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Unrrorus Oovtt+erns. Borrower and Lender covenant and agree ss follows:
1.. Itsp~rsM K >rrlae*al tttM UtMrat. 8orrovrer shall promptly pay when dots the principal of and interest on the
ittdebtednea evrdeaoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest
on say Fwuro Advances seourod by this Mortgsge.
2. lrts~tls Irt'1lsane tttatt lrrrtrea Stirbject to applicable law ~x tQ a written waiver by lender. Borrower shill pay
to Lender on the day monthly installments of principal and entered arc payable under the Note. until the Note is paid in full,
s sttm (Mr'Gn "Fturds'~ equal to one-twelfth of the yearly tax~~ and assessments which may ariain priority over this
Mortgage. and ground r~eub on tba Property. it any, plus one-twelfth of yearlli premium installments for haurd insurance,
plus ooatweltth of yearly premium installments for mortgage insurance, it any. all as reasonably estimated initially and from
lima to tithe by Larder oa the basis of assessments and bills and reasonable estimates thereof.
7Le Funds shall be held in an ittstitutiorr the deposits or accounts of which arc irtstrrod or guaranteed by a Federal of
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assasrrrents,
inwranee premiums snd ground rents. lender may not charge for so holding and applying the Funds. analyzing said account,
or verifying_and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
permits Fender 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 unless such agreement is made or applicable law
requires 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 annwl 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.
If this amount o[ the Funds heW by Linder, together with the future monthly installments of Funds payable prior to
the due data of taxes, a:sasmeats, insurance premiums and ground rents, shall exceed the amount required to pay said taxes.
aesessesents, insurance premiums and ground rents as they tall due. such excess shall be. at Borrower's option, either
promptly repaid to Borrower or credited to Borrovsrer on monthly installments of Funds. If the amount of the Funds
held by Leader shall not be sut6cient to pay taxes, assesstrtents, insurance premiums and ground rents as they fall due,
Botr+ower 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 r+equtating payment thereof.
Upon payment is fuU of all sums secured by this Mortgage, l_euder shall promptly refund to Borrower any Funds
held by Leader. If under paragraph 18 hereof the Property is sold or the Property r: otherwise acquired by Lender. Lender
shall apply, no later tbsa imasodiately prior to the sale o! the Property or its acquisition by Lender. any Funds held by
Lender at the time of application as a cecdit sgainst the sums secured by this Mortgage.
3. A~iit:atiarr at I<a~eab. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. rhea to interest payable on flee Note, then to the principal of the Note. and then to interest and
principal on any Future Advances. -
1. (.lasge~ Liens. 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
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 furnish to Lender receipts evidencing such payments.
Borrower shall promptly dacharge 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
such lies in a manner scceptabk to Lender. or shall in good faith contest wch lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the enforcement of the lien err forfeiture of the Property or any part thereof.
S. Blasard IawiraK•e. 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 hazards as Lender may require
and in wch amountt and for such periods as Lender may require: provided, that Lender shall not rtquirc that the amount of
I'~ such coverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage.
The iawranrx carrier providing the insurance shall be chosen by Borrower subject to approval by Linder, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies snail 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.
j All insurance policies and renewals thereof shall be in Corm 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,
and Borrower shall promptly furnish to Lender all renewal notices and all receipt: 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 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 rat 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 it Borrower fails to respond to Lender within 30 days from the
date ratite is mailed by lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender
is autborizid 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.
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
wch installments. If under paragraph 18 hereof the Pro forty 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 the Property prior to tln: sale.
or acquisition shall pass to Lender to the extent of the wms secured by this Mortgage immediately prior to such sale or
acquisition. -
d. Pr+eserratba asd 1Naioteaauce of Property; Leaseholds; Condominitrms; Pburaed Unit Devdopwreats. Borrower
shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any lease it this Mortgage is on a leasehold. I[ 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. It a condominium or planned unit development
~ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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. f
7. PrWectioa of Lender's Security. It Borrower fads a• perform the covenants and agecements contained in this
Mortgage, or if any action or proceeding ~s commenced which materially affects Lender's interest in the Property,
including, but n~>t limited to, eminent domain, insolvency. c~xte enforcement, or arrangements or proceedings invoking 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•,rrot , limittd to, disbursement of
reasonable attorney's ices and entry upon the Property to make repairs. If I.cnder required mortgage insurance as a ;
~condiUon of making the loan secured by this Mortgage. Borrower shill pay the premiums required to maintain wch
• insurance in effect umil such time as the requirement for wch msuran:e terminates in accordance with Borrowers and
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