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Borrower and l.ender eove~ant and agtce as followa:
1. Psyment of Principal and iutereat. Borrower ahall promptly pay when due the principal of and interest on the indebtedaeae
evidenced by the Note, p~epayment and latc charges as provided in the Note, a~d the principal otand iaterest on any ~ture Advances eecured
by this Mortgaga - -
2. PLnds !or Taue~ snd Insurance, SubjeM to applicable luw nr to a written waiver by l.e~der. l3otrower ahall pay to Lender on the day
monthly installmenta of priaripal and i~tereat are payable under the Note, until the Note ia paid in full, a sum (herein "~Lnds"? equal to one-
twelfth o[ the yearly taxee and aeaeeaments which may attain priority over this Mortgage, and ground renta on the Property, if any, plos one
twelfth of yearly premium inatallmente tor hazard ineuranc~, plua onetwelRh of yearly premium installmenta for mortgage insu~ance~ i[any,
aU as reasonably estimated initiaily and from time to ti~rie by l.ender on the basis oC asaeeamenta and bills end reasonable estimates theteoi.
The I~u?ds ~hall be held in an institution the depoeib or accounts ot which are insured or guaranteed by a Federal or State agency
(includiag Lender if Lender is such an institution). Lender shall apply the Funds to pay said ta:ea, aasessmente, insurance premiuma and
gmund nnte. I.ender mey not charge for eo holding aAd applying the Fu~ds, analyzing said eccount, or verifying and compiling eaid
asaeeaments and bills, unlese I.ender pays Bocrower intemat on the ~nda and applicable law permits I.ender to make auch a charge. Borrower
and I.ender may agtee in writing at the time o! execution of this Mortgage that intereat on the ~ncls ahall be paid w Borrower, and unlesa
euch agreement is made or applicable law requiree auc!~ inteieat to be paid, [.ender ahall not be required to pay Bornower any intereat or
earnings oa the Ftinds. Lender shall give to Bortower, without charge. an annual accounting of the FundB ahowing credite and debite to the
Funds and the purpose for which each debit b the ~nds wae made. The Funda are pledged aa additiona! eecurity for the eume eecured by thia
Mortgage.
lf the amount of the ~nda held by Lender, together with the future monthly inatallments of Funds payable priot to lhe due datea of taxes,
assesamenta. inaurance premiume and ground renta. ehall ex~ed the amount required to pay esid taxes, assesamenta, insurance premiuma
and ground renta aa they fall due, such ezceae shall be, at Bo~rower
a option, either promptly repaid to Borrower or credited to Bormweton
monthly instaUmenta of fi~nds. If the amount of the Funda held by Lender ahatl not be aufficient to pay taxea, asseaamente, insurance
premiums and ground rente as they faU due, Borrower shall pay to I.ender any amount neceaeary to make up the deficiency within 30 days ~
from the date notice ia mailed by Lender to Borrower requeating payment thereof.
Upon payment in full of all suma eecured by thie Mortgage, Lender shal) pmmptly refund !a Barru~xez a~y funda held hy lx~der. ltun~pr
paragraph 18 heteof the Property ia sold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior
to the aale of the Property or ite acquiaition by Lender, any Ftinda held by l,ender at the time of appiication as a credit against the aums secured
by thie Mortgage.
3. Application of Paymente. Unlese applicable law providea otherwiee, all payments received by Lender under the Note and
paragraphe 1 and 2 hereoi ahall be applied by Lender 6rst in payment of amonnta payable to l.ender by Borrow er u~der paragraph 2 hereof,
then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea.
4. C6arges; Liens. E3orrower shail pay atl taxes, asseasments and othercharges, fines and impoaiteons attributable to the Property which
may attain a priority over thie Mortgage, and leasehold payments or ground rnnts, 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 the payee thereoi. Bornower aha11 promptly furnish to Lender
al! notices of amounte due under this paragraph, and in the event Borro~er shall make pxyment directiy, Bornower shall ptomptiy furnish to
I.ender receipts evidencing such payments. Borrower shal) promptly dischnrge any lien which has priority over this Mottgage; provided, that
F3orrower ahall noi be required to discharge any such lien so long ae Borrower ahall aRree in writing to the payment of the obligation secured by
such lien in a mannrr acceptable W I.ender, or shall in good faith contest such lien by, urdefend enforcement of such lien in, Iegal procFedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insuranee. Borrower ahall keep the improvement8 now existing or hereafter erected on the Property inaured against losa by
fire, hazarde included within the term "e:tended coverage; ' and auch other hazards as Lender may require and in such amounte and for such
perioda as Lender may require; provided, that Lender ahall not require such rnverage amount exceeding the minimum, as may be required by
state or federal regulationa governing activitiea of I.ender, or that amount of rnverage required to pay the.aums aecured by this Mortgaqe,
whichever is the greater.
