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Uha~atw CoveneKrs. Borrower snd l~de~ covenant and a~ra u follows:
r~q...~ .t M.c~ .¦a i.~.ra. eorwwer ~,an ~o„~~iy wr when due the priocipal ot and interat on the
indebledne~t evideuoed b~? the Not0. prepamtent sod late char~ca sx ptovided in the Note. and the priecipal ot and intereu
on soy Futut~e Adv~nces sxured 1ry this Mott~a=e.
t~~it ht 71n[M a~i Iwe~ee. Subjoct to applicabk law ar to a written waive~ by l.ender. Borro~wu shall MY
to Leakr on the day n~oethly installmeMs of principal snd intc~cct ~rc payat~k under the Note. until the Note is paid in tull.
a surn (herein •'Funds'q eqwl to one-tweltth of the yearl~• az~~ and assessme~~s which may attain priority ove~ this i
Mortj~e. aad ~round renta on tbe Property. if any. F+lus one-twelfth of yesrly premium installments for hazard inwrance. ~
plt~ oae-tweltth oE yeariy ptemium iestallments fo~ mortgage insunncc, it any. all as reasonably estimated initially and (mm ~
time to time by Leader oo the buis of assesxmcros and hills and rcuonabk estimates thereof. ~
'I1~e Funds shall be heW in an institu~ic?n ~he deposia or accounts of ~rhich are i~uurod o~ suaranteed by a Federal ot
:tate a~e~cy (includins Lender iE Lender is such an institutionl. I.ende~ sha0 apply the Funds to pay said taxes. asseuments. ;
imursnoe premiums and ~round tents. l.ender may nol cha~ge ior sc+ holding and applyins the Fund~. analyzing said account, '
or verifyin= and compilin~ uid assessments and bills, unkss Le~der pays Borrower interest on the Funds and applicable law t
permits I.ender to make such a charge. Borrowe~ a~d Lender may agree in writina at the time oi execution of this ~
Mortpse t6at interest on the Funds shall be paid to Bonower. and ualas such ag~eement is made or applicabk law
requi~+a wch interat to be paid. L.ender shall not be rcquircd to pay Borrower any intertst or arnings on the Funds. Lender ~
s6a11 pve W Borrower, without charae, an annual accounting of the Funds showina crcdits and debits to the Funds and the ~
pnrpose for ~rhich qch debit to the Funds was made. The Funds arc pledgod u additional security for the sums socured °
by this Mortpae. ~ `
If tbe amount of tbe Fuudt hdd by Lender. together with the future monthly installments of Funds payabk prior to
tbe doe data of taxa. auasmeats. insunnce prcmiums and ground rents, shall exceed the amount required to pay uid taxa.
ass~ats. insunnoe prcmiums aad ground rents u they fall due, such excess shall bs. at Borrower
s option. either ~
pro~nptlr tepaid to Bornorw~er or credited to Borrower on monthly insullments of Funds. If the amount of the Funds
bdd by Leoder shall not be sut6cient to pay taxes. assessments, insurance pcemiums and gmund rents as they fall due,
Horrower sball pay to I.ender any amount necessary to make up the deficiertcy within 30 days [rom the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment ia fup of al) swat secured by this Mortgage, l.ender shall promptly re[und to Borrower any Funds
held by Lender. If under patsaraph 18 hercof the Property ia sold or the Propeny ~s otherwise scquircd by Lender. Lender
shall apply, no later tha~ immediately prior to the sale of the Propeny o~ its ie~~itj~ b~ Lender, any Funds held bv
I.Qader at the time of application as a crcdit against the sums secured by this~Mongag~. r ti ' t
3. A~lic~t{o~ oE Papwe~ls. Unless applicable law provides otherwise,~al~`'~~ts received by Lender under tbe '
Note and puagnphs 1 and 2 hercof shall be applied by I_ender 6rst in payment.of;~o~lp~y~~~ jo Lender by Borrower
uoder puagraph 2 heroof. thea to interest payable on the Note. then to ihe princi~ of ~t~ Note. and then to interest and
priacipal on any Future Advances. S•~~~-• .te.
