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Untlrottat Oovtartat~s. Borrower and Leader covenant and agree as follows:
~ Il~twstM W lrirtt4al ctrl Mereal. Borrower shall promptly pay when due the principal of and interest oa the
irtdebtedrtess evideatxd by tuts Note, prepayment and late charges as provided in the Note, and the principal of and interest ~
oa any Future Advances secttt+ed by this Mortgages. .
1 trawl Qer Trues anti irwraoaY. Subject to applicabk law or to a written waiver by Leader, Borrower shall pay
to Leader on the day monthly installments of principal and interc~t are. payabk under the Note. until the Note is paid in.full.
a stua (herein "Funds' equal to cafestwelfth of the yeati)~ taxies and assessments which tray attain priority over this
Mortgage, and Second rents oa ebe Property. it any. plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yeuly prernittm installments for mortgage insurance, if any. all u reasonably estimated initially and from ~ i
tune to time by Leader oa the bass of assessments and hills and rcasonabk estimates thereof.
The Fonds shall bes held in an institution the deposits or accounts of which are inwr+ed or guaranteed by a Federal of {
state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay uid taxes, assessments.
iaaunrtoa premiums and ground rents. !.ender may not charge for ro holding and applying the Funds. analyzing said account.
or verifying.artd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicabk law
permits Lender to make such a clurge. Borrower and Lender may agree in writing at the tune of execution of this
Mortgage that interest on the Funds shall be paid to Bo r, and unku such agreement is made or applicabk law
requires such interest to be paid, Lender shall not be required to pzy Borrower any interest or earnings on lira Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to tots Funds was made. The Funds arc pledged u additional security for the sums secured
by this Mortgage. i
If the amount of the Funds held by Lender. together with the future monthly installments of Funds payabk prior to
the dots dates of taxes. assessments. insurance prcrniuttu and ground rents. shall exceed the amount required to pay said taxes, ~
ataestraents, ia:urantx prcrniutns and ground rents ~s they fall due. such excess shall be. at Borrower's option, either
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promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds ;
btdd by Loader shall not be strfHcieat to pay toes, assessrnetits. insurance premiums and ground rents as they fall due.
Borrower shall pay to Lwtder any amount tteeessary 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 secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lesnder, If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the sak of the Property or its acquisition by Lender. any Funds held by
Leader at the time of application a: a credit against the :ums secured by this Mortgage.
3. Applicatiga of I~metiils. 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 tht Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
4. Crarges; Linos. Borcower 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, whtut due, dittetly to the
payee tlxreof. 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 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 egret in writing to the payment of tYe 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 !feet in,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Irttatnwce. Borrower shall koep the improvements now existing or hereafter erected on the Property insured
against toss by fire, hazards included within the terrti "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 by this Mortgage.
'13te insurance carrier providing the insurance shall be 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
iawrance 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,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. Tn the event of loss.
Borrower shall give prompt notice to the insurance carrier and Ixnder. 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 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 Propene
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 Property is acquired by Lender, all right, title and interest of Borrower
in sad to any htsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tlx: 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. Preservatloa and Maintenance of Property; Leaseholds; Condominiums; Planned Unit De~ekpments. 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 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 rides
were a part hereof. '
7, Protection of Leadtr's Security. If Borrower fails 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 invoh•ing a
bankrupt or decedent, rhea 1_ender at Lender's option, upon notice to Borrower, may make such appearances, dishurse such
sums and take such action ac is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney i Ices 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
insurance in etlect until such time as the requirement (or wch insurance terminates in accordance with Borrowers and
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