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Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Iatrrest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
widenoed by the Note. prepayment and late charges as provided in the Note. and the principal of and interest on any Future Advances secured
by this Mortgage. {
2 Flrude for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of principal and interest ate payable under the Note, until the Note is paid in full. a sum (herein "Funds") equal to one`
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plusone-
twelfth ofyearly prerpium installments for hasard insurance, plus one-twelfth ofyearly premium installments for mortgageinaurance, if any.
all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates Thereof. }
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency T
Including Lender if Lender ie such as institution). Leader shall apply the Funds to pay said taxes, assessments. insurance premiums and
ground rents. Lender may not charge for so hakling snd applying the Funds, analyzing said account. or verifying and rnmpiling said
sseeeaments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at We time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless
such agreement is made or applicable law requires such interest to be paid, Lender shall'not be required to pay Borrower any interest or
earnings on the Enacts. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credits snd debits to the
Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additi anal security for the soma secured by this
Mortgage.
If the amount of the Fonds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,
assessments, insurance premiums and ground rents, shall exazed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower of credited to Borrower on
monthly installments of Funds. If We amount of the Fonda held by Lender shad not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay
to~I;ender any amount rieceaaarq to floake up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof. _
Upon payment in full of aB sums secared by this Mortgage, Lender shall promptly refund to
Borrower any funds held by Lender. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply; no later than immediatelyprior
to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums 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 hereof shall be applied by Lender first in payment of amounts payable to bender 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 on any Future Advances.
4. Charges; Liens. Borrowers all 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 themanner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall 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 required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such liemby, 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 thereof.
5. Hazard Insurance. Borrower shall keep the improvements now existing nr hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in such amounts and forsuch
periods as Lendermay 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 shalt 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 Borrower shall 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 toss if not made promptly by Borrower.
Unless Lender and Borrows- 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 each
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 sums secured by this Mortgage, with the excess, if any, paid to Borrower If the Property isabandoned-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 s 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 notextend or postpone thedue
date of the monthly installments referred to in paragraphs I 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
theteo~ resulting from damage to 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.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall 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 planted _ _
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent 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 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. Protection of Lender's Security. If Borr~uwer fails to perform the covenants and agreements rnntained in this Mortgage, or if any
action or proceeding is commenced which materially affects Lender
a 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, disburse ouch sums and take such a.-lion as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender regnired
mortgage insurance as a rnndition of making the loan secured by this Mortgage, 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 Borrower's and Lendds
written agreement or applicable Law. Borrower shall pay the amount of ail mortgage insurance premiums in the manner provided ands
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional it~debtedneas 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 under the Note unless payment of interest at such rate would be contrary 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
require Lender to .incur any expense or take any action hereunder.
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