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Untt~ Covtatrat~rrs. Borrower and Leader covenant and agree u follow::
3. )<a~wetN o[ trit:flal staff IatetreN. Borrower shall promptly pay when due the principal of and interest on the
iadebtedntas evideaoed by the Note, prepayment and lace charges ac provided in the Note, and the principal of std interest
as soy Future Advattoes secured by this Mortgage. •
lrtrttis totr Tazsa tutN Ltwrree. Subject to applicable law ~x to a written waiver by Lender, Borrower shsll pay
to Leader on the day monthly ittstalltnents of principal and intcrect are. payable under the Note. until the Note is paid in full,
a sum (herein "Funds'? equal to one•twelfth of the yearl~~ tar,~~ and assessments which may attain pnority over this
Mottgaga attd ground Hats on the Property. if any, plus Otte-twelfth of yearly-premium installments for hattrd insurance,
plus oats-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
titrte to time by Lender on the buffs of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or
riate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. ssseuments,
insurance premiums and ground rents. tender may not charge for zn holding and applying the Funds. analyzing said account,
or verifying_sttd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of _ this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a made or applicable law
rcgtdra such interest to bt paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
_ shag give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds art pledged u addetional security for the sums secured
by this Mortgage.
If the amount o[ the Futtds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. insurance premiums and ground rents, shall sxcted the amount requited to pay said taxes,
assessments, iruurattce premiums and ground rents u they fall due. such excess shall be, at Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
hdd by Letxler shall not be sttl6cieat to pay taxes, assessments, insurance premiums and ground rents u they fall due.
Borroaer shall pay to Lender any amount nocessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof.
Upon payment is full of all wms secured by this Mortgt<ge, lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Progeny rs otherwise acquired by Lender. Lender i
shall apply. no later Wan immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by a
Leader at the tithe of application u a credit against the sums secured by this Mortgage. -
3. Appllcatioa of Paytecttds. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Nott, then to the principal of the Note, and then to interest and
principal on any Future Advatttxs.
1. Charges; Liens. 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 the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and is the event
Borrower shall make payment directly, Borrower shall promptly fumish 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 secured by
such lien in a manner acceptable to Lender, or shall in good Iaith 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 pan thereof.
S. Hazacd Iwwrawce. Borrower shall keep the improvements now existing or hereafter erected qn the Property insured
against logs by fire, hazuds included within the term "extended coverage", •and such other 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 amount of coverage required to pay the sums secured by this Mortgage.
The insurance carrier providing the insurance shall be chosen by -Borrower subject to approval by Lender, provided,
Wat such approval shall not be unreasonably withheld. All premiums on insurance oolici~ shall be n_
aid in the manner
-provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
i insurance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
i clause in favor bf and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof,
j 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
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 qr repair is not economically feasible or if the security of this Mortgage would }
E 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 Mortgage.
Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend 's
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 Property is acquired by Lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
of acquisition shall pass to Lender to We extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and 1laintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in 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 Borrower's obligations under the declaration i
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the '
E condominium or planned unit devefopment. and 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
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 Leader's Securtty. If Borrower fails to perform the covenants and agreements contained in this ;
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
j including, but not limited to, eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a
I bankrupt or decedent. then Lender at Lender's option, up~m notice to Borrower, may make such appearances, disburse such
sums and take such action ac is necessary to protect Lender's. interest, including. but not limited to, disbursement of
reasonable attorney's ices and emry upon the Property to make repairs. If 1_ender required mortgage insurance as a
I condition of making the loan secured by this Mortgage. Bnrn:wer shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance wish Borrower's and
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