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Ut~otttw Oovawxt~m. Bortowar sad Leader covenant and sgree as follow::
1~ Tigtwtrat at hi¦e1N1 sort LhreM. 8orrowar shall promptly pay when due the principal of and interest oa the
irtdebtederess evidenced by the Note, prepayment and late charges ac provided in the-Note, and the principal of and interest
oa rmy Future Advartoes secured by this Mortgage.
1~lsaiia fIK'tbtous amt Lwraace. StirbjeN to applicable law or to a written waiver by t.etrder, Borrower shall pay r
to Lender on the day ttroathly installments of principal and interest arc. payable under the Note. until the Note i3 paid in full, ~
a stag (herein "Fuads'ti egwl to one-twelfth of the yearly raze. and *ssessrrretrts which may attain Priority over this
Mortgage, and around recta oa the Property, if any, plus ont:-twelfth of ytarly~ premium installments for harard inwrstrce, t
phis onatweifth of yearly premium inuallments for mortgage insrrrancc, if any, all a reasonably estimated initially and from
tuna to time by Leader oa the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be bald in an institution the deposia or accounts of which are insured or guaranteed by-a Federal of ~
starts agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
inwrarroe premiums and around rents. lender may not charge for so holding and applying the Frtndt. analyzing said account,
or verifyitrg.aad carrpiliag said assessments and bills, unless Lender pays Borrower interest on the Funds and applipble law
petnnita Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that iaterat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law I
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Harrower, without charge, an annual aorarnting of the Funds showing credits and debits to the Funds and the
purpose for which eseb debit to the Funds was made. 'iLe Funds are pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of ta:tes, assessments. inwrance premiums and ground rents, shall exceed the amount required to
pay said taxes.
assasments, insurance premiums and ground rents as they fall due. such excess shall be. at Borrowers option, either
.promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
htdd by Lender shall not be suflicieat to pay taxes, assessments, insurance premiums and ground rents ss they fall due.
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower rtegtrestiag payment thereof. _ }
Upon payment in full of all suttts secured 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 rs otherwise acquired by Lender, Lender
:ball apply, tro later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by I
Lender at the tirrte of application as a credit against the sums secured by this Mortgage. E
3. A~lkatiga oft I!tpmetls. 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 Lender by Borrower
under paragraph 2 hereof, they to interest payable on the Note. then to the principal of the Note, and then to interest and g
principal on say Future Advances.
4. C~ge:q Beat. 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
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the
pay6e thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad in~the event i
Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evic!eacing 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 tong as Borrower 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 contest 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 thereof.
S. Hazard Ir~rnurce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by Ere, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire
and is 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 Mortgage. _
'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided,
III that such approval shall not be unt+tasonably 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 i
inwrance 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 Leader all renewal notices and all receipts of paid premiums. in the event of loss,
Borrower shall give prorfipt 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 ratoration 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 sums secured by this Mortgage, with the excess, if any, paid
to Borrower. If the Property is abandoned by Borrower, or if Borrower faits 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 I
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_tbe 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 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
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acgtnslttoa.
L. Preservation and Maintcrrancx of Property; Leaseholds; Condominiums; Planner! Unit lk~elopments. Borrower
shall keep the Property is good repair and shall not comtpit 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 planned 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. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenceef which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. ir~olvency, 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 such
sums and lake such action as is rrecessary to protect Lenders interest, including, but not. limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums require) to maintain such
. insurance in effect until such time as the requirement for such insurance terminates in accordance wish Borrowers and
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