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UtttPOat~t Qt11IteNAN11, Dortowar sect Lender covenant and agree u Eolbws:
>a IhOrwettt et 1Mrn#al ttM liMsnet. Borrower shad IK~Mty wY when due tba pratcipal of and iMt:rest on the
ittdabtedttps evidenced by tba Note. prepaYmptt and late charges ss provided in the Note. and tba principal of and interest
ass any Ftttura Advtutoes ttecttred by this Mortgage.
2. lttt>wa ttar't'tr=aa anti ittutttaea Subject to ttpplicabk law ~~r to a written waiver by Lender. Borrower chap pay
to Leader on the: dsy rpopthty installments of principal and interest ,trc payable under the Note. until tM Note is paid in [till, j
• snra (herein "Fuads'~ equal to one-twelfth of the yearly tax~~ and assessrrrents which spay attain priority over this
Mortgage, and ground scab on the Property. it any, plus one•tweltth of yearly premium installments for hazard insurance.
plw opatweltth of ysarly premium installments for mortgage insurance, if any. all u reasonably estimated initially and from
lima to tuna by Leader oa the basis of assessments and hills and reasonable estimates thereof.
7Ua Funds shall be bald in an institution the deposits or accounts of which are insured or guaranteed by a Federal otr
state agency (including lender if I,cttder is such an institution). 1_ender shall apply the Funds to pay said taxes. assetantents.
irauranoe premiums and ground rents. Lender may not charge for sa holding and applying the Fonds, analyzing said account.
or veri[Ying.and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law
ptxmits Lender to make such a charge. Borrower and Lender may agree in writing at the tune of execution o[ this
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law '
retptires such interest to be paid, Lentkr shall not be required to pay Borrower any interest orearnings on the Funds. Lender:
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose [or which eatdr debit to the Funds wu made. The Funds are pledgod u additional security for the sums secured
by this Morrtgage.
Tf the atpount of the Ftmda held by Lender. together with the future monthly installment: o[ Funds payable prior to
the tine dates of taxes. a:sessmenq. insurance premiums and ground rents. shall exceed the amount required to pay said taxes.
assatanents, insurance 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 o[ Funds. If the amount of the Funds
bald by Letndar shall not be t to pay taxes, assessments, insurance premiums and ground rents u they tall due,
Borrower e6aU pay to (,eider any amount necessary to make up the debciency within 30 days [rom the date notice is mailed
by Lander to Borrower requesting payment thereof.
Upon payment is tent( of all sutra toecurod by this Mortgage, lender shsll pto~ptlY refund to Borrower any Fund:
heW by Lender. If under paragraph f 8 hereof the Property is sold or the Property as otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or its aegtnisition by Lender. any Funds held by
Lender at the time of application u a credit against the sums secured by this Mortgage.
3. A~1kMlart at rgticstt . Unless applicable law provides otherwise. a!1 payments receivod by Lender under the
Note and patragtapbs !and 2 hereof shall be applied by [_ender first in payment of amounts payable to Lender by Borrower
under parsgaph 2 hereof. then to interest payable on the Note, then to the principal of the Nott, and then to interest and
principal on any Future Advantxs.
d. Ciarge~ liients, Borrower shall pay all taxes, assessments and other charges. Bnes 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
providod under puagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
payee tttereot. Borrower shall promptly [urnish to Lender all notices of amounts due under this paragraph, and in the event
BonoMrer shall make payment directly, Borrower shalt 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 such lien so Fong az torrower shad agree in writing to the payment of else obligation secured by
such lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in,
legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof.
S. ligswrd iwwrartce, Borrower shall keep the improvements now existing or hereafter erected on the Property insured ;
against toss by fire, hazards included within the term "extended coverage", and such other hazards u [.ender may require
sad 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 insurance carrier providing the insurance shall be chosen by Borrower subjoct to approval by Lender. provided,
tbu such approval shall not be unreasonably withheld. All premiums on insurance policies sleet( 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 under. 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 (.ender. 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 at
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 i/ the security of this Mortgage would
tx 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 notice is mailed by lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender
is autlwrized to collect and apply the insurance proceedsrt Lender's option either to restoration or repair of the Property
or to the wins 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
stub installments. if under paragraph 1$ txrtof the Property 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 (.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquaition.
6. lheservatioe sad 2+talate»aate of Property; [.easeholds; Condominiums; Planned UnH Developments. Borrower
shall keep the Property iii good repair and shall not comrvit yvaste or permit impairment or deterioration of the Property
sect shall comply with the provisions of any lease if this Mortgage on a leasehold. I( this Mortgage is on a unit in a _
condominium or a planned unit ckvelopment, 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 ileveloi,ment. and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this lNorlgage, the covenants and agreements of such rider f
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 n. perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property.
including, but not limited to. eminent domain. insolvency, axle enforcement. or arrangements or proceedings invoking a
bankrupt or decedent. then tender at Lender's option. up~m notice to Harrower, may make such appearances, disburse such
sums and take such action as is necessary m protect Lender's interest, including, but not limited to, disbursement of
reasonable atromey s tees and entry upon the Property Io make repairs. If Lender reyuired mortgage insurance as a
condition of making iltc loan sd-ured by th» Mortgage. Hnrn:wcr sh-ill pay the premiums required to maintain such
insurance in efkct until such timers the reyuircment fpr `tick msuran:e terminates in accordance with Borrower's and
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