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Ut+ttrottat Corrat+~tnrs. Borrower and Leader ooveaant and agroe su follows:
1 )<tgmwtt et l<tiaclwl atsd itslsswt. Borrower shall promptly pay when due the principal of told interest oa the
iadebtedaees evidertoed by the Nate, ptYpaytrrreat and 4te charges as provided in the Nora, and the principal of and intetesl
oa any Futttue Advances »ecund by this Mortgage.
lllttti htr Tatne and irttrttacw Slrbject to spplicabk law sx to a written waiver by Lender, Borr+aver shsll pay
to Leader oa the day mouthly iratallurents of principal and interest ~re paysbk under the Note. until the Note u paid in full,
a aura (herein "Frrads'~ equal to one-twelfth of the yeart~• tax~~ and sssessrrrents which may attain priority over this
Mortgage, and pound read oa the Property. it say. F+ius one-twelfth of yearly premium iastallrnents for hazard insurance.
plus oae•twellth of yearly prcmirrm installments for mortgage inuirancc, if any, all as reasonably estimated initially and from
tithe to tithe. by Lender oa the basis of assessments and hills and reasonable estimates thereof.
'Ilse Funds shall be held in an institution the deposits or accounts of which are irrsrir+ed or guaranteed by a Federal of '
state agency (inchttiit.g Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments,
iratrrsaoe premiums and pared rents. lender may not charge for so holding and applying the Fttrrds. analyzing said account,
or verifying~ad compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
petmtits Lender to make such a charge.. Borrower sad Lender may agree in writing. at the time o[ execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
requires suds interest to be paid, Lender shall not 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 acrd the
purpose [or which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured
by the Mortgage.
If the amount of the Fuad: held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments. iasurance premiums and ground rents, shall exceed the amount required to pay said taxes,
asstssments, irrsurantx premiums and ground rents tts 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
held by Leader strati not be t to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shall pay to Ltxrder any amount necessary to make up the deficiency within 30 days [nom the date entice is mailed
by Leader to Borrower regtrestiag payment thereof.
Upon payment is full of all stints secured by this Mortgage, ~'eAtra11 pri6mptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold os tb~; ~.tapprtY rs aherwise acquired by Lender, Lender
s6a11 sppty. no later tlrsn immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the time of application as a credit agairut the :tuns sectued by this Mortgage.
3. A~licatloe et Irq~b. 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
rurder paragraph 2 hereof, tbea to interest payable on tlrc Note, then to the principal of the Note, and then to interest and
principal on any Future Advances.
t,'rarges; I.krts. 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 manger
pr+avided tinder puagraph 2 hereof or, if not paid in such moaner, by Borrower making payment, when due, directly to the
payee tber~eof. Borrower shall promptly furnish to Leader all notices of amounts due under this paragraph, and 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 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 ia,
legal proceedings which operate to preveat the enforcement of the lien or forfeiture of the Property or any part thereof. t
S. IKasard Iwrarn~e. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
againu loss 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 Lender shall not rtxluirc that the amount of j
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 insuranrn 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, dirtxtty 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,
and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, i
! Borrower shall give prompt notice to the insurance career and Lender. Lender may make proof of loss if not made promptly
by Borrower.
j Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
l the Property damaged, provided such restoration or repair rs economically feasible and the security of this Mortgage is
not tMreby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would i
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid
E 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
i 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 installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
~ in sad to any Assurance policies and in and to the proceeds thereof resulting from damage to the Prgperty 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. Presenatioo and Maintenance of Propert~•; Leaseholds; Condominiums; Planned Unit Devcbpments. Borrower
shall keep the Property in good repair and shall not comrtlit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any tease 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 i
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
i 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. Protectlos of Lender's Security= If Borrower fa?1s 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 6mrted to. eminent domain. insolvency. code enforcement. or arrangements or proceedings invoh•ing a ~
I 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, disbursement of
reasonable attorney's fees and entry upon the Property Io make repairs. If Lender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrower sh.rll pay ~ihe premitnns required to maintain such
insurance in effect until such time as the requirement for wch insurance terminates in accordance with Borrowers and
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