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Borrower sect Leader ooraaant sad apes as folkrws:
1. Pa~y~estt of Ptrlat3aal sad Iissterest. Borrower shall p~PuY Day when due the principal of and interest on the indebtedness
erideaoed by the Note, prepayraeot sad late ehrtrgesar Provided it the Note. sad the principal of and interest on any Il~tare Advance secured
by this Morlgag;e.
2 PWrds for Taws surd Iasuraa~oe. Stirbject to appdieabk law a to a written waiver by Lender. Borrower shall pay to [.ender on the day
monthly inatalhoeats o[priaopal and interest arse payable under the Note. until the Note is paid in full, a sum (herein "Funds'?equal to one•
twelRh dtbe yearly taxes sad assessmatts whidt may attain priority over this Mortgage. and ground rents on the Property. if any, Plus one-
twelfth dyesrly peemiom im411mentsfor hasard insurance, plnsone-twelfth otyearly premium installments for mortgage insurance. if any.
all a. r+araoaably estimated initialbr and fecal time to time by Lender on the basis of assessments and bills and reasonable estimates thereof
7be Fltnds shall be held in an inatitstioo the deposits or aocatrts of which are insured or guaranteed by a Federal or State agency
(indading I.errder ii Larder is such an ia~stioa). Leader ehs11 apply the Funds to pay said taxes, aasesamenta, insurance premiums and
ground rents. Iaader may rot d~args far so boidiag sad applying the Fonda. aratyairg said account, or verifying and compiling said
arsesemcnts and bilb. unless header pays Borrower iuterestoa the Funds and applicable law permits Lender to make such a charge. Borrower
and Larder may spec is writing at the tisse d ezecvtioa of this Mortgage that interest on the Funds shall be paid to Borrower. and uriless
sash agreement is made a applicable law regs~ira such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings m the Finds. Leader shall give to Borrower. without charge, sn arnnal e~cconnting of the Funds showing credits and debits to the
Funds and the purpose for which each debit to the Fonda was made. 7be Fends are pledged as additional security for the sums secured by this
If the amount dthe Islands held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes.
assessments, insQance premiums and ground rents. shall e:oied the amount required to pay said taxes„ assessments, insurance premiums
and ground rents sa they fall due, such a:uas shall be. at Borroower'a option, ether promptly repaid to Borrower or credited to Borrower on
monthly installments d t?snds. Ii the amount of the Fonds held by Lander shall not be sufficent b pay taxes, assessments, insurance
premiums sad ground ren4 as they 611 due. Borrower shall pay to lender any amount necessary to make rep the deficiency within 30 days
from the date notice is mailed by Leader to Borrower requesting payment thereof.
Upon payment in full daU sums secured by this Mortgage, I.eade:shall promptly refund to Borrower any funds held by Lend. If render
paragraph 18 baeof the Property is sold or the Property is otherwise aegnircd by larder, Lender shall apply, no later than immediately prior
to the Gale dthe Property ar its acquisition by Leader, any Fends held by Trader at the time of application as a credit against the sums secured
by this Martgagw
3. Applleatioa d Payments. Unless applicable law provides otherwise. all payments received by Lender under the Note and
paragraphs 1 sad 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 oa the Note, tbea to the principal of the Note, and then to interest and principal on any Future Advances.
Clsarger Lena. Borrower shall pay all tares, assessments and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgages and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in arch manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furnish to Lender
all notices of amounts due Hader this paragraph, and in the event Borrower shall make payment directly, Borrower sh all promptly furnish to
Lender receipts evidencing such payments_ Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall red 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.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by
fire, hazards inducted within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such
periods as bender may require; provided, that lender shall not require that the amount of such coverage exceed that amount of coverage
required to pay the same aecared by this Mortgage_
'Ibe insurance carrier providing the insurance shall be chosen by Iorrower subject to approval by Lender, provided, that such approval
shall not be unreasonably withheld. AU premiums on insurance prlicies 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 insurance carrier_
AU insurance polices 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 hoW the policies and renewals thereof, and Borrower shall promptly furnish to
under all renewal notices and all receipts of paid premiums_ In the event of loss. Borrower shall give prompt notice to the insurance carrier
and Leader. Leader may make proof of loss if not made Promptly by Borrower_
Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided sock 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 secsred 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 Leader within 30 days from the date notice is mailed by Lander to Borrower that the insurance carrier offers to settle a claim for
irrasrance benefits, Trader is authorized to collect and apply the insurance proi~eeds at Lender
a option either to restoration or repair of the
Property or the sums sccmed by this Mortgage_
Unless Iander and Borrower otherwise agree in writing, any such application of proceeds W principal shall not extend or postpone the due .
date d the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount otsuch installments. If under paragraph 18
tiered the property is acquired by Lander, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
thereof reanlting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this
Mortgage immediately prior to each sale or aogaisition_
6. Pr+eservatioa and Yainteaanoe dProperty: I,easelwids; Condominums; Planned Unit Developments. Borrower shall keep
the property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the
provisions d 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 d Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned
unit development, the by-laws and regnlataorra of the condominium or planned unit development, and rnnstituent documents. If a
condominium or planned aril devebpment rider is ezecated by Borrower and rernrded together with this Mortgage, the eovenanta and
agreements of each rider shall be incorporated into and shall amend and supplement the cvvenants and agreements of this Mortgage as if the
~ rider were a part hereof_
7_ Pr+oteetioa of Leader's Seenrity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is eossnneneed which materially affects Lender'r interest in the Property. inducting. but not limited to, eminent domain,
insolvency, code enforcement. a arrangements or proceedings involving a bankrupt or decedent, then Lender at Iander's option,upon
notice to Borrower may make each appearances, disburse such arms and take such action as is neoeaaary to protect larder's interest,
iadoding, but not limited to, dirbarsemeat d reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
mortgage insurance s. a condition of malnng the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
such iasaranoe in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Ierdds
written agreement or applcabk Law_ Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render
paragraph 2 hereof.
Any amosats disbarred by I.ende: persnant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured L7 this Mortgages Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon
notice 5om Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable G+om
time to time on oststandirrg prineipe) under the Note unless payment of interest at such rate would be contrary to applicable law, in which
event arch amounts shall bear interest at the highest rate permiasibk render applicable law. Nothing contained in this paragraph 7, shall
require Lander to incur any expeare or take any action hereunder.
~~~K315 Pa~E 245
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