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Iorrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, prepayment and late charges as provided in the Nute, and the principal of and interest on any F
afore Advances secured
by this Mortgage.
2. b~utda for Taxes and Insurance. Subject to applicable law or tf? a written waiver by Lender, liorry,wer shall pay to Lender un the day
monthly inatallmenta of principal and interest are payable under the Note, until the Nute is paid in full, a xum Therein "Panda"?+x{ual to one
twelRh of the yearly taxes and asseasmwnta which may attain priority over this Mortgage, and ground rents on the Pry,perty, if any, plus one-
twelfth ofyearly premium inatallmenta fur hazard insurrmer, pluson+~tweltth of ye:+rly premium installments fur mortgage insun?nce, if any,
all f+a rer+sonably estimated initially and from time to time by Linder on the basis of s?.vsr.Kaments and bills and reasunablr Plttimales therec,t.
The Fonda shall be held in an institution the deposits ur accounts of which are insured or guaranteed by a Federal or State agency
iincluding Lender it Fender is such nn institution). Lender shall apply the hands to pay said tuxes, ussf•sxments, insurance premiums and
ground rents. Lender may not charge for so holding and applying the Funds, :+nalyzing a:+id :+cf•ount, (?r verifying r+nd compiling said
:+ssesamenta and bills, unless Lender pays Borrower interest on the F ands and applicable law permits Lender to make such a charge. Borrower
and Lender may agree in writing at the time of execution of this Mortgage that interest on the F unda shall he paid to Borrower, and unless
such agreement is made or applicable law requires such interest to Ix paid, Lender shall not be rec{aired t0 pay Burrower any interest or
earnings on the (•'unda. Lender shall give to Borrower, without charge, un annual an•ounting of the F ands showing credits and debits to the
N unda and the purpose for which each debit tf? the F
ands was made. The F ands are phdgfd as additional sefvrity for the sums secured by this
Mortgage.
If the amount ottee Mlrnds held by Lender, together with the future monthly installments of F ands payable prior to the duedatea of taxes,
assessments, insurance premiums and ground rents, shall exc
•r•d the amount nvtuind to pay :u+id taxes, assessments, insurance premiums
and ground rents as they full due, such excess shall he, ut li(nruwer's option, either promptly repaid to Burrower or c•rfdited W Borrower on
monthly installments of Funds. 1f the amount of the Funds held by I,enfler shs+ll not be sufficient to pay taxes, :+sses.Rments, insurance
premiums and ground rents as they fall due, liorry,wer xhnll pay G, Lender any amount nxcess:+ry to make up the deficiency within :i0 days
from the date notice is mailed by Lender l0 Itorry,w•er rf•f{u+•sting paymt
nt thenv~f.
Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Fiorrower any funds held by (.ender. if under
paragraph 1R hereof the Property is sold or the Property is otherwise :uyuirfd by Lender, Lender sh:+ll apply, no later than immediately prior
to the sale cf the Property or its acquisition by bender, any Funds held by l a•nder at the lime of application as a reedit against the sums secured
by this Mortgage.
3. Application of Payments. l)nless applicable law pry,vides otherwise, all payments received by Lender under the Note and
paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to IA ndcr by Borrower under paragraph 2 hereof,
then to interest payable on the Note, then to the principal of the Note, :+nf1 thin to interest and principal on any Future Advances.
4. ('barges; Liens. Born,wer shall pay :+ll taxfs, assfssments :+nd other charges, finf•s and im{ssitions attribut:fble to the Property which
may attain a priority over this Mortgage,:+nd leasehold payments ur [;round n•ntx, if any, in the manner pnw•ide(1 under paragr.+ph'L hereofor,
if nut paid in such manner, by Borrower making payment, when duf•, din•c•tly to thf• payfr therfr,f. Burrowershall prumpth furnish to Lender
all notices of amounts due under this paragr:ph, and in the event Burrower shall makf• payment din•f•th•. Borrower shall promptly furnish to
Lender receipt. evidencing such payments. Iturruwer shall promptly discharge :rm• lien which has priority over this Mortg:+gf•; pr,vided, that
Born,wer shall not I,en•yuirf•f1 to dischargf• any such lien su tun{; :+s liurruw•er shat! a{,rn•f• in writing to thf• payment of theubligatiun secured by
xuch lien in a manner acceptablf• to Lender, ur shall in g(N,fl faith contest su(•h lien by, ordefend enfun•f•ment of such lien in, legal pn,(•cfdings
.which operate to prevent the enforcement of the hen ur forfeiture (.f the 1'r.,perh• ur ar»• part the•n.,f.
