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Ut+tt~wru~t taovananns. Borrower and l.ertder covenant and agroe as follows:
rq¦NtN M >!slee4al troll LalereM. eorrowu shall promptly pay when due the principal of and intcrat oa the
indebtedness evideaoed by the Note, pc+apayraertt and late charges as provided in the Note. and the principal o[ and interest
an gay Futtrro Advattoes securod by this Mortgage.
L >Fttwi tier 'tattM anti lttwraoea Stirbject to applicable law or to a written waiver by Lender, Botr+oet?er shall pay
to Leader on the day monthly installments of principal and interest are. payable under the Note, until the Note is paid in full.
a sum (herein "Fuads'q equal to one-twelfth of the yeart~• taxty and assessments which may attain priority over this
Mortgage. and ground r+ertb on the Property. if any, plus one-twelfth of yearilr• premium iasWlments for haurd insurattte.
plus oaatwelfW of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from
tints to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof.
1Tre Funds :halt be bead in an institution the deposiu or accounts of which arc insured or gwnnteted by a Federal otr
state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessma?ts,
insurartoe premiutrts and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account. •
or veritying.sad compiling said assessments and bills, unless Leader pays Borrower interest on the Funds and applicable law !
permits Lender 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
regtrirrrs such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shat! give to Borrower. without chargr;, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each dtrbit 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.payabk prior to
the duo dates of tsxea, assessments, imunnce premiums and ground rents, shall exceed the amount required to pay uid taxes.
assea«aents, insurance prcmiurns 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 installments o[ Funds. If the amount of the Funds
held by Lender shop not be wf6cieat to pay taxes. assessments, insurance premiums and ground rents. as they fall due,
Borrower shag pay to Lender any amount ntxessary to make up the deficiency within 30 days from the date notice is mailed
by header to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender shalt promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hersof the Property is sold or the Properly rs otherwise acquired by Lender. Lender
shall apply. no later Wan itmediately prior to the sale of the Property or its acquisition. by Lender, any Funds held by
Leader at the time of application a: s credit against the sums secured by this Mortgage.
3. Application of tayateds, 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 We Note, then to the principal of the Note, and then to interest and
principal on any Future Advances. f-,--
a. Cltarzes; IJe~s. Borrower shall pay all taxes, assessments and other charges, Ctnes uaid impositions attributable to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground dents, if any, in the manner
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. w(tpt iltte, directly to ttte
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due lrrtdet thin •paragraph,-and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidepciag 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 list in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part Wereof.
S. lgazard Iawraece. Borrower shall keep the improvements now existing or hereafter crested on the Property insured
against lass 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 excced that amount of coverage required to pay the sums secured Eby this Mortgage.
'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
West 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. ~ -
Atl 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 toss,
Borrower shall give prompt notice to the insurance carrier and Ixnder. Lender may make proof of lass 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
Ix 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 a 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 Properly
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 ~t and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro~,erty is acquired by Lender, all right, title and interest of Borrower
in and to any hrsurance policies and in and to the proceeds thereof resulting from damage to the Properly prior to tlx: sale
or acquisition shall pass to Lender to We extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
f. Ptrservatloo and Maintenance of Property; Leasebulds; Condominiums; Phoned Unit Devebptneats. Borrower
shall kcep the Property in good repair and shall not comrpit K•aste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1f this Mortgage is on a unit in a i
condominium or a planned unit development, Borrower shall perform ail 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 tfie covenants and agreements of this Mortgage as if the rider
were a part hereof. '
7. Protection of Leader's Security. if Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially affects Lender's interest in the Property,
including. but not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent. then Lender at l.eneier: ~ 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 upon the Property to make repairs. If 1_cnder required mortgage insurance as a j
condgion of making the loan secured by this Mortgage. Borrower sh,rll pay the premiums required to maintain such
insurance in effect until such time as the reyairement for such rnstrrance to ~minates in accordance with Borrowers and
• B~O~J~+O PAGEC?G7JQ
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