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Borrower and Lender covenant and agree as foUows:
1. P~?yment of Principal aad Interes~ Borrower ahall p~ompdy paY when due the principal of and intered oa the indebeedness
evidenoed by the Note. psepaymenL and late charges aa pe'uvided in the Note, and the principal of and interest on any P1~tun Advance~ secured
by ehia Mor~ga~e. '
2. P1~nde ior T~e~ u~d Iwuranoe. 3ubjed to applicable law or b a writtet~ waiver by I.ender, Borrower ahall pay to l.enda on the dey ~
monthly inatallmenta otprincipal and intereat are pqyable und~ the Note. nntil the Note is paid in fuU. a eum (herein "Plinds'~ equal b oao- ~
twelfth of the yearly tazea and asseesments which may attain priority over this Mortga~e. and ground renta on the Property. if any, plus ono- ~
tweltth of yeariy premium install~nents for hazard insurance. plus onetweltth of yearly pmninm installments for mortgege insurance. if any,
aU as reasonabUr e~etunated initialjj? and firom time to time by I.ender on the baeia of assc~esments and bills and reasonable estimates thereof. ~
11?e P1~nds shall be held in an iastitution the deposita or sooonnfw of which are insured or guaranteed by a Federal or 3tate agency ~
(inclnding I.ender if Let~der is such aa iastitutioa~ I.ende9r shall aPplY the F'unds to pay said taxe~. eseeasmeats. insurenoe premiuma and
groand rent~. Lenda may not charge for w holdin~ and applying the ~ads, analyzing said aocount, or v~ifying and oompilin~ said ;
asseeaments and bills~ unless Lendet pays Borro~rer interest on We Fnnde and applicable law permits I.ender b make auch a charge. Borrower
and I,ende~r may agree ia writine at the time of ezecution of this Mortgage that interest on the fi~nds shall be paid to Borrower. and unless
such ait~eea?eat is made or applicable lavo recluires sach interest to be paid. Lender ehall no~ be reyuired so p~y Borrower any incereac or
earnings on the P~nds. I.ender shall Bive to Borrower. aithout charge, an annual aooounting of the I~nda ehowing credits aad debits to the
Fnnds and the purpwe for which each debit to the P~nds was made. The ~nds are pledged aa additional aecurity for the aums eecared by this
Mortgage.
If the amount of the I~1nds held by Lender. bgether with We future mon W!y inat+allments of I~nda payable prior to the due dates of t~es.
assessmeats. insurance premiums and ground rents, shall ~~ed the amount reqwred to pay esid ta:ea. seeeeements, iasurance premiums
and grouad renta as they fall dne. anch ezoess sha11 be. at Borrower'a option. either pmmptiy repaid to Borrower or esedited to Borrower on
monthly installmenta of Phnds. If the amouat of the Phnds heW by Lendez shall not be auf5rient to pay taues, aaeeasonents, inaurance
premiums and gronnd renta aa they fall due. Botrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from the date notioe is mailed by Lender to Boirower requeating payment thaeof. •
Upoa payment in full of all eums eecured by thie Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. V under
paragraph 18 hereof the Property is sold or the Prope=ty ia otherwiee acqnired by Lender. Lender ahall apply. no later thaa immediately prior
to the sak of ttiz Property or ita aoquisition by Lender, any Fl~nds held by Lender at the time of application as a credit againet the suma eecured
by chis Mortgage.
3. Application of Paymeata. Unless applicable law providea otherwiae. al! payments reoeived by Lender under the Note and
paregraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to I.ender by Botrower under paragraph 2 hereof.
then to iaterest payable on the Note. then to the principal of the Note. and tben to intereat and principal on any I~ture Advancea
4. Charges; Liene. Borrower ahall pay all ta:es. assesamenla and other chargee, fines and impoeitiona attributable to the Ptoperty which
may attain a priority over this Mortgage, and leasehold paymenta or gronnd rents, if any. in the manner provided under paragraph 2 hereof or,
if not paid in auch manner, by Borrower making payment. when due, directly to the payee thereof. Borrower ahall prompdy furniah to Lender .
all notices of amounta due under thia paragraph. and in the event Borrower shall make payment directly, Borrower ahall prompUy furnishlo °
(.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over thia Mortgage; provided, that ;
Borrower shall not be required to diecharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by
such lien in a manna acoeptable to Lender, or ahall in good faith conteat euch lien by, or defend entorcement of such lien in. legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Insurance• Borrower ehall keep the improvementa now e:iating or hereafter erected on the Property inaured againat loea by
fire. hazarda iacluded within the term "e:tended rnverage," and auch other hazards as Lender may require and in auch amounts and for auch
periode as Lender may require: prorided, that Lender shall not require auch coverage amount e:ceeding the minimum. as may be required by
state or federal regulationa goveming activities of Lender, or that amount of coverage required to pay the auma secured by thia Mortgage, ;
whichever is the greater. ;
The insurance carrier providing the insurnnce shall be choeen by Borrower aubject to approval by L.ender; provided, that such approval :
ahall not be unreasonably withheld. All premiums on inaurance policies ahall be paid in the manner provided under para~raph 2 hereof or, if E
; not paid in such manner, by Borrower malcing payment, when due, directly to the insurance carrier.
