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Uwtrottst Oovar+,?trts. Borrower turd Leader covarsnt and epee a fdbws:
>i. lutgsasttt K hiae4ti tri ittMseM. Borwwesr shall promptly pay when dos the principal of and interest on the
ittdebledner evidetioed by tbs Nwe, prepayment atd late charges u provided in the Notes, and tbs principal of and interest
as any >Ftsdtts Advisees secwed by this Mortgage.
B. !rt¦ds tstr 7'aass ttrstl ~w S~rbjoct to spplicabk law .x to a written waiver by Lander. 8orrowu shag pay
to Ltsadsr an the day tsroathty installments of principal and inteteu ~rc payable under the Note. until the Notes is paid in full,
a sum (harem "Funds") egwt to otratverdtth of the yearll• tax~~ and assessments which ,nay attain priority over this
Matgsg~ and ground treats oa the Preoperty. if say. plus one-twelfth d yearly praaiuta itrstallttreeu toe harard insurances,
plus oa-twelfth nt yesrly pr~gaium installments for tnatgage insurances. it any. all as raasoaably esCunated initially and irom
tithe to time by Larder oa the basis of assessrrrents and hilts and reasonable estimates thetesaN.
7irs Ftrtrd: shall bes bdd in an inuitution the deposits w accounts of which are insured a guaranteed by a Federal otr
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. asse::trrents.
tosurarroe pesmfutns and pound reels. i.crrdtr may not charge for sn holding and applying the Funds. analyzing said account.
or vsritying_aad compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
peemils leader to mske such s.charae. Borrower aid bender may agree in writing st the tithe of exxution of this
Mortgage that interest on the Furs shalt be: paid to Borrower. and unless such apeemetrt is made or applicable law
requites tatdr iatestetat to be paid. Letrder shalt not be required to pray Borrower any interest or earnings on the Funds. Lender
shaft gives to Borrower, without chargr, an annusl atxounting of the Funds showing credits and debits to the Funds and the -
putpose for which eatdr debit to the Funds was made. 71n Funds arc pledged u additional security for the sums secured
by crate Mottgnge.
l*l the atttount of the Funds held by Lender, together with the futon monthly installments of Funds payable prior to
the due dates of taxes, assessments. itrstrratrce premiums and ground rents, shall exceed the amount required to pay said taxes.
aaessnseats. insurance praaiutas atd pound rents ss they fall due. such excess shall be, at Borrower
i option, either
pboasptly repaid to Botroarer a credited to Borrower on monthly irst:Ilments of Funds. if the amount of the Funds
held br [~eodsr shall cwt be attaicitsot to pay toes, assesstrrents. insurance premiums and groutd rents as they fall due.
Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lesader tD Borrower requesting payment thereof. '
Upon psytoeat in full of all sums sawed by this Mortgage, Lender shall promptly refund to Borrower any Funt~s
held by Letrder. If under parapsph 18 hereof the Property is sold a the Property u< otherwise acquired by Lender. Lends
ahsU apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
Loader at the time of application as a ct+edit against the sums saurcd by this Mortgage.
3. A~iicstins ast lipa.eab. Unless applicable law provides dherwise. all payments received by Lender under the
Note atd paragraphs 1 acrd 2 hereof shall be applied by Lender first in paytrxnt of amounts payable to Lender by Borrower
under paragraph 2 hereof. tbm to interest payable on the Nae, then to the principal of the Note. and then. to interest and
principal on any Future Advances.
d. ~ ILicws. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to
tfte Property which tray attain a priority over this Mortgage, and kasehdd 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 theteeof. Borrower shall promptly furnish to Lender all notices of amounts due order this paragraph, acrd in the event
Borrower shall ttrake payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
Borrower shall promptly dischuge shy lien which has priority over this Mortgage; provided. that Borroverer shall not be
t+egtdred to discharge any such lien so brag as Borrower shall agree in writing to the payment of the oWigatiort secured by
such ties in a manner sooepubk to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in,
kpl proceeditgs which operate to prevent the enforcement of the lien or [orfeiture of tht Property or any part thereof.
S. IAszsri Iswraaea. Borrower shalt keep the improvements now exiuing or hereafter erected on the Property insured
against bas by fire, hazards included witfun the term "extended coverage", and such other hazards u Lender may require
and in such attwunts and [or 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 sums secured by this Mortgage. ~
The iawranee carrier providing the insurance shall be chosen by Borrower aubjoct to approval by Lender. provided,
that such approval shall not fie unrcasonabiy wittrlretd. lift premiums on insurance policies sf~li ba paid iii the mansrar -
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due. directly to the
Insurance carrier.
AU inwrance policies and renewals thereof shall be in form acceptabk,to Lender and shall include a standard mortgage
clause in favor of and in form acoeptabk 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.
Borroveler shelf 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 restoratan 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 reestoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insur-anee 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 twtice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for itrwrance benefits. Lender
is authorized to collect and apply the insurance proceeds at Lender's opion 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 exttnd
or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
such insWfineats. If under paragraph 18 hereof the ProFerty is acquired by Lender, all tight, title and interat of Borrower
in and to any hrsurance pdicies and in and to the proceeds thereof resulting from damage to the Property prior to thy: sale
a acquisitan shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acgtisition. '
f. Ih+a~erratio¦ sni Maftsteoatrce of troperty; LeaschWds; Condomitrirrras; IMawued UtW 1Devdoptrrewts, Borrower
shall keep the Property in good repair and shall not commit 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
cotdominium a a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration
a ooveasnts creating or governing the condominium or planned unit development. the by-laws and regulations of the
cardaniaium 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 u if the rider
were a part hereof.
7, rrotectiotr of Lender's St:ctrrlty. If Borrower fails t~ perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding ~s 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 ai Lender's option, upon notice to Borrower. may make such appearances, disburse such
sums and take such action as is necessary to protect Lenders interest, including. but not limited to= ~i~ursgttretit of
~reasonabk attorney's fees and- entry upon the Property to make repairs. if I_cnder required mortga~ insurance as a
condition of making the Loan secured by this Mortgage. B~rrrwer shill pay the premiums required to maintain such
insurance in effect until such lima as the rcyuirt:mem for tiuch msuran:e terminates in accordance with Borrowei s and
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