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Uwttwur~t Oovanet+rs. Borrower sad Leader covetant and agree as follows:
1~. tttywt+M of hitrdpal tint InleteM. Borrower shall promptly pay when due the principal of and interest on the ~
indebtednaa evidt:troed by the Nde, ptrepayaxnt acrd late charges ac provided in the Nd0. and the principal of and interest
on say Future Advance ttttcured by this Mortgage. _
1 it'wtr tw'['aaea trod Ittwnree. Subject to applicable law .x to • written waiver by [.ender, Borrower span pay
to Lt:ader on the day anonthty installments of principal and intercu arc. payabb under the Nde, until the Nde is paid in full.
a rum (her'un "Fuads'~ egwl to one-twelfth of the yearly taxt.Y and assessrrrents which nay attain priority over this
Mortgage, and ground cans on the Property, if any, plus one-twelfth of yearly premium ittstallnrena for haurd insurance.
plus otae-twelfth of yearly premium installments for mortgage inutrance, if any. all m reasonably estimated initially and ft+om
dine to tithe by Lettdet oa the basis of assessments and hills and reasonable atimata thereof.
The Funds shall be held in an institution the deposits or accounts of which are insured a gwranteed by a Federal of
staa ajency (including Leader if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes. assessments. ~
insurance premiums sad ground rents. Lender may not charge for :n holdin=and applying the Funds, analyzing said account.
or verifying_arrd compiling said assessments and bilk. unless Lender pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower sad Lender tray agree in writing at the time of execution of the ,
Mortgage that interest on the Funds shall bt: paid to Borrower. and unless -such agroemcnt is made or applicable taw ;
requires such interest to be paid, Lender shalt red be required to prey Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Rinds showing credits and debits to the Funds and the ~
purpose for which each debit to the Funds was made. The -Funds arc pledged as additional security for the sums secured
by the Mortgage.
If the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due data of taxes, assasmeats, insurance premiums and ground rents. shall extxod the amount required to pay said taxes.
assettttments. iasurantx premiuums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly itstallments of Funds. If the amount of the Funds
bdd by Leader shW sot be w[ficieat to pay taxes, assessments. insurance premiums and ground rents as they fall due.
Borrower shall pay to Lender any amount treoessary to make up lire deficiency within 30 days from the date notice is mailed
by Leader to Borrower- requesting payment thereof.
Upon payment is fuU of sill sotto secured. by this Mortgage, Lender shall promptly refund to Borrower any. Fund:
held by Leader. If under paragraph 18 hereof. the Property is sold or the Properly rs dhenvise acquired by Lenckr. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Loader at the time of application a: a credit against the sums stxured by this Mortgage. ~ ~
3. ~ a< lgrneds. Unless applicable I:w provides otherwise, all payments roceived by ~ Lender under the
Note sad paragraphs 1 sad 2 hereof sha0 be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof; rhea to interest payable on the Note, theel tb tht> plinNpsiltof'tltlBrTQltt<.~stld then to interest and
principal on any Future Advances. ~~Lh,j;> 4
4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines pod; impositions attributable to f
the Property which may attain a priority over this Mortgage, and leasehold payments or $tbund rents, if any. in the manner
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment; wheo*due. directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under•thisa_paragrttBir, sad is the avast
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 faith contest such lien by, or defend enforcement of such Bert ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. ifittmrd Itrwrawee. Borrower shall keep the improvements now existing or hereafter erected on the Property. insured
against loss by fire, hazards included within the terns "extended coverage", and such other hazards as Lender may require
sad 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 iraurarrce 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
inwrance carrier.
Ali 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 al! 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 Proptrty 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 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 egret in writing, any such application of proceeds to principal shalt red extend ~
or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
such installments. If undsr paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower 3
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
acquisition. ~
6. Prrservstioo sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comruit yvaste or permit impairment or deterioration of the Property
and. shall comply with the provisions of any tease -if this Mortgage is on a leasehold. If this Mortgage is on a unit in a t
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, 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 I
shall be incorporattd 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 Burrower Jads to perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Froperty,
u+cluding, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then !.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 Leader's interest, including, but not limited to, disbursement of
reasonable attomev s fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan Secure) by this Mortgage. Borrower shall pay the premiums required to maintain such ~ s
insurance in eBect until such time as the reyuircment fur such insurance terminates in accordance with Borrowers and
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