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Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note. prepayment and latechargea as provided in the Note, and the principal of and interest on any Future Advances secured
by this Mortgage.
2. Funds forTa:ea and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay to l.enderon theday
monthly installments of principal and intere~at are 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, plus one
twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, i[any,
;+II as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
The ~tnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including (.ender if (.ender is such an institution). Lender shall apply the F unda to pay said taxes, assessments, insurance premiums and
ground rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said
assessments and bills, unless (.ender pays Borrower intereatonthe Fonda ar/d applicable law permits (.ender 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
such agreement is made or applicable law requires such interest to be paid, Lender shall sot be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the F ands showing credits and debits to the
Funds and the purpose for which each debit to the Funds was made. The F unda are pledged as additional security for thesuma secured by this
Mortgage.
If the amount of the Funds held by (.ender, together with the future monthly installments of Funds payable prior to the duedates of taxes,
assessments, insurance premiums and ground rents, shall excxd 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 or credited to Bon ower on
monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Fender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower rfquesting p;+yment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Ixnder. If under
paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, (.ender shall apply, no later than immediately prior
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 Lender 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. Borrower shall pay all taxes, assessments and uthf•r charges, fines and imp+sitiuns attrihutable G, 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 paymf•nt, when due•, directly to the payfr therfuf. Borrower shall promptly furnish to Lender
11 notices of amounts due under this paragraph, and in the event Burrower shall make payment dinrth•. Borrower shall promptly furnish to
I,f•nder receipts evidencing such paymentsS. Rorn,wer shall promptly discharge am• lien which has priority overthis Mortgage: provided, that
Borrower shall not be required to discharge any such lien su lung as 1{+,rn,wer shall agree in writing to the payment of the obligation secured by
sucn teen m a manner acceptable to ixnrter, ur shall +n goc,d truth c•untest such iren ny, or defend enhm•f•ment ui such iu•n m, legal prc,ctedrngs
which operate to prevent the enforcement of the lien or forfeitun• of the 1'ro{x•rty or any part therer,f.
c,. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended cover:+ge,"and such other h:+zards as Lender may rec{uire and in such amounts and forauch
periods as Lender may require: pruvidfd, that Lf•nder shall nut rf•c{uire that the amount of such c+n•er•.+gf• excfid that amount of coverage
r+•yuired to pay the sums secured by this Mortgage.
The insurance carver providing the insur:nce shall hf• chosen by Born,wer suhjw•t b, approval by Iwvuler; pn.vidcf1, that such approval
shall not be unreas+,nabh• withheld. All pn•miums un insurance p+~Gci+•s shall I,f• paid in the manner pn,vidf•+1 undf•r paragraph 1 herfr,f or, if
not paid in such manner, by li+,rrower making p:+yment, when due, dinvth~ t+, the ursurmce carver.
All insurance policies and renewals thereof shall tx• in form acceptable to I.enderand shall include a standard mortgageclause in favorof
and in form acceptable to Lender. Lender shall have the right to hold the p+,lie•ies and renewals therf•+,f, and Borrower shall promptly furnish to
,.ender all renewal notices and all rfreipts of paid premiums. In the event of loss, Borrower shall give prompt notice G, the insurance carrier
' and Lender- (.ender may make pnwf of loss if not madf• promptly by Burrower.
(?nless [.ender and Borrower otherwise agree in venting, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration or repair is fronumically feasiblf• and the sec•urih• of this Mortgage is nut thereby impaired. If such
restoration or repair is not economically feasible or if the sc•curih• of this Mortgage would be impaired, the insurance proceeds shall be applied
to the sums secured by this Mortgage, K•1th thY l•x( P1v, If any ,paid to li+,rruwrr. 1 f the i'roperly is abandoned by Borrower, or if I3orruwer fails to
re:~pond to Lender within all days from the date notice is mailfd by I:ender to Borrower that the insurance carver offers to settle a claim for
insurance benefits, bender is authorizEd to n,llfrt and apph• the insurance pn,c•feds at Lender's option either to restoration or repair of the
~ Property or the sums secured by this Mortgage.
~ Unless Lender and Born,wer otherwise agree in writing. any such application of pr+,f•eeds to principal shall nut extend or postpone thedue
date of the monthly installments referred b, in paragraphs 1 and l herf•+,f or change the amount of such installments. If under paragraph 18
hereof the Property is acquired by Fender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds
j thereof resulting from damage to Property prior to the sale or ac•yu+sitiun shall pass to Lf•nder to the extent of the sums secured by this
~ tifortgage immediately prior to such sale or acquisition.
" fi. Preservation and Maintenance otProperty; Iw•aseholds; (bndominums; Planned (loft Uevelopmenta. Borrowershall keep
f the Property in good repair and shall not commit waste or permit impairment or deteriur•.+tiun of the Property and shall comply Kith the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a rnndominium or a planned unit development,
~ Borrower shall perform all of Ft+,rruwer's obligations undf•r the dc•c•laration or covfnants cn•:Hingurgoverning the condominium or planned
unit development, the by-laws and regulations of the condominium or plannfd unit development, and constituent documents. If a
j rnndominium or planned unit development rider is exfrutfd by Borrower and rcrordfd together with this Mortgage, the covenants and
:~t;r«•f'mf
ntti fIf SUCK elder shall t,f• rn+•orporatf•d into and sh:+ll am+•nd :+nd supplement thf•cuvenants:+nd agrcrmentsof this Murtgageas if the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the rnvenants 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 or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse such sums 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 to make repairs. If Lender required
mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the promiuma required to maintain
such insurance in effect until Buch time as the requirement for such insurance terminates in accordance with Borrower a and Lendei s
written agreement or applicable taw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedne~sa of
Borrower secured by this Mortgage. Unless Borrower and Lender agree k, other terms of payment, such amounts shall be payable upon
~ notice from i.ender to Borrower requesting payment thereof, and shall bear interest fn,m the date of disbursement at the rate payable from
~ time to time on outstanding principal under the Nute 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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C~~UK322 P~~E1663