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insureci or guaranteeci by a Fecieral or state aRenc~~ (ineludinK l.en~ier ii Lemter i~ ~ucli nn iustitulionl. I.ender
shall apply the Ftinds to pay said taxe~, ussessment~, insuranr~~ prcmium~ nn~l ~rouncl mnts. [.ender shall make no
charge fot so holding and upplyiug the Fuu~in or ~~erityin~ un~l rompiliug ~ai~i assc~n~ents ~?nd bills. Borrower and
I.ender may agree in writing at thc time ot ex~rution of thi~ \lort~aRc tl?ait intercat on thc Funcls rhall 1~ paid to
13orrower~ und unless such agreement is made, Lender ~hali not I~e requinvi to pay Aorro~~•er any intcrest on the
Funda. I.e~der shall gi~•e to Aorrow er, without charge, nn anTiua?I acconnting af the ~nds aho~vinR creciits and
debits to the Funds und the purpose for which cach debit to the Ftinds was made. The Funds are pleciged as addi- ,
tional seourity for the suma secured by this ~iortgage.
If the amount of the Funds held by I.ender, togetl?er ~vitli the future montlily instsiluicnts of Funds payable
prior to the due dates of taxes, assess~nents, insurance pren~iums nnd ~round rents, shall exceed tl~e amount re-
quired to pay said t~xes, assessments, insurance J~remiums nnd ~round rents as they fall due, such excess shall be,
at Aorrower's option, either promptly repaid to Aorro~~•er or rrediteci to Borrower on monthly installments of .
Funds. If the amount of thc Funcis l~eld l~y Lender shall not lx~ suflicicnt ta ~iay taxes, nssessments, insurance pre-
iniums and ground rents as they fali duc, Borto~ver shall pav to I.ender anr nmount necessary to make up the
deficiency within thitt.y days nttcr notice tmm 1.ender to Borroner requesting pay~uent theteof.
IIpon payment in full of all sums secured by tl~is ~iortga~c, i.ender shall promptl}• retund to Borrower any ~
Funds held by I.ender. ~
If under ~~arag~xph l8 I~ereof thc Yropertv is sold or tl~c Yroperty is other~vise ncquired b,y T.ender~ I.ender ;
~hall apply, no later thnn immedintely prior to the ~Ir of tl~c Yroi~ertt• or its nc•qui~ition liv I.ender, any Funds
I~eld by I.ender:?t. the time of application a.4 a creciit. ugainst the sums secuirci bv thi~ \~ort~age.
3. Application of Payraents. Unles.c np~ilicnhle In~~ pm~•ides othenvise, nll payments receiveci by I.ender t
under the Note nnd paragrnphs 1 and 2 hereof sl~ull be npplieel h~• i.endcr fi~t in pAyment of amounts ~~ayable to j
I.ender by Rorrower under parngrnpl~ 2 l~ereol, then to intcrost ~r.~~•able un the Notc iu~d on Futurc Advances, if - '
:~ny, and then to the principal of the Note and to tLe ~~rincipal of _Futi~re A~i~•anc~, if any.
4. Charges: Liens. Borrower shnil pa~ nll taxes. :tssc~sment5 :1m1 other chnr~es, fines And impositions attrib-
utable to the Property ~vhich may attnin a priority over thic ~iortgARe, and ~round rent's, if uny, at Lender's :
option in the munner provided under pAragrnph 2 liereof or by Borrower mnking ptlyment, ~vhen due, directly to
the payee thereof. Borm«•er shall promptl~~ furnish to I.ender :?lt notices of au~ount~ due under this paragraph,
and in the e~~ent Borrower sh311 mnke payment. directly, i3orro~~•er shall promrtl~- furnish to I.ender receipts evi-
dencing such pA~ments. Borro~ver shall promptly clischnrge an~~ lien ~~hich has priority over this \iortgage; pro-
vided, th~t Borrower shull not. Ue required to di~cba~~e an~ ~ucl~ lien so long us Borro~r•er s{inll agree in writing to
the pnyment of the obligation secureci by sucL lien in n munner acceptahle to I.ender, or shall in Rooc1 faith contest
such lien by, or defend. enforcement of sucl~ li~~u ii~, legal proceeciiugs u•hicii operate to prevent the enforcement of
the lien or forfeiture of the Propert~y or any ~?t?rt tl~ereof. ~
~ S. HQZt~rd Insurmzce. Borrotver shall kee~ thc im~~ro~•ewents no~~• existing or hematter erecteci on the Prop-
crt~ insureci ngai~st loss by fire, bazards includ«i ~vithin tl~e term "extended coverage", and such other hazards as
I.ender may reciuire nnd in sueh nmoimt~ and for sucl~ ~?erioci~ as L~~n~ier mny require; pro~~ideci, th~tt T.ender shall
not require that the amount of such co~•emge exceeci tl~at amount. of co~ ernge reyuirecl to pay the sums secured by
this Mortguge.
The insurauce cnrrier ~~roviding the insurance ~hall Ix~ cl~osen by Borrn~ver suhject to approval by I.ender;
~~rovideci, that suci~ ap~~roval sl~all not. l~e unreasonably withheld. All premiums on insurance ~~olicics shall be paid
ut Lender's option in thc mAnner ~~mvide~i under ~~arngin~~l~ 2 hereof or hy Borro~r•er making ~?ayment, ~vhen due,
directly to the insumnce carrier.
