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Uttt~osut Oovtsrtsw'rtt. Borrower and tender covenant and agree as folbws: -
L li~gtwetN et lsMrelM1 aN tNesM. Borrower shall promptly pay when due the principal of and interest on the
indebtednea erideaoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest
oa any Futtroe Advances sectued b!? this Mortgage.
Thai ter 73satet atri Ltwr~ce. Subject to appiicabk law ~x to a written waivtr 6l? Leader, 8orrort?u shall pay i
to Leader on the day monthly ittstalltnenb o[ principal and interest are. payable under the Note. until the Note is paid in fuA.
a sttm (herein "Ftutds'q equal to one-twelfth of the yearly taxes and assessments which tray attain priority over this
Mortgage. and ground rpttt oa the Property. if any, plus one-twelfth of yearly premium ittstallrnertb for hazard ittsurantx, '
plus one-twelfth of yearly premium installment: for mortgage insurance. if any, sll as reasonably estimated initially and from
time to time by Lender on the basis of assessments and hills and reasonable estimates thereof.
'Ills Flsnds:hall be held in an institution the deposiu or-accounts of -which are insured or guaranteed by a Federal olr
state agency (inchding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. ~
. instrranoa premiums and ground rents. Lender may not charge for sn holding and applying the Frtndt, analyzing said account,
or veritying_and compiling:sid assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law
ptsrmits Fender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall bts paid to Borrower, and unless such agreement is made or applicable law
requirros such interest to be paid, Lemkr shall not bt rcquirod to pay Borrower any interest or earnings on the Funds. Lender {
shall give to Borrower, without charge, an annual ac~unting of the Funds showing credits and debits to the Funds and the ;
purpose for which each debit to tots Funds was made. The Funds arc pledged ss additional security for the .sums secured '
by the Mortgage, i
If the amount of the Funds heW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, asse::meots, in:tuance premiums and ground rents. shall exceed the amount required to pay said taxes.
aaasraents, ituuratroe premiums gad ground rents u they fall due. such excess shall be. at Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds ~
held by Ltsader sbaA not be su~ciwt to pay taxes, assessrrtents. insurance ,premiums and ground rents u they fall due. ~
Borrower shall pay'to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender W Borrower requesting payment thereof. -
Upoa payment in full of all sutra secured by this Mortgage, lender shall promptly refund to Borrower any Funds
heW by Lender.- If under paragraph 18 hereof the Property is sold or the Propeny rs otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by ~
Leader at the time of application a: a credit against the :ums secured by this Mortgage. ;
3. A~catloe et tgteetMs. Unless applicable law provides otherwise, all payments received by Lender under the
Note gad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. theelt to interest payable on the Note, then to the principal of the Note, and then to interest and
priwacrpai on any Future Advances.
4. (,'barges; I3eas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments 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 shall promptly furnish to Lender all notices of amounts due under this paragraph. and is the event
Borrower shall make payrnent directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. I
Borrower-shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be ,
rcquirtd to discharge any such lien so long 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,
legal proceedings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof.
S. Huard Ittsurartce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
gad 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 by this Mortgage.
The iruurancx carrier providing the insurance shall be chosen by Borrower subject to approval by, Lender, provided, (
thst wch 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, directly to the
' iasutaace carrier. ~
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage l
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, ~
and Borrower shall promptly furnish to Lender all renewal notices 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
by Borrower. - -
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
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 it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
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 proceeds at Lender's option either to restoration or repair of the Property
or to the sums 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower ,
in and to any insurance policies and in and to the proceeds 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 Mortgage immediately prior to such sale or
acquisition.
6. Prtssenatioa gad Maintenance of Property: Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property
gad shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers 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 and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rifer
were a part hereof.
7. Protection of Lender's Security. If Borrower fads tr. perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, }
including, but not Lmrted to, emrnerrl domain, insolvency, cede enforcement, or arrangements or proceedings invoking a
bankrupt or decedent. then Lender at. Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to. disbursement of
reasonable attorney's fees and entry opera the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by thrs Mortgage, B~~rrowrr shall pay the premiums required to maintain such
insurance in r_ffect until such time as the requirement fir such insurance terminates in accordance with Borrower's and
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BO(1K J~~ PlCE
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