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Bon+owar and Leader ooveaaat sad agrw as follows:
1. Payseat of Prlae[pal sad Iaterert. Borrower shall promptly pay when dw the principal of sad interest oa the indebtedness
evidenced by tM Note. parepaymsat sad tats charges w prov~dd is the Nots.sad the prindpal of and interest on any Plrture Advances secured
by thb.~t~
9. I#lsada for Taxes sad lanrraaoe. f3ubjed to appGcabk law or to a written waiver by Lender. Borrower shall pay to Lender on the day
monthly iruWlmeats of priadpal sad iatarest are payable under the Note, until the Note is paid in full, a sum (herein "Funda'~ equal to oaa
twelfth oithe Yw~ taxes and anessraents which may attain priority over this Mortgage. and ground rents on the Property. if say, plus one
tweMh of yearly? premium inatalhneats !a hasardinsurance. plwone-twelfth of yearly premium indallments for aortgage insurance, Uany.
all as reaswrably estimated iaitial(y and!'rom lima to time by Lender on the basis of anepmeats and bills and reawnabk estimates thereof
TM Pbads shall b~ heW is an iastitntioa the deposits or aooounts of which an insured or guaranteed by a Federal or Slate a~geacy
(including Lender if Loader b such as inatitntioa). Leader shall apply the Funds to pay said tares, aaesamaats. insurance premiums and
ground rents. Iwader may not dusge far so holding and applying the Funds. analysing said account, or vedfying and compiling
asssawnenb sad bills. nnlsa Leader pays Borrower interest on the Funds and appGcabk law permits Lender to make such a charge. Borrows:
and Lender may agree in writing at tM time of esecatioa of this Mortgage that interest on the Funds shall be paid to Borrower. and oaten
such agresmeat k made or appdicabls law requires such interest to bs paid, Lender shall act be required to pey Borrower any intered or
earnings on the Pander Lender shall give to Borrower, witha~nt charge, as annual accounting of the Funds showing credits and debits to the
Funds sad the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
~rig~
' If the amount of the Funds held by Lender, together with the future monthly inataUmeata of Funds payable prior to the dw dates of lases,
asaesaeseats. iosmanoe premiums and ground reab, shaA esoaed the amount required to pay said Lases, asaesament0. insurance premiums
' and grarnd reab as they fall due, such esosss shat! be, at Borrower's option, ether prorp~tly repaid to Borrower or gpdited to Borrows: on
monthly insWlmeats of Pbnds. If the amount of the Fends held by Leader shall not be'sn~ieient to pay tares, assessments, insurance
premiums and ground rents as they fall dw, Borrower shall pay to Lender any amount neoeseary to make up't~e tkfidency wiWin 30 days
from the date notice is mailed by Lender to Borrower requesting Payment thereof.
Upon pe?ymeat is fall d all sums secured by this Mortgage. Lender shall promptly. refund to Borrower say fu_ reds held bYI~andEr. If under
paragraph 18 hereof the Property is sold or the Property is otherwise aequircd by fender, Lender shall apply, no later tart immediately prior
to the sale of the Property or its acquisition by Lender. any Fonda held by Lender et the
time of application as a credit agains3 the sums secured
by this Matga~ge.
3. Ap+plicatioa of Payments. Unleea applicable law provides otherwise. all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrows under paragraph 2 hereof
they to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advaaoea.
4. Charges; I3eyrs. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable'to the Property which
may attain a priority ova this Mortgage. and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or,
if not paid in such meaner, by Borrower making payment, when due, directly to the payee thereof. Borrowerahall promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to i
Lender receipts evidencing rush payments. Bonrower shall promptly discharge any lien which has priority over this Mortgage; provided, that '
Borrower shall not be required to discharge any such lien eo long as Borrower shall agree in writing to the payment of the obligation aecu red by
such Gen in a manner acceptable to Lender, or shall in good faith rnnteat 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 included within the term "extended coverage; 'and such other hazards as Lender may require and in eud? 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 rnverage
required to pay the sums secured by this Mortgage.
The insurancecarrie:-providing the insurance shall 6e.chosen_by.Borrower sublect to approval by i.ender, Provided. that $uch_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 insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable b 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 Borrower shall promptly furnish to
fender all renewal notices and all receipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carrier
and Leader. 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 shdll be applied
' to the sums secured by thin Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to
t respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for
~ insurance benefits, [.ender is authorized to rnllect and apply the insurance proceeds at Lender s option either to restoration or repair of the
~ Property or the arms secured by this Mortgage.
Unless bender 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 ender 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 Property prior to the sale or acquisition shall peas to Lender to the extent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; 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 of any leans 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 Borrower's obligations under the declaration or covenants crealingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent docwnents. I[ s
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and
agreements otauch rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the
rider were a part hereof.
~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lendei s interest in the Property. including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon
notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect I.endet's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
mortgage insurance w a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
~ each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendds
written agreement or applicable Law. Borrower shall pry the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by thin 1lfortgage. Unless Borrower and Lender agree to other terms of payment, ouch amounts shall be payable epos
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law, in which
event each amounts shell bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall
require Lender to incur any ~pense or take any action hereunder.
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