All inaurance policies and renewale thereof ahall be in form aoceptable fo Lender and ehall include a standard mortgage clauee in favor of
~ and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewale thereof, and Borrower shall pmmptly furniah to
~ i.ender all renewal notices and all receipta of paid premiums. In the event of loae, Borrower ehall give prompt notice to the insurance carrier
and Lender. I.ender may make proof of loee if not made pmmpdy by Borrower.
€ Unlese Lender and Borrower otherwiee agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property
" dameged. provided such reabration or repair is economically leasible and the security of this Mortgage ie not tliereby impaired. If anch
reatoration or repair ie not economicaliy feaeible or if the aec~ity of this Mortgage would be unpaired, the insurance proceeda ahall be applied ~
to the suma eecured by this Mortgage, with the e~cceea, if any. paid to Borrower. If the Property ie abandoned by Borrower. or if Borrower fails to ~
respond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier offere to eettle a claun for ,
insnrance benefits, Lender is authorized to coUect and apply the insurance proceeda at Lender's optio» either to restoration or repair of the ~
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Property or the aums eecnred by thia Mortgage.
Unlese Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e~ctend or poatpone the due
date of the monthly inatallmenta referred to in paraBrapha 1 and 2 hereof or change the amount of auch inetallmente. If under paragraph 18
hereof the Property is aoquired by Lender, all right, tide and intereat of Borrower in and to any insurance policiea and in and Lo the prooeeds
thereof reeulting firom damage to Property prior to the eale or aoquieition shall pass to I~ender to the e:tent of the sums eecured by thie
Mortgage immediately prior to auch sale or soquiaition.
6. Preaervetion and Maintenance of Property: Leaeeholde; Condominums; Planned Unit Developments. Borrower ahali keep
the Property in good repair and ehall not commit waete or permit impairment or deterioration of the Properiy and shall rnmply with th~
pmviaions of any lease if thie Mortgage is on a teseehold. If this Mortqage is on a unit in a oondominium or a planned unit development,
Borrower ehall per[orm all of Borrower'a obligationa under the declaration or covenanta creatingor governing the condominium or planned
unit developmen~ the by-Iawe sad regulations of the rnndominium or planned unit development. and conatituent documente. If a
condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and
agreements of such rider shall be incorporated into and ahail amend and eupplement the covenante and agreemente of this Mortgage as if the
°f rider were a part hereof.
~ Protectfoa of Lender's Securltp. If Borrowa fails to perform the oovenanta and agrcementa oontained in this MorteaBe. or if any
~ action or proceeding is commenced which materially affecta Lender's interest in the Property. including, but not limitsd to. emineat domain. :
insolveacy. oode enforc~ent, or arran8ements or pra~edings involving a bankrupt or deoedent, then Lender at Lendei s option,npon i
~ notice to Borrower may make such appearanoas, disbnree such sums and take such action as is n~oeeeary to proted I.endu'e inte~R
including, but not limited to, disbursement of reASOnable attorney'e fees and entry npon the Propedy to make.repain. If I~euder required
~ mortgege insurance as a condition of making the loan secured by this Mortgege, Borrower shall pay t6e premiums required to maintain
~ ~nch insnrance in effect until snch time aa the requirement for snch insurance terminates in accordaace with Borrower's and Lendd~
written agreement ot applicabk Law. Borrower shall pay the amount of all mortgage insurance premiuuns in ths manner provided under :
~ paregraph 2 hereoL ~
~ pny amonnts diebarsed by I.ender persuant to thia paragraph with intereet thereon, ahall become additioaal indebtedness of
~ Borrovre~ secured by this Mortgege. Ualeae Borrower and Lender agree to other terms of payment, auch amounts shall be payable npon
notice trom Lender to Borrower requesting payment thereof. and ehall bear interest froin the date of diabursement at the rate payabie from
time to dme on outatanding principal uader the Note unlese payment of intered at such rate would be aontrery to applicable law. ia which
tveat snch amounts ahall bear intereet at the highest rate permiasible under applicable law. Nothing contained in this paraBraph 7. shall !
require Lender 6o incur any e~cpenee or take any action hereunder. ~
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