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Ut+tnwa?t Gbvanat+rs. Horrowa and Leader covenant and agree asE follows:
>a FgttseM at Teltac}al anti ltdsswt. Borrows shall promptly pay when due the principal of turd interest on the.
iadebtedntus atridenoed br the Note. prepayment and Tate charges as provided in the Note, and the prntcipa! of sad iatetest
on any Feature Advsnoa secttt+ed by this Mortgage.
t lrri late 1lstue atttl Iawratsee. Subject to applicable law ax to a written waiver by Lender. Borrower shall py
to Leadty on the day tt+touthly installtnatts of principal and interest are payable under the Note, until the Nett is psld in tuU.
a sttra (herein "Funds' equal to orta-twelfth of the yearly tax~~ and assesstrteeu which tray attain priority ova this
Mortgage, and ground rents on tba Property. if any. plus one-twelfth of yearly premium iastaWnst?u for htwr+d insurance.
plus one-twelfth of yearly p~raaiuen installments for mortgage inuurancc. if any. all as teasonabb estimated initially and froaa
time to tktte by Lender oa the bean of assessments and hills and rcssonabk estimates thereof.
The Funds shall be held to as: institution the depoaita or accounts of which arc insured or guaranteed by s Federal of
state agency (including Letder if Lender a such an institution). trader that! apphr the Funds to pay said taxer, assasmaus.
iawtattoe premiums and ground rents. lender may nut charge for so holding and applying the Funds. analyzing said account.
o< verityiag~ad tximpiliug said assessmenu and bilhti unless Leader pays Borrower interest on the Funds and applicable law -
permits Lender to make such a charge. Borrov-er and Lender may agree in writing at the tune of execution of this
Mc+rtpge that interest on the Funds shall be paid to Borrower. and unless such agr+eentertt is made or applicable law
- requires such intsrest to be pzid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbsU give to Borrrwer, without cbar~, an annual aooounting of the Funds showing crediu and d'biu to the Funds and the -
purpoae for which eadt debit to the Funds was made. The Funds arc pledged ss additional security for the sums secured
by the Mortgage.
If the amount of the Funds held by Lender, together with the futttrc monthly installmeatti of Funds payable prior to
the due dates of taxes. stsessmeais,-it>:ttnnce: premiums and grourd rents. shall exceed the atttount required to pzy said taxes,
gents, insurance premiums and ground renu as they fall due, such excess shall bra. at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly installmenu of Funds. if the amount of the Funds
hold by Lendsr shall not be stdlicieat to pay taxes. asseesstrtatts, iasunrtce _ premiums and ground rams ss they fall due.
Bortoarer shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is-mailed
by Leads w Borrower requesting payment tl>vreof.
Upat payment in fuU of all stems sec-ared by-this Mortgage, Lender :ball promptly rcfurd to Borrower any Funds
held by Lender. 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
Lender at the time of application as a credit against the sums secured by this I?tortgagt:.
3. A~iieatign of lagtweats. Unless applicable law provides otherwise, all paymenu received by Lender under the
Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounu 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.-
d.- Bess. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which n,ay attain a priority over this Mortgage. and leasehold payments or ground rents, if any. in the manner
provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment. whey due. directly to the
payee thereof. Borrower shall promptly furaistr to Lender all rtatices of amounts due under this paragraph. and in the event
- Bornower shall make payment directly. Borrower shag promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority cute this Mortgage; provided, that Borrower shall not be
requited to~discharge any such lien so bng as 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 con;eat such lien by, or defend enforcement of such liar iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof..
- S. Hasard laareasoe. Borrower shall keep the improvements ~iow existing or hereafter erected on the Property iawrod
against loss by fire, hazards included within the term "extended coverage", and such outer hazards as Lender. may require
and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of -
such coverage exceed that ardount of'rnverage required to pay the sums secured Eby this Mortgage.
The insurance 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 3ha11 be paid in the manner
proviri.~d under paragraph 2 h-irof or, if not paid in such manner, by Borrower making payment, when due, directly to the
iasurattce carrier.
All inwrance 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 polities and renewals thereof, .
- and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of bas.
Borrowu shall give prompt•notice to the insurance carrier and Lender. -Lender may-make proof of lass if not made promptly
by Borrower_ -
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to ratoration 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. jf 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 Lender to Borrower that the irrstrrance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collet[ and -apply the insurance proceeds at Lender's option either to restora~ion or-repair of the Property
or to the sums secured by this Mortgage: ,
Unless Lender and Borrower otherwise agree in writing. any such ap?lication of proceeds to principal shall not extend _
or paatpone the due daft of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If tender paragraph l8 hereof the Property is acquired by Lender. all right. title and interest of Borrower
in and to any Auurance policies and in and the proceeds thereof resulting from damage to the Property prior to tit.: sale
ri or acquisition shall pass to Lender to the extent of the sums secured by this Aortgage immediately prior to such sale or - -
acquisition.
6. ~ Preservation and Maintenance of Property; Ltaseholds; Candominitrm~ Planned Uait Devekrpsteats. Borrower
~ shall keep the Property in good repair and shall not comrpit -waste or permit impairment or deterioration of 6'fe Prop•_riy
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
condominium or a planned unit development, Borrower shalt perfurm all of Borro;vtr
s obligations undtr 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 :mil development
rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider F
shall be incorporated into and shall amend and s:ipplcmettt the covenants and agreemenu of this Mortgage as if the rider
were a part hereof.
~ Protection cif Larder's Stcurlty. If Borrower fails to perform the covenants and agreements contained in this '
Mortgage, or if any action or proceeding is cammexed whicfi materially affects Lender's interest in the Property,
including, but not limited to, eminent domain. insolvcrtcy, 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 .ction as is necessary to protect Lenders interest. including. but not limited to, disbursement -of
reasonable attorney's tees and entry upon the Property to make repairs_ if under required mortgage insurance as a
condition of making the loan secure) by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such unit as the requirement for ;ash insurance terminates in accordance with Borrowers and
.