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Borrower erect Leader covenant sad agrw as follows:
1. Pta,/rwAeat of Principal and itater+sat. Borrower shall promptly pay when due the principal of and enterer oa the indebtednea
evidenesd by the Nola, prepayment and late dtarga err provided in the Note, and the principal of and interest oa any 1?titture Advanea secured
by this Mortgage.
Dada for Ta:ea and Iaauraaoe. Subject to applicable law or to a written waiver by Leader, Borrower shall pay to Lender on the day
monthly installments of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds'? equal to ono-
twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rants on the Property. if any, plus one•
twelfth of yearly premium installments fo: hazard insusance, plus ono-twelM of yearly premium installments for mortgage insurance. if any.
all as reasonably estuaated iaitiaUy sad tom time to time by Lender on We'baais of aesesamenta and bills and reasonable estimates thereof.
TM Phads shall be held is as institution the deposits or accounts of which are insured os guaranteed by a Federal or State agency
(including Leader if Leader is such an iwtitution). Leader shall apply the Funds to pay said taxes, assessments, insunmce premiums and
ground rents. Loader may not charge for so holding sad applying the Funds. eaalysing said accouat.'or verifying and compiling said
assessments sad bills, naless Lender pays Borrower interest oa the Funds and applicable law permits Lender to make such a charge. Borrower
and Lends: may agree is writing at the time of execution of this Mortgage that interest oa the Funds shall be paid to Borrower, and unless
such agreement is made os applicable law requires such interest to be paid. Leader shall not be required to pay Borrower any interest or
earnings on We Ptiads. Leader shall 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 are pledged as additional security for the sums secured by this
Mortgage. ~ '
If the amount of the Enacts held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes.
assessments, iaauraace premiums and ground yenta, ahaU exceed the amount required to pay said taxes, assessments, insuranoa premiums
and ground rents a. that' fall due, lath excess shall be, at Borrower's option, either promptlj t8pnilgo Baetllfve~A~edited to Borrower on
monthly installments of P1mds. U the amount of the Funds held by Lender shall not be sufficient tq p~qy} , assessments, insurance
premiums sad ground rents as Wet' fall due, Borrower shall pay to Lender any: amount necessary to make u the deficiency within 30 days
from the date notice is mailed by Lender to Borrower'requeating payment Wereof. - 1-= ~ .
Upon payment is roll of all sums secured by Wiz Mortgage, Lender shall promptly refund b Borrower any funds held by Lender. V under
paragraph 18 hereof the Property is sold or the Property is oWerwise acquired by Lender, Lender ahaU apply. no later Wan immediately prior
to the sale of We Property or its aoquisitioa by Lender, any Funds heldby Lender at the time of application as a credit against We sums secured
by this Mortgage.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under We Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amonnta payable to Lender by Borrower under paragraph thereof,
then to interest payable oa the Note, Wen to We principal of the Note, and Wen to interest and principal on any Future Advances.
4. Charged Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to We Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, itany, 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 shr~U not be required to discharge any such lien sa long as Borrower shall ague 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, ordefend enforcement ofsuch lien in,legal proceedings
which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazard Inaerraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lase by
fire, hazards included within the term "extended rnverage," and 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 rnverage
required to pay the soma secured by this Mortgage.
~ The insurance carrier providing the insurance shall be chosen by Iionrower subject to approval by Ixnder, provided, that such approval
~ shall not be unreasonably withheld. All premiums on insurance pdticies shall be paid in the manner provided under paragraph 2 hereof or, if
~ not aid in such manner, Borrower makin
i p by g payment, when due, direMly to the insurance carrier.
AU 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 renewaisthereof, and Borrower shall promptly furnish to
iender 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. '
l 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 economically feasible or itthe security of this Mortgage would be impaired, the insurance proceeds shall be applied
to the auma 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 olTera to settle a claim for
insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or 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 Wedue
date of the monthly installments referred to in paragraphs 1 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 oS Borrower in and to any insurance policies and in and to the proceeds
thereof resulting from damage to 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. Preservation and Dlaintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wild 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 Borrower's. obligations under the declaration or rnvenanta creatingor 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 rernrded 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 Wes Mortgage as if the
rider were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements oontaiaed in this Mortgage, or if any
E action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain.
insolvency, code enforoeweat, ar arrangements or proceedings involving a bankrupt or decedent, then Lender at Leader's option,upon
notice to Borrower may make such appearances, disburse arch sums and take such action as is necessary to protect Lender's interest,
including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required
F mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay We premiums required to maintain
each insurance in effect until such lima as We requirement for such insurance terminates in accordance wild Borrower's and Lende:'s
written agreement or appGcabk Law. Borrower shall pay We amount of all mortgage insurance premiums in the manner provided under
' paragraph 2 hereof.
Any amounts disbursed by Lender persuant to this paragraph 7. with interest thereon, shall become additional indebtedness of
E Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon
notice from Gender to Borrower requesting payment Wereot, and shall 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 would be contrary to applicable law, in which
event such amounts shall bear interest al; the highest rate permissible under applicable law. Nothing contained in this paragraph 7. shall
require Lender to incur any expenx.or take any action hereunder. '
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