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UNtrotft CdveNAN». Borrower and Leader covenant and agree as follows:
)ti. IrsptwetN oft lrYrlwl tttstt ItNsreuf. Borrower shall promptly pay when due the principal of and interest on the
ittdeMedntas evidetttxd by the Note. prepayment and late charges ac provided in the Note, and the principal o[ and interest
on soy Future Advances stlcurod by this Motrtga
je.
ltrntis hr Tttorea ttsttl IststtrMa~c. Subject to spplicabk law cx to a written waiver by Lender, Borrower :hall pay
to Lender on the day monthly installments of pttinc~psl and interest ~re payable under the Note, until the Note is paid in full,
a arras (1lttrein "Ftutde'7 equal to one-twelfth of the yearl~~ ttix~~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortjaje irtsttrancc, if any, all as reasonably estimated initially and from
time to titrte by Lender oa the basis of assessments and bills and reasonable estimates thereof.
The Funds shall be held in an institution the deposru or accounts of which are ittwted or gwranteed by a Federal or
state agency (including Letter if Lender is such an institution). Lender shall apply the Funds to pay said taxes; assessments.
ittwtatwe premiums and ground rents. lender may not charge for so holding and applyinj the Funds. analyzing said account,
or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may ajrce in writing at the time of execution o[ this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement a made or applicable law
requites such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall pve to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose [or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
by this Mort
jage. '
It the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates o[ taxes. assessrttents. insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
assaanents. insurance premiums and ground rents as they fall 'due, such excess shall be. at Borrowers option, either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Letader shall not be sttlBcieat to pay taxes. assessments. insurance premiums and ground rents ss they fall due,
Borrower shall pay to Lender 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 :ums secured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Propeny u otherwise acquired by Lender, Lender
shall apply. Ito later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the state of application as a credit against the sums secured by this Mortgage.
3. A~catiorr of Psq~. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad pat'ajraphs 1 sad 2 hereof shall be applied by Lentkr first in payment of amount: payable to Lender by Borrower
wyder paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on any Future Advances.
1. Charges; Lfktss. 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 mantxr
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee thet+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad is 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 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 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. Hszard lasnrattiee. Borrower shall keep the improvtrgems now existing or hereafter erected on the Property insured
against loss by fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require
sad in such amounts and for such periods as Lender may require; provideJ, that Lender shall not require that the amount o[
such coverage exceed that amount of coverage required to pay the cams secured by this Mort jage.
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
providod 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 end 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 lass if not made promptly
by Borrower.
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 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 optwn either 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 I and 2 hereof or change the amount of ~
such installments. It under paragraph IS hereof the Proferty is acquired by Lender, all right, title and interest of Borrower
in sad 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 of the sums secured by this Mortgage immediately prior to such sale or l
acquisition.
6. Praerratioo attd Ataiatenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower
shall keep the Property in good repair and shall not commit yeaste or permit impairment or deterioration of the Property t
and shall comply with the provisions of any lease if this Mortgage n tin 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 covenants 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 recurdeD together with this Mi~rtgage, the covenants and agreements of such rider
~ shall be incorporated into and shall amend anJ supplement the covenants anD agreements of this Mortgage as if the rider
~ were a part I-.creof.
7. Protection of Lender's Security. If Bom,wer (ads a• perti~rm the covenants anJ agreements contained in this
Mortgage, or if any -action ur proceeDing is a?mmcncrd Nhrch materially afTects Lender's interest in the Property.
including, but not limited to, eminent domain. mWhency. ciwle enforcement, or arrangements or proceedings invoh•ing a
bankrupt or decedent, then Lender at lender ~ option, upon notice to Borrower, may make such appearances, dishurse such
sums and take such action as is necessary hi protect Lender's interest. mcluJing. but not limited to, disbursement of
reasonable attorneys ices and entry ulx~n the Property to make repairs. If Lender reyuircJ mortgage insurance as a
condition of making the IOJO secured by this AturtEage. B~~rri:Ner shill pay the premiums requireD to maintain such
~ insurance in effect until such time as the rcyuuemem (or such insuran,e terminates in accordance with Borrowlf s and 3
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