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Ut+tratat Covat+stns. Borrower and Fender covenant and agree u follows:
)<tU'wnt at lt!riae~t~al atti lnNreU. Borrower :ftall promptly pay when due the pritcipal of snd interest oa the
indebtedness evidetrced by the Note, praWymeat and late charges as provided in the Note, and fire principal of and interest
oa tray Fwtiro Advatrtxs secured by this Mortgsge.
lt`i Qer Ttaaa tttM Irtstrraaa~e. Stitbject to applicable law ar to a written waiver by Letitler, Borro~rer gall pay
to Leader oa the day monthly itistallraents of principal and interest arc. Wyabk utrder the Note. until ttre Note is paid in full,
• guar (lrsreirt "Fittrds'q equal to onctwelfth of the yearly tax~~ and assastrterits which troy attain priority over this
1Not~tgage, and grotttid tent oa the Propeny. if any, plus otre-twelfth of yearly ptemitrm iastallrttents for hoard inwratrce,
plw one-twelfth of yearly premium- installments for ttattgage insuraticc, if any, all u reasonably estimated initially and frnrn
dote to flirts by Lender oa the buffs of assessments and hills and reasonable estitnata thereof. -
The FLrids shall be hdd in an institution the deposits or accounts of which are insured or guanateed by a Fedeal or
slats agency (including bender if Lender is such an institution). Fader shall apply the lttirnds to pay said taxes, asses:matts.
iawraaoe premiums and geotrad rents. lender may not charge for so holding and applying the Funds, analyzing said account.
or verifyingaad twrtrpiliag said assessments and bilk. unless Leader pays Borrower interest oa the Funds and applicable law
permits Larder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortpge that interest on the Ftirtds shall be paid tv Borrower, and iraless such agreemxnt is made or applicable law
requites sudt interest to be paid, Lender shall not be required to pay Borrower any interest or praings on the Futds. Lender
shall Rive to Borrower. without charge, an annual atxounting of the Funds showing credits and debits to the Funds and the
purpoae~or which each debit to the Funds was made. The Funds are pledged u additional security for the wms secured
orYgage.
TE the artouett o[ the Funds bend by Lender. together with the fwure monthly installments of Funds payable prior to
the due dates of taxes. assasnteats, insurance premiutra and ground rents, shall exceed the amount required to pay said taxes.
aaaaments. insurattoe premiums and ground rails u they fall due, such excess shalt be, at Borrower's option. either
promptly repaid to Borrower or credited to Borrower oa monthly installments of Funds. If the amount of the Funds
beJd br Leader shall not be wl5cient to peg taxes. assessments. insurance premiums and ground rents as they fall due,
Borrower shall pay to Fender any atnotrnt necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower nquestirrg pajrmcnt thereof:
Upon payrnew in full of ap stasis second by this Mortgage, Lender sbsll promptly refund to Borrower any Funds
hdd by Fender. 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 Pr~opetty or its scquisition by Deader, nay Funds held br
Lender at the time of applicatitrtt as a credit against the sutm secured by this Mortgage.
3. A~Beatlatt d Pslymerrb, Unless applicable law provides otherwise, all payments received by [.ender under the
Note and paragraphs 1-and 2 hetYOf shall be applied by Leader first in payment of amounts payable to Lender by Borrower
reader paragraph 2 hereof, then to interest payable oa the Note, then to the principal of the Note. and then to interest and
ptrirxcipal on nay Future Advances. -
4. CLr~ Bees. Borrovrtr shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which a~rry attain a priority over this Mortgage, and leasehold paytatats or ground rents, if any. in the a?uraer
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due. directly to the
Wyse thereof. Borrower shall promptly furbish to Lender alt notices of amounts due under this paragraph, and in the event
Borrower shall make Wyment directly. Borrower shall promptly furnish to Lender receipts evidencing such Wyntenu.
Borrower shall promptly discharge any lien which has priority over this Mortgage; providtd. that Borrower shall not be
required to discharge any such lien so brag as Borrower shall agree in writing to the payment of the obligation tKCirrod by
such lien in a manner atxxptabk to Lender. or shall in good faith contest such lien by, or defend enforcement of such liw iq
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. 1fGurari I~wratce. Borrower shall keep the improvements now existing or hereafter eructed oa the Property itnured
agaimt loss by fire, hazards included within the term "extended coverage", and such other hazards u Lender may require
and is such amounts and for such periods as Lender may require; provided, that [.ender shall rat raluire these the amount of
such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
"ILe iawrance 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 shall be paid in the moaner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dtx, directly to the
inwranee 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 shalt 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
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
cwt thereby impaired. If such restoration or repair is not economically feasible Or if the security of this Mortgage would
be impaired, the insurance procceds 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 it 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 Propertp
or to fix sums secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to prirteipal~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 Pro~,erty is acquired by [.ender, all right, title and interest of Borrower
in gad to any Auurance policies and in and to tlx: proceeds thereof resulting from damage to the Property prior to tlrs: sale
or acquisition shall Qass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition. _
Trrservatioo gad Maiatcnaace of Property; Leaseholds; Condominiums; Planned Unit Devidopmeats. Borrower
shall keep the Property is good repair and shall not commit yvaste or permit impairment or deterioration of the Property
.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 shall perform all of Borrowers obligations under 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, acid constituent documents: if a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shat! be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage u 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 is aimmenced which materially affects Lender's interest in the Property,
including, but not limited to, eminent domain, inu~lvcncy. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then 1_ender at Lender's option, ~t.e~n gcitice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's ices and entry upon the Property to make.repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
insurance in eBect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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