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Borrower and l.ender covenant and agree ae followa: '
1. Payment oi Principal and lntereet. f~rrower ahall promptly pay when due the principal of and interret on the indebtedner,a
evidenced by the Note, prepayment and late chargee as pruvidcvf in the Nute, nnd the principal of and intereat on a~y F`uture Advancex aecured
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2. I~`uttde for Taxee and Ineurance. Subjeet to upplicable law or to a written w•aiver by l.ender, tk~rruwer shi+ll pt+y to 1 Ander on the day
monthly installmenta of p~ncipal and interest are payubie under the Note, until the Note is paid in full, a sum Ihe~rin "l~
unda") rqual to one
twelfth oithe yearly taxes nnd assessments w hich may ntt~in priuri?y over thia htortgage, nnd ~uund mntx on the Property, if nny, plua one-
/welfth otyeariy premium instnllments for hazard insurance, plusonE*twelfth ofye~rly premium installments for mortKuge insurnnce, if any,
a11 Aa masonably eatimated initially and from time to tin~c by I.ender on the busis of i~saessmenta und biils und reasonuble ~~:timatcs thermf.
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~I~h@ N~Y`l1~B llltiifi C~Q (l~id iIl Hil iiitili~iil[UIl ~iie ucEntacca ~Y aCCiiuiaw ..s . c..~ :
(includinq [.ender if I.e~der is such an inatitution). I.en~ier ahall apply the Funde to pay said tuxes, asser~mente, insurance premiums And
Kmund rPnts. l.ender may not charge for so holding and applying the Funde, analyeing said uccount, or ~erifying nnd compiling said -
asaeasmenta and bills, unleas l.ender pxya Borrower interesst on ihe Funda and applicable law permits I.ender to malce such a charge. Borrower
and i.ender may agree in writing at the time of execution of thia Mortgage that intereat ot~ the Funds sha(t be paid tc~ Borrower, and unlesa
such agreement is made or applicabte law requires such interest to be paid, Lender sha!! not be required to pny Borrower any intemat or
earninga un the Ftinde. I.ender shall give to Borrower, without charge, an annual accounting of the i~
unds ahowing credita and debits to the
F unda and the purpoae for whieh each debit to the E
unds was made. The Funds are pledged as additional security forthe sums aecured by this
Mortgage.
If the amount of the Funds held by I.ender, tagether with the futurn monthly installments of Funds paypble prior to the due dates of taxea,
aasesaments, inaurance premiuma and ground rnnts, shall excred the amount reqaired to pay aaid taxes, assesaments, insurance premiuma
and ground rents as they fall due, auch exceas shali be, at Bo~rower's option, either prompdy repaid to Borrower or credited to Borrower on
monthly inatallmenta of Funda. If the amount of the Funda held by I~ender ahall not be sufficient to pay taxes, asseasments, insurance
premiums and ground renta as they fa11 due, Borrower shall pay to l.ender any amount neceseary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full o[all sums secured by this Mortgage, l.ender ahall pmmptly refund to Borrower any tunds hetd b~ l.ender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, l.ender sha11 apply, no later than immediately prior
to the sale of the Property or ita acquisitiun by I.erider, any Funds hetd by Lender at the time of appliration as a credit against the sums secuted
by this Mortgage_
3. Application oi Paymenta. Unless applicable law providea otherwise, all payments teceived by I.ender under the Note and
patagraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by E3orrower under paragraph 'l hereof,
then to interest payable on Ehe Note, then to the principa! of the Note, and then to intereat and principal on any Future Advances,
4. Charges; Liens. Borrower shail pay all taxes, assessments and other rharges, fines and impositions attributable to the E'roperty which
may attain u priority over this Atortgage, and teasehuld puyments or Kround ren ts, i Fany, in the manner provided under paraKraph 2 hereof or,
if not paid in such manner, by I3orrower making pnyment, when due, directly to the payee thereof. $orrower shall promptly furnish to Lender -
all notices of amounts due under this paragraph, and in the e~ ent Rorrower shall make payment directly, Borrower shuli promptl~ furnish to
I.ender receipts evidencing such payments. Rorrower shalt prumptly discharRr an~ lien K hich has priority over this l~tortgage; provided, that
Borrower shall not be required to discharge any such lien so lonk:is Rorrowersh ~11 xgree in writing to the payment of the obliKation secured by
such lien in a manner acceptable to I.ender, or shail in Qood faith contest such lien b~, or defend enforcement of such lien in, legal prrx~edinKs
which operate to prevent the enforcement of the lien ur forfeiture of the Propert,~~ or any part themoL
5. Hazerd Ineurance. Borrower shall keep the improvements now existing or hereafter erected on the I'roperty insured against loss by
fire, hazards included wit~in the term "extended coverage," and such other hazards as I,ender may require and in such amo~~nts and fo~ such
~ periods as Lender may requirn; provided, that I.ender ahall not require such coveraQe amount exceeding the minimum, as may be required by
state or federAl regulations governing activities of Lender, or that amount of co~erage required to pay the sums secured by this htortgage,
' whichever is the greater.
