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Ut+u~oar4 Covat+nrtre. Borrower ar;d Larder covenant and agree st fdlaws:
L !lgweN a)~rLxfgal fret t6iNee+eel. Borrower shall promptly pay when due ttre principal of sad iattxeta the
evidatoed by the Note. prepayment and late charges as p?oviJed in the Notes and the principal of sad interest -
~oa uy Ftrturs Advances secured by Ibis Mortgage.
~ )Etitais floc 7'~sttas ttM irtatrralce. Subject to applicable kw or to a written waiver bg? i~ertdet. BoROwer snap pay
to Lender on the day monthly iastailttrents of principal and interest a^ paysbk under the Note. until the Note is paid in full.
s sum (herein "Fuods'~ equal to one-twetfW of the yearly tax~x and assessments which may attain priority ova this
Mortgage. sad gr~ottnd tarts oa the Prrperty. if any. plus one-twelfth of yearly premium instalments for hazard insurance.
Pt+ts onestwelfth o[ yearly premium iastaUments for mortgage insurance. if any. alt ss reasonably estimated initiatty and iroa~?
time to time by Leader oa the basis of assesunents ar:d hills and reasonable estimates thereof. -
'ibe Ftatds shall be bdd in an institution the deposits or a:.~rorrnts of which era insured ce guaranteed by a Federal of
:rata agency (iachtding Leader If Lender ~ such an institution). Leader shall apply the Funds to pay said taxes. asseamatts.
iasuraaoe prenuums sad ground rents. lender may not charge for sn holdirrs and applying the Funds. analyzing said account.
or verityirrg.aad compiling said assessments and bills. unless lender pays Borrower interest on the Funds sad applicable law
permits Leader to make stick a charge. Brfrrowa and [.ends may agree in writing at. the dme of execution of this
Mortgage that iatsrest on the IPtrods shall ba paid to Borrower, and unless such agreerrtettt a made or applicable law
requires attch interest to i>e paid, Lerrdsr :half not be requited to pay Borrower any interest. or earrings on the Funds. Leader
shalt give W Borrower, wiWottt charge. an annwl aoawnring of the Funds showing credits and debits to the Funds and the
purpose for which cock debit to the Futrds was made. The Funds era pledged as additiatal security for the cams secured
- by this Mortgage. .
IE-the amount of thts Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes. assestment~, insurance prenuums and ground rents. shall exceed the amount required to pay uid tuts.
- aaat~ats. insurance premiums and ground teats ss they fall due. such excess shall be. at Borrower's option. either
promptly repaid to Borrower. or credited to Borrows on monthly instalments of Funds. if the amount of the Fund:
lndd by Lender shall not be sul6cieat to:pay taxes. s~srUarts. iraurance premiums and ground rents as they fall due,
Borr+otrrer shall pay to Lends any amount necessary to makes-up the dsficiency within 30 days from the date notice is mailed
by Leads so Borrower requesting payment thereof.
Upon payment is fuU of all scans secured by this Mortgage. Lender shall promptly refund to Borrower any Fund:
heW by Lander. If under paragraph 18 hereof tlr. Pt+operty is soW or the Property w otherwise scquired by Leader. Lender '
:hall apply. no later Wan immediately prior to the sale of the Property or its acquisition by Lender. say Funds held by
Lender at the time of application a: ~a credit against the :urns secured by this Mortgage.
3. A~licMlaa oft Pgteeds. 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
twder paragraph 2 hereof. rhea to interest payable on the~Note, then to the principal of the Note, and then to interest and
principal on say Future Advantxs. -
4. Charge:; Lkas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to .
the Property which nyy 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 payment, wheft due, directly to the
payee thereof. Borrower shall promptly furnish to Lender sll notices of amounts due tntder. Wis paragraph. sad in fire avast
eornower_ shall resale payment directly, Borrower shall promptly fumrih to ierrder receipts evidencing such payrnenu.
Borrawer shall promptly discharge any lien which has priority over this Mortgsge; provided. that Borrower shall not be
required to discharge any. such lien so long as Borrower shall agree in writing to the.payment of the obligation secured by
s?tch lien in a manner acceptable to Lender, or shat! in good faith contest-such lien by, or defend enfort:anent of such lien ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Aaaar+i Iawratace. Borrower shall keep the imprbvement.~ now existing or hereafter crocted on the Property insured _
' against loss by fire. hazards included w?thin the tem+ "extended coverage and such other hazards ss Leader may require
sad in such amounts and for such periods as Lender mayrequire: provided, that Lender :'tall trot require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'Ibe iresurarrce carrier providing tLe insurance shall be ~rhosen by Borrower subject to aprravat by Lender, -Provided.
' chat such approval sh~l not bt unreasonably withheld. All premiums on insurance policies shall be paid in the maaaer
ptovidod under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
All insurance pdicies 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 Ltnder. Lender shall have the right to hold the policies and renewals thereof, _
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In 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 Borrower. _
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 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 wiWin 30 days- from the
date notice is mailed by. Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance pFooads at Lendei
s optic:. either to restoration or repair of the Property
or to the cams secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the monthly installments referred to in paragraphs 1 .and 2 hereof or change the amount of
such installments. if under paragraph .18 hereof the ProFerty is acquired by lender, all right, title and interest of Borrower
in sad to any insurance policies and in and to ibe proceeds thereof rewlting from damage to the Property prior to the. sale
~r acquisition shall pass to Lender to-the-extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. .
f. Preservation sad ;taiatenaace of Property; Lesmehofds; Condomiaiumsti Planned Ueit Derelopmtrtrs. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deteriaratian of the Properly
and shall comply with the provisions of any lase if this Mortgag - is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned r:nit development, Borrower shall perform a!I of Borrower's obligations under the declaration -
or covenants creating or governing the condominwm or afanned unit development, the by-laws and regulations of the
-condominium or planned unit development, and constituent documents. If a condominium or planned unit development
~ rider is exec+~ted by Borrower and recorded together-with this Mortgage, the covenants and agrcements of such rider
sh.Ji be incorporated into and shall amend and supplement the covenants and vg:eements of this Mortgage as if the rider
were a part hereof. .
7. Protecfioa of Lenders Secnrfty. If Borrower fails to pe~fo:m the covenants and agreements contained in this
Mortgage, ar it any action .~r proceeding is commenced which materially affects Lender's interest in the Property,
b including. but no'. limited to, eminene domain, insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or dt<edent, then Leader at Lender's option, upon notice to Borrower, may make such appearances, disburse such
cams and take such action as is necessary to protest Lenders interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender requiocd 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 time :u the requirement for `such rnwrance tecmrnates in accordance with Borrower's and
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