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Urttrotut Cbvst+ewts. ltorrower and Deader covenant and agree ss follows<:
>i, ptpttttept et teisei}al ttaatt iipMeesl. Borrower Mall promptly pay when dw the principal of sad interest oa the
iudobl0druts evidoaoed by the Note, prepayraeat and late charges as provided in the Nose. and the ptMtcipal o[ and iaterettl
oA troy Ftatture Advaaas secured by this Mortgags.
>Erris tar 7lttoee ttatM iaeetris~ Sttbjet:t to applicable law or to a written waiver by [render. Borrower shall pay
to Lender oa the day ttsanthly installments of principal and ipterest arc.payabk under the Note. until the Note is paid in fop.
al atop (hsrek "Ftrrtde'~ egwl to one-twelfth of tM yearly tsx~ and assesamatt: which may attain priority over this
Mottjage, and p+oufid goats oa the Property, if any, plus oaatwelfth of yearlli~ praaittm installntwtq for hazard irtst~artce.
plus cue-iwelftA of yearly ptr~aium installments for mortgage irutaranoe. it any. all as roasonably estimated initially and fr+ean
bane to time by Lauder oa the basis of sssessments and hills and reasonable estimates thereof.
The Feuds shall be hNd is as institution the deposia or accounts of which aro irtpued or guaranteed by a Federal ar
slats agency (including Fader if~Latder is such an institution). Leoder:tull apply the I'ltttds to pay said tsxes, ss>essuttngt.
iusuraaos pranittna sad ground rents. lender may not charge for sn holding and applying the Futds. analyzing said account.
a veritying.ard competing said assessments and bills. unless Lender pays Borrower interest on the Funds and appliabk bw
ptxmib Leader to make such s charge. Borrower sad !render may agree in writing at the time of execution of Chit
MortBtge that interest .on the Feuds shall be paid to Borrower. and unless :twh agreemart is rttade or applicable law
regtriree such iatetest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. lender
sbaB give so Borrower, without charge. an annwi aeoounting of ate i•u~s srsowing credits and debits to the Funds sad the
purposes for which eadt debit to the Funds was made. The Funs: are pledged as additional security for the :ems secured
this M
If the aptount of the Ftudt held by Lender. together with the future monthly installments of Funds payable prior to
the des dater ott taxes, asst:ssrrteats. irtwrance premiums and ground rents, shall exceed the amount required to pay said taxes.
aeseseaneats. irtawaoos praniums sad .ground rafts ss they tall due. such excess shall be, at Borrower's option. either
prototptly rspaid to Borrower or aedet~d to Borrowtx ou monthly installment: of Funds. If the amount-of-the Funds
held by Laedar-slWl not be sufBcieat to pay taxes, assesatrteats. insuratutx premiums and ground rents ss they fall due.
Borr~nwer ah~tU pay to Larder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leander to Borrower regtsesttiag payment thereof.
Upon payment iu full of all amts sneered by this Mortgage, Leader shall promptly refund to Borrower any Funds
heW by Lender. If tutdtx paragraph 18 hereof the Property a sold or the Property a otherwise acquired by Lender. Lender
:hall apply, rw latex than immediately prior to the sale of the Property or its acquisition by !.ender. any Funds held by
Leader nt the time of application ss a credit sgaiost the sums sawed by this Mortgage.
3. A~Yatlaa et lgeseab. Unless applicable I:w provides otherwise, all payments received by Lender under the
Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof; that to interest-payable oa rho Note.-then to the Principal of-the-Noce, and then-to interest sad .
principal oa say Future Advances.
1. Charger, Lte¦s. Borrower shall pay all taxes, assessments and other charges, fines and impositwns attributable to
the property which ruay attain s priority over this Mortgage. and leasehold payments or ground rents, if any. io 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 Leader all notices of amounts due under this paragraph. sad io the event
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evedencing such payments.
Borrowsr shall promptly discharge any lien which has priority over this Morigsge; provided, that Borrower 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 liar in a manner aooeptabk to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien iq
legal grocudings svhach operate to prevent the enforxement of the lien or forfeiture of the Property or any part thereof.
S. Aarari Inwran~r. Borrower shall keep the improvements now existing or hereafter erected oa the Property insured
against Mess by fire, hazards included within the term "extended coverage". and such other hazards as Lender may require
and 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'by this Mongage.
The inwrance carrier providing the insurance shall be chosen by Borrower subjoct to approval by Lender, provided,
that such approval shall pot be unreasonably withheld. Ali 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
insuraae carrier.
f AU inwrattce policies and renewak thereof shall be in form acaptabk 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.
f and Borrower shall promptly furnish to Lender all renewal notices and all r+ooeipta 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 soars 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 proooeds at Lender's option either to restoration or repstr 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 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Property is acquired by Leader, all right. title and interest of Borrower
is and to say 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 Maiateaaoce of Property; Leaseholds; Coaiominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
sad shall comply with the provisions of any tease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condoaaenium 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 devebpment, the by-laws and regulations of the
condominium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mongage. 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 heroof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
1V7ortgage, 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 arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, dis~trrse such
sums and take such action as is necessary to protect Lenders interest. including, but not limited to. disbursement of
reasonable attorney's tees and entry upon the Propeny to make repairs. If Lender .required .mortgage. insurance _as a -
condition of making the loan secured by this Mongage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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