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Ut+ttwwa Covu+au+ra. Borrower and Leader covenant and agree ss [dbws:
ligtwsN of 1<si~t4a1 ant IaNtnM. Borrower shall promptly pay when due the principal of and interest on the
ietdebtedrress evideaood by tM Noq, prepayment and late charges u provided in the Note. and the principal of and jnteral
as eery Future Advantxs second by this Mortgage.
g. >Ef+nia Ear 71mss nsttl irttraace. Subject to applicable law ar to a written waiver by Lettder, Borrower :hall pay
to Lender on fire day monthly installments of principal and interest are. payable under the Note. until tits Note is paid in full.
a sum (herein "Faads'~ equal to ortc~twelfth of the yearly taxt.~ and asses:rrteets which may attain priority .over this
Mortgage. and growtd rarer oa the Properly. if any. plus one-twelfth of yearly prcntittm installments for hazard insurance. ;
plus oaatweltth of yearly premium installments for mortgage inutrattcc, it any. sll ss reasonably estimated initially and fr+um j
tirrre to tams by Lender oa the base o[ assessments and hills and reasonable estimates thereof. J
Tlrs flrrrds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal of i
state agency (iachding Lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, assaarrratts. a
iasnrartoe premiums and ground rents. Lender may not charge for so holding and applying the Fnttds. analyzing said account.
or verifying~ad compiling said assessments and bilk. unless Lender pays Borrower interest oa the Funds and applicable law
permits Lender to make such a chuge. Borrower sad Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
r~equircs such interest to be paid, Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sbaU give to Borrower, witbwt 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 the Mortgage. ~
IE the amount o[ the Funds heW by Lender. together with the future monthly installments of Funds payable prior to
fife dtrs.datea of lases, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes, s
aaessaaeats. inauurarroe premiums 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. IE the amount of the Funds
httW by Leader dull not be to pay taxes. assessments, insttrana premiums and ground rents as they tall due,
Borrower shall pay to Fender 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 in full of all stints secured by this Mortgage, Lender :hall promptly refund to Borrower any Fund:
btdd by Leader. If under pant;raph 18 ht:reof the Property is sold or the Property t: otherwise acquired by Lender. Lender
sbaU apply. no later than immediately prior to the ask of the Property or its acquisition by Lender. any Funds held by ~
Letsder at the time of application u a credit against the sums secured by this Mortgage. i
3. A~YcMia¦ et Irayesttr. Unless applicable law provides otherwise, all payments received by Lender und,.r the
Note and paragraphs 1 and 2 hereof shalt be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. rhea to interest payable on the Note, then to the principal of the Note. and then to interest and
Principal on any Futtue Advances.
4. Cftisrges; ILieas. 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 paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the i
payee thereof. Borrower shall promptly fumish to Lender all notices of amounts dot under this paragraph. sad is the event
Borrower shall make payment dirxtiy. Borrower shall promptly fumish to lender receipts evidencing such payments. !
Borrower shall promptly discharge any lien which hu priority over this Mortgage; provided. that Borrower shall not be
rt~quirod 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 faith 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.
S. IHtrar~! Iawrawee. Borrower shall keep the improvements now existing or hereafter erected on the property insured
against loss by fire. hazards included within the term "extended coverage", and such other haurds as Lender may require
and is 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 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 pdicia shall be paid in the manner
provided under paragraph 2 6ereot or, if not paid in such manner. by Borrower making payment, when due. directly to the
! insurance carrier.
AU insurance policies and renewals thereof shall be in torn acceptable to Lender and shall include a standard mortgage
claust in favor of sad 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 mice 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 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 stuns 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 fo 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 tbe insurance proceeds at Lender's option either to ratoration 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 palpate 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 Proferty is acquired by Lender, all right, title and interat of Borrower
in sad to any Raurance pdicies 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 or
acquisition.
f. )<r+aervatloa and Maisteaance of Property; Leaseholds; Condominiums; Planned Unit Devebpmeab. Borrower i
shall keep the Property in good repair and shall not comtpit 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
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
condomiaitun or planned unit development, and constituent documents. If a condonrinitun or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
f shall be incorporated into and sjtall amend and supplement the covenants and agreements of this Mortgage as if the rider
~ were a part hereof. }
7. Prottctiow of Leader's Security. If Borrower fade to perform the covenants and agreements contained in this
Mortgage, or if any action ar proceeding is corrtmenced which ,materially aBects Lender's interest in the Property,
including. but nat limited to, eminent domain. insalvency. code enforcement. ar arrangements or proceedings invdving a
bankrupt or decedent, then 1_ender 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 limited to, disbursement of
reasonable attorney's lets and entry upon the Property to make repairs. If l_cnder required mortgage insurance as a '
condition of making the loan sa:ured by this Mortgage. Borrower shall pay the premiums required to maintain such
~ insurance in effect until such' time as the requirement far such insurance terminates in accordance with Borrower's and
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