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Uwlwstst Cbvtsr+~t+ls. 'slower and lender covenant and agroe as fdk„srs: ~
L lgnsat d ~ si 1¦Issest. Borrower shall promptly pay when due the principal of and interest oa the
iadeb/edrsasa evideaoed by the Kota ptnpaymeM sad late charges as provided in the Nora, and the principal of srsd interest
ea my Futtttre Advances securod by this Mortgage.
1 !>tt¦i flatr'ilssss antl latt~cw Sltbject to spplicabk law ix to a written waiver by Lender. Botmwer shall pay
b Larder on the day monthly instalktenb of principal and interest are payable under the Note, until the Note is paid in toll,
a sum ( "Fuods'~ egwl to ate-twelfth of the yarly tax~~. and assessments which may attain priority over this
Mortgages and gr~ottrsd rash oa the Property. if any, plus arc-twelfth d ye,rty prcmitua installments [a hazard insurance,
plus one-twelfth of yearly pr~anium iwtallraents for mortgsge inu~nnoe, it say, all as rwsonably estimated initially and from
time to time by Leader on the basis of assessments and hills and reasonable estimates thereof.
The Fund: shall be beW in an institution the deposiq or accounts of which are insured or gwnnteed by a Federal otr
stale agency (iachding Lender if Lender is such an institution). Lender :ball apply the Funds to pay said taxes. assessmenb.
iasuraoee premiurrss and ground rents. tender may nd charge for so holding and applying the Frtrsds, analyzing said account,
a vaitying~ad compiling acid assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
petnnits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
lrfortgage that interest on the Funds :ball be paid to Borrower. and unless such agreement is made or applicable law
requires stsch interest to be paid. Lender shall not be required to pray Borrower any interest or earnings on the Funds. Lender
s>>vl 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 Mortgage.
If the amount o[ the Fuoda beW by Lender. together with the future monthly installments of Funds payable prior to
Ilse dtse dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
ataasmeats, instrraaoe prsmiurns and ground rents as they fall due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower a credited to Borrower on monthly installments of Funds. If the amount of the Funds
held bar Leader shall not be rarf6Cleat to pay taxes, assessrrsertts. insurance premiums and ground rents as they fall due,
Ban+awer shall pay to Larder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof. .
Upas payment is full d all scans secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender
shall spply. rso later than 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 against the sums secured by this Mortgage.
3. A~iieatiisa d laymeals. Unless applicable law provides otherwise, all payments received by Lender under the
Noce sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment o[ amounts payable to Lender by Borrower
under paragraph 2 hattof. then to interest payable on the Note, then to the principal of the Nae. and then to interest and
principal on any Future Advances.
1. Cfargesy I.ieas. 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 gc+ound 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 bng 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, i
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Haan! Irrsaaace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by fire, ho=ards 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 require that the amount of
such rnverage exceed that amount of-coverage required to pay the sums secured by this Mortgage.
1Le inwnnce 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
inwraace carrier.
AU insurance policies sad 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,
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 Properly damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. I( such restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance prorxeds 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 oflets to settle a claim for insurance benefits, Lender
is authorized to collect and apply tL.e 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 irstallments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in sad to any Rrsruance policies and in and to the proceeds thereof resulting from damage to the Property prior to ttt~: sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
~ scquisitioa.
~ lraervation sad Maiatenaoce of Property; Leaseholds; Condominiums; Planned UNt Devebpsneats. Borrower
shall keep the Property in good repair and shall not comnpit yvaste 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
coodaninium 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 it the rider
were a part hereof.
7. Pratectioa d Lender's Secsrrlty. If Borrower fails to perform the covenants and agreements contained in this
~ Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property,
g including. but not limned to, eminent domain. insc?Ivency, code enforcement, or arrangements or. proceedings involving a
bankrupt or decedent, then Ixnder at I.endei 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
reawnabk 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 _
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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