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Uatt*aart t~ovttrtat~ttrs. Borrower and Lender covenant and agree ss follows:
f. rgttratN K tttM 1¦Mreaf. Borrower shall promptly pay when dos the principal of and intereq on the
atdsbtedrteta svidettoed by the Note. prepaytt+reat and late charges as provided in the Note. and the principal of atd tatetwt
as asy Futuro Advances secuteed by the Mortgage.
g. llri ffar 11artM ttry IawrtMee. Subject to applicable law ar to a written waiver by [.ender. Horr+ower shall pay
to Lt:adar oa the day ttaoathly ittstalltttents of principal and interest arc payable under the Note. until the Note is paid in full.
a aum (httrain "Funds'? equal to one-twelfth of the yearl)• tax~~ and assessments which may attain priority over this
Mortgage, and gr+ottttd teats on the Property. if any, plus one-twelfth of yeatili premium installments for hasrd ituuraruce.
plus oae-twdith o[ yearly premium installments for mortgage inurrance, it any. all as rearortably estimated initially and tray
_ time to time by Leaden oa the basis of assessments and hills and reasonable estitrates thereof.
1be firrtds shall be held in an institution the deposits or accounts of which are ittsttred or guaranteed by a Federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay fetid taxes, sssearrteots.
instrranoe premiums and ground rents. lender msy not charge for sn holding and applying the Frtnds, analyzing said account,
or verifyingartd compiling said assessments and bills. unku Lender pays Borrower interest on the Funds and applicable law
permits Leader to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and valets such agreement is made or applicable law t
requires such interest to be paid. Lender shall not be rcquirsd to pay Borrower any interest or earnings on the Funds. Lender
shaft give to Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the
purpae [or which eadt debit to the Funds was made. The Funds are pledged as additional security for the sums scented
by thn Moctg:ge.
TE the att+tount of the Funds heW by Lender, together with the future monthly inuallments of Funds payable prat to
the due dates of taxes. assessment:, inwranoe premiums and ground rents, shall exceed the amount required to pay said taxes.
aaagoeab. iawraace premiums sad ground rents as they fall due. such excess shall be. at Borrower's option, either
promptly repaid to Borrower ar credited to Borrower on monthly installments of Funds: I[ the amount of the Funds
held by Leader shall act be wfBCCieat to pay taxes, assessments, iratrrance premiums and ground rents as they fall due.
Borrower shall pay to Ltutder any amount necessary to make up the deficiency within 30 days from thq date notice is mailed
by Leader w Borrower requesting payment ther+eot.
Upon payaneat is full of all. sums aecurod by this Mortgage. Lender :hall promptly refund to Borrower any Funds
held by Leader. If uada paragraph 18 hereof the Property is sold or the Progeny uz otherwise acquired by Lender. Lender
shall apply. no later than immediately prior to the sale of the Property or it: acquisition by Lender. any Funds held by
Louder at the time of applicatiat ss a credit against the sums sceur+ed by this Mortgage. !
3. Ap~eatiaat oft ><ayerats. Unless applicable law provides otherwise. all payments received by Lender under the
Note sad paragraphs I and 2 herrnf shall be applied by Lender first in payment o[ 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 Future Advances.
4. CMrges; Lkrra. 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 kasehotd 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. dircetly 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__funnish to Lender receipts 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 brag as Borrower shall agree in writing to the payment of the obligation secured by
wc6 lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in, 1
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Illasrrrd laswarree. Borrower shall keep the improvements now existing or hereafter eructed on the Property insured i
agairwt loss by fire. hazards included within the term "extended coverage", and such other hazards u 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 }
I', such rnverage exceed that amount of rnverage required to pay tl~e sums secured by this Mortgage. ,
The ittwrance 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 hereo[ or. if not paid in such manner. by Borrower making payment, when due. directly to the
inwrance carrier.
All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
I clause in favor of and 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 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 restoration or repair is not economically feasible or if the security of this Mortgage would
be impaired, the insurance proceeds shall bye applied to the sums secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Property is abandoned by Borrower, or it 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 either to restoration or repair of the Property
or to the wms secured by this Mortgage.
Uoleu 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
ute6 installments. If under paragraph 18 hereo[ the Property is acquired by Lender, all right. title and interest of Borrower
is and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent o[ the sums secured by this Mortgage immediately prior to such sale or
acquisitan. ~ -
6. lrcservatbo and Maialenaace of Property; Leaseholds; Condominiums; Planned Unit Developmcats. Borrower
shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property s
aced shall comply with the provisions of any Icase 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
or covetants creating or 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 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
were a part hereof.
7. Protection 'of Lender's Security. If Borrower fads m perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is comnxnced 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 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 imerest, including. but not limited to, disbursement of
reasonable attorney's tees and lorry upon the Property to make repairs. If 1_ender required mortgage insurance as a
condition of making the loan Fecured by this Martgagc..Bnrrrwcr shall pay the premiums required to maintain such
insurance in effect until such time as ,the reyuiremem for wch• ~nsuran:e terminates in accordance with Borrowers and
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