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Ut+rtrgtw Oovat+~rrrtt. Borrower and Lender covenant and agree ss follows:
4 hyweM at Tel~al arti VMt+rsM. Borrower shag prorraptly pay when due the principal of and interest on the
indebtedrtps evidettoed by the Note. prepayment and late charges as provided in the Note, and tlfe principal o[ and interest
oa any Futuro Advatatxs sawed by this Mortgage. _
trellis tar Thee tttsta laearastt~e. Subject to applicable taw ar to • written waiver by Lender. Botnewer shag Pay
to Lender on the day trtonthty installments of principal and interest +rc payable under the Note. until the Note is paid in full.
a soot (herein "Fut>ds'~ equal to ones-twelfth of the yearl~• tasc~. and assessttaerats which may attain priority over this
Mortgage. turd ground rents on the Property. it any, plus otae-twelfth of yearly premium installment: !a hazard inwrarace.
plus oat:-twdRh o[ yearly premium installments for mortgage inurrance, if any. all as reasonably estimated initislly and trap
tune to tune by Lender oa the basis of assessments and hills and reasonable estimates thereof.
The Funds shall be held in an institution the deposiu or accounts of which arc insured or guaranteed by a Federal otr
state agency (including Lwader if Lender is such an institutionl: 1_ender shall apply the Funds to pay said taxes, assessments. `
inwcance premiums and ground rents. lender rosy not charge for so holding and applying the Funds. analytin~ said account;
or verifying.aad compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
peimi4 Lender 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 gives to ~ortoerer, without charge, an annual accounting of the Funds showing credit: 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 this Mortgage.
If the amount of the: Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, inwrance premiums and ground rents, shall exceed the amoatnt required to pay said taxes.
awesauseats„ irtsurarta premiums sod ground rents as they tall due, such excess shall be, st Borrower's option, either
promptly repaid to Borrower a crodited to Borrower on monthly installments of Funds. if the amount of -the Funds
htld by Lwader tsitaB not be wt6cieot to pay taxes, assassntents, insurance premiums and ground rents s: they fall due.
Borrower shall pray to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lender to Bomower riegttesting payment thereof.
Upat payment in fuA of all stuns secured by this Mortgage, tender shall promptly c4fund to Borrower any -Funds
held by [.wader. if under paragraph 18 hereof the Property is sold or the Propertyr;otht;rtt?ise acquired by Lender. Lender
shall apply. no later than imrraodiately prior to the sak of the Property or its acquisition by Lender. any Funds held by -
Lender at the ti»oe of application as a credit against the sums secured by this Mortg+sge.
3. A~iieatioa et >hq~trreds. Unless applicable law provides otherwise, all payments received by Lender under the
Note sad paragraphs 1 atxf 2 hereof shall be applied by Lender 5rst in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Note, then to.the principal of tliw Note, and then to interest and
principal on any Future Advsnoes. -
4. Cranes; Lktts. Borrower shall pay alt taxes, assessments and other charges, tines and impositions attributable to
the Property which tray attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in thw manner
provided under puagraph 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 o[ amounts due under this paragraph, and in the event
Borrower shall make payment directly. Borrower shall promptly fumish 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 wch 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, -
kgal proceedings which operate to prevent the enforcement of the lien or forfeiture of -the Property or any part thereof.
S. Heard llwsorawee. Borrower shall koep the improvements now existing or hereafter erected on the Property insured
agair>:t loss by tyre, hazards included within the term "extended coverage", and such other hazards 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 irtwranee carrier providing the inwrance 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 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,
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 iq 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 ri 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 otters 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 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. I( under paragraph 18 hereof the Property 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 the sale
or acgttusition shaft pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
f. lf'raervatiwa and Maintenance of Property; l.easehulds; Condominiums; Planned Unit ll>kvellopments. Borrower ~
shall keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of tlae Property
and shall comply with the provisions of any lease +I th+s 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 Borrower's obligations under the declaration
or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the `s
condominium or planned unit development, and constituent dcxumenrs. It 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 co~•enants and agreements of this Mortgage as if the rider
were a part hereof.
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7. Protection of 1Lender's Security. If Borrower fair to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially attests Lender's interest in the Property.
including, but nM limited to, eminent domain, inKih•enc~, 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 c interest, including, but not limited to, disbursement of
reasonable attortiey's•tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a
cond+tion of making the loan secured by this Mortgage. Borrrwcr shall pay the premiums required to maintain such
insurance in eBect until such time -as the reyuiremem for such insurance term+nates in accordance with Borrower's and
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