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Untroara Covanxwn, Borrower and Lender covenant and agree ss follows:
1U ll'tuassal et hielNl ttni InNreal. 8ormwer shall promptly pay when due the principal of and interest on fire
indebtedaas evideuoed by the Note, prepayment and late charges as provided in the Notes. and the principal o[ and interest
on any Futttro Advaaees secured by this Mortgage.
ltttNs ter 7yptea tttM Irtwtt~ce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
to Lander on the day monthly installments of principal and interest arc payable under the Note, until the Note a paid in full,
a stun (herein "Fttnds'~ equal to one-twelfth of the yearl~• taz~~ and assessments which nuy attain priority over this ~
Mortgage, and gtouad rants on the Property, it any, plus one-twelfth bf yeartli premium installments for hazard inwrantx.
plus one-twelfth of yearly premium installments for mortgage insurance. it any. all as reasonably estimated initially and from
lima to lima by Leader oa the basis of assessments and hills and reasonable estimates thereof. - r
The Fund: shall be held in an institution the deposip or accounts of which are irrwred or guaranteed by a Federal of - i
state agetrcy (including Leader i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments.
iasutaooe premiums and ground rents. Lender may not charge For so holding and applying the Frrndc, analyzing said account, !
or veritying~nd compiling said assessments and bills, unless Lander pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower anti Lender may agree in writing at the time of exaution o[ this
Mortgage that iatertst on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
r~egttira such interest to be paid, Lender shall raw 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 [or which each debit to the Funds was made. The Funds are pledgod as additional security for the sums sceured
by Wes Mortgage.
Tf the amount of the• Funds heM by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay uid taxes,
asswments, insurance premiums 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 of Funds. if the amount of the Funds
hdd by Leader shall not be atrfficieat to pay taxes, assessments, insurance premiums and ground rents as 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 Deader to Borrower requesting payment thereof.
Upon payment in full of all sums secured by this Mortgage, Lender :frail promptly refund to Borrower any Funds
held by Leader. 1t under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall spply, no later Wan immediately prior to the sale of the 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. A~ilcatlosr of Pay>oeds. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 sad 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 the Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
' d. Charges; Lkrrs. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
i the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the mantxr
f provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
IIII payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad in the event
Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any Tien 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 lien in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
~ S. Hazard larwrtuce. Borrower shall keep the improvements now existing or hereafter erected on the Properly insuied
against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
'i 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 by 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 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 titre, directly to the
insurance carrier.
~ All insurance policies and renewals thereof shall l±e in form acceptable to Lender and shall include a standard mortgage
i 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 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 it the security of this Mortgage would
be impaired, the insurance proceeds shall be applied to the stuns secured by this Mortgage, with the excess, if any. paid
to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the
daft notice is mailed by lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
f is authorized to collect and apply the insurance procceds 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
E or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of
stub installments. If under paragraph 18 hereof the Property is acyuired by Lender, all right, title and interest of Borrower
in anti to any Arsurance 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. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebptmnts. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
! sad 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 documentc. 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 arrtend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Prolectioa of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s cummcnced which materially affects l-ender's interest in the Property,
including, but not 6mrted to. eminent domain, ina.lvcncy. code enforcement, or arrangements or proceedings invoh•ing 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, disburxment of
' reasonable attorney's tees and entry upon the Property to make repairc. 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
insurance in etiect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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