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Borrower and I.ender coveaant and agrae aa follows:
1. Pe?yment ot Priacipal ond Intereot. Borrower shall promptly pay when due the principel of and i~terest on the indebtedness
evidenced by the Note. prepayment and late chsrges as provided in the Note, and the principal of and interest on any ~ture Advancea secured
by this Mortgage. - ~
2. ~unds for Te~es and lnsuranee. Subject to applicable law or to a writte~ waiver by l.ende~, Borrower shall pqy to l.ender on the day
monthly installmenta of principel and intereat are payable under 1he Note. unW the Note is paid in full, a sum (herei~ "Ftinds'7 equa! to ona
twelRh of the yearly taxes and aeaessmente which may attain priorily over thia Mortgage. and ground rents on the Property, i[any, plus ont
twelfth o[yeuly premium i~atallmenfa for hazard inaurance. plus one~twelfth of yearly premium inatallments for mortgage insurance, if any.
all as reasonably eatimated initially and trom time to time by l.cnder on the basia o! ueseaements and bills and rnaaonable eetimates thereot.
'il~e FLad~ shall be hdd ia an inetitution the deposits or socounta oi which are insured or guaranteed by e Federal or 3tate ageacy
(including Lenda if Lender u such sn inatitution). I.ender shaU apply the Fands to pay said ta:ea. aeaeasments. insuranoe premiums and
ground renfa. Lender may not charge for so holding and applying the I~nds. analysing said account, or verifying and oompiling said
assessments and bills, unleee Lender pays Borrower in~t oa the Etinds and applicable law permits l,ender to make such a charge. Borrower
and Lender may agree in writing at the time of e:ecution of thia Mortgage that intereet on the ~nds shal! be paid b Borrower. and unless
snch egneanent is made or applicable laar requirea auch intaest to be paid, Lender ehall not be required to pay Borrower any interest or
eamings on the Pltnds. Lender shaU give to Borrower, without charge, an annual acoounting of the Flinde showing credita and debits to the
Fbnds and the purpoee for which each debit to the ~nda was made. The Funda are pledged as additional serurity !or the sums secured by thia
Mortgage.
If the amount of the P`unda held by I.ender. together with the future monthly inatallmente oiFunda payable prior to the due datee o[taues,
asaeeamenta, inauranoe premiums and ground rente, ehall exoted the amount requirec~to pay said ta:es. asaeasments, ineurance premiums
and ground t~eab as they faA due, snch euc~ss ahall be, at Borrower'a option. either prompt~y repaid to BorroweT or ctedited b Borrower on
aionthly installments of I~nds. If the amount of the FY~nds held by I.ender shall not be auificieat to pay tazea. aeeeesmeats, insuraace
premiuma and ground rents xs they fall due, Borrower ahaU pay to Lender any amount neceesary to make up the deficiency within 30 days
from the date notice ia mailed by Lender to Borrower requeeting payment thereot.
Upon payment in full of all eums secured by this Murtgsge. Lendet shall pmmpdy refund to Borrower any funda held by I.ender. If under
patagraph 18 her~eof the Property ia sold or the Property ie otheiwiee acquired by Lender, Lender ahall apply, no later than immedietely prior
to the sale of the Property or its aoquieition by L.ender, any ~nde held by I.ender at the time of application as a credit againet the aums aec~ued
by this Mortgage. "
3. Application of Payments. Unless applicable law providea otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof ehall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof,
~ then to intereat paysble oa the Note, then to the principal of the Note, and then to interebt and prinripal on any Future Advances. ~
4. Charges; Liena. Borrower shall pay all taxes, assessmenta and other charges, ~inea and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold paymenta 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 the payee thereof. Borrower ehalt promptly furnieh to Lender
aU noticea of amounfs due under thia paragraph, and in the event Borrower shall muke payment directly, $orrower shaU pmmpily fumisfi to
Lender receipta evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be required b discharge any such lien so long as fiorrower ahail agree in writing to the payment of the obligation secured by
auch lien in s manner acceptable to I.ender. or ahall in good faith rnntest such lien by, ordefend enforcement of such lien in, legal proceedinga
which operate to prcwent the enforcement of the lien ur forfeiturn of the Property or any part thereof.
