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Utvttuttt+t C'ovaav+~t~s. Burrower and !.ender a+sen:uu and :,grec as follows:
1. Pa~mrnt of Principal and lnterrst. liarrawer shall prrmptl} pay when due the principal of and interest un the
indebtedness evidenced by the Note, prepaymentrnd late charge. as provided in the I`otc, and the principal of and interest
on any Future Advancec secured by this Mortgage.
T. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by lender, Burrower shall pay
to Lender on the day month!), installments of principal and interest arc payable under the Note, until the :vtote is paid in full,
a sum (herein "Funds"1 equal to one-twelfth of the year!}, raves and ascessmcntc which may attain priority over this
~lurtgage, and ground rents on the Pmpcrty, if any, plus uric-twelfth of yearly premi!rm installments fur poised insurance,
plus one-twelfth of yearly premium installments fur mortgage insurance. if any, all as reasonably estimated initially and from
time to time b}• !.ender on the pasts of a~1i:3]iit+aitS and bills and seas++,^.ablc estim;+tes thereof.
'ihc Fund. shall he held in an institution the dep+nits or accuunh of which are insured or guaranteed M• a Federal or
state agency f including Lender if Lender is such an institution 1. Lender shall appl}• the Fwtds to pay said taxes, assessments,
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said account,
or verifying and compiling said asxssments and hills, unless Lender pays Borrower interest on the Funds and applicable law
permits 1_ender to make such a charge. Burn+wer and !.ender nta}• agree in writing at the time of execution of this
\to:tgage th.,t interest un the Funds shall he paid to Burrower, and unless such agreement is made or applicable law
requires such interest to be paid, 1 ender shall nut he reyuircd to pay Burrower any interest or earnings on the Funds. Lender
shall give to Burrower, without charge. an annual accounting of the Funds showing credits and debits to the funds acrd the
purpose fur which each debit to the Funds wad made. 1 he hands arc pledged as additional security fur the sums secured
by this 1\tortgage.
if the amount of the Funds held by Lender, together with the future monthly imtallments of Funds payable prior to
the due dates of taxes, asscssnrents, insurance premiums and ground rents, shall exceed the amount reyuircd to pa}• said taxes,
assessments, insurance premiums and ground rents as Ihey fall duc, such excess shall be, at Borrower's option, either
promptly repaid to Borrower ur credited to Brrrawer on monthly insr.+llmcntc of Funds. If the amount of the Funds
held by Lender shall not be sutlicient to pay trues, assessments, imurmce prer.tiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessan to make up the deficiency within 30 da\s from the date notice is mailed
by Lender to Borrower rcyuesting payntcnt thereof.
Upon p:+yment in [all of all sums secured by chi, ~fongae. Lender shall promptly refund to Burrower am Funds
held by Lender. If under paragraph is hereof the Pri~pert} rs ,std or the Propcrt} othenvisc :+cyurrcd by Lcndcr, Lender
shall apply. nu later than immediately prior to the sale ut the Pn+pcrty or rt+ acyursrtion by Lender, an}• Funris held by
Lender at the time of application as a credit against the sums secured by this Mortgage.
3. Application of Paymenh. Unless applrcable law pru\ides otherwise. aU payments received by Lender under the
Note :utd par,,graphs I and 2. hereof shall tx applred h}• Lcndcr first m p:+} merit a( amounts pa}~ahle :o I.cnder by Borrower
under paragraph ?hereof, then to rntcrest payable on the Nute. then h+ the principal of [he KMC. an.l Ihcn t.+ interest and
principal un .ut}• Future Ad\ances. '
J. ('harges; Liens. Burro:+rr ,h:,l! pay :+11 rave,, :,.KSSnrcnts and other charges. fine, :utd imp+~,itium :dtnbutahle to
the Property \+hi.h may attain a priority over chi. ~M:tgagr. and Ica+ehold payment; ur ground ants. if anv, in the manner
provided under paragraph ?hereof ar. if not paid m wch manner. by Burrower making paymen!, when duc. Directly to the
pa}ee thereof. Burrower shall promptly furnish to Lender all nutrccs of amounts duc under this paragraph, and in the event
Bormwer shall m::ke pacment dir«tl+, Barn+wcr shall promptly (urni,h u+ !.ender receipts evidencing such payments.
Burruwcr shall promptly .lisch:age an}' lien ++hi..h has priority over this Mortgage: pntvrded. that B+trrow•cr sh:dl nut be
required to drscha~gc ar;v such lien su long as B.+rrower shall agree in writing to the pa}ntent ut the obligation secured by
such lien in a m,uuter acceptable u+ Lcndcr• ar shall in g+H•d faith contest such lien h}•, or +Iefend erfurccmrnt of such lien in,
ie~al pm.eedr:;gs which uper:Ue to prr\cni the enfanenrcnt of the I,en ar forfeiture of the Property or anv part thereof.
5. Horsed Insurance. Bern+++er shall keep the untsn++cments nr~+ eviwng ur hereafter erected on the Pr.+pcrty rnstrred
against lu„ h\ tire. haz:,rds included withnt the term "'c+tended cosrra~r". and wch other hazards as I.cnder m:+~~ reyu+re
.,rid rn st,.h .,m.~r,;tts an~f i.+r such periods as Lcndcr m.n require: p: r.~.ide.l, that I ender shall nut reyr:irr that the amount of
sash c.++.:r:re ev~eed t::at anu+unt .+f ca\cratc reyuircd t++ pac the s:nns secured by this Mortgage.
