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Borrower sad Louder covenant and agrw as follows:
1. Payment of Prlaeipal sad Iaterest. Borrower shag promptly pay whea due the principal of sad iaterod on the indebtedness
evideaosd by tbs Not, pnpaymeat sad late charges w provided in the Note, sad the principal of and interest oa any Future Advsaoes secured '
by this Iilortgage.
Z. Ptinds for Tares sad Iaauranee. 3ubjed to applicable law or to a written waiver by I.ender, Bormw~ shall pay to Lender oa the day
monthly installment of principal and interest are pgyabk under the Note, until the Note is paid in full, a sum (herein "~4ads'~ equal to ana-
twdfth ofthe yearly to:essad assessments wthich may attain priority over this Mortgage, and ground rents on the Property. if say. plw oae•
twdRh of yearly premium installment for hazard insurance. plw one•twdRh of yearly premium installments for mortgage insurance, if any,
all as teasonab~y estimated initially and lkam time to time by Lender on the basis of assessment and tilt and reasonable estimates thereof.
The Funds shall be held in an institution the depodt or aeoount of which are insured or guaranteed by a Federal or State agency
(including Lender if Leader is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and
ground rent. Leader may not dur~a for so holding sad applying the Funds. analjrting said accouat,'or verifying and compiling said
assessment and biW, unless Lander pays Borrower interest oa the Funds and applicable law permit Leader to make such a charge. Borrower
and Leader may agree is writing at the time of execution of this Mortgage that interest on the Funds alaall be paid to Borrower, and unless
such agreement is mode or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or
earnings on We Funds. Cordes: shall give t Borrower. wiWoutcharge. an annual aeoounting of the Funds showing credit and debit to the
Funds and the purpose for which each debit to the Funds was made. The fiords are pledged as additional security for the sums secured by this
Mortgage.
if We amount of the Funds hdd by Loader, together with the future monthly iastllment of fiords payable prior to the due dates of tares,
assessment, insurance premiums and ground rent, shall exeeed the amount required to pay said taxes, assessments, insurance premiums
and ground rent as Way fall dw, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on
monthly iastallment of fiiads. If We amount of We Funds hdd by Lender shall not be sufficient to pay taxes, assessments, insurance
premiums and ground rat as Wey fall due, Borrower shall pay to Lender any amount necessary to make up Wes deficiency within 30 days
from We dot notice is mailed by Lender to Borrower requesting Payment thereof.
Upon payment is full of all sums secured by Wis Mortgage, Lander shall promptly refund to Borrower any fuads held by Lender. If under
paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. no later than immediately prior
to We sale of We Property or it acquisition by [.ender, any Inds held by Lender at the time of application as a credit against the soars secured
by Wis Mortgage.
3. Application of Payments. Unless applicable law provides oWerwise, all payment received by Lender under We Note and
paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof,
then to interest payable on We Note, Wea to the principal of the Note, and then to interest and principal on any Future Advances
4. Charges; Liens. Borrower shall pay all taxes, assessment and other charges, fires and impositions attributable to We Property which
may attain a priority over Wis Mortgage, and leasehold payment or ground rent, 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 amount due under Wis paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipt evidencing such payment. 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 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 in good faiW 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.
5. Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against loss by
fire, hazards included within the term "extended coverage; 'and such other hazards as Ixnder may require and in such amount and for such
periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed Wat amount of rnverage
iequired to pay We sums secured by Wis Mortgage.
The insurance 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 paragraph 2 hereofor, if
not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.
All insurance policies and renewals Wereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favorof
and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. and Borrower shall promptly fwniah to
lender all renewal notices and all receipt of paid premiums. In the event of loss, Borrower shall give prompt notice to We insurance carrier
li and Leader. Lender may make proof of lose if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property
damaged, provided such restoration or repair is economically feasible and the security of Wis 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 inawance proceeds shall be applied
to the soma secwed by this Mortgage, with the excess, itany, paid to Borrower. I[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 We inswance carrier offers to settle a claim for
insurance benefit, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the
Property or We soma secured by this Mortgage.
Unless Lender and Borrower otherwise agree in writing, any snch application of proceeds to principal shall not extend or postpone the due
date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such installment. If under paragraph 18
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 Property prior to the sale or acquisition shall pass to Lender to We extent of the sums secured by Wis
Mortgage immediately prior to snch sale or acquisition.
6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Development. Borrower shall keep
the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of We Property and shall comply wild We
provisions of any lease if Wis 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 We declaration orcovenant creatingor governing We rnndominium or planned
unit development, We by-laws and regulations of the condominium or planned unit development, and rnnstitnent document. If a
condominium or planned unit development rider is executed by Borrower and recorded together wild Wis Mortgage, We covenant and
agreement of such rider shall be incorporated into and shall amend and supplement Wernvenant and agreement of this Mortgage as if the
rider were a part hereof.
1 7. Protection of Lender's Security. If Borrower fails to perforn We covenant and agroanent contained in this Mortgage, or if any
t 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 arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon
notice to Borrower may make such appearances, disburse snch sums and take snch action as is necessary to protect Lender's interest,
f including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repair. If Leader repaired
mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay We premiums required to maintain
such insurance in effect until such time as We requirement for such insurance terminates in aeoordance wild Borrower's and Lender's
'4 written agreement or applicable Law. Borrower shall pay the amount of all mortgage inawance premiums in the manner provided under
paragraph 2 hereof.
Any amount disiwrsed by Lender persuant to Wis paragraph with interest thereon, shall become additional indebtedness of
Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amount shall be payable upon
notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at We 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 amount shall bear interest at We highest 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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