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Borrower and Lender covenannt and agree as follows: _
1. Payment of Prlneipt;l and Interest. Borrower shall promptly pay hen due the princppal of and interact on the indebtedness
evideaoed by the Nots, prepayment and late charges as provided in the Note, and~a princppal of and interest on any Flrture Advances secured
by this Mortgage. ~ .
2. Fonda for Tuea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of princppal and interest ors payable under the Note, until the Note is paid in full, a sum (herein "Funds' equal to one-
twelRh of Weyearly lases and assessments which rosy attain priority over thi¢ Mortgage. and ground rents on the Property, if any. plus ons-
4 +reltth of yearly pareminminstallments for hasard insurance. phis onstwdith of yearly Premium installments for mortgage iwuranoe, if any,
all as reasonably estimated initiall,+ and Iran time to time by Lender on the basis of assessments anti bills and reasonable estimates thereof.
The Parade shall bra held in an netitntion the deposits os eooounta of which are insured os guaranteed by a Federal or State agency
(inducting Lender if Lender is such an institution). Lender shall apply the Fonds to pay said fazes, assessments, insurance pee~ninms and
gmand rents. Lender may not charge for so holding and applying the F1mds. analyzing said aeooank or verifying and ooucpi7ing said
assesam~ts and bills, unless Lender pays Borrowerintereat on the Fends and applicable law permits Lender to make such a charge. Borrower
and Lender rosy ogres in waiting at the time of esecntion of Ibis Mortgage that interest on the Fonds shall be paid to Borrower, and unless
such agreement is made or applicable law requires arch interest to be paid. Lender shall sot be required to pay Borrower any interest or -
earnings on the F1mds. Lender shall give to Borrower. without cbarge, an annual accounting of the Funds showing credits and debits to the
Frauds and the purpose fotwhidr each debit to the Farads was made. The Fonds are pledged as additional security for the sums secured by thin
Mortgages
If the amount of the Funds held by Lender. together with the fntnn monthly installments of Farads payable prior to the dne dates of lazes,
assessments. ins~uence premiums and ground rents, shall esoaed the amount required to pay said fazes, t0. insurance pnmiams
and ground rents as they fall dne. such ezoeas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
montlily installments of Fends. If the amount of the Fonds held by Lender shall not be ea~tient to pay texts, assessments, insurance
premimas and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up the defitiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any fends 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 immediately prier
to the Bale of the Property or its acquisition by Lender. any Ptimds bald by Lender atthe time of application as a credit against the sums secured
by this Mortgage. - - -
3. Applicatlon 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 header first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the princppal of the Note, and then. to interest and principal on any Future Advances.
4. Charges; Lies. Borrower shall pay all fazes, aseesementa and other charges, fines and impositions attributable to WeProperty-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 pard in such manner, by Borrower making paymark 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 evidenting Such payments. Borrower shall Promptly discharge any.lien which has priority over this Mortgage; Provided, that
Borrower shall not be required to discharge any each lien so long as Borrower shall agree in writing to the payment of the obligation ercured by -
auch 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 enforeernent of the lien or forfeiture of the Property or any part thereoL
5. Hazard Insurance. Borrower shall keep the improvements now eristing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "estended coverage," and such other hazards as Leader may require and in such amounts and for such
periods as Lender may regain; Provided, that Lw:Ser shall not require each coverage amount exceeding the minimum, as may beregnired by
state or federal regnlatioas governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage,
whichever is the greater.
The insurance carrier providing We insurance shall be chorea 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 polities and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of
and in form soeeptable to Lender.Leader shall have the right to hold the polities and renewals thezeok and Borrower shall promptly furnish b
i.ender all renewal notices and all recapts of paid premiums. Ice the event of loss, Borrower shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loos if not made promptly by Borrows.
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 world be impaired, the insurance pr9oeeds 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 fails to
respond to Lender within 30 days from the date notice is mailed by bender to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized to collect and apply the umaurance proceeds at Lendet•e option either to restoration or repair of the
Properly or the same secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to princppal shall note:tend or postpone the due
date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. I~arider paragraph 18
hereof the Property is acquired by I.ender, all righk title and interest of Bamwer in and to any insmsnce polities and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the aslant of the rams secured by this
Mortgage immediately prior to such sale err acquisition. _
6. Preservation and Illaintenance of Property; Leaseholds; Condominams; Planned Unit Developments. Borrower shall 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 oondomininm or a planned unit development,
Borrower shall perform all of Borrower's obligations ender the declaration or covenants creatingor governing the condominium or planned
unit development, the by-laws-and regulations of the condominium or planned Wait development, and oonatitnent docna4ents. 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 ooveaanta and agreements of this Mortgage as if the
rider were a part hereof.
T. Protection of Lender's Secmrity. If Borrower fails to perform fire eoveasnts and agreements oonteined in this Mortgage, or if any
action or proceeding is eommeaoed which materially affects Lender's interest in the Property. inducting. bat not limited to, eminent domain,
insolvency, Dale enforcement, or arrangements or proceedings involving a banluvpt err deoedmt, then Lender at Lender's optia>,apon
notice to Borrower may make such appearances. disburse each sums and take each action as is necessary to protect Lender's interest,
inducting, bat not limited to, disb~ent of reasonable attorney's fees and entry upon the Property to make repairs. Tf Lender required
mortgage insmanoa es a condition of making the Loan secured by this Mortgage, Borrower shall pay the premiums required to maintain
such insurance in effect until sack time as the requirement for arch insurance terminates in sooadance whir Borrower's and Lender's
written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 bereoL
Any amo~ts disbursed by Lender persaant to this paragraph 7. with interest thereon, shall become additional indebtedness of
Harrower secured by this Mortgage. Unless Borrower and Lender -agree to other terms of payment, sack amounts shall be payable npoa
notice from Leader to Barnwer requesting payment thereof, sad shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding princppal Hader the Note unless payment of interest at sorb rate would be contrary to applicable law, in which
event each amounts shall bear interest at the highest rate permissible Hader applicable law. Nothing contained in this paragraph 7, shall
regmre Leader to incur any expense or take anq action hereunder. -
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