1. C6~r~es; Lieas. Borrower shall pay all taxes, assessments and othcr charges, f~hes and iinpositions attributable to
t6e Property which may attain a priority over this Mortgage, and lcasehold payments or ground rents, if any, in the manaer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, wlxn due, diroctly to the
payee the~+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event =
Borrower shall make paymcnt diratly; Borrower shal! promptly fumish to Lender receipts evidencing such payments. '
Botrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be i
nquircd to discharge any such lien so long as Borrower shall agree in wri~iog to the payment of the_ obligation secured by -
such lien in a manner acceptable to Lender, or shall in good faith contes~ such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of tfie Property or any part thereof.
S. Hszud lnsuraace. Borrower shall kcep the improvements now• existing or hereafter erocted on the Property insured
againtt loss by firc, haiards includ~d within the term "extendeJ coverage', and such other hazards as Lender may require '
i and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of ~
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~
7Le inxurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender. provided. ,
that such approval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment. when due, dircctly to the
insurance curier.
; All insurance polic~es 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 ha~e the right to hold the policia and renewals thereof,
j aad Borrow~er shall promptly furnish to Lender all renewal ~otices and all receipts of paid premiums. In the event of loss. ~
~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly i
j by Borrower. €
I Unless Lender and Borrower otherw~se agree in writing, insurance proceeds shall be applied to restoration or repair of
i the Property damaged, provided such restoration or repair ~s economically feasible and the security of this Mortgage is
not thtreby impaired_ It such restoration or repair is not economically feasible or if the security o[ this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid
to Botrower. lf the Property is abandoned by Borrowe~, or it Borrower fails to respond to Lender within 30 days from the
date notice is ma~led by LenJer to Borrower that the insurance carrier otiers to settle a claim for insurance benefits, Lender
is aut6oriud to collect and apply the insurance proceedi at Lender's option either to restoration or repa~r of the Propem~
~ or to the sums secured by this ylortgage.
Unless Lender and Borrower otherwise agree ~n writing, any such application of proceeds to principal shall not extend
~ or postpone the d?;e date of the monthly installments rcferred to in paragraph~ 1 and 2 hereof or change the amount of
~ such installmeats. If under paragraph 18 hereof the Prof,erty is acquireci by Lender, all right, title and interest of Borrower
~ in and to any it~surance policies and in and to the proceeds thereof resulung trom damage to the. Propeny prior to th~ sale
or acquisidon shall pass to Lender to the extent of the aums sccured by this hlortgage immediately prior to such sale or
~ acquisition.
6. Preservalion aod Naintcnance of Property; Leacehulds; Condominiums; Plaoned Unit Devebpments. Borrowcr
~ shall keep the Property in good repair and shall not comrUit Wastc or permit impairment or deterioration of the Property
` and shall comply with thc provisions of any lease if this Mortgage on a leaschold. If this Mortgage is on a unit in a
~ condomin~um or a planned unit developmenl. Borrower shall pcrform all ot Borrower's obligations under the declaration
~ or covenants creaung or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominium or planned unit development, and constituent d~uments. If a condominium or planned unit development
q rider ~s executed by Borrower and recorded together w~th thiti Mortgage, the covenants and agreements of such rider
: shall be ~ncorporated into and shall amend and supplement the co~enamti anJ agreements o! this Mortgage as if the tiJer
~ were a pan hereof. .
~ 7. Protection of I.eade~s SecurSty. If Bc.rrower fa~ls to perfi~rm the covenants and agreements contained in this ;
~ Mortgage, or if any action or proreed~ng ic cummenceJ uhich materially aQects LenJer's ~nterest in the Property. =
includmg. but ne?t limited t~, eminent domam, imi~lvency~, c~x1e rnforcemem. o~ arrangements or proceedings mvoh•ing a 4
bankrupt ur decedent. then Lender at Lender ~ option, uEx?n noUce tu Borrawer, ma~ make such appearances, disburse such =
sums an8 take such ac~ion ac ~s nececsary tu pmtec~ Lender's imerest, including. but not limited to, disbursement of
reasonable auomey's (cet and en~ry uFx~n thc Propcr~}• to make repairs. If !_cndcr rcynireJ mortgage in~urance as a r
cond~Uon uf mak~ng thc loan ~ccureJ by ~h~a M~~rtg:~gc. B~~rn.HCr sh:~ll pay !hc premiums requireJ to mainta~n such
insurance in ettect until tiuch t~me as ~he reyuiremem f~r .uch insurance ~erminate~ ~n accordance w•ith Borrov?~er's anJ I
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