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UHtFOR~?t CoveN~rvTS. BorroN•er and t_cnJer cov~nant and aRr~~e a~ toUows:
1. ~~raest of P~iacipd aad lnterest. H~~rrow~er +hall prump~l~ pay v?h4n due the principal of and interest on the
~adebtedness evidenced by the Note, p~epayment and la~e char~.c. ~rc~viJed in ~he No~e, and the principat of a~d intercst
0o a~y Future Advances secured by ~his Mortgage_
Z. t+bwdt tor Tua u~ issnra~ce. Subject ta applicahlc !aN ~.r to a writt~n warver by l.endt~, Barrower shall pay
to l.ende~ on the day monthly installmcnts of principal and ~na•rr~t .~rr p~yabk imder'thc Note, un[i) the Note is paid in tull,
a sum (herein "Funds") equal to onatwel(th of Ihc ycarl) i•r~r. an~ az~cssmcatc which may attain priariry over ~his
Mortgage, and g~ound re~ts on the Pcoperty, ~f any, pluc ~nc-~wrlf~h ot ~~ca~ly prcmium ins~allments for hazard insurance,
plus one-twelfth of yearly prem+um inslallmen~s (or mortgagc ins~~rancr. any, all ac rcasonably estimated i~itially anJ trom
time to time by l.ender on the basis o( asscstimcnts •rnd hills :~nd reasonabte estimates thereof.
The Funds shalf be held in an ins~itwion ~he deExru. or ~~counts ot which arc insured or guaranteeci h~• a Federal or
state agcncy (including Lender if LenJer is ~uch an institutionl. l.ender ~hal1 apply the Funds ta pay ~•rid taxes, asussments.
insutsnce premiums and ground rents_ 1 ende~ may nc?t charge tor so holding and apE+l~~ing ~h~ Fi~nJ~. analyzing caid acc~~unt.
o~ verifying and compiling said assessments :?nd hilk, unlcss Lcnder pays Borrowe~ interest on the ~unds and applicabte law
permits Leader to make such a charge. Borruwer and (.enJer may agree in wnting at ~he time of eaecution of this
Mortgage that interat on the Funds shall he paid to Borrower, and unless such agreement is made or applicable law
rcquires surh inte~est to be paid, Lender shall not be rcquired ~o pay Borrower any intcres~ or carnings on the Funds. I.endtr
shall give to Borrower, without chargt, an annual accounting af the Funds showing credits and debits ta the Funds and the
purpose [or which each debil to the Nunds was made. The Funds are pleciged as additiunal securiry for the sums secured
by this Mortgage.
lf the amount of the Funds held by Le~der, tagether with the futurr m~nthly installmcnts of Funds payable prior to
Ihe due dates of taxa, assasments, insurance premiums and ground reots, shatl exceed the amount reyuired to pay said taxes,
assesaments~ insurance premiums and ground rents as they (a!! due, such excess shall be, a~ Bi~rrower's option, either
promptly repaid to Bormwer or credited to Borrower on monthly ~nstallmcnts of Funds. lf the amount o( thc Hunds
held by Lender shdl not be sutficient to pay taxes, assessmentc, insurancc premiums anJ ground rents as thcy f~ll due,
Borrovrer shall pay to l.ender any amount necessary to make up the deficie.ncy within 30 day~s from ~he date notice is mailed
by Lender to 8orrower rcquesting paymcnt thereot.
Upon payment in full of all sums secured by this Mortgage, t_ender shall promptly rcfund to Borrower any Funds
heW by Lender. lf urtder pazag~aph 18 hereot the Property i~ sold or the Property is otherwise acquired by I.ender, 1_ender
s6all apply. no later tha~ imm~diateiy prior to the sale of the Property or its acquis,tion hy Lender, any Funds held by
I.ender at the time of application as a credit against the sums secured by this Mongage.
3. Apptical~ of Paymeats. Unless applicable law provides o~herwise, all payments received by Lender under the
Note aad paragraphs 1 and 2 hereof shall bc applied by I.ender first in payment of amuunts payable to t_ender by 8orrower
undc~ paragraph 2 hereof, then to interest payable on thc Note, then to the principa! o( thc Note, and then to interest and
principal on a~y Future Advances.
