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Ut+ttroans Covart~t+trs. Borrower and Leader covenant and agree as follows:
1. >Bgwant e[ ff'rMe4a1 a+nl Wsrat. _ Borrower shag promptly pay when due the principal of and interest on the
ittdebtedrtess evidettad by the Note, prepayttteat and late charges ac provided in the Note, and the principal o[ and interest
as any Futuna Advances secw+ed by this Mortsage.
2, lyds ter Tastes ttntl lstwitance. Stitbject to applicable law or to a written waiver by Lender. Borrower tsttall pay
to Leader on the day monthly installments o[ principal :nd interest arc. payable under the Note. until the Note is paid in full,
a twat (herein "Futtds'~ egttal to one-twelfth of the yearly tax~~. and assessments which may attain priority over this
Mortgage, sad =round rafts on the Property. if any, plus one-twelfth of yeatfii premium installments for haurd insuratta.
plus oae•twelfth of yearly premium installments [or mortgage insurance, if any. all ss t+easonably estimated initially and frost
time to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof.
7Ue Fttnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (irtcltding Lender if Lender is such an institutionl. Lender shall apply the Funds to pay raid taxes. assessments.
iastrrattoe praniurns and ground rents. tender may nor chargr for so holding attd applying the Frtndc. analyzing said account,
or verifying..snd compiling said assessments and bilk, unless Lender 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 o[ execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and oaks: such agrcement is made or applicable law
regttira such interest ro be paid. Lender shall itot 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 for which each debit to the Funds was made. Tie Funds arc pledged u additional security for the sums stcNred
by tba Mortgage. '
IE the amount of the Funds held by Lender, together with the future monthly installments of Farads payable prtor to
the due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes.
assaaraeats, iasuratttx premiums and ground rents u they fall due, such excess shall be. at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly inutallments of Funds. If the amount of the Funds
held by Lender shall not be wffieiwt 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 payment in full of all :trans secured by this Mortgage, Lender shall promptly refund to Borrower any Funds '
held by Lender. If under paragraph 18 hereof the Property is sold ~r the Properly rs otherwise acquired by Lender, Lender
shall apply, tto later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Lender at the tune of application as •a credit against the sums secured by this Mortgage.
3. A~licatiott of P~yaretNs. Unless, applicable law provides otherwise, all payments received by Lender under the
Note and puagnphs I 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.
1. C4arges; Dens. 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 promptly furnish 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 [.ender, 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. Haasrd Iawranee. Borrower shall keep the improvements now existing or herezfter erected on the Property insured '
against loss 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 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, • .
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. F
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 shalt 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.
li 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 it
~ not thereby impaired. I[ 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 otters 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 I and 2 hereof or change the amount of
sne6 installments. If under paragraph 18 hereof the Property 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 t#
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ acquisition.
6; trrservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpmeats. Borrower
shall ccep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
aesl 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 tuth development, Borrower shall perform all of Borrowers obligations under the declaration F
or cbvenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
tenet' ininium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with th++ 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 faih u• perform the covenants and agreements contained in this
Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property,
including, but not limited to, em+nent domain. ina.lvency. code enforcement, or arrangements or proceedings involving a t
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 limbed to, disbursement of
` reasonable auomey's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a ~
~ condition of makm the loan secured h • this Mort a e. Borrower shall
g } R' R pay the premiums required to maintain such
insurance in effect until such time as the reyuircmem for wch insurance term+nates +n accordance with Borrowers and
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