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Uwtrount Covat~ut+tTa, Borrower and Lender covenant and agree a: folbws: ~
L lsiyweet W >rslsrdMl tttai loNreM. Borrower shall promptly pay when due the principal of and interest on the i
ittdebtedtress evidettoed by the Note, prepayment and late charges as provided in the Note. and the principal of attd interest
oa any Futuna Advances sxw~ed by this Mortjttge.
llrit elan 1'ao<ea aei Subject to applicable law or io a written waiver by Lender. Borrower shall pay t
to Lender on the day monthly installtrtents of principal and interval arc payable under the Note, until the Note is paid in full.
a suaa (herein "Funds'? egos) to otte-twelfth of. the yearly' tax~~ and assessments which ttsay attain priority over this
Mortgage, turd ground recta on toe Property. if sny, plus one-twelfth of yearty~ premium installments for hazard insurance.
plus.oaatwdith of yearly premium installtrrents for mortgage inuirarrcc, if any, all as teasonabty estimated initially and (tom
time to lima by Letttkr on the basis of assessments and hills and reasonable estimates theteo[.
'ILe Fltnds shall be betel in an institution the deposits or accounts of which sre insured. or gwranteed by a Federal of i
state agenry (including Lender if I.erxier is such an institution). I~nder shall apply the Fltnds to pay said taxes. assessments.
iawrattoe premiums and ground rents. i.ender may not charge for :n holding and applying the Funds. analyzing said account.
or verifyintittd compiling said assessments and bilk, unleu Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower snd ).ender may agree in writing at the time at execution o[ this
Mortgage that interest on the Furtds shall be paid to Borrower, and unless such agreement a made or applicable taw
tequira such lateral to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Futrds. Lender
shalt give to Borrower, without clurge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpose for which eaeb debit to the Funds was made. The Funds are pledged as additional security for the sums secured t
by this Mortpge.
If the amount of the Fund: held by Lender, together with the future monthly installments of Funds payable prior to
the derv dates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
astestnaents, iraurattce premiums and ground rents as they fall due, such excess shall be. at Borrower's option. either
promptly repaid to Borrower or credited to Borrowu on monthly installments of Funds. I[ the amount of ttx Funds I
held by ).ender shall trot 6e wtl>aent to pay taxes, assessments. insurance premiums and ground rents u 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 Leader to Borrower requesting payment thereof.
Upon payttseat in full of all sums socurod by this Mortgage, Lender shalt promptly refund to Borrower any Funds
treed by Lender. If under paragraph t8 hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender
:hall apply, no later than immediately prior to the sale of it•~s Property or its acquisition by Lender. any Funds held by
Leader at the time of application a: a credit against the sums secured by this Mortgage.
3. Aptlkatfoa of )rt~yreds. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shalt 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.
4. Cttrrgeq Bees. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributablt to
the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the manner
provided under puagraph 2 hereof or, if not paid in such manner, by Borrower making payment. wtrar due, directly to the
payee thereof. Burrower shall promptly furnish to Lender all notices of amounts due under this paragraph, attd is the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which hu 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 enforrement 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. Rarard Iwwrsece. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by firr, 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 cvvetage 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,
trot 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.
AN insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
clause i 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. Leader 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
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 noti;t 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 instattmeots. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in gad 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. lreservatioe and Maintenance of Property; Leaseholds; Cnndominiums,• Planned Unit Il~erelopments. Borrower
shall kelp the Property in good repair and shall not commit yr'aSte or permit impairment or deterioration of the Property
gad 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
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements 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 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 Lender's interest, including, but not limited to. disbursement of
reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower shill pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and ti
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