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Uwtpaw (:ovttrr~tutrs, Borrower and Leader covenant and agree as follows:
ti? at hiiciNl etrati ItNetriat. eorrower shall promptly pay when due the principal of and interest on the
indebtedness evidetttaed by the Note, prepayment and late charges as provided in the Note, and ttte principal of and interest
on any Future Advances secured by this Mortgage.
!trot tee'1'aaM atatl lrtatsrwce. Subject to applicable law ~.r to a written waiver by Lender, Borrower shall pay
to Lender on the day rrtonthty installments of principal and interest .tre payable under the Note. until the Note is paid in full,
a sum pterein "Funds'q equal to one-twelfth of the yearl)• tax~~ and assessments which may attain priority over this
Mortgage, and ground rents on the Property. it any, plus one•tweltth of yearly prcmiuni installments for hazard insurance.
plus one-twelfth of yearly premium installments for mortgage insterartcc, if any. all as reasonably estimated initially and tram
time to time by leader on the basis of assessments and hills and reasonable estimates thereof.
Ttte Funds shall be held in an institution the deposits or aceounts of which arc insured or guaranteed by a Federal of
state agency (including Lender if Lender is such an irtstitutionl. 1_ender shall apply the Funds to pay said taxes, sssessments,
irtsurattce premiums and ground rents. lender may not charge for so holding and applying the Fttnds. analyzing said account.
or verifying.and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law
perntits 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 give to Borrower, without charge, an annual 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 arc pledged as additional security for tht sums soured
by this Mortgage.
If the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, irtwrance premiums and ground rents, shall exceed the amount required to pay said taxes,
assaunents, inuurance premiums and ground rents as they tall 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 Lender shag not be suRicient to pay taxes. assessments, insurance premiums and ground rents ss they fall duo, •
Borrower shall pay to Lender any amount necessary to make up the de$ciency within 30 days from the date notice is mailed
by Lender to Borrower requesting payment thereof.
Upott payment in full of all sums insured by this Mortgage, lender shall promptly refund to Borrower any Funds
held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender
shall apply, no later than imrttediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the time of application• as a credit against the sums secured by this Mortgage.
3. A~piicatiort of Payrweds. Unless applicable law provides otherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied 6y Lender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof. then to interest payable on the Nott, then to tht principal of the Note. and then to interest and
principal on any Future Advances.
4. Cltarzes; I.kas. Borrower shall pay all taxes, assessments and other charges, tines 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 diratly, 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 litn 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 goad 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. Hazard towraace. Borrower shall keep the improvements now existing or hereafter erened 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 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 irtsuranct 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 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 Eavor 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 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 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 Propene
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 paragraph. I and 2 hereof or change the amount of
such installments. If under paragraph •18 hereof the Property is acquued 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 Properly 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
acquisition.
6. Presen•atioa-sod Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
shall keep the Property in good repair and shall not comtUit yvaste or permit impairment or deterioration of the Property
and shall complg with the provisions of any least if this Mortgage ~s 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
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. Protectan of /.ender's Security. If Borrower fah te• perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commrnceJ which materially aBerts lender's tnterest in the Property,
including, belt not limited to. eminent domain. insolvency, cexle enforcement. or arrangements or proceedings invoking a
bankrupt or decedent, then 1_ender at lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take such action as is necessary tu' protect Lender's interest, including. but not limited to, disbursement of
reasonable attorney's ices and entry upon the Property to make repairs. If Linder required mortgage insurance as a
condition of making the loan secured by: this Mortgage. Be•rn~wcr shall pay the premiums required to maintain such .
insurance in rBect until such time as the requirement fnr such insurance terminates in accordance with Borrower's anJ
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