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Borrower and Lsndes covenant and agses as follows: ~
1. Psyssent of Prlaeipal sad Interest. Borrower shsL promptly pay when due the principal of-and interest on the indebtednep
evideaoed by the Note. prepayment sad late chargw as provided in the Note. sad the principal of and interest on say Future Advances secured
by this Yertgage.
Fmds for Tares sstd Insrtrane~. Subject to applicable law or to a written waiver by Lender. Borrower shall pqy to Lender on the day
monthly iastaUmedt4 of principal sad interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds' equal to oaa
twelfth of the yearly taxes and aseesseaenb which may attain priority over this Mo::gaga. and ground rents on the Property. italty. phis ons•
twelfth of yearly premiaim installments four hazard insnrutce. plw onrtwelfth of yearly premium installments for mortgage insurance, itany,
,eui as reasuau`iilji ei'iuiiw: iiu
Wes' aid ir's»~rs ifntc to ~:t lzy I~-ndts ~ the l.ai.:+f ._w.edmeat: and bWs and reasonable sstip~atM thereof. -
'llts hltnds shall be held in an institution the dspodts or aeoouats of which are insured or guaranteed by a Federal or State agency
(including Gender if Lender is such an irutitutior?~ Leader shall apply the Funds to pay acid lases. assessments, insurance prwaiums and
gronad roots. Leader may not charge far so holding and applying the Fends. analysing acid account, or verifying and compiling said
aasessnaeats and bill, nnka Lender pays Borrows: interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Leader slay agree in writing at the time of esecntion of this Mortgage that interest oa the Funds she~U be paid to Borrower. and unless
arch agreerneat is made or applicable law regoires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings ort the Fnnc4. Lender shall give to Borrower. without charge. an annual aooounting of the Funds showing credits and debits to the
Funds and the pnspose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this
Mortgage.
Uthe amount of We Funds held by I.ender. together with the future monthly installments of Funds payable prior to the due dates of fazes.
assessments, insurance premiums and ground rents. shall e:ozed the amount required to pay said fazes, assessments, insurance premiums
and ground rents as Wey fall dam, such ezoess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly installments of Fends. If the amount of the Funds held by Lender shall not be sufficient to pay tales. assessments, insurance 's
premiums and gronad rents as they fall due. Borrower shall pay to Lender any amount neoeaary to make rap the deficiency within 90days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in fell of all snma securedby this MottgaHe, Lender shall promptly rotund to_13orrower any funds held by Lender. Tf seder
paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender. bender shall apply. no laE~
than immediately prior..
to the ask of the Property err its sognisition by Lender. any PYrnds held by Lender at the time of application as a credit against the sums secured.
by this Mortgage.
3. Applk:aNoa of Payments. Unleaa.appUcabk law provides otherwise, all payments received by Lender antler We 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 principal oa any Future Advances.
4. Charges; Liens. Borrower shalt 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 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, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Borrower shall not be requireclto discharge any such lien so long as Borrows. 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 rnntest such lien by, or defend enforcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL
5. Hazard Insursnce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended coverage," and each other hazards as Lender may require and in such amounts and far 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 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,~direetly 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 favoi 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
mender 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 thin Mortgage ie not'thereby impaired. If such
restoration or repair ie not economically feasible or if the security of this_Mortgage would be impaired, the insurance proceeds shall be applied
to the anma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fai4 to
respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier oi'l'ers 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 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 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 proceeds
thereof resetting from damage to Property prior to the sale or acquisition shall pass to Lender to the eztent of the sums secured by this
Mortgage imm:~diately prior to such sale or acquisition.
6. Preservatlon and Maintenance otPmperty; Leaseholds; Condominuma; Planned Unit Developments. BorrowerahaU 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 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 eonatitaent documents. If a
rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and
agreements of such rider.ahall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as ifthe
rider were a part hereof.
7: Proteetlou of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is e~aneneed which materially affects Lender
s interest in the Property, including, but not limited to, eminent domain,
insolvency, code enforcement, or arrangements or proecedings involving a bankrupt or decedent, then Lender at Lender's option,npon
notice to Borrower may make such appearances, disburse such cams and talcs each action asu necessary to protect Leader's interest,
including, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Tf I.enda required
mortgage iwnranoe as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums repaired to maintain
such insurance in efYect until such time as the requirement for such insurance terminates in aeoordance with Borrower's and Leaders
writtm agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided Wade:
paragraph 2 hereof.
Aa;/ amounts disbursed 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 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 undo 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 highest rate permissible under applicable law. Nothing rnntained in this. paragraph 7, shall
require Lender to incar any expense or take say action hereunder.
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