4. C4ar~es; I3eas. Borrower shall pay all ta~es, assessmcnts and other rharges. 6nes and impositions attributable to
the I'roperty which may attain a priority over this Mortgage, and leasehold payments or gcound rents, if atiy. ia the manner
pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, wheo due, directly to the
payee ttteroof. Borrower shall promptly fumish to ~ender all notices of amounts due under this parasnph, aod in the event
Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments_
Borrower shall praaptly discharge any lien which has prio~ity uver this Mortgage; providtd, that Borrower shall not be
required to discharge any such lien so long as 8orrower shall agree in writing to the payment of th~ obligation secured by
such lien in a manner accep~able to Leoder, or shall in good taith contest such lien by, or defend enforrement of such lien in.
legal proceedings which operate to preve~t the enforcement of the lien or forfeiture of the Propeny or any part thereof_
S. Hmrd Insntance. Borrower shall keep the improvemenis novr existing or hereafter erected on the Property +nsured
against loss by fire, hazards included within the term "e!ctendeJ coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may requirc; provided, that Lcnder shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approvai shall not be unreasonably withheld_ AI! prcmiums on insurance policies shall be paid in the man~er
provided under paragraph 2 bereof or, if not ~+aid in such manner, by Borrowtr making payment, when due, dioectly to the
insurance carrier.
All insurance policies and renewals thereof sF~all be in form acceptable to Lender and shall include a standard mortgage
clauu in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give promPt notice to the insurance carrier and I_ender. Lender may make proof of loss if not made pramptly
by Borrower_
Untess Lender and Borrower olherwise agree in writing: insurance proceeds shall be applied to restoration or repair of
the Property damaged, provide~l such restoration or repair is economically feasible and the securiry of ihis Mortgage is
not thereby impaired, lf such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums seci~red by this Mortgage, with the excess, if any, paid
to Borrower. !f the Propeny is abandoned by Borrower, aF if Borrower fails to respond to Lender within 30 days from the -
date notice is mailed by Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at [.ender's option either to restoration or repa~r of ihe Propett~~
ar to the sums secured by this Mortgage_
Unless Lender and Borrawer ~therwise agree m writing, any such application of proceeds to ptincipal shall not extend
or postpone the due date of the monthly installments referred tc? in paragraphc 1 and 2 hereof or ehange tF?e amount of
sach installmeuts. If undet paragraph l8 hereof the Property is acyuired by I.ender, al! right, title and interest of Bor~ower
in and to any insurance policies and iR and to the pra:eeds thereof resulung from damage to the Property prior to th~ sale
or acquisition shall pass to Lender to the extent of the sums sccured by this Mortgagz immediately prior to such sale or
acquisition.
6. Presenatioa and Nainteaance of Property; Leaseholds; Condominiurt~c; Planned Uait Devebpments. Borrower
shall kap the Property in good reQair and shal) not comroit waate or permit impairment or deterioration of the Propeny
aad shal! comply with the provisions of any lease if this Morlgage is on a Icasehold. If this Mortgage is on a unit in a
condominium ~r a planncd unit development, Borrower shall perform all of Borrower s obligations under the declaration
or coveaants creating or governing the condom~nium or planned unit development, the by-laws and regulations of the
condominium or planned unit development, and constituenl documems. If a condominium or planned unit development ~
rider is executed by Borrower and recorded together with thic Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplcment the covenan~s and agreements o( this Mortgage as if the rider
were a part hereof. .
7. Protectioe of Lende~'s Security. If Barrowe~ fails to ~erform the covenants and agreements contained in this
Martgage, or if any action or proceeding is commenced which materially aHects I_ender's interest in the Praperty,
including, but not limited to, eminent domain. insolvency, cocle en(orcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then Lender at l.eacier's option, upon notice to Borrower, map make such appearances, disburse such
swas and take tueh action as is necessary to protect Lender s interest, including, but not limited to, disbursemenl of
reasonable attomey's fees and entry upon the Property to make rcpairs. If l.ender reyuircd morigage insurance as a
condition of making the loan secured by this Mortgage. B~irrower shall pay the premiums required to maintain such
inturance in effat until such time as the requirement for tiuch insurance terminates in accordance with Bormwer's anJ
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