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Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest oa the indebtedness
evideaesd by the Nots, prepayment and late charges as provided in the Note. and the principal of and iaterat oa any Ftirture Advances secured s
by this Mortgage.
g. Funds for'I`a:es tad Insurances. t3ubjed to applicable law or to a written waiver by Lender, Borrower shal l pay b Leader on the day }
monthly iraatallmenta of prindpal and interest are payable under the Note. until the Note is paid is full, a sum (herein "Funds'? equal to ono-
twelftW of the yearly to:es and assessments which may attain priority over this Mortgage. and ground recta oa the Property, ifany. plw oae-
twelfth ofyearlypremium indalhneatsfor hasard inauraace.plus oao-twelfth ofyearly premium installments for mortgage inswance. if aqy,
all as reasonably estimated initially and tkom time to time by I.rnder on We.basis of assessments and bilb and reasonable estimates thereof.
The I+lrnda shall be held is as inditutioa the depodta or aecouats of which are insured or guaranteed by a Federal or State agency
(inducting Leader if Leader is such an iastitutioa). Lender shall apply the Fwada to pay said lases. assessraeats, insurance premiums and
groamd rents. Leader may not drarge for so holding and applying the Funds, analysing said account, or verifying sad compiling said
asseeameats and bills, unless Leader pays Borrower interest oa the Funds and applicable law permits bender to make such a charge. Borrower
and Lender may agree is writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
anch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower. without dlarge, an annual accounting of the Funds showing credits and debits to the
Funds sad the purpose for which each debit to the Funds was made.llae Funds are pledged as additional security for the Bums secured by this
Mortgage. .
If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments. insurance premiums and ground rents, shaA esaaaed the amount required to pay said tares, aase8aments, insurance premiums
and ground rests as they fall due. such esoees shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installmenb of Funds. U the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance
premiums and groamd rents as Way fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from We date notice is mailed by Lender to Borrower requesting payment Wereof.
Upon payment is fall of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Uunder
paragraph 18 hereof the Property is sold or the Properly is otherwise acquired by Lender, Lender shall apply. ao later than immediately prior
to We sale of the Properly ear its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured
by Wis Mortgage.
3. Applicttion of Ptyanents. Unless applicable law provides oWerwise, all payments received by Lender under We Note and
paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender bq Borrower under paragraph 2 hereof,
Wen to interest payable on We Note, Wen to the principal of We Note, and Wen to int~er+eat and principal on any Future Advances
4. Charges; Liens. Harrower shall pay all fazes, 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 manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to l.ender
all notices of amounts due under this paragraph, and in the avatar Borrower shall make payment directly, Borrower shall promptly furnish b
Leader receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over Win Mortgage; provided, W at
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 meaner acceptable to Lender, or shall in good faiW contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Properly or any purl thereof.
5. Hasard Insurance. Borrower shall keep We improvements now ezisting or hereafter erected on We Properly insured against lose by
fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for anch
periods as Lender may regair+e; provided, Wat Lender shall not require such coverage amount exceeding We minimum, as may berequir+ed by
state or federal regulations governing activities of Lender, or that amount of coverage required to pay We awns secured by this Mortgage,
whichever is We greater.
The insurance carrier providing We insurance shall be chosen by Borrower subject to approval by Lender-, provided, Wat such approval
shall not be unreasonably withheld. All premiums on insw~atace policies shall be paid in We manner provided under paragraph 2 hereof or, if •
not paid in anch manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals Wereof shall be in form acceptable to Lender end shall inducts a standard mortgage clause in favor of
and in form acceptable b Lends;. Leader shall have the right to hold We policies and renewals Wereof. and Borrower shall promptly furnish to
Lender all renewal notices and all receipts of paid premiums. In We event of loss, Borrower shall give prompt notice to We insurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
~ Unless Lender and Borrower oWetwiae agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
f damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such
restoration or repair is not economically feasible or if We security of this Mortgage would be impaired, We insurance proceeds shall be applied
C to We same pecnred by Wiz Mortgage, wild We ezoeae, if any, paid to Borrower. UWe Properly ie abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days from We date notice ie mailed 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 We swan secured by this Mortgage.
Unless Leader and Borrower oWerwise agree in writing, any anch application of proceeds to principal shall not estend or postpone the due
date of We monthly inatallanenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Unnder paragraph 18
hereof We Property is acquired by Lends:, all right, title and interest of Borrower in and to any insurance policies and in and to We proceeds
thereof reanltirrg from damage to Property prior to We sale or acquisition shall pass to Lender to We eztent of the sums secured by this
Mortgage immediately prior to wch sale or acquisition.
6. Preservation and liainteaanoe of Property; Leaseholds; Condominnme; Planned Unit Developments. Borrower shall keep
~ the Properly in good repair and shall not commit waste or permit impairm~at or deterioration of the Properly and shall comply wild We
provisions of any lease if this Mortgage is on a leasehold If Win Mortgage is on a unit in a oondominiwn or a planned unit development,
Borrower shall perform all of Borrower's obligations ender We declaration or ooveaante creatingor governing We oondominiwn or planned
unit development, the by-laws and regulation of We awndotnininm or planned nail development, sad oonetituent docamenta. If s
wndominium or planned unit development rider is ezecated by Borrower and recorded together wild this Mortgage, We 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 Leader's Security. U Borrower fails to perform We covenants and agreements ooatained in this Mortgage, or if anY
action or proceeding is oommenoed which matearislly affects Lendet'at interest in the Property, inducting, but not limited to, eminent domain,
~ insolvency, code enforcement, or arrangements or proceedings involving a banknapt or deoedeat, Wes Lender at Lender's option,npon
notice to Harrower may make anch appearanoea, disburse anch soma and take anch action as is necessary to protect Lender's interest,
iadoding, but not limited to, diabunement of reasonable attorney's fees and entry upon We Properly to make repairs. U Leader required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay We premiums required to maintain
wch ineanutee is effect until anch time as We regniremetat for each insurance terminates in aeoordance wild Borrower's and Leader's
written agreement ear applicable Law. Borrower shall pay We amount of all mortgage insurance premiwas in We manner provided ender
Paragraph 2 hereof.
Any amounts disbursed by Lender persuant to Win paragraph 7, wild interest Wereon, shall become additional indebtedness of
'y Borrower secured by this Mortgage. Unlace Borrower and Lender agree to older terms of payment, anch amounts shall be payable upon
notice from Lender to Borrower repneatiag payment Wereof, and shall bear interest from We date of disbursement at We rate payable From
time to time on outstanding principal ender We Note unless payment of interest at each rate world be contrary to applicable law, is which
event anch amounts shall bear interest at the highest rate permisdble under applicable law. Nothing contained in Wiz paragraph 7, shall
require Lender to incur say expense or take any action hereunder.
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