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Utrtrortnt trovttrrew7tt. >iomower nail Leader covenant and agree at follows:
L 1M?~e~t of Feiae~l ttN laNnM. Borrower shall promptly pay when due the principal of and interest on the s
ittdsbtedrreas eviderroed by the Note, ptropaytaeat std late charges as provided in the Notes and tM principal o[ sad iatetpt i
oa nay Futuro Adv.rroea aectrred by this Mortgage. -
1 ltri fete 1laaes ttati laatreres. Subject to applicable law ~x to a written waiver by Lerrder. Bon~awer shall pay
to Leader oa the day monthly iratallments of principal and intereN ire payable under the Note, until flee Note is paid in full, 4
a stem ( "Funds") equal to oae•tweltth of the yearly tax~~ and assessments which may attain priority over this k
Mortgage. and ground rents oa the Property. i[ any, phrs one-twelfth of yearly premium inuallmants [or httrard insurance.
plus one-twdtth o[ yearly pr~eraiwa installments [or mortgage ins<rance. if nay. all as rrasonabfy estimated initially and from
tithe to rims by Lender oa the basis of atsasrnents aril hills and reasonable estimates thereof.
1Le Funds shall be held in an itsstitution the deposits or accounq of which are insured or guaranteed by a Federal of .
stars ageary (iachding lender it Lender is such an irtstitutionl. Lender shall apply the Funds to pay said taxes, assessrrteot;.
iawrarra premiums sad ground rents. !.ender may not charge for so hoWind and applying the Funds. analyzing said account.
or veritying~ad eompliag:aid assessments and bills. unku Leader pays Borrower interest on the Funds and applicable law
permits Larder to males such a charge. Borrower sad Lender may agree in writing at the time of execution of this ;
Mortgage that interest on the Funds shall be paid to Borrower. sad unless stab agreement is made or applicable .law
rnquit+a such interest to be paid. Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge an annual accounting of the Funds showing credits aril debits to the Funds std the ,
purpose for which each debi! to the Funds was made. '1Le Funds arc pledged as additional security for the sums secured
b7? ~ M•
U the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the dos data of tsxa, asseameots. inwrance premiums and ground rents, shall exceed the amount required to pay said taxes. -
meat:, insurance premiums sad ground rents as they fall due. such excess shall be. at Borrower's option. either
promptly repaid to Borrower or credited to Borrower oa monthly installments of Funds. If the _ amount of the Funds
httld by LeadarsbaU not be t to pay taxes. assessrrrents. iraurarttx premiums and ground rents as they fall due.
Borrower shall pay to Leader any amotrat necessary to mike up the deficiency within 30 days from the date notice is mailed
by Leader ib Borrower requesting payment thereof. .
Upoo payment in full of a8 sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fund:
held by Leader. If under paragraph 18 hereof tt?e Property is sold or the Property is otherwae acquired by Lender, Lender
shall apply, no later than itmediately prior to the sale o[ the Property or its acquisition by Lender, any Funds held by
Lander at the time of application a: a credit against the sums secured by this Mortgage.
3. A~iir:atiaa et Irgaeab. Unless applicable law provides otherwise. all payments received by Lender under the
Note sad paragraphs 1 and 2 hereof shall be :ppliod by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advanoa.
CMrtea; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to i
the Property which nuy attain a priority over this Mortgage. and leasehold payments or ground rents. if any. in the manner ~
provided under pusgnph 2 hereof or. if not paid in such manner, by Borrower making payment, whoa due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the eveot
Borrower shall make paytaent directly. Borrowtr-sfiall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage: provided. that Borrower shall not be
required to discharge any such lien so beg as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien ia, -
kgal proceedings which operate to prevent the enforcement of the lion or forfeiture of the Property or any part thereof. {
S. Hazard /aiwrarice. Borrower shall keep the improvements now existing or hereafter erected on the Property insured -
against lass by 6rc, hazards included within the term "extended coverage,", and such other hazards as Lender may require i
and in such amounts and for 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 Eby this Mortgage.
'IUe itiwrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shall oot be unreasonably withheld. All premiums on insurance policies shill be paid in the manner
provided under paragraph 2 hereof or. if rat paid in such manner, by Borrower making payment. when due, directly to the
'I inwrance carrier. - }
F
t All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
f sad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
R Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Mss if not made promptly
by Borrower.
Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of
I 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 Mortgage would
be impaired. the insurance proceeds shall be applied to the sutras secured by this Mortgage, with the excess. if any. paid i
to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is authorized to collect and apply the insurance procceds at Lender's option either to restoration or repair of the Properly `
or to the sutras 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 insta8ments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Proferty is acquired by Lender, all right, title and interest of Borrower
in and to any 14surance policies and in and to the procceds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this bortgage immediately prior to such sale or
acquisition.
6. Prstxnatioo sad Maiateoaoce of Property; I.easelalds; Condominiums; Planned. Unit Developments. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
sad shall comply with the provisions of any lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit . in a
~ condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with- this Mortgage, the covenants aril agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider j
were a part hereof.
7. Protertioa of Lender's Secarity. If Borrower fails to perform the covenants and agreements contained in this 1
Mortgage, or if any action or proceeding is commenced which materially aBects Lender's interest in the Properly,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then I~nder at tender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest, including. but not limited to, disbursement of
reasonable attorney's rtes and entry. upon the Property to make repairs. if I.cnder reyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. Burrower shall pay the premiums required to maintain such
insurance in effect until such time as- the requirement for wch insurance terminates in accordance with Borrower's and
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