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Utnraw Covswatvts. Borrower std ladder covenant and agree as fkilbwt% ~ ~ -
S. ><ISyASN of 1<sitie~al atti lalsseai. Borrower Mall promptly pay when dos the principal of std iptsrea oa tlta
indebbedrrea evidenced by the Note. prepayment and late charges as provickd in the. Nola. and the princrpal o[ std interest
ca nay Ftttw+e Advartoas secw+ed by this Mortgage.
1 >Rtstt+ia flar'tltares W gstraac~s. Stitbject to sppltcabk law ax t0 a written waiver by Lends. Borrower droll pay
b Larder on the day monthly itsstaltmenb of principal and interest arc. payab3a under the Note. until the Note is paid in full. !
a soot ( ."Funds'q equal to ona-twelfth of the yearf~' tsat.~c and assessments which tttay attain priority over this
Mortgage, and ground fronts on Nta Property, if any, plus one-twelfth of yearly premium irsstallmatb for hazard insurance.
plus one-twelfth of yearly ptemitua iastallmrnb for mortgage irtsttartcc. it nay, all ss rasonably estimated initially and from
time b titan by Lander on the bass of assessment and hills and reasortabk estimates thereof.
'Ibe Funds ,ball be bald in an institution the deposia or accounts of which ors insurod a guaranteed by • Federal of l
stale ageetcy (including Lender if Lender is such an irtstitutionl. Lertdu :ball apply Ibe Fltnds m pay said texas, azsasnteMs..
iaauaaoe prernitarts aed gtouttd rent. lender may not charge for:o holding and applying the Fends. analytirt~ said account.
or verifying.aad compiling staid assessment and bills. unless Lerder pays Borrower interest on the Funds and appligbk law
permits Lstder b make such a charge. _ Borrower and Lendei may agree to writing at the time of exewuar of this
Mortgage that interest oa the Funds :ball be paid to Borrower. and tsalas sorb apeerrtent is made or appliabk law `
requires svdt aerator b be paid. Lender shall not be required to pay Borrower any interest or earnings on the Fords. Lander -
:ball gi~+e b Borrower, without charge, an annual aeoounting of the Funds :hewing crcdib and debits b the Funds and the
purpose for wbidt eseb debit to the Funds was made. 't'he Funds era pledged as additiorul security for the street secured
b'7? this Ma~•
TE the amount of thti Funds held by Lender. together with the future monthly installments of Funds pay:bk prior b ,
the due data of taxes; assasrrtenb, insurance premiums and ground rents, shall exceed the amount requited to pay said taxes. -
wwmeats„ instrratt~:e premiums and ground rent as they fall due. such excess shall be. at B.xrovrer's option. either
prooaptly repaid to Borrows or credited to Borrower on monthly installment of Funds. If -the amount of the ,Funds
held by Leader-:ball not be stdtieaaoR to pay taxes. assesstrteetts. insurance ptemitmts end ground rents s: they fall due,
Harrower shall pay b Leader any amount necessary to make up the deficiency within 30 days from the elite notice is mailed
by Leads b Borrows nxtuating payment thereof. ~ E
Upon paytAe~ in foil of all sums sxtrred by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by I.ertdd~. If weds paragraph 18 hereof the Propl~ Is'so1i1 or the Property rs otherwise acquired by Lender. Lender
shag apply. no later thsa imntediatdy prior to the sale of the PropeRy~ or its acquisition by Lender. any Funds held by
Lender at the time of applicstiort as a credit against they bx,ihis Mortgage.
3. Appiiewtiarr d Prp~tiesass. Unless applicable few provi otherwise, alt payment received by Lender under the
Note std paragraphs 1 and 2 hereof shat! be applied bjr ~rid~.'r'-~s~ irr ~aybient of amounts payable to Lender by Borrower
_ wader paragraph 2 hereof. then to interest payable on ~ ttlote, then~~tb~ th8 principal of the Note. and then to interest and
pria;ipal on any Future Advances.
4. Cttrgesy Ueas. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
the Property which may attain a priority over this Mortgage. and lasehold 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. when due. directly to ttx
payee.tbereof. Barrows shall promptly furnish to Lander all notices of amounts due under this paragraph, and in ibe event
Bareo~rer shag .make payment directly. Borrower snap promptly furnish to Lender receipts evidencing such payments.
Borrower shill promptly discharge any lien which has priority over this Mortgage; provided. that ~ Borrower shall not be
required to discharge any such lien so brag u Borrower shall agree in writing to the payment of the obligat'eon secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforccntent of such lien i0. i
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hasari Insurance. Botmwer shall keep the improvements now existing or hefcafter erected on the Property insured
sgairast loss by Ere. hazards included within the term "extended coverage'. and such other hszards 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 excced that amount of coverage required to pay the sums secured ~y this Mortgage. -
'ibe inwranoe carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
flat such approval shall not be unreasonably withheld. All premiums on insurance policies snail be paid in the manner
~ provided under paragraph 2 hereof or. if not paid in such manner. by Borrower making paynxnt, wlxa due. direexly to the
inwraoce carrier.
All ietwrae!ce 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 Leader. Lender shall have the- right to hold the pdicies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid pr_ntiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of bas if not made promptly
by Boemwer.
- 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. lire insurance proceeds shall bt-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 vrth~n 30 days from the _
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance l~erie6t, Lender
is authorized to collect and apply the insurance procoals at Lender's option either to restoration or repair of the Property l
or to the sums 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 I t3 hereof the Property is acquired by Lender, all right, title and interest cf $otrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to thy: sale
or acquisition shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such, sale or
acquisition. - -
6. Paaervatioe and Maintenance of Property; Leaseholds; Condaminiams; Planeed Unit Devebpmeats. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
xnd shall comply with the pro•+isions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a
condominium or a planned unit development. Borrower shall perform all of Borrowers obligations under tl~,e declaration -
or covenwt creating or governing the coridamtnium or planned 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 executed by Borrower and recorded together with this Mortgage, the covenants =and agreement- of such rider
{ shall be incorporated into and shall amend and supplement the covenants and Rgreement of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Se:tirlty. If Borrower tails to perform the covenants and agreements contained in this
Mortgage. or if any action or proceeding is commenced which materially affects Leaders interest in the Property,
including. but not limited to, emintnt 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 Lenders interest. including, but not limited to, disbursement of
reasonable attorney's fees .nd entry upon the Property !o make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums ~tquired to maintain such
insurance in effect until such time as the requirement for such insurance ;ermmates in accordance with Bc?rrowers and ~
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