The insuranee carrier providing the insurance shall be chosen by t3orrower subject tn upproval by t.ender, pmvided, that such approval
shall not be unreasonably wilhheld. All premiums on insurance policies shall be paid in the manner prr~vided under paraKraph 2 hereof or, if
not paid in such manner, by ~3orrower making payment, when due, directly to the insurance carrier.
All inaurance policiea and renewals thereof shall be in form acceptable to Lender and ahall include a etandard mortgage clause in favor of
and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to
i.ender all reaewal notices and all receipte of paid premiums. In the event of loss, Bornower ahal! give prompt notice to the inaurance carrier
and I.ender. Lender may make proof of loas if not made prompdy by Borrower.
Unless I.ender and Borrower othenvise agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property
damaged, provided such reatoration 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 secutity of lhis Mortgage would be impaired, the inaurance proceeds ahall be applied
to the sums secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrower. or if Borrower faila ta
reapond b I.ender within 30 daya from the date notice is mailed by I.ender to Borrower that the inaurance carrier ofTers to aettle a claim for
ineurance benefite, Lender is authorized to cottect and apply the inaurance proeeeds at L.ender
s option either to reatoration or repair of the
Property or the aums aecured by this Mortgage.
Unless I.ender and Borrower otherwise agree in writing, any euch application of proceeda to principal shall not extend or postpone thedue
date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inawance policies and in and to the proceede
thereof resulting from damage to Property prior to the eale or aoquiaition ahall pass to Lender to the e:tent of the aums secured by thie
Mortgage immediately prior to such sale or acquisition.
6. Preeervetion and Maintenance of Property; Leaseholde; Condominume; Planned Unii Developmente. BorrowerahaU keep
the Property in good repair and shall not rnmmit waste or permit impairment or deteriotation of the Property and ahall comply with the
provieione of any lease if thie Mortgage ia on a leasehotd. If thia Mortgage is on a unit in s condominium or a planned unit development,
Borrower ahall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the rnndominium or planned
unit development, the by-tawa and regutations of the rnndominium or planned unit development, and rnngtituent documente. If a
condominium or planned unit development rider ie executed by Borrower and recorded togethet with thie Mortgage, the ouvenante and
agreements of such rider Rhall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the
rider were a part hereof.
7. Protection of Lender•s 3ecttrity. If Borrower faile to perform the oovenante and agreemente oontained in this Mortgage, or if any
action or proceeding ie commenced which materially affecte Lender e interest in the Property, including, bat not limited to, emineat domain,
ineolvency, oode enforcement, or arrengements or proceedinge involving e banlmipt or deoedent, then Lender at Lender's option,upon
notice to Borrower may make auch appearanoea, diaburee such aums and take such action as ie necese$ry to protect Lender'a intere~t,
including, bot not limited to, disb~ueement of reasoneble attorney'a fees and entry upon the Property to make repaire. If Lender required
mortgege ineurance as a condition of making the loan eecured by thie Mortgage, Botrower ehall pay the premiums required to maintain
ench inaurance in ei[ect until such time as the tequirement for anch ine~uance terminatee in acxordance with Borrower's and I.ende~e
writtea agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner provided under
paragraph 2 hereof.
My amounte diebureed by Lender pereuant to thie paragraph 7, with intereet thereon, ahall beoome additional indebtednese of
BorroweT secvred by thie Mortgage. Unleas Borrower and t.ender agree to other terme af payment, auch emoants ahall be payable upon
notice from I.ender to Borrower requ~ting payment thereof, and ehall bear intereet from the date of disburaement at the rate payable from
time to time on outetandinq principal under the Note unleee payment of intereet at euch rate would be oontrary to applicable law, in which
eveni such amounta ehall bear interest at the highest rete permiseible under applicable law. Nothing contained in thia paragraph 7, eha11
require I.ender to incur any e~cpenee or take any action hereunder.
gfl~~ 296 683
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