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Borrowerr sad Leader oovaaaat and ogees Y folbvrs: #
1. PayraeAt of H ineipal and Iataewt. Borrower ahaA Pmmpt~y Pay whoa dw the prindpal of and iaterYt oa tba indebtedneY
evidenced by the Note, prepayment and late charges Y provided in the Not, and the priadpal of and interest on any Future Advaaoee secured
by this >i[ortgage:
Z. >Ptieada for Tasea sad Ieuuranoa Subject to applicable law ~ to a written waiver by Leader, BorrowershaA pqy to Leader on the dsy
monthly installments atprineapal and interest errs payable under the Note, until the Note iu paid in full, a sum (herein "Funds' equal to ores
twelfth othee yearly to:ea sad aweameats which may attain priority over this Mortgage. and ground rants oa the Property. if any. Plus otir
twelfth of yearly premium iastal>meat far hasard insurance, plus onetwelith of yearly pres6ium installment for mortgage iruuranoe, Uany,
all Y reasonably estimatd initially and fk+om time to time by Lender on the basis of assessment and bilhf and reasonable estimates thereof:
The Funds shaA be held in as iastipttioa the deposits or :ooount of which are iwnred or guaranteed by a Federal or State agency
(including Leader U Lender is such an iastitntion). Lender stall apply the Funds b pay said lase, assessments, ieuuranoe premiums and
ground rents. Lewder may not Burge for so holding and applying the Fends, analysing said aceonnt, or verifying and eompiliag said
assessment sad bills. unless Lender pays Boerovror interest on the Fends and applicable law permit Lender to mate such a charge. BoerowK
and Castle: m+lY agree is writing at the time of execution of this Mortgage that interest on the Ptimds shall bs paid to Borrower. sad unless
such ageeea?eett i. made or applicable law requires each interest to be paid, Lender shall not be required to pe(y Borrower any intered or - _
earnings oa the Fonda. Lender shall give to Borrower. wiWont charge, an annual aeoounting of the Funds showing credit and debit to the
finds and the purpose for which each debit to the Fonda was made. The Funds an pledged as additional security for the luau secured by this
Mortgage.
If the amount of the Farads held by Lender. together with the future monthly installments of Fends payable prior to the due dates oftases,
aasesemants, insntaaoe premiums and ground rents. shall esoaed the amount required:to pp? saidtttsas,~a~fisraents, ituuraaoe premiums '
and ground rent as they fall due, such ezoea shall be, at Borrower's option. either promptlyr~patd to.$orrower or credited to Borrower on
monthly installment of PLrtds. If the amount of the Fends held by Lender shall eat be AnffiNdif id pay taxes, assessments, insurance
premiums and ground rent Y Way fall due. Borrower shall pay to Lender aAy s~nount nawsary to mtNtis itp tlle'de~riency within 3fldays
from the date notice is mailed by Lends to Borrows requesting psyme~it Wereof~ , .
Upon payment is fell mall sums secured by this Mortgage, Lender shall promptly refand to Borrowp= Roy funds. held by Lender. If nnd~
paragraph 18 hereof We Property is sold or We Property is otherwise acquired by Leader, Lender shag apply, no later Wan immediately prior
to We sale of We Property err its acquisition by Lender, any Runde held by Lender at the time of application sue a credit against the soma secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender ender the Note acrd
paragraplu 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 We Note, Wen to the principal of the Note, and then to interest and principal on any Future Advances.
4. Charges; Bens. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to We Properly 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 amount doe under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lends receipts evidencing such payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be required to discharge any such lien ao 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 enforcementof 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 lasurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured againstloss by
fire, hazards included within the term "extended coverage,' and such other hazards as Lender may regaire acrd in such amount and far each
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 aubjed to approval by Lender, provided, that such 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. j
AU insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to
ixnder all renewal notices and all receipt of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of lose if not made promptly by Borrower.
Unleaa 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 ouch
restoration err repair is not economical ly teasi ble 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 the Property is abandoned by Borrower, or if Borrower fails to
respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the inawance carrier offers to setae a claim foe
insurance benefit, Lender is authorized to rnllect and apply the insurance proceeds at Lender
s option either to restoration or repair of the
Property or 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 monWly installment referred to in paragraphs 1 and 2 hereof or change the amount of ouch installment. If under paragraph 18
hereof We 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 malting from damage to Property prior to the sale or acquisition shall pass to Lender to the aslant of the auras secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condorninums; 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 We
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 Borrower's obligations under the declaration or covenant creatingor governing the condominium or planned
unit development, We by-laws and regulations of the condominium or planned unit development, and oonstitnent documents. If a
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenant and
agreement of such rider anal) be inrnrporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the
rider were a part hereof.
7. Protedia~n of Lender's Security. If Borrower fails to perform the eoveaant and agreement contained in this Mortgage, or if any
action or proceeding is commenced which materially atfeet Lender's interest in the Property, including, bet sot limited to, eminent domain,
insolvency. code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon
notice to Borrower may make such appearances, disburse such sums acrd take such action as is neoeesary to protest Lenders interest.
including, but not limited to, disbursement of reasonable attosaey's fees and entry aeon the Property to make repairs. If Lends required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shat! pay the premiums required to maintain
such inenranoe is effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lenders
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender
paragraph 2 hereof.
My amount disbnreed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amount shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time b time oa outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which
event sneh amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall
require Lender to incur any espouse or take any action hereunder.
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