5. Hazard Ineurance. Borrower ahall keep the improvementa now e:iating or hereafter erected on the Property inanred againat losa by
6r~ hezarda included within the term "euctended coverage." and auch other hazarde as Lender may require and in such amounte and for such
periode ae Lender may reqaire; provided, that Lender ehall not require such ooverage amount exceeding the minimum, as may be reqwred by
state or federal regulationa goveming activitiea oi Lender, or that amount of coverage required to pay the aums secured by this Mortgage,
whichever ia the greater. ~
The inaurance carrier providing the insumnce shall be chosen by f3orrower subject to approval by [xnder; provided, that such approval
ahall not be unrnasonably withheld. All premiuma on insufance policies shall be paid in the manner provided under paragraph 2 hereof or, if
not paid in auch manner, by Bonower makinq payment, when due, directly to the insuranre carrier.
All inaurance policiea and renewala thereof shall be in form acceptable to Lender and ahall include a atawdard mortgage clause in favor o!
and iri form aoceptable to I,ender. Lender shall have the right to hold the policiea and renewala.thereof, and Borrower ehall promptly fumiah to ~
i,ender all rene~ral notioes and all receipts of paid pre~niums. In the event of loss, Borrower shall give pmmpt notice to the inaurance carrier
and Lender. I.ender may make proof of loes if not made promptly by Borrower_
I Unleea Lender and Borrower otherwiee agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property
damaged, pravided such restoration or repaii is econornicaUy feasible and the security o! thie Mortgage is not thereby impaired. If such
reatoration or repair ie not economically feaeible or if the secusity Qf thie Mortgage would be impaired, the inaurance proceeds shall be applied
to the aume eecured by thia Mortgage, with the e:ceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to
reapond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the inaurance carrier of~ers to eettie a claim for
inaurance benefits, I.ender ia authorized to collect and apply the insurance proceeda at Lendefs option either to restoration or repair of the
Property or the suma secured by thia Mortgage.
Unlese I.ender and Borrower otherwiee agree in writing, any such application of proceeda to principal ahall not e:tend or postpone thedue
date of the monthly inatallmenLs referred to in paragraphs 1 and 2 hereof or change the amount of such inetallmenta. If under paragraph 18
hereof the Property ia aoquired by Lender. all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds
thereof reaulting from damage to Property prior to ihe sale oF aoqaiaition ahall paea to Lender to the exteat of the euma eecvred by thia
Mortgege immediately prior to such sale or soquisition.
6. Preaervation and blaintenance of Property; Leaseholda; Condominuma; Planned Uait Developmente. Borrower shall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall oomply with the -
pmvieiona ot any lease if this Mortgege is on e leasehold. If this Mortgage ia on a unit in a aondominium or a planned unit development,
Borrower ahall perform all ot Borrower'e obligationa under the declaration or covenants creatingor governing the condominium or planned
unit development, Lhe by-laws and regulations of the condominium or planned unit development. and conatitnent documenta If a
oondominium or planned unit development rider ia ezecuted by Borrower and recorded together with this Mortgege, the o~venanta and
agreemente of auch rider shall be inrnrporated into and shall amend and supplement the covenanta and agreementa of this Mortgage aa if the
rider were a part hereof. -
7. Protection ot Lender's Security. If Borrower fails to prrform the oovenanta and agreements oontained in this Mortgage, ar if eny
action or prooeeding is commenced which materially affecte I.ende~s interest in the Property, including. but not limited to, ~inmt domain,
insolvency. oode enforcement, or arrangements or pmceediags involving a banl~rupt or decedtn~ then Lender at I.ender's option~npon
notioe b Boreower may make such appearanoes, disburee such suma and talce euch action as is aeceseary to protect Lender'e intereat,
inclnding, but not limited to, disbursement of reasonable attorney's fees and entry upon the Propedy to make repairs. If I.eader required ;
mortgage insurance aa a oondition of making the loan ee~vred by thia Mortgage. Borrower shall pay the presniuma reqaired to maintain
anch insursnce in dfect nntil soch time ae the reqairement for auch insurance temiinates in aooordanoe with Bortower's and I.ende~s
written agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiums in the manner pmvided unde:
paragraph 2 hereof. •
My amounts di.ebursed by Lender pereuant to this paragraph 7, with intereet thereon, ehall beoome additional indebtedness of
Borrower secnred by thia Mortgage. L'nleae Borrower and Lender agree to other terme of payment, snsh amounts shall be payable npon
notice from L.ender b Borrower requeating payment thereof, and shall bear interest from the dste of diabursement at the rate payab4 from -
time to time on outatanding principal under the Note nnleas payment of interest at such rate would be oontrary to applicable law, in which
event auch amounta e6a11 bear intereat at the higheei rate permiaeible under applicable lew. Nothing contained in this paragreph shall
require Lender to incur any eupenee or take any action hereunder.
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