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Ur+nwaat Oovtu+~nts. Borrower and Lender covenant and sgree as tdlows:
)ti. ))'~saatN sf lrietlNal ttratl Ittlesesf. Borrower :!tall promptly pay when due the principal of sad iataeN on the
itrdebtedrreas svidertosd by the Note. prepayment acrd late clwrga as provided in the Nots. and tbs principal d and iMerttlt
oa any Ftttw+a Advances secwed by this Mortgage. ~ I
Z !ri tar TattM anti Ittwraaea. 3ltbject to spplicabk law or to a written waiver by Fender. Boeo*ra gall pey
to Leader an the day monthly itutallmenu of principal and interest arc payable under the Note. until the Note is paid in full,
a sum (lrersin "Ftmds'y equal to onatwelfth of the yeariy raze. and assessmenu which may attsia priority over the
Mortgavls. and pound rents om the Property. if any. plus one-twelfth of yearllr~ preaaium instatlrrrettts for hazard irt:urarres.
plus one-twelfth of yearly premium installments for mortgage insurance. if any. all u reasonably estanated initially and troas
tune to time by Lender on the basis of assessments and hills and rcasonabk euitnata thereof.
The FLttds shall be held in an institution the deposits a accounts of which are inwred a guaranteed by a Federal of
state agency (Including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assasateats.
itauranoe premiums and ground rents. Lender may nd charge for se kidding and applying the Funds. analyzing said account,
or verifying~ad compiling said assessrnenu and bills. unless Letder pays Borrower interest on the Funds sod applipbk law
permits Lender to make wch a charge. Borrower and Lender may agree in writing at the time o[ execution of this
Mortpge that interest on the Funds shall be paid to Borrower, and unless such agreanent is made a applicable law ~
roquira such interest to be pond. Lender shall not be requiro~d to pay Borrower any interest or earnings on the Funds. Laden ~
shall give to Borrower. without charge, an annual aooounting of the Funds showing credits and debiu to the Funds and the t
purpose [or which esdr debit to the Funds was made. The Funds are pledged u additional security [or the sums secured ~
by this Mortgage. ;
)U the amount o[ the Funds held by Lender, together with the future monthly inuallments of Funds payable prior to ;
the dues dates of taxes. ataessmeifu. itrstrrance premiums and grarnd renu, slta!! exceed the amotmt required to pay said taxes.
as>tasmemts. insurance premiums and ground rata as they tall due. such excess shall be, at Borrower's option. either
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amatmt of the Funds
held b1r I.eader-shaU not be sufBtdeot to pay taxes. assesstrrarts. insurance pnemitrms and ground rerKS as they fall due.
Borrower shall pay to Lender any amount rteoeaary to make up the deficiency within 30 days from the date notice a mailed
by Leader to Borrower rttquesting payment thereof.
Upon payment in full of all :urns secured by this Mortgage. Lender shall pranptly refund to Borrower any Funds
held by Lender. It under paragraph 18 hereof the Property is sold or the Properly n aherwise acquired by Lender, Lender
:hall apply. no later tbsn immediately prior to the sale of the Property or its acquisition by gender. any Funds held bro
Lender at the time of application as a credit agsinst the sums secured by this Mortgsge.
3. A~catioa of Tq~weats. Unless applicable law provides otherwise. all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by Lender fire in payment of amounu payable to Ltrtda by Borrower
under paragraph 2 hereof. than to interest payable on the Note, then to the principal of the Note. and then to interest and
principal on -any Future Advarroes.
4. Chargefi Liiart. Borrower shall pay all taxes, assessmenu and aher charges, hoes and impositions attributable to
the Property which may attain a priority over this Mortgage. and kasehdd paymenu 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 amarnu due under this paragraph. and in the event
Borrower shall make payment directly, Borrower shall promptly furnish to bender reedpu evidencing such paymenu.
Borrower shall promptly discharge any lien which kiss priority over this Mortgage: provided, that Borrower shall not be
required to discharge any such lien so brag as Borrower shall agrse in writing to the payment. of the obligation secured by
such lien in a manner aooeptabk to Lender, or shall in good faith contest such lien by, or defend enforcement of such list ia,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
S. Hazard Irwraace. Borrower shall keep the improvements now existing or hereafter crated on the Property inwred
agairr:t loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounu 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 secursd by this Mortgage.
'Ilre i~urance carrier providing the insurance shall be chosen by Borrower subject to approval by Larder. provided,
that such approval shall not be unreasonably withheld. All premiums on insurance pdicies 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 i
f insurance carrier.
All insurance pdicies 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 pdicies and renewals thtxoof.
~ 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
j 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 i
not thereby impaired. it 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 i( 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 inwtance benctits, Lendei
is authorized to collect and apply the insurance protzeds at Lender i option either to restoration or repair of the Property
t 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 o[ the monthly installments referred to in paragraphs t and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Pro~,erty is acquired by lender, all right, title and interest of Borrower
in and to any insurance policies and in and to the proceeds thereof rewlting from damage to ibe Property prior W tlrc sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately pli'iwr to such sale or
acquisition.
6. )rtretervation sad Maintenance of Property; Leaseholds; Cowdorrrisicaus; ~awaed Unit DtrdoNeMS. Borrower
shall keep, the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions of any kale i[ this Mortgage is on a leasehold. -Jt this Mortgage is on a unit in a i
condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under the dalaration
or covenants creating or governing the condominium or planned unit devebpment, the by-laws and regulations of the
~ condominium or planned unit development_ and conuituent documents. 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 covenants and agreements of this Mortgage as if the rider
were a part hereof.
7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreemenu 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. code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Ixnder at Lender's option, upon mice to Borrower. map make such appearances, disburse such
sums and take such action as is necessary to pmtesa Lender's interest, including. but not limited to, disbursement of
reasonable attorney's tees and entry upon the Property to make repairs. It 1_ender required mortgage insurance as a
condition of making the loan secured by this Mortgage. Borrt:wcr shill pay the premiums requires! to maintain stub
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and
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