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Uwtl~ostnt Oovanertts. Borrower and Ltmder covenant and agroe as fdbws:
Fytwsaf e>t >rrMse4a1 tstM 1rMersel. Borrower shall promptly pay when due the principal of and interest on the
ittdebtedttess evidenced by the Note. prepayttneat and late charges u provided in the Nots. and the principal of wad iaterep
oa way Ftttture Adveaoa sttcured by this Mattttate.
1 llrsi¦i tetr 'lysstes std I~atsratree. Subject to spplicabk law or to a written waiver by Lender, Borrower shall pay
to Leader on the day monthly itutallments of principal and intercct arc payable under the Note. until the Note is paid in full,
a strw (herein "Fuads'~ equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this
Montage. and ground rents on the Property. if any, plus onatwelfth d yearly premium installments for hazard inwrance,
plus otne•twdith o[ yearly ptemitun installments for morttage inurrattcc, if any. all u reasonably estimated initially and frown
lima to time by Leader ost the bads of assessments and hills and reasonable estimates thereof. '
ThaFuttd: shall be bold in an institution the deposiq or accounts of which arc insured or twranteed by a Federal of
' state agency (including Lender if Lender is such an institution). 1_ender shall apply the Fonds to pay uid taxes, assessments.
inwrattce premiums and ground rents. tender may not charge for sn holding and applying the Frrtrds, analyzing said account,
or verityint.aod compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower wad Lender may agree in writint at the time of execution of this
Morttate that interest on the Funds shall be paid to Borrower. and unless sucb agreement is made or~ applicable law
requires arch interest to be paid. Lender shall not be required to pay Borrower any interest or comings on the Funds. Lender
shall live to Borrower, withatt charge. an annual aooountint of the Funds showing credits and debits to the Funds and the
purpose for which eseb debit to the Funds roes made. The Funds arc plodged as additional security for the sums secured
by tba Montage.
Tf the amount o[ the Funds 1teW by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. asaemrtur?t:. insurance prcmiurtts and ground rents. shall exceed the amount required to pay said toes.
ataestlmeat:. irt:urarroe premiums and ground rents as they tall 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 T:unds
held by Ltmder shall not be sttflicieat to pay taxes. assessments. irrsunrrce premiums and ground rents ss they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Ltoder. If under paragraph 18 henoof the Property is sold or the Prbpeny rs otherwise acquired by Lender. Lender
- shall spply, no later than immediately prior to the-sale of the Property or its acquisition by Lender. any Funds held by
Lttoder at the time of application at a credit against the sums secured by this Mortgage.
3. A~licatioa of 1~ysaeMs. Unless applicable law provides otherwise, all payments received by Lender under the
Note wad paragraphs 1 and 2 hereof shall be applied 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 Advances. {
4, t;,~erges; lf.ieas. $orrower 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 tbertof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, wad in the event
Borrower shall make payment directly. Borrower shall promptly tumish 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 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 in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S: Hrwrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, hazuds included within the term "extended coverage", and such other hazards u Lender may require
wad 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 insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, ~
thst such approval shall not be unreasonably withtreld. All premiums on insurance policies shat) bb paid in the manner f
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
inwraace carrier. i
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,.
and Borrowrr 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 if 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 ttx Property is abandoned by Borrower, or if Borrower fails to respond to [.ender 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 i
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 6y this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend I
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount o[ I
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.
f. Prrservatioo and ilrrintenance of Pr rt Leaseholds; Condominiums; Planned Unit Deve ~
ope ~ lopments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1f this Mortgage is on a unit in a ~
t 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 rider
were a part hereof.
7. Protection of Lender's Security. If 13c?rrower fads to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceedrng rs c.~mmenced which materially affects Lender's interest in the Property,
including, but oat limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving 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 upon the Properly to make repairs. If Lender required mortgage insurance as a t
condruon of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in eBect until lurch time as the reyuiremcnt for wch insurance terminates m accordance with Borrowers and
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