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Uxttroax Oovttx~ntTS. Borrower and Lender covenant and agree ss tollows:
)ti. rgeretN d lridMl trtM lelaettl. Borrower shall promptl)• pay when due the principal of and interest on the
indebtednaa eviderroed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on soy FWtrro Advances secured by this Mortgage.
>EttNa ter Taaaa antl lrrstrr>ret. Slrbjed to applicabk law rx to a written waiver by Lender Borrower shall pay
to Lender on the day monthly installments of principal and interest arc. payable under the Note. until the Note is paid. in Lull,
a start (herein "Furrds'q equal to orre-twelfth of the yearly tax~~ and assessments which may attain priority over this
Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium installments [or htrzard inwrarrce.
plus ouatwelfth of yearly premium itstallments for mortgage insrrrarrcc, it any, all as reasonably estimated initially and freer: ~
time to time by Leader on the basis of assessments and hills and rcasonabk estimates thereof.
'Ilse Funds shall be held in an institution the deposiq or accounts of which are itrsttred or gwanteed by a Federal of
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying~nd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law i
pemrits Lender to make such a charge. Borrower acrd Lender may agree in writing at the time o[ execution of this
Mortgage that inter+at on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest 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 z
by this Mortgage.
It the amount of the Funds heW by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. irtsuranoe premiums and ground rents, shall exceed the amount required to pay said taxes.
asseaments, insurance premitms and ground rents as they fall due, such excess shall be. at Borrowers option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds ~
htdd by Lender shall not be wf6cient to pay taxes. assessments, insurance premiums and grotrnd rents as they fall due, s
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 Borrow.
er regttestin8 payment thereof.
Upon payment in full of all soma sectued by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under parsgraph 18 hereof the Property is sold or the Property ra otherwise acquired by Lender. Lender
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. Applieatiora of Payteerals. Unless applicable law provides otherwise, all payments received by Lender under the ~
Note sad paragraphs 1 and 2 hereof shall be applied by 1_ender 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.
4. 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 thettsflf. 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. i
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 mantrer acceptable to Lender, or shall in good faith contest such lien by, or defenJ 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. Harard Irrarrrurce. Borrower shall keep the improvements now existing or hereafter erected on the Property itrsured
against loss by fire, hazards included within. the term "extendeJ coverage", and such-other hazards as Lender may require
and in such amounts and for such periods as Lender may require; provide). 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.
'ILe 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
~I insurance carrier.
I 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,
r 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 damage), provided such restoration or repair is economically feasible and the security of this Mortgage is
Trot 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 secure) 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 Propem•
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 18 hereof the Property is acquire) 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
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or -
at:gt»sition. '
I 6. Preservation and Maintenance of Property; I_easehulds; Condominiums; Planned Unit Developrtxats. Borrower ~
shall kcep 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
or covenants creating or governing the condominium 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
1 rider is executed by Borrower and recordeJ together with this Mortgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend anJ supplement the covenants and agreements of this Mortgage as if the rider
' were a part hereof.
3 Protection of Lender's Security. If Borrower fads to perform the covenants anJ agreements contained in this #
i Mortgage, or if any action or proceeJing is cummence.l which materially affects Lender's interest in the Property,
l including. but not limited to. eminent domain. insolvency, code enforcement. ar 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 Lender's interest, including. but not limited to, disbursement of
reasonable attorney's fees and entry upcm the Property to make repairs. If Lender require) mortgage insurance as a~
cond~tibn of making the loan secure) by thrs Mortgage. Borrrwcr sh.rll pay the premiums require) to maintain such e
insurance in effect until such time as the reyrrirement for arch insurance terminates m accordance with Borrowers and
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