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Utrrtr*asut Covanxrits. Borrower attd Laeder covenant and agree as follows: +
Ib ttpwteM et teiodMl ri 1tNem1. Borrower shall promptly pay when due the principal of turd interest on the
indebtedteess evidentxd by the Note, prepayment and laze charges as provided in the Note, and the principal of and?ntet~est }
on any Future Advances secw+ed by this Mortgage. !
Z. lhr~iis tar'l'azes tree ItRwetree. Subject to applicable Irtw ~x to a written waiver by Lender, Borrower shall wY
to Leader on the day monthly installments of principal and interest arr. payable under the Note. until the Note a paid in full,
a rum (Iter+ein "Funds' equal to one-twelfth of the yearl}• tax~~ and assessments which may attain priority over this
Moripge, and grouted rend on the Property, if any, plus one-twelfth of yearly premium installmenu for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and frown
time to tints by Lender on the bass of assessments and hilh and reasonable estimates thereof.
The Funds shall be held in an institution the deposiu or accounts of which arc insured or guaranteed by a Federal of
stau agency (including Lender if Lender is such an institution). Lender shall apply.the Funds to pay said taxes, assessments.
insurance prwniums and ground rents. Lender may not charge for an holding and applying the Fiireds. analyzing aid account,
or veritying_and compiling said assessments and bills, unless Lender pays Borrower ipterat on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of this
Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requira such interat to be paid, Lender shall not b_ a required to pay Borrower any interat or earnings on the Funds. Lender
shall 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 are pledged as additional security for the sums secured
by this Mortgage.
Tf the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due data of taxes, assessmenu. insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
astte»ments, iresuranoe premiuttts and ground rents as they fall due, such excess shall be. at Borrower's option, either
promptly repaid to Horrovrer or credited to Borrower on monthly installments of Funds. If the amount of the Funds
hdd bey Lender shall not bt sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requiting payment thereof.
Upon payment in full of all sums secured by this Mongage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, reo 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. Apllieatiota of l~yreats. 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
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances, ,
C6artes; 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 pusgraph 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 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 secured 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 inarrawce. Borrower shall keep the improvements now existing or hereafter erected on the 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 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,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be_ paid in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance 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 shalt Rive 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 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 i( 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 t
or to the sums secured by this Mortgage.
Unless fender 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 Property is acquired by Lender, all right, title and interest of Borrower
in and to any teuurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such• s8k or
acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower ~ ~
shall keep the Property in good repair and shall not comrpit ys•aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease i( this 4ortgage is on a leasehold. If this Mortgage is on a• unit in a i
condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing. the condominium or planned unit development, the by-laws and regulations of the 1
condominium or planned unit development, a:id 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
j 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 f
I Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limbed to. eminent domain. ins~~lvcnc~. cede enforcement, or arrangements or proceedings invoh•ing a
~ bankrupt or decedent. then tender at Lender's option, upe?n notice to Borrower, era}• make such appearances, disburse such t
sums and take such acti~~n as is necesary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's tees and entry ulxin the Property to make repairs. If I_cnder reyuircd mortgage insurance as a
condition of making the loan secure) by this Mortgage. Borrrwer shall pay the premiums required to maintain such
inuurance in effect until such time as the requirement for such insurance'termtnates in accordance with Borrower's and ~
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