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Ut+t~onrw Oovat+anrs. Borrower and bender covenant and ages a: folbws:
~gttasnt et ><sisclpal alai lrtltKeal. Borrower shall promptly pay when due the principal of and interest oa the
utdebtadttea svidettoed by the Note. ptropaymeat sad late charges ss provided in the Note. and the principal of spd interest
oa at~? Porous Advances secured by this Mortgage.
3. ltinia ter Tasaa ttrti Irratasatraw Subject to applicable law ~x to • written waiver by Lender. Borrower shag pay,
to Leader at the day monthly installments of principal and interest arc. payable under the Note. until the Note is paid in tuQ. i
a auto (Itereia "Fuada'q equal to otta~tvirelfth of the yearly tax~~ and assessments which rosy attain priority over this
Mortpige, and ground t+ptb on the Property. if any, plus orte•twcltth of yearly pretnitnn iastdltnertb for hazard insurance.
plus ottertwelfth of yearly premium installments for mortgage insttratttx, if any. all ss reasonably estimated initially and troaa
time to time by Lender oa the bass of assessments and hills and reasonable estimates thereof.
7Le Fttutds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal of
state agency (including Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, a:satments.
iawranoe premiums and ground rent:. Lender may not charge for sn holding and applying the Funds. analyzing said account. ;
or verifying_and compling said assessments and bilk, unless Lender pays Borrower interest on the Funds and appliubk law
permits Lender to make such a charge. Borrower and Lender may agrse in writing at the time of execution of tha
Mortgage that interest on the Funds :ball be paid to Borrower. and ualas such agreement is made or applicable taw
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbaU give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the ~
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this M«tgage. ;
TE the attsouttt of the Fund: held 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 said taxes. +
assessments, itt:unnoe premiums and ground rents as they fall due, such excess shall tie. at Borrower's option, eitheF 1
promptly repaid to Borrower or credited 'to Borrower on monthly installments of Funds. If the amount of the Fund:
bdd by Lenderahall not be suit to pay taxes, ateessrnent:, insurance premiums and ground rents as they [all due.
Borroerer shall pay to Lender any tnmottnt necessary to make up the deficiency within 30 days from the date notice is mailed {
by Leader to Borrower requesting payment thereof. 1`
Upon payment is full of all soar: secured by this Mortgsge. Lender shall promptly refund to Borrower any Funds 1f
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
:hall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by i
Leader at the time of application as a credit against the sums secured by this Mortgage.
3. A~licatiaa o[ lgme>ib. 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 the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances. i
I. Cram Lkras. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
the Property which may attain a priority over this Mortgage. and leasehold payments 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 notices of amounts due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall F:omptly 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 lien i0.
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hmrd Iwranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against lass by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
sad in such amounts and for such periods as Lender may require; provided, that [.ender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
'ilre insurance carrier providing the insurance shall bt 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
insurance carrier.
All 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.
~ sad 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 if the stcurity of this Mortgage would
bt 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 colleet 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.
I 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 I8 hereof the Pro[erty is acquired by Lender, all right. title and interest of Borrower
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. Pr+eservatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Ualt Developtments. Borrower
shall keep the Property in good repair and shall not comrpit Waste or permit impairment or deterioration of the Property
and 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 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. I[ a condominium or planned unit development ~
f 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. Prottctioa of Lender's Security. If Burrower fails to perform the covenants and agrcements contained in this t
Mortgage, or if any action ur proceeding rs commenced which materially affects Lender's interest in the Property,
t including, but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then 1_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 Pecs 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 shall pay the premiums required to maintain such
inuurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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8001( P4GE 52~