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Urrtrontat Covtnnxttr:a, Borrower and Lender covenant and agree u follows:
1. 11'tiywaM eft h1ac1lnl rttN 1Metasf. Borrower shall promptly pay when due the principal of and interest on the
indebtedtteas evideaoed by the Note, prepayment and late charges as provided .in the Note, and the principal of and interest
as any Future Advaaas tttxut+ed by this Mortgage.
>iraoi ter tiattea arri Uurraaee. Supject to applicable law or to a written waiver by Lender. Borrower :ftall pay
to Leader on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full,
a sttna (htrrein "Fttads'~ equal to ottc-twelfth of the yearly taxc. and assessments which may attain priority over this
Mortittge, and ground rents om the Property, if any, plus one-twelfth of yearly premium -installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insttrartec, it any, all u reasonably estimated initially and tram
time to time by lender on the buffs of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposua or accounts of which are insured or gwr:nteed by a Federal or
state agertcy (including Lender if Lendsr is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments.
iasurttutoe premiums and ground rents. lender may not charge for sn holding and applying the Frtnds. analyzing said account.
or verifying and compiling said assessments and bills, 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 of execution of this
MattBage ghat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shW 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. The Funds arc pledged u additional security for the sums secured
by the Mortpgt.
H the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes. asseuments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
aaataaents, imsuratxe 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 installments of Funds. If the amount of the Funds
held by Leader shW not be wfficicat to pay taxes. assessments, insurance premiums and gtnurtd rents as they fall due,
Borrower shall pay to Lender any:mount 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 fuq of all scams secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hercaf the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply. rw later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Leader at the tiax of application as a credit against the sums secured by this Mortgage.
3. ApNication of PaytaKrrts. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hetmf shall be applied by 1_ender 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.
4. CYsrges; Lierrs, 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 thts 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 m 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, Hazard Ioarrttuace. Borower shall kcep the improvements now existing or hereafttr erased on the Property insured
against loss by fire, hazards included within the term "extended coverage", aid 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 rums secured by this Mortgage.
The ituurance 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 paragraph2 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,
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 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 cconumirally feasible or if the security of this Mortgage would
be impaired, the insurance procceds 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'a option either to restoration or repair of the Properi~•
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 !and 2 hereof or change the amount of
'such installments. If under paragraph I8 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
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Prrarrvation and Maintenance of Propert3~; leaseholds; Condominiums; Planned Ualt Devebpments. Borrower
shall kcep the Property in good repair and shall not comruit yvaste ur permit impairment or deterioration of the Property
and shall comply with the provisions of any lease if th„ Mortgage is on a (easchotd. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shat{ 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 develoi,ment, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together w,th this Mortgage, the covenants and agreements of such rider
shall be incorporated into and shall amend and supp;ement the covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower faih t~~ perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially affects [.ender's interest in the Propert~~.
including, but nod limned to, eminent domain. imahencp. axle enforcement, or arrangements or proceedings involcmg a
bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. ma} make such appearances, disburse such
sums and take such action at is necessary to protect Lender's interest, including. but not limited to, disbursement of
reasonable aUomey's fees and entry up~m the Property to ma{~c repairs. d( Lender required mortgage insurance as a
.condition of making the loan secured by this M~~rtgage. B~~rrrwer sh.rN pay the premiums required to maintain such
insurance in effect until such time as the requirement for ,uch msuran.e terminates m accordance with Borr~~wer's and
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