' 7'he insuranee carrier providin~ the insurance shall i~e chosen b~ KurroK•er subject tu :~pprue;~l b~• I.ender; pro~•ided, that ~uch appruv~~l
'shall not be unrea..~o~abh• withheld. All premiumc on insuran~P policies shall he paid in the manner pn~~•idecl under paraKraph 2 hercof ~~r, if
not paid in such manner, by•Borrower making pa~ment, when due, directly to the insurance carrier.
Alt inaurance policies and renewals thereof shal) be in form aceeptable to Lenderand shal) include a standard mortgage clause in favor ot
.~nd in form acceptable to Lender. Lender shall have the right tu hold the policies and renewals thereof, and Borrower sha4 promptly furnish to
i..ender all renev?al notices and all rereipta of paid premiums. In the event of loss, f3orruwer shall gi~ e prompt notice to the insurance camer
and Lender. Lender may make proof of loss if not made promptly by E3orrower.
Unleas Lender and Borrower otherwise agree in w~riting, insurance proceeds shall be applied to restoration or cepair of the Property
damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such
restoration or repair is not economically feasible or if the security of this 1Vfortgage would b~ impaired, the insuranm proceeds shal! be applied
to the sums aecured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by F3orrower, or if Borrower tails to
respond to Lender within 30 days hom the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is suthorized to collect and apply the inaurance proceeds at I.ender's option either to restoration or rnpair of the
Property or the suma secured by this Mortgage.
Uniess Lender and Borrower otherv~-ise agrre in writing, any such application of proceeda to principal aha11 not extend or postpone the due
date of the mon~ hly installments referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds
thereof reaulting from damage to Property prior to the sa(e or acquisition ahatt pasa to Lender to the extent of the sums secured by this
Mortgage immediately prior to such asle or acquiaition.
6. Preaervation and Maintenance of Property; I.easeholds; Condominuma; Planned UnitDevelopments. Borrower shall keep
the Property in good repair and ahall not commit waste or permit impairmen! or deterioration of the Property and shall comply with the
provieions of any lease if this Mortgage is on a leasehold. If thie biortgage is on a unit in a condominium or a planned anit development,
Borrower ahall perform aU of Borrower's obligationa under the declaration or covenants creatinKor governing the condominium or planned
unif development, the by-lawa and regulationa of the condominium or planned unit development, and constituent documents. If a
rnndominium or planne~ unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and
agreements of such rider shall be incorporated into and shall amend and supplPment thecovenants and aRreements of this Mortgage as if the
reder were a part hereof.
Protection of Lender'e 3ecurity. If Borrower fails to perfor?n the oovenante and agreements contained in thie Mortgage, or if any
action or proceeding ie commenced which materially affecte Lender e intereat in the Property, inctuding, but not limited to, eminent domain,
ineolvency, code enforeement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lendei e option,upon
notice to Borrower may make auch appearances, disburee euch eume and take such action aa is neceasary to protect Lendei e intereet,
including, but not limited to, diebureem~nt ~f reaaonable attorney'e feee and entry upon the Property to make repaire. If Lender requi~ed
mortgage ineurance ae a condition of making the loan serured by this Mortgege, $arrower shall pay the preneiame requited to maintain
euch ineurance in effect unte! auch Lime aB the requirement for auch ineuranee terminates in accordance with Borrower's and I.ender'e
written egreement or applicable Law. ~orrower ehail pay the amount of all mortgage ineurance premiuma in the manner provided under
paregraph 2 hereof.
My amounte diabureed by I.ender pereuant to this paragraph 7, wiLh interest thereon, ehall become additional indebtedneae of
Borrower eecured by thia Mortgage. Unlesa Borrower and Lender agree to other terma of payment, euch amounta shall be payable upon
notice from Lender to Borrower reque~ting payment thereof, and shall bear intereat from the date of diebursement at the rate payable trom
time to time on outstanding principal under the Note unlesa payment of intereet at euch rate would be rnntrary to applicable law, in which
event such amounte shall beat intereet at the high~st rate permiueible under applicable law. Nothing contained in thie paragraph 7, ehall
rnquire Lender to incur any expenae or take any action hernunder.
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