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Uwuoatt Covawaw». Borrower sad bender covenant and agroe ss [ollor~~ ~ ; t'~` i ~
L >?4q~tweM M ~tiae4ai atM lalar~al. Borrower shall promptly pay when due the principal of and interest oa the
irtdebtodaas evidertoed by the Note. prepayment and late charges u provided in the Note. and the principal of and interest
oa coy Fwtrro Advattoes securod by this Mortgage.
ltttatti ar'[htoss asjtl I.~wa.ce. Stirbject to applicable law or to a written waiver by Lender. Bones shall pay
to Leader on the day monthly installments of principal and interest ire. payable under the Note, until the Nola is paid in full,
a start ¢tertin "Funds") egos! io one-twelfth of the yearly tax~~c :ntl assessrrtents whech may attain priority over this
' Mortgage, and ground teats oa the Property. if any. plus one-twelfth of yearly premium iastallrrtenu for hazard insurance.
plus one-twelfth of yearly premium installments [or mortgage inutrartce. if any. all u reasonably estimated initially and trap
6nte to lima by Leader oa the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposits or accounts of which are ittstu+ed of guaranteed by s Federal of
state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay uid taxes, asseurrtertts,
itwrratroe premiurtts and ground rents. lender may not charge form holding and applying the Funds. analyzing said account.
or veritying.aad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Fender to make such a charge. Borrower cad Lender may agree in writing at the time of execution of the
Mortgage that interest on the Fuack 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
shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
putpoa for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Moctgsje.
TE the amount o[ the Funds hdd by Lender. together with the future monthly installments of Funds payable prior to
the due dates of tsxea. assessments, irtsutanoe premiums and ground rents, shall exceed the amount required to pay uid taxes.
assasmeats, iawraaoe prcmiutas cad ground rents u they fall due. such excess shall be, at Borrowers option. either
promptly repaid io Sorrar~~r or ~'o3itad to Borrswar on rrK,ritiiiy irNt:iirciei~ts of Funds. !f the amount of the Funds
btdd by Leotlershall not be sulGcieat to pay taxes. aasessrrtentt. insurance premiums and ground rents as they [all due.
Borro~+rer shall pay to Leader 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 is full of ap sums sectrrod by this Mortgage, Lender shall promptly refund to Borrower any Funds
beW by Lender. If under paragraph 18 hereof the Property is sold or the Property ~s otherwise acquired by Lender. Lender
shall apply. no 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~licatiers of rayaseMs. Unless applicable law provides otherwise, all payments received by Lender under the
Note cad paragraphs 1 cad 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. Crrges; Liens. 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 puagraph 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 amount: due under this paragraph, cad 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 brag as Borrower shall agree in writing to the payment of the obligation secured by
suic6 lien in a manner acceptable to Lender. 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 [orfeiture of the Property or any part thereof.
S. Hazard Ittsurarrct, Borrower shall keep the itngmvernents now existing or hereafter erecttd on the Property insured
agairat loss by fire. hazards included within the term "extended coverage", and such other hazards u Lender may require
and in such amounts and for wch periods u Lender may require; provided, that [ender shall trot require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
li The inwrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
thst such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
~ providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
inwrance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
I 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 procceds 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 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 bender 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's option either to ratoration or repair of the Property
or to the wms 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
such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower
in and to any Auurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tlx: sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale of
acquisition.
f..Irreservatloa cad Maiateaance of Property; Leascbolds; Condomiaiuars; Planned Uait i0erelopmeats. Borrower
shall keep the. Property in good repair and shall not comrpit Waste 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
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration 4
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the i'
condominium or planned unit development, and constituent documents. I(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 if the rider
were a part hereof.
7. Protection of Leader's Security. If Bor-over 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 jn the Property,
including, but not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a f
bankrupt or decedent, then lxader at Lender's option, upon notice to Borrower, .may make such a~anfwes, disburse such
sums and take such action as is necessary to protect Lenders interest, including, but not-limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. if !.ender 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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