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Untratw Covtu+stars. 9orro~wer and Leader covenant and agree ss folk+ws:
1, 1T~g1eaM et Il
eise4al trtl flrtleseM. Borrower shall promptly pay when due the principal of and interest on the
indebtedrteas evidertood by the Note. prepaymatt and Isle charges as provided in the Note. and tbs principal of and interest i
ast any Futttro Advances secured by this Mortgage. t
ll<titatts hr Tasee atstt tawraoce. Subject to applicabk law M to a written waiver by Lender, Borrower shall pay
to Leader on the day monthly ittstsllments of principal and intcrcat ire. payttbk under the Note. until the Note a PaM in full.
a stem (herdn "Funds'1 equal to otte-twelfth of the yearly taxc~ and assessments which may attain priority over this
Mortgage, sad ground tutu on the Property, if any. plus one-twelfth of yearly premium in:ullntertu for hazard insurance.
pltt: ono-twelfth of yearly premium installments for mortgage inst+ranct:, if any, all as reasonably estimated initially and from
tune to tuna by Leader oa the basis of assessments and hilts and rcasonabk estimates thereof.
The Funds shall be held in an institution the deposiw or accounu of which arc irtsuted or guaranteed by a Federal or
s4te agency (including Lwtder if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments,
iawt'artce premiums and ground rcnu. i_ender may not charge for sn holding and applying the Fends. analyzing said account.
or verifying_aad compiling said assessmenu and bilk, unku Leader pays Botrowe: interest on the Funds and applicabk law
petmiu Lender to make stint 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 taw
requite suds 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 crediu and debits to the Funds and the }
ptttitose for which each debit to the Funds was made. The Funds are pledged as additional security tot the sums secured
by flat Mortgage.
H the amount of the Funds held by Lender, together with the future monthly installmenu of Funds payable prior to
the due dates of taxes, assesamenu, insurance premiums and ground renu, shall exceed the amount required to pay uid taxes.
aneaatenu, insurance pr+emittms and grouted rents as they fall due, such excess shall be, at Borrower's option. either
pranptly ttpaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Letrder shall cot be su~ciwt to pay taxes, assessments, insurance premiums and ground renu sa they fall due,
Bocrvaer sbaA pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader to Borrower requesting payment thereof,
Upon payment in full of all sums sceured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property +s 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.bv
L>sttder at the tune of application az a credit against the :urns secured by this Mortgage.
3. Applkatiota et Payseatr. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shalt be applied by Lender tiro M paymegt:of.atnput~payablt.to Lender by Borrower
under paragraph 2 hereof. then to interat payable on the Note; then to the principal b~` i Note, and then to interest and
principal on any Future Advances. = ~ ~ ' ~ '
I. Cfter~ IJerts. Borrower shall pay all taxes, assessments and other charges, totes and impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payaiegjg• 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 rtetias of amounts due under thit paragraph; and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymenu.
Borrower shall promptly discharge any lien which has priority orer this Mortgage; provided, that Bornower 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 io,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard lawraace. Borrower shalt 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 ~y this Mortgage.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided.
West such approval shall not be unttasonably 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. =
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 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 agrce 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 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
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 ferry is acquired by Lender, all right, title and interest of Borrower
in and to any Iltsurance 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 We extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. lreservatioa and Maintenance of Property: Leaseholds; Condominiurus; Plsnned Unit Developments. Borrower
shall keep the Property in geoid 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 +s tin 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
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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 Lender's Security, If Borrower fair 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,
including. but nut limited to, eminent domain. insolvency, code enforcement. or arrangements or proceedings invoh•ing a
bankrupt or decedent, the+? Lender at tender i 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 tees and entry uRon the Property to make repairs. If lender rey++ired mortgage insurance as a
condition of making the loan secure) by this Mongage. Burn:wcr shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance term+nates in accordance with Borrowers and
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