All insurance policies and rene~~•ai~ tl~creof shall l,c in tonu ac•~c~~t.ible to I.en~ter an~l ~hali include stnndarci
mortgage clause in fA~~or of aud in forni :~cceptable to I.endcr_ L~n~icr sl~all ha~•c thc right to liold the palicies und
renewuis thereof, and Borro~ver ~hall prom~~th furnish to T.cn~ler all rene~~•n! notices and all receipts of paid pre-
miums. In tl~e event of loss, Borro~~•cr ~hall gi~e prom~?t uotice tu tlu~ insurance carrier :?nd I.ender. and T.ender
~ may ~nake ~iroof of lo.~s if not made promptly Ly Borrower.
; Unless I.ender anct Borro~ver othernise agme in ~~ritinfi. insur.uice ~~roceecl~ shall be applied io restoration or
( repair of thc Pro~?crt~ ~lam:ige~i, providc~i ~ucli ~~estor:ition or repair i~ economically fea~ible a~zd t6c <ecurit~• of
this \[ortgnge is not thereb~• impaireci. It such mstoration or ~~e~>air i~ uot. economicallti feasible or if the ~ecuritv
uf this \iortgAge ~~ould be impaireci, the insurancc ~~rocec~ls sh;~ll iN~ a~ipiiec! io the sums secureci I?~* tl~is ~-~ortgage.
«ith the excess, if any, paid to Borro~~e~•. If tl?c Yropcrt~~ i~ ahan~lo~iccl b~ I3orro~~•er or if Borron•cr f:~ils to respond
to I~nder ~cithin 30 dt~,ys after noticc Uy I.ender fo Borro~vcr that the iusurance carrier offen to settle a claim for
insurance 1?enefits, I.ender is authorizect to coliect ;u~d a}~pl~• tl~c II15lIT3nce ~~ro~cecis at I.ender's option either to
restoraiion or repair of the Pro~~erty or to the suu~s secu~r~l b} thi~ \[ortg~~ge.
unless I.ender and Borro~~•er other~~•ise agree in «ritin~, an~ such applicat.ion of ~iroccecis to princi~ial shal)
not extend or postpone tl~e duc d:?te of the ~nonthl~• instaliu~ent~ referrecl to in ~~aragraphs 1 and 2 hereof or chan~e ;
~ the amount of such instullments. '
If under ~iaragraph 18 hereof tl?c Yro~~ertt is acyuirc~i l?~~ I.emler, all right, title arnl intemst. of Borrower in #
and to am~ insurance ~?olicies an~l in an~l to the ~im~ee~is thereoi Ito thc~ extent of the ~un~~ ~ecurecl h~ this ~sort-
~age immecliately ~~rior to si~cl? snle or acquisitionl re~ulfin~ tro~u ~lauia~~ to tl~c Ym~mrt•~• prior to the sale or
~ {
:?cquisition shall pa~s to I endcr.
6. Preservation amd Maintenm~ce of Property: Leaseholds; Condominiums. Borro«-er sh:~ll keep the Prop-
erty in ~oal repair and shall not ~?ern~it or comn~it ~~•aste. im~?ainuent, or deterioration oi thc Property and shall
comply ~vith the pmcisions of an~• lease. if this ~tortbagc i~ on :i leaseholct. If tliis ~tortgage is on a condominium
?nit, Borro~eer shalf perform all of Borro~cr'~ obli~ationz »n~ier the ~leclarntion of con~lominium or master deed,
the by-laws :in~i re~~lations of the condominiwn ~~roject anri ~oustituent doci~ments.
~ 7. Protection of Lendei s Security. If Borro~~•e~• fail. io ~~ertonn the covenauts and a~;recments contained in
~ t6is \iortgage, a• if any action or proceeding is coiuroenceel ~~hich materiall}~ uffects Lender's interest in the Prop-
~ erty, including, but not limiteci to, cininent do~u:iiu, insol~~e~~c~•. ~•or1~• ~~nforcement, or arr~n~ewents or proceed-
ings involving a bttnkrupf or der_c~ent, then Lender at 1.endcr'~ o~~tion. upon noticc to I3orrower, ~nay make such
~ .~ppearances, disburse such suros an~l take ~uch actiou as i. necesc~~v to ~~rotect 1.ender~ interest. ~ncluding. Uut
not limited to, disbursement oI rcasonahlc attornc~'~ fec~ an~i entrv upon the Yro~iert~• to wake repairs. Any
amounfs disbursecl i?y Lender pi~rsuant to this i~arngr:~~ih 7. ~~ith interest thereon, ~I~all become ad~litional indebt.-
cciness of Borrower secureci Iry this ~Iortg:~ge. Unless Borro«~cr an~i I.en~ier agme to ot~~er tenus oi payment, such
amounts shall be payaUle upon noticc from I.ender to Rorro~~•er rec~ucsting paymcnt thercof, nnd shall bear inter-
est from the date of di~bursement at thc rate stateci in tl~e \otc unlc~~ ~?ayment of interest nt such ratc ~vould be
~ contrary to u{~plicable Ia~~•, in «hich c~•ent such amounts ~h:?ll i?car interest at thc l~igh~st rute ~~ermissible by
~ applicable law. \othing containecl in tl~i~ ~?aragra}~6 ?~hall require l.ender to incur an~ ex~~ense or do any aet
~ hereunder.
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