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Borrower and Leader oovenaat and agree as folbws:
1. Paya+ent of Peine[pal and Interetk Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note. prepayment and Lte chattel u provided is the Nots, and the principal of and interest on any Ptirture Advances secured
by this Morttate~
Z, I+~tads tor'Ta:er and Inwranoa 9ubjed to applicable law or to a written waiver by Lender, Borrowershall pay to Lender on the day
monthly installments of principal tad interest are payable under the Note. until the Note is paid in full, a sum (herein "Flrnds'7 equal to core
twelitlr of the yearly taxes and assessmenb which may attain priority over this Mortgage, and groundrents ontheProperly, ifany, plw ors -
twelfth ofyearly premium inslallaaen4 Los hazard insurance, Plus one•twelRh otyearly premium installments for mortgage insurance, if any,
~ all as reasonably estimated initially and lkom time to time by Gender on the basis of assessments and bilhz and reasonable estimates thereoL
The Fwrds shill bs heid in an institntian the deposib or aooounta of which an inaused or guaranteed by a Federal or State agency
(inclndint Lender U Lender is such an institution. Lender shall apply the Funds to pay said taxes. asaessaaents, insurance premiums and
ground rsnb. Lender may not charge for so holding and applying the Plrnds, analy:in~ said aooount, or verifying and compiling said
asaesm~enta and bill, nnlw Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader may ague in writing at the time of ezecution of tbir Mortgage that irrtered on the P~rnds shall bs paid to Borrower, earl nnlea
such agreement is made or applicable law require such interest to be paid, Lender shall not be required to pay Borrower any interact os
earnings on tbs Phnda. Lender shall give to Borrower. without charge. an annual eooounting othhe Ftirnds showing credits and debits to the
Fonda and the purpose for which ee?ch debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage. ;
Itthe amount of the PLnds held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes,
aasesaments, inanranoe preminnu and ground rents. shall exceed the amount required to pay said to:es, assessments, insurance peemiuma
and ground renb as they tall due, such excess shall be, at Borrower's option. either promptly repaid to Bocrosr~ or credited b Borrower on
monthly installments of Pbnda. U the amount of the Flrnds held by Lender shall not be sufficient to pay taxes, aasewanerrts. insurance ` _
premiums and troand rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the dei~idency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof ~
Upon payment in tali of aA sums secured by this Mortgage. Lender ahaU promptly refund to Borrower any funds held by Lender. Uunder
paratraph I8 hereof the Property is sold or the Propesty is otherwise acquired by Lender. Lender shall apply, no later than immediately prior
to the sale of the Property or its acquisition by Lender. any Igrnda held by Lender at the time of application as a credit against the auma secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 here shall be applied by Lender Brat in payment of amounts payable to Lender by Borrower ender paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principai on any Patera Advances.
!.Charges; Lieers. Borrower shall pay all taxes, assessments and other charges. fines and impoaitiona 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 each meaner, by Borrower making payment, when due, directly to the payeethereof.-&trrower Shall promptly furnish to Lender
y, promptly furnish
to
all notices of amounts due under this paragraph. and in the event Borrower ahatl make payment directl Borrower shall
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrows 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 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againatloss by
fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch
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 soma secured by this Mortgage. ,
The insurance carrier providing the insurance shall be chosen by Borrower subject 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 hereofor, if
not paid in such manner. by Borrower making.payment, when due, directly to the insurance carrier.
AU 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 $orrower 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 arms 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 insurance carrier offers to settle a claim for
insurance benefits. 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 proeeeda 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 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 proeeeda
thereof resulting from damage to Property prior to the sale or acquisition shall pees to Lender to the a:tent of the sums secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominuma; 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 lease if this Mortgage is on a leasehold. If this Mortgage is on s unit in a condominium or a planned unit development,
Borrower shall perform all of Borrower a obligations under the declaration or rnvenanta creatingor governing the rnndominium or planned
unit development, the by-laws and regulations of the rnndominium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is executed by Borrower and rernrded together with this Mortgage, the covenants and
agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the
rider were a part hereof.
Protection of Lender's Security. If Borrower fails to perform the eovenante and agreements contained in this Mortgage. or if any
action or proceeding is commenced which materially affects Lender
s interest in the Property. including. but not limited to, eminent domain,
insolvency, code enforcement, or arraagemeats 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 Lendds interest,
including, but not Waited to, disbursement of reasonable atbtney's foes and entry upon the Property to make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain
such inanr~anoe in effect until such time as the requirement for such insurance terminates in accordance wild $orrower's and Leadds
written agreement ~ sppficable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender pereuant to Chia paragraph with interest thereon. shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such amounts 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 to time on outstanding principal Hader the Note unless payment of interest at such rate would be contrary to applicable law, in which
event each amounts shall bear interest at the highed rate permiaaible under applicable law. Nothing contained is this paragraph 7, shall
require Lender to incur any expense or take any action hereunder.
6UOK•,15 P~~E1962