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Uwtro~ut OOVttNSwle. Borrower and Lender covenant and agree as follows:
>rtyrtwry N leirtelwl ttM htwaf. Borrower shall promptly pay when due the principal of and interest on the
irtdebtttdnea evideaood by the Note, prepayment and late charges as provided in the Note. and the principal of and 'interest
an say Future Advattoes secured by this Mortgage.
!`tr hr 7lrotca atN Gtwtrtt~t:e. Subjtxt to applicable law rx to a written waiver by Lender. Borrower shall Pay
ro Lender on rite day monthly installments of principal and interest arc. payable under the Note, until the Note is paid in full,
a awn (htttein "Fttnds'~ equal to one-twelfth of the yearly tax~~ and assessmKnts which may attain priority over this
Mortgage. and ground vents on the Property, it any. plus one-twelfth of yearty~ premium iratalltrtertts for hazard insurance. .
plus otsa-twelfth of yearly prtunitun installments for mortgage inurrartce, it any, all u reasonably estimated initially and from
dine to tuna by Lender on the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be beW in an institution the deposits or accounts of which are insured or guaranteed by a Federal of
state agency (incltxling lender if Lender is such an institution). I~nder shall apply the Funds ro pay said taxes. asseaments,
instrrartee premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account.
oc vttrifying_and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law
ptttnnita Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of the
Mortgage that interest on the Funds shall be paid to Borrower, and unless :ucb agreement is made or applicable law
requiter 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 debiu to the Funds and the
ptrpore for which each debit to the Funds was made. The Funds arc pledged as additional security for the wins secured
by tbk Mortgage.
Tt the amount of tbi Fonds held bye Lender, together with the future monthly installments of Funds payable prior to
rite due dates of taxes, assessments, insurance premiums and ground rents, shall extend the amount required to pay said lazes.
asswaaents. insurance prcatitrms and ground rents as they fall due. such excess shall be, at Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds
held b!y Leader shall not be adf3cieat to pay taxes. assessrrtents, insurance premiums and ground rents ss they fall due.
Borto~rer shall pay to Lerder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Leader tD Borrows requesting payment thereof.
tlpat payttknt in full of all stttro secured by this Mortgage, Lender shall promptly refund to Borrower any_ Fund:
bald by Lender. If under paragraph 18 hereof the Property is sold or the Property a aherwise acquired by Lender. !:ender
sbaU apply, rto later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held br
[.coder at the time of application as a credit agairat the sums secured by this Mortgage.
3. A~Ycatlatt at tsprreNs. Unless applicable law provides otherwise, all payments received by Lender under Me
' Mott: and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 het+eof. tbw to interest payable on the Note, then to~the principal of the Note. and then to interest and
principal on any Future Advances. •
1. Crargea; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to
the Properly which may attain a priority over this Mortgage, and leasehold 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 tbtteof. 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 raxipts 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 long as Borrower shall agree in writing to the payment o[ the obligation secured by
such 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 opente to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Raaara las~ra~ee. Borrower shall keep the improvemenu now existing or hereafter erected on the Property insured
against lobs by fire, hazards included within the term "extended coverage", and such other hoards 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 coverage required to pay the sums secured by this Mortgage.
The inwrance carrier providing the inwrance shall be chosen by Borrower subjoct 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 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the
insurance carrier. ,
All 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 renewals thereof,
sad 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 loo 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 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 Lender 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 eitlxr 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 extend
or postpone the due 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 Pro forty is acquired by Lender, all tight. title and interest of Borrower
in and to any 1#rsurance policies and in and to the pra:eeds thereof resulttng from damage to the Property prior to the sale
or acquisition shall pass to Linder to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
f. Ih~aerratioa and 111aioteoance of Property; Leaseholds; Condominiums; Plansed Uait IDevdopatents. Borrower
~ shall keep the Property in good repair and shall not comrgit yvaste or permit impairment or deterioration of the Property
I and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a
ff! condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
~ condominitun or planned unit develoi,ment,rnd constituent Documents. If a condominium or planned unit development
i 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
j were a part hereof.
7. Protection of Leader's Security. If Borrower tails to perform the covenants and agreements contained in .this
Mortgage, or if any action or proceeding rs commenceD which materially affects Lender's interest in the Properly,
including. but not limited to, eminent domain. ina~lvency. code enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent. then'tender at Lender's option, upon notice to Borrower. may make such appearances, Disburse such
sums and take such action as is necessary to protect Lender's interest. including. but not limned to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. If 1~nder rcgrrireD mortgage insurance as a
condition of making the loan secureD by this Mortgage. &~rn:wcr shall pay the premiums requital to maintain such
insurance in effect until such time as the rcyuiremem for >trch msuran.e terminates in accordance with Borrower's and-
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