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Uwtrosur[ Oovtartat~ns. Horrvwer sad Lender covenant and agree u follows:
>6 ~ et Irrirre+al trrri itMerwf. Borrower shall promptly -pay when due the principal of and interest on the €
irtdeMedrress evidenced by the Note, prepaymatt and late t:lrarges ac provided in the Note, and site principal of std interest ik
oa soy Future Adv'aooa securod by this Mortgage.
2. Mitt ter ?assn atsi Iasttssrce. Slrbjtxt to spplicat?k law ar to a written waiver by Lender, Borrower shag Wy
b Lender on the day monthly installments of principal and interest arc. payable under the Note. until the Note is paid in full.
a sum (het+ein "Funds' egaal to one-twelfth of the yearly faze. and assessments which may attain priority over this
Mortgage, and ground rents Qn the Property. if any, plus one-twelfth of yearlli' premium installments for hazard insurance.
plus oae~twelRh of yearly premium installments for mortgage insurance, ifany, all u reasonably estimated initially and frost
time to time by Letder oa the basis of assessments and hills and reasonable estimates thereof.
The.Fuads shall be held in sn institution the deposits or accounts of which-arc insured or Guaranteed by a Federal of
state agency (including Lender if Lcnckr is such an institution). Lender shall apply the Funds to pay said taxes, assessments.
insnrarrce premiums and ground rents. Lender may not charge for so holding and applying the Frtrrds. analyzin` said account.
or verifying~nd compiling acid assessments and bilk, unless Lender pays Borrower interest on the Funds and appligbk law
permits I.errder to make such 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 strcb agreement is made or applicable law
requites such interest to be paid. Lender shall not be required to pay Borrowec any interest or earnings on the Funds: Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
b7? the Mortpge. - -
If the amount of the Funds 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 exceed the amount required to pay said taxes.
asladaments, insurance premiums and 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
held by Lender shall not be wfl~cieat to pay taxes, assessments, insurance premiums and ground rents u they fall due.
Borrower shall pay. to Lentkr any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof. - _
_ Upon payment in full of all sums acurcd by this Mortgage, Lender shall promptly refund to Borrower soy Funds
field by Leader. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application u a credit against the sums secured by this Mortgage. ii
3. A~iicatiars of Pam. Unless applicable law provides otherwise, all payments received by Lender under the I
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under parsgraph 2 hereof. thou to interest payable on the Note, then to the principal of the Note. and .then to interest and
principal on any Future Advances.
d. t:rarges; Liras. 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, :f 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
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
required to discharge any such lien so long az. 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 procudings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Rszard lnwraaee. 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 such other. hazards az Lender may require
i sad in such amounts and for such periods az 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 inwrance 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 rwt 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 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 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 i
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid
b 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 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 sad to any Ikuurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th.: sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
aCgUlaitlOn.
6. Preservation sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not comtpit yvazte or permit impairment or deterioration of the Property
sad shall comply with the provisions of any lease if this Mortgage :s 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 az if the rider
were a part hereof.
7. Protection of Lender's Securffy. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, 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 of decedent. then Ixnder at Lender's option, upon-notice to Borrower, may make such appearances, disburse such
surds and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property Io make repairs. If I_cnder required mortgage insurance as a 1
condition of making the loan secure) by this Mortgage, Borrower shall pay the premiums required to maintain such
• insurance in effect until such time as the requirement for weft insurance terminates to accoruance with Borrowers and
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