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Utetr~ourtt CovttrrstYrs. Borrower and Lender covenant and agree u follow:: !
1~ lrgweM eft Prlael~l a¦i >~AeraR. Borrows shall promptly pay when due the principal of and interest on the
itrdabtednea evidenced by the Note. ptapsymant and tau charge: as prmrided in the Note, and the principal of and interest
oa aoy Future Advaaoes seacurod by this Mortgage..
lrtiaels filar Tavzea aai lnwrwaY. S~tbjed to applicable law M to a written waiver by Letrder, Borrower shall pay
to Lends on the day monthly installments of principal and interca arr. payable under the Note. until flee Note is paid in full.
a sum (het+ein "Funds' equal to one-twelfth of the yearly taz~~ and assesu_ nests which may attain priority over this
Mortgage. and grouttd rants on the Property. if any. plus onrtwelfth of yearly premium installments for hazard insurance.
plus ooe-twelfth of yearly premium installments for mortgage inutrancr. if any, all u reasonably estimated initially and from
time to time by Leader oa the basis of assessments and hills and rcasonabk estimates thereof.
'1Le Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). I~nder shall apply the Funds to pay aid taxes. assessrrrents,
iersutattce premiums and ground rents. tender may not charge form holding and applying the Fonds. analyzing said ::oust, i
or vesrifying.and compiling said assessments and bills, unku Lendu pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower aril Lender may agree in writing at the time of execution of this
Mortgages that interest on the Funds shall be paid to Borrower, and unless such agreement a made or applicable law €
requires such interest b be paid. Lendkr shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give b Borrower. without charge, an annwl accout::i:*g of the Funds showing credits and debits to the Funds and the
purpose for which each debit b the Funds wu made. The Funds are pkdgead u -additional security for the sums secured
by this Mortgage.
If the amount of the Fund: held by Leander, together with the future monthly installments of Funds payable prior to
the dues dates of taxes, assessmeota. insurance premiums and ground rents, shall eatce:ed the amount required to pay aid taxes.
assataments, insurance premiums and ground rents as they fall due, such excess shall be. at Borrower's option, either ~
promptly repaid to Borrower or creditead to Borrows on monthly installments of Funds. If the amount o[ the Funds
bdd by Le:oder shall sot be wfscieat to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borro~esrer :ball pay to Leander any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader b Borrows requextin8 payment thereof..
Upon payment in full of all sums secured by this Mortgage, Lender :hall promptly refund to Borrower any Funds ;
held by Leander. If under paragraph 18 hereof the Property is sold a the Property ~s otherwise acquired by Lender. Lendkr
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. A~licatlorr eft PsYreab. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 herewf shall be applied by Lender first in payment of amounts payable to Lender by Borrower r
under paragraph 2 hereof. they to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
4. Granges; Lied:. 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 leasehold payments or ground rents, if any. in then manner
pr+rnridex! under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due. directly to the
.payeae thereof. Borrower shall promptly furnish to Lender all notices of amounts 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 promptly discharge any lien which has priority over this Mortgage; 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 sexurcd by #
such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
- S. Hazard Iaarraerce. Borrower shall keep the improvements now existing or hereafter erected on then Property insured
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods az Lender may require; provided, that Lender shall not require that the amount of
such rnverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
'I1re insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided. ;
that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
j provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the ~ [
iawrance carrier.
All insurance 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 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 loss if not made promptly i
by Borrower.
Uoless 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 j
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 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 proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Aiorigage.
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 I and 2 hereof or change the amount of
t such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower i
I in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th.: sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale. or
acquisition.
6. Presenatbo and Maintenance of Property; Le~eholds; Condominiums; Planned Ualt Devebpmeots. Borrower
shall keep the Property in good repair and shall not commit yvazte or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i( this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform. all of Borrowers obligations under the declaration
t or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the j
€ condominium or planned unit development, and constituent documents. If a condominium or planned unit development
1 rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ?
~ were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s 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 1_ender 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 o[
reasonable attorney's fees and entry upon the Property to make repairs. if Lender required mortgage insurance as a
- conddion of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance tgrm~nates in accordance with Borrowers and
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