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BorrowK and Lender covenant and asr00 Y follows:
1. Pyment of Principal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedness -
evidatoed by thaNote, prepaymattand fats charges u provided In the Nola. and the principal of and interest on aqy Future Advances secured
by this Mortgage, .
2 Fltnds t~ Tasee and Inattraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly irutallmatq of Principal and interest are payable wader the Note. until the Note is paid is full. a sum (heroin "Funds'h equal to one
twelttlt of rho yearly to:a sad assessments which may attain priority eves thin Mortgage. and ground rents on the PropectY, if any, Ptus ones _
twelfth of yearly premium installnaatts far hazard inaurartee. plw oneâ˘twdith ofyearly premium installments for mortgage insurance, if any,
all u reasanably estimated initially and Access time to time by Lender on the basis of aasessmenta and bilb and reasonable estimates thereof.
'Ibe Funds shall be held in an institation We deposits or amounts of which are insured or guaranteed by a Federal or State agency
(inducting Leader if Larder is arch an inatitntion). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and
tn'onnd ratter. Leader may not charges foe so hoWiag and applying the Funds. analysing acid account. or verifying and compiling said
assessments and bills, soles Luderpayt Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader may agree in writing at the time of execution of thin Mortgage that interest on the Fiords shall be paid to Borrower. and unless _ -
such agneoasat is made or applicable law requires such interest to be Paid Lender ahail not bs required to pay Borrower any interest or
earnings on the Fonds. bender shall give to Borrower, without charge, an annual aooounting of the Ptitads showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged u additional security for the soma secured by this
Mortgage.
If the amount of We FStnds held by Lender, together wiW the future monthly installments otFLnds payable prior to the dues dates of taxes,
aaseseraenta, insurance Premiums and ground rents. shall e:oaed the amount required b pay ;e~idtaxes. assessments, insurance premiums
and ground rents u they fall doe, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited b Borrower on
monthly installments of Funds. U the amount of the Funds held by Lender shall not Ire stttGCietit to pay taxes. assessments, insurance
premiums and ground rertts u they fall due. Borrower shall pay to Lender any amount necusltry to atake~t~the cte5ciency within 30 days
from the date notices is mailed by Lender to Borrower requesting Payment thareo! .
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrowe~Lhjr'fitnds held by Lender. If under
Paragraph 18 hereof the Proper#y is sold or the Property 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 I~nda held by Lender at the time of application u a credit against the sums aecared
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender under the Note and
Paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof.
then to inGenea! payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances.
Charles; Liens. Borrower shall pay all taxes, asaesamenta and other charges, fines and impositions attributable b 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 such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershal! promptly furnish to Lender
all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly funsiah to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that
Borrower shall not be required to discharge any such lien so long as Borrowerahall agree in writing to the payment oftheobtigation secured by '
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend 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 againstloss by
fire, hazards included within the term "extended coverage; 'and such other hazards as Lender may require and in such amounts and forauch
periods as Lender may require; provided, that Lender shall no! 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 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 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 Borrowerahall promptly furnish to
i.ender 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 inauranceproceeda shall be applied
to the soma 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 bene6te, Lender is authorized to eollert and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property os the awns secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing. any such application of proi~eeda to principal shall not extend or postpone thedue
date of the monthly installments referred to in paragraphs 1 and 2 hereotor 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 proceeds
thereof resulting fiom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the auras secured by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep
the Property in good repair end shall not commit waste or permit impairment or deterio_ ration of the Property and shall comply with the
provisions of any lease if this Mortgage ie 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 creatingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. I! a
condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the 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.
T. Protection of Lender's Security. I[ Borrower fails to perform the covenants 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, rode mforcement. or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse such some and take etch action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repair. If Lender required
mortgage insurance u a rendition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until ouch time as the requirement for such insurance terminates in aroordance with Borrower's and Lender's
written agreement ~ applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage- Unleea 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 oa outstanding principal under the Note noises payment of interest at such rate would be eontrery to applicable law, in which
event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7. shall
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require Lender to incur any a:penes or take any action hereunder: - -
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