The n»urancr .-ocher pntvidin the insurance stir,!! he ~has~h. M• Borrower wbject to appnn:d by Lcndcr, provided.
t}tat such appro\:,! ~hal1 n•.•: he unrra,onahl\ sithheld All premiums ++n imurance policies shall t+e paid m the manner
~-,++rded under paragraph ~ hrr~ot ur, :C not p;ud rn ,uch manner, by B++rro++er making payment. whey. duc, dircctfy to the
utwrancc warner.
:VI imuran~~ nalicrc, and rcn:.+als there.+t shat' l:. in form .~ccrptable to Lender and shall :n.ludr a ,uut+lard mortgage
~iause in fas•ur at an+i in form arcrptahtc to Lender. 1 rnd~r ,hall ha+e the right to hold the pall:ins and rene~+als thereof.
arr.t B~•rm~+er shall pmr:;+tl\• furnish t+• Lcndcr all renewal nutrccs and all receipts of paid premium.. In the c+rnt ut loss.
Butru++cr shall _L'r\c prumnt :x+hcc to the ,nst,r;uuc ~arncr anJ Lender. Lcndcr nta} make pruat of loss if net made pn+mptl}'
h\' B,+rmsccr.
Unless I ender and Bonu~+cr uthcr++„e agree in \+rrtme, rmur,+nce pn+ceeds shall t',c applied to rc,toratit~n ur repair of
the Prupert} damaged. pre+\ule+l such r_•,turatw:? .+r repa,r rs ccunomicalh feasihle and the sccurit} of this ~1r:rtgage is
n~+t thcrch+ impaired. It .,uch re,torat~un ur rep.ur is out r:on++mi:ally feasihk ur if the sccurit} of this ~iurtgage would
h~ ::repaired. the ,nsurancc +-tro~ee:f, shall be app!ie.i to the sums xcure.i h\ this :~tortgagc. ++ith the evccss• if any, paid
;a Borruw~r. It the Yrrperi} is •:h:,n+iunr.i B+r~rawer. ur rl Burrr\+er tails t<+ respond to Lender within 3fl days from the
ilall' ?a[ICe Iti n1;11P~U r:\' Lcnil.r to tfUrr.~wer Ite,+, utC nnurui~c ~,uucr .>i~cn i.r ,arils: tia~::: :v: :a,...:....+::;.::.e;:,-
.n+thurizcd to ,:olleu and apply the n+suran.r proceeds at Lenders uptu+n either to rest.•tration or repair of theJProperty
ar is the sums ,;~~re.i b} this ~tortgag~.
!:riles, Lender and Burn»+rr otherwise .,grce ;n s+ntrng. any su.h appli:atiun of proceeds to principal shall hat extend
.x postpone the duc date of the monthly installment, retcrrcd n+ in paragraph, 1 and ?hereof or ch:+nge the amrnint of
such installntcnh. 11 under paragraph ! S hereof the Pmpcrty is arµurrd h\ Lcndcr. all right. title and interest of Borrower
in and to an+ insurance poL•cies any! in :+nd to the pnt,ceds thcreot rewhing tram d:+ntage to the'Pruperty prior to the sale
ur .,.:yuisilion sh:dl pays to Lender :o the extent of the ,uric, secured t» the, ~furtgage unmediately prior to such sale or
acyuisiti~n.
6. Preser+ation and ~laintenancc of Propert}: Leaseholds: Condominiums; Planned l.~nit I)ecelopmenls. Borrower
shall keep the Prr.pcrty in gcx+d repair and shall nut commit wa,te u? permit impairment or deterioration of the Property
and shall comply ++ith the provisruns of any lease if this !Mortgage i, un a leasehold. !f this ~kxtgage is un a unit ir; a
cundomiunun ar a pla:,ned unit do:ri•~pmcnt. Borrower ,hall perform all rf Borrower's ubhgaiions under the decfaraUon
ur covenants creating ur ga\•erning the candunumnm ar planned unit de+~ch+pment. the by-laws and regulations of the
cond+ rnin:um ur planncJ t?nit de+c!.~pmrnt..,nJ e.~nstitucnt documents. If a cunduminium or planned unit development
rider i, executed by Borrower acrd recorded tuge:her •.+ith this Mortgage, the covenants and agreements of such rider
shall i~c iucotpuratcd urto and .hall amcrd and supplcntcnt the covenants and agreements of this ;•[urtgage as if the rider
! were part hereof. .
7. Protection of Lender's Security. If Krrnn+cr fads to perturm the covenants and agreements contained in this
a Slortgagr. ur if any aetu~n iU pn>wcedute; commenced which matcriall}• affects Lender's interest in the Property.
;ncl~,drr.~;, but n:•t lrmited ta. em,nent do:,tain. in,ol+cnc}. u+de enforcement. ur arrangements or pr+xcedings invoh•ing a
hani.n,pt rte decedent. then Lender at Lendcr•s option, up+m notice h+ Borrower, ma} make such appearances, disburse such
sums snd take such : etiun as is nece„an t.+ pmrect I.ender'c ;nterect. irc!uding. but nut limited to. disbursement of
reasonable attorney's tees and en~ry open the Propcn} to make repair,. If Lender reyuircd mortgage tnstirance as a
curxhhon of nt:+king the loan secured b+ this ~1~~rtgaee. Burmwer shall pay the premiums required to maintain such
insurance in etlect until such time as the rryuirerner.t fur .uch imuiance termutates rn accordance wnh Borrower's and
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