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Borrower and Lender covenant and agree as follows:
I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by rite Note, prepbyu+eui dti3laie cha. g~ as provided in the Note, s!td the l+rincipal of and interest on any Future Advances secured
by this Mostgage.
2. Fonda for Taxes and Insurance. Subject W applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one`
.weiiut of the yrariy taT.cs and :.ss.;~:,tr:.•K, ~•hich rnsy attc+ia Itrinrity over this Morttage, and ground rents on the Property, if any, plus one-
twelfth ofyearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments fur mortgageinaurance, if any,
all ae reasonably estimated initially and from time to tin'ie by I.enderon the basis of assessments and bills and reasonable estimates thereof.
The I•Lnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency
(including Lender i! Lender is such an institution). Lender shall apply the Fonda to pay said taxes, asaesamenta, insurance premiums and
Kround rents. Lender may not charge for ao holding and applying the Funds. analyzing said account, or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless
such agreement is made or applicable law 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 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 soma secured by this
hortgage.
if the amount of the ~tnda held by Lender, together with the future monthly installments of Funds payable prior to the due dates oftaxes, -
assesamente, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums
and ground rents as they fall due, such excess shall be, at BotTOwet a option, either promptly repaid to Bbtrower or credited to Borrower on
monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days
from the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon payment in full of all aum$ secured by this Mortgage, Lender shat • promptly refund to Borrower any funds 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 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 BorroK•er 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; Liana. Bormwershall pay all taxes, :tssessmentt and other charges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments+,r Kmund rents, itany, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormwershall promptly furnish to Lender
all notices otamounts 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 prompth• discharge any lien which has priority over this Mortgage; provided, that
borrower shall not be required to discharge any such lien so long :+s Borrower shall agree in writing to the payment of theobligation secured by
such lien in a manner acceptable to lxnder, or shall in good faith contest such lien hy, urdefend enforcement ofsu+•h lien in, leKal proceedings
which operate to prevent the enforcement of the lien ur forfeiture of the Property or am• part theaui
5. 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 coverage," and such other hazards ess Ixnder may require and in such amounts and for such
periods as Ixnder may require; provided, that Lender shall nut require that the amount of such rnverage exceed that amount of coverage
required to pay the sums secured by this AlortK:+Ke-
The insurance carrier providing the- inwrance sh:dl t,c• chus+•n by Burrower subj+•ct G, approval by (.+•nder, pn,vided, that such approves!
shall not be unreasonably withheld. All pmmiums on insurn+ce policies .hall hr paid in the manner pruvid+•+l under p:+ragraph'L herc•c+f or, if
not paid in such manner, by li+,rruwer makinK p:p•ment, when due, din•e•th• to the insurance carrier.
All insurance policies and renewals thereof shall 1?e in form acceptable to lxnder and shall include a standard mortgage clause in favor of
and in form acceptable to Ixnder. Lender shall have the right to hold the p+dicies and renewals thereof, and Borrowershal) promptly furnish to
sender all renewal notices and ail receipts of paid premiums. !n the event of loss, Kurn,wer shall give prompt notice to the insurance carver
and Lender. Lender may make proof of loss if not made promptly by Ftorrow•er.
Unless Ixnder 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 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 fails to
respond to Lender within :3n days from the date notice is mailed by !.ender to Korruwer that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authorized tq cullcrt and apply the insurance pnx-eeds at Ixnder's option either to restoration or repair of the
Property or the sums secured by this Morig:tge.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue
date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such installments. If under paragraph IA
!:creaf the Property i4 acquired by Ixnder. all right, title and interest of Burrower in and lu any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acquisition shall pass to lxnder to the extent of the sums sr+:urerl by this
Mortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Bormwershall keep
the Property in good repair and shall nut commit waste or permit impairment ur deterioration of the Property and shall comply with the
provisions of any lease if this (1lortgaKe is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
burrower shall perform all of Borrower's obligations under the declaration or covenants crealingor governing the condominium or planned
unit development, the by-laws and regulations of the condominium ar planned unit development, and constituent documents- If a
~undominium or planned unit development rider is executed by liorruwer and recorded together with this Mortgage, the covenants and
aKrcrment_s of such rider shall be incorpc,rated into and shall amend :+nd supplement then,roenants:+nd agreements of this Mortgage as ifthe
rider were a part hereof.
7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any
action or proceeding is commenced which materially affects Ixnder'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 prat~ect Lendei a 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, Borrowei shall pay the premiums required to maintain
such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders
written agreement or applicable law. Borrower shall pay the amount of ali mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Ixnder persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of
Konower secured by this Mortgage. Unless Borrower and lxnder agree to other terms of payment, such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note 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 Ixnder to incur any expense or take any action hereunder-
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