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L:~u oR~~ Covt~~.~~7s. Dc~rrowa~ .~nJ Len~t~ r~~venam aial a,,rce tullow~~
1. PaymrM of 1'~inclpW aud Inte~esl. Horruwer ah:~li prompdy p:+y whe~ due thc principal of a:id intcrest on Ihe
u:.lrbt.dncsc ev~denceJ hy tht N~~ta, prrpayment and late charges as pmv~drJ in thr [~ott, and tha principal of anJ iottrest
on a~~• 1'ut~~rc Adva~ccc securcd by th~c hlurtg~ge.
2. Funds tur 7'axes and lnsunnce. Sn6ject tu applicahle law or to 3 writtrn ~vaiver by I.c~drr, Iturrower ~h~ll pay
io l.rndcr on thc day inonthly installmentc of principal :wJ ~nt~rrst :ue pay~hle undrr the Note, until the Nute is paid in tull.
a stim (herein "Fun.!s:') cqual !o one•twelfth of the yearl~~ ta~ec an.l accessmente which m:~y attain priority aver this
~tortga~;~, an.l ground rents on thc Pcopcrry, if a~p. plus oar-tNCltth ~~f yrarly premium installmenls for hazard insurance,
, lu: onc-ncelfth of y~rarly premium installme~ts fo~ mur~gage insuranc~, if ~ny, all a~ ~rasunably ectimatrJ initiilly :ind fmm
timr to tir;u by t_cnder on the basis ot ascessmrnts anJ hills and r~a~onable rstimates tfiercof.
Thc Functs shall he held in ~n institution thr depuiitr ur accaun~~ uf which are insured or guarantaed hy a FeJe~al or
ilate a~~ncy (including l.ender if Lcnder is s~~ch an im~itutian). Lender shall ap{~ly the Funds to pay said t~xes, assessments.
insutari.c premiums and ground rents. I.ender may nut ch~~ge for .o holJing and ~pplyiog the Funds, :~n~lyzing said account,
ur ~•~rif}ing and cumpiling s~id assrssments and hills, unles~ t.e~dcr p:?y. l3orrower interest on the Funds and applicable l~w
permits I.en~Cr to makr such a charge. Borrower and Lender may agrre in writing at th~ time of execution of this
~fortosee th:~t intzrest on tht Funds shall be paid to lior~uwer, and unl~cs such agrcemrnt is R1~lIC c~r applicable law
requircs such interest to be paid. Lender shall not he reyuircd to ~ay Borra~ver .m~• interest or carnings on the Funds. Lcnder
.haU gi.•r to Horrower, ~vithout charge. an annual accounting of the runds shuwing credits and debits to the Funds and the
purpo~e (or which each Jebit tu the Funds was made. The I~unds are pfeJged as tidditional security for the sums secured
by this ~tortgage.
lf the amount of the Funds held by Lcn4er, together with the futu~e monthly installments of Funds payable prior to
the dur dates of taxes, assessments. insurance premiums and ground rrnts, shall exceed the amount required to pay said taxes,
assessments, insurance premiums a~d ground rents ac thcy fall dur, s~ich exeess shall br. at Borrower's option. either
promptly repaid to Borrower or crrdited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by Lender shalt not be sufticient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Bonower shall pay to I.enJCr any amount necessary to make up the deficiency within 30 days f~om the date notice is mailed
by Leader to Borrower rcquesting payment thereof.
Upon payment in full of all sums secured by this MortgaRe, l_ender shall promptly refund to Borrawer any Funds
held by Lc~der. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I_ender. Lcnder
shall apply. no later tha~ immediately prior to the sale of the Property or its acquisition by Lender. any Funcis held by
Lender at ihe time of application as a credit against the sums secured by this INortgage.
3. Application of Payments. Unless applicable law provides othenvise, all payments received by I_ender under the
Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in paymtnt o[ amounts payabfe to LenJtr by Borrowe~
under paragraph 2 hercof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
4. Cbarges; Liens. Bonower shall pay all taxes, assessments and other charges, fines and impositiuns attributable to
tha Property which may attain a priority o~er this !1lortgage, and leasehold payments or ground rents. if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to t1x
pa}ee thtreof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event
Borrovrer shall make payment directly. 8orrower shall promptly fumish to l.ender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; .provided. that Borrowar shall not be
required to discharge any such lien so long as Borrower shall agree in w~riting to the payment of the obligation s~cured by
such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, o~ defend eniorcement of such lien in.
legal proceedings which operate to prevent the enforcement of the I~cn or (orfeiture of the Property or any part thereof.
5. Hazard Insurance. Borrower shall keep the improvemrnts now existing or hereafter erccted on the Property insurod
against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
and in such amounts and [or such periods as Lender may require; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"Ihe iasurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
that such approval shall not be unteasonably withheld. Al) premiums on insuraoce policies s~all be paid in the manner
provided under paragraph 2 hereof or. if not Qaid in such manner, by Borrower making payment. when due, directly to the
insurance carrier.
E All insurance policies and rcnewals thereof shall be in form acceptable to Lender and shall indude a standard mortgage
~ clause in favor of and in form acceptable to Leader. Lender shall have the right to hold the polieies and renewals ihereaf.
~ and Borrower shall promptly furnish to Lendec all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender.- Lende~ may make proof of loss if not made promptly
~ by B~rrower.
Unless Lender and Borrower othenvise agree in writing, insurance proceeds shall be applied to restoration or repair of
the Pruperty damaged. provided such resturation or repair is econom+cally feasible and th~ security of this Mortgage is
not thereby impaircd. If such restoration or repair is not economicaily feasiblt or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied tu the sums secureJ by this Mortgage, with the excess. if any. paid
:o Borrower. lf the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from the
date notice is mai[cd by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, I,ender
is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propetty
or to the sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount~of
such installments. If under paragraph 18 hereof t6e Property is acquired by Lender. all right, title and interest of I3orrower
in and to any in~urance policia and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shatl pass to Lender to the extent of the sums secured by this Aiortgage immediately prior to such sale or
acquisition.
6. Preservation and {~taintcnance of Property; Lesseholds; Condominiums; Planned Unit Developments. Borrower
3hal! keep the Property in good repair and shall not commit waste or Eiermit impairment or deterioration of the Property
and shall comply with the provisions of any lease iE this I~fortgage ~s un a Icasehold. If this bfortgage is on a unit in a
condominium or a planned unit detielopment, Borrower shall perform all of Borrowers obligations under the declaration
or covenants cteating or governing the condominium or planned unit development, the by-laws and regulations of lhe
condeminium or planned unit Jevelopment. and constituent documems. 1[ a condominium or planned unit development
rider is executed by Borrower and recorded :ugether with this I?fortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covrnants and agreements of this Mortgage as it the rider
were a part hereof.
7. Protection of Lende~'s Security. If Borrewer fails to perform the covenants and agreements contained in ihis
Mortgage. or if any action or proceeding is commenced which materially afiects Lender's interest in the Property.
including, but not limited to, eminent domain, incolven~y. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then L.ender at L.ender's option~ upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disburxment of
reasonable attomey's tees and entry upon the Property to make repairs. If Lcnder required mongage insurance as a
condition of making the loan securccf hy ihis Mortgage, Borrower shall pay the premiums required to maintain such
i:isura:tce i~~ e~fect until such time as the reyuiremtnt for s~sch insurance t~rminates in accordance with Bor.ower s and
6001FGV~ PACE ~~7