~ai~~ or acquicition~ m~ultiu~; fro?u ~lamaec to thc• Pro~~crt~~ prior to the sale or
acquisition shall pa~.5 to ~.ender.
6. Preservation and Maintenaace of Property: Leaseholds: Condominiums. 13orro«•er ~Lall kec~~ thc Prop-
etty in goocl repair and shall not ~~ern~it or ~•own~it a•aste, im~?ainnent. or detcriorntion of thc Propert~~ and shall
comply with the pro~•isions of ~nr leasc, if thi~ ~Iort~agc i~ on a Icaschold. If tiii~ \tortgage i~ on a condominium
imit, Borrower shall ~~erform all of Borro~~•cr'~ obligntiom ~~rnlcr thc ~leclar~tion of condominitnn or ~nastcr deed,
the by-laws ancl regulations oT the condou~iniune ~n•ojc~t ancl coustituent ~ioc~m~ents. ~
7, Protection ot Lendei s Security. If Borro~~•er faii~ to ~!erform the covenant~ and :~green~ents contained in
this ~Iortgage, m• if nn~~ action or ~~m~ecding i~ ~~on~menccd ~~•hicl? n~ateriall}• afTect~ I.ender'~ interest in tl~e Prop-
erty, including, but not limitcd to, c~niucnt douiaiu, insol~•cn~~-. ~~«l~~ enforcen~~nt, or :~rran~ements or ~~roceeci-
ings involving a bankrupt or decccicnt, then ~.encler at i.endcr'~ o~~tiou. »~~on notice to I3orro~~•er, ma~ make such
uppearances, ~iisburse sucli szim~ and take sucl~ :?ction as i~ i~ece~~a~~• to ~~rotect 1.ender'~ interest, inclttding. bttt
not limitecl to, disbursement of reasonablc ~ittorncy'~ iec~ an~l entr~• u{~on thc Yro~iert~ to roakc repair~. Any
amounts disinirsed by I.ender ~n~nuant to thi~ ~~arngra~~L 7. ~~~itl~ intcrc~t thc~~eon. sha{1 hccomc ad~litional indebt-
eclne~cs of Borro~vcr ~ecured by this ~[ortgagc. Unless Iiotro~ccr an~l Lcncier agrce to other term~ of payment. such
amounts shall be payable upon notice fron~ i.ender to I3orro~~-cr rc~~uestin~ ~iavinent themof, ancl shall bear inter-
est from thc date of disbursen~ent at thc ratc ~tate~l in the \otc ui~le~~ ~?acn~ent of interest at such rate ~~ould be
contrary to applicable In~~•, in ~shicli c~•ent sucii an~ount~ ~I?a!I i?car interest ~t thc highest ratc ~?ermissible b}•
:?pplicable lan. \othing containe~l in thi~ ~~:tr.?~raph i~hall rec~uire Lender to incur nm• ex~~ense or do any act
hereunder.
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