5. Hazard Insurance. Borrower shall kfr•p the impruyemrnts now existing ur hereafter erf•c•ted un the 1'ruperty insured against has by
tire, hazards included within the term "extendfd cuyerage•," :uxi such other h:+rards as Lender may rf•c{uin• and in such amountti and forsuch
periods as Lender may n•c{uin•; pry,yidf•fi, that Lender shall nut n•quin• th:+t the amount of such (-average exce•fd that amount of coverage
rc•c{aired to pay the sums sef•urfd by this Mortgage.
The insurance tamer pry,yiding the insur:urce shall be chus(•n be Iturruwer subject to approval b}• Lender; pn+yidwl. that such appnn•al
shall nut hf• unre:+umahh• withheld. All premiums on insur-.urce policies shall Iw• paid in the manner prucid(rl under p:fr.?gr.+ph herfv,f or, if
nut paid in such manner, by Knrry,wer m:+king pa}•m(•nt, .when dw•, directly- t.. the insurance carrier.
All insurance policies and renewals thereat shall t,e in form accrptablf• to 1~•nde•rand shall inc•lude• a standard mortgage clause in favor of
and in form acceptable to lender. Lender shall have thf• right G, hold the policies and ry•newals thereof, and Borrower shall promptly furnish to
+,ender all renewal notices and all nreipts of paid premiums. In the f•yent .,floss, liurn,wer shall give prompt notice to the insurance carver
xnd Lender. [.ender may make pn,of of loss if not made promptly by Burrower.
unless Lender and Borrower othf•rveisc agree- in writing, insurane• proc•(r•ds shall Ir• applied to restoration or repair of the Property
damaged, provided such restoration or repair is f•(•onumicalh• feasible and the ururih• of this Mortgage is not thereby impaired. If such
F restoration or repair is not economically feasihlf• or if the security of this Mortgage would bt• impaired, the insurance proceeds shall beapplifd
to the sums secured by this Mortgage, with the excess, if any, paid to Burrower. If the Property is abandoned by Borrower, or if Borrower fails to
j respond to (,ender within a0 days from the date notice is mailfd tn• I.e•nder to Borrower that the insurance carrier offers to settle a claim for
insurance benefits, Lender is authonzfd to cullf•(•t and apply thf• insur:mce pn,(•eeds at Lender's option either to restoration ur repair of the
I Property or the sums secured by this Mortg:+gf•:
l Unless [xnder and Borrower otherwise agar in writing, am• such :+pplication of pryx•frds to principal shall not extend or postpone the due
t date of the monthh• installments referred to in par.?grrphs {and'( herfof or change the amount of such installments. If under paragraph 18
1 hereof the Property is acquired by Linder, all right, title :+nd interest of Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to Property prior to the sale or acywsition shall pass to Lender to the extent of the sums securfd by this
t 1ortgage immediately prior to such sale or acquisition.
6. Preservation and Maintenance of Property; Lease holds; ('ondominums; Planned Unit Developments. Borrowershall keep
the Property in good repair and shall not commit waste ur pf•rmit impairment or deterioration of the Property and shall rnmply Kith the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development,
Borrower shall perform all of lium,wer's obligations under the dec•larrtian urcovenants creatingor governing thecondominium or planned
unit development, the bylaws and regulations of the condominium or planned unit development, and constituent documents. If a
condominium or planned unit development rider is f•xfruted by Iiurn,Ker and recorded together with this Mortgage, the covenants and
:+greementsufsuchridershalllxincnrpuratf•dintuandshaltame•nd:rndsupplemc•ntthf•c~~enantsandagref•mentsofthis\lortgageasifthe
a rider were a part hereof-
~ 7. Protection of Lender'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 involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse such same and take such action as is necessary to protect Lender's interest,
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including, but not limited to, diaburaement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
s 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 Borrower's and Lender a
K•ritten agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under
paragraph 2 hereof.
Any amounts disbursed by Ixnder persuant to this paragraph 7, with interest thereon, shall bernme additional indebtedness of
3 Borrower ac-cured by this Mortgage. Unless Borrower and bender agree tr, other terms of p:,yment, such amounts shall be payable upon
notice from Lender to Borrower requesting payment thereof, and sh:+11 bear interest from the date of disbursement at the rate payable from
time to time on outstanding principal under the Note unless payment of interest at such rate Kuuld be n,ntrary to applicable law, in which
event such amounts shall bear interest at the highfst rate permissible under applicable law. Nothing contained in this paragraph 7, shall
require Lender to incur any expense or take any action hereunder.
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8~~~~36 ~~~E1546
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