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Ut+ttrouw Oovar+at+ts. Borrower and Leader covenant and agree u follow::
>ti. )lbtwN/ et ltLelral tttM laleaM. Borrower shall promptly pay when due the principal of and interest oa the
iudebtednt:a sviderroed by the Note. prepayment and late clwrges u provided in the Note, and the principal of wad interest
ea trap Futuro Advances stxtrred by this Mortgage.
l1tMs !ir 7lsass tttrti laeaa¦ee. S~rbjtxt to applicable law ~x to a written waiver by Lender, Borrower shall WY
to Lender on the day monthly itutalUnents of principal and inttrect ire paysbk under the Not0. until the Note is paid in full,
a soot (herein "Ftmds'~ equal to ortatwelfth of the yearly tax~~ and assessments which may attain priority over this
Motrtgage, wad ground react oa the Property, it any.-plus one-twelfth of yearili' premium installments for heard insurance,
plus one-twelfth of yearly premium installments for mortgage inurrance. it any, all as reasonably estimated initially and from
time to time by Lender oa the bzsis of assessments and hills and reasonable estimates thereof.
'lire Ftatrds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal of
tttate agency (inchuding Lender if Lender is such an institution). I.etxler shall apply the Funds to pay said taxes, assessments,
iawraooe premiwrrs wad ground teats. Lender may not charge for sn holding and applying the Funds. analyzing said account,
or verifying wad compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable !aw
permits Leader to make tnrch a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a made or applicable law
requires wch interest to be paid. Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbap give to Borrower, without t:harge, an annual accounting of the Funds showing crtdits 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 sums secured
by this Mortgage.
If the traitount of the Funds beW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes. assessrrreots. inwranoe premiums and ground rents, shall exceed the amount required to pay said taxes.
assdogments, insurartoe premiums acrd ground rents u they fall due. such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
6dd by Leader shall not be wfiicieat to pay taxes. assessments, insurance premiums and ground rents ss they [all due.
Borrower sbap pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
br Leader to Borrower requesting payrneM thereof.
Upon paymnot in full of all sums stxured 4Y iris ~ortg~ge„ Ca~e~1 promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof'the Piopehyis sol_ ttie rty~rt otherwise acquired by Lender. Lender
shall apply. rro titer than immediately prior to the sale of titre *io~aill.ott itit acquisition by Lender, any Funds held by
Leader st the time of appticatitra as a credit agaisst the sutrts,=septr~ 6y=>jhis Mortgage.
3. A~ikatioa of PgmetNs. Unless applicable hw.provides.otherwise. all payments received by Lender under the
Note and paragraphs 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 the Note. then to the principal of the Note, and then to interest and
_priap_pal on anL?
Future Advances. T
4. Crarzesy Lieas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any. in the manner
providod 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 amounts due under. this paragraph. wad in the event
Borrower shall make payment directly. Borrower shall promptly famish to Lender receipts evidencing such payments.
Botrorrer shall promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be
requited to discharge any such lien so bng as Borrower shall agree in writing to the payment of the obligation secured by
such lien in a manner aceptabk to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Ilsaard Irtwra~ce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loos by fire, hazards included within lire term "extended coverage", and such other hazards as Lender may require
wad in such 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 coverage required to pay the sums secured Eby 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 dte, directly to fire
j insurance carrier.
k 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 Borrower 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 loos if not made promptly
by Borrower.
• Unless Lender and Borrower otherwise agree in writing, insurance procceds 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 rconomically feasible or if the security of this Mortgage would
I 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 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 to 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 monthly installments referred to in paragraphs t and 2 hereof or change the amount of
such irutallmeuts. If under puagraph 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 the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
f. Preservation and Maintenance of Property; Leaseholds; Condominiums; Phnoed Unit Devebpments. Borrower
shall keep the Property in good repair and shall not comrt)it yvaste 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 a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or glanced unit development, and constituent documents. If 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.
~ 7. Prolectioo of Ltode~s Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s cxrmmencrd which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain,~Snsolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then lender at tender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such 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 repairs. If Lender reyuircd mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
inuurance in rffect until such time as the requirement for such insurance terminates in accordance with Borrower s and
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