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Ut+t~ostw OovaNxnts. 9orrower and Lander covenant and agree u follows:
f~gratestt o/ Mati~al atN laMrest. Borrower shall promptly pay when due the principsl o/ and interest on the
indtbbdnas evidenced by the Nob, prepayment and Late charges as provided in the Nola, artd the principal of snd interest
oa any Futttro Advances ttxtued by this Mortgage.
2. il+ttttis hr'11ssM and lasara¦ee. Subject to applicable law nr to a written waiver by Lender. Borrower shall pay
to Lander on the day monthly itatallraents of principal and interest ~rc payshk under the Note, Ontil the Note is paid in full,
a sum (herein "Fttttds") equal to one-twelfth of the yearly tax~~ and usessmenb which may attain priority over this
Mortgage. and ground renb on tba Property. it any, plus one-twelfth of yearly premium installmenb for hazard insurance.
plus onatwdtth of yearly premium installments for mortgage inurranca. if any. all u reasonably estimated initially and (roan
time to time by Leader ai the buffs of assessments and hills and reasonable estimates thereof.
71r Frtttds shall be held in an institution the deposits or accounts of which are insured or gwrantead by a Federal of
stab agency (including lender if Lender is such an institution). 1_ender shall apply the Funds to pay said toes. assessments.
iawraaoe premiums and ground rents. Lender may not charge for holding and applying the Fnnds. analyzing said account, ~
or verityingsttd compiling said assessments and bilk, unku Lender pays Borrower interest on the Funds and applicable law
petnib Lander to make wch a charge. Borrower and Lender may agree in writing at the time of execution of this i
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement a made or applicable law
requiter such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender !
sbaA give to Borrower. without charge, an annwl accounting of the Funds showing credib and debits to the Funds and the
pupae for which each debit to the Funds was made. The Funds are pledged u additional security for the sums secured
~ this M•
Tf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, asseumeab. irtrurattca premiums and ground rents. shall exceed the amount required to pay said taxes.
sssewateats, itt:uraaca premiums and ground renb ss they fall 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 amount o[ the Funds
bald by Leodsr shall not be sul6rient to pay taxes, assessments. insurance premiums and ground renb ss they [all due. 1
Borrower shall pay to Lsoder any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by Lander to Borrwiver requiting payment thereof. -
Upon peymeot is fuQ of dl sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
bald by Lender. If under paragraph 18 hereof the Property is sold or the Properly a otherwise acquired by Lender, Lender
shall apply. no later than immediately prior to the sale of the Property or it: acquisition by Lender. any Funds held br
Leader at the tithe of application as a credit against the sums secured by this Mortgage. -
3. A~iieatiaa eft l~yieab. Unless applicable law provides otherwise. all payments received by Lender under the
Nora 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. then to interest payable on the Note, then to the principal of the Note. and then to interest and }
principal on any Future Advances.
s i
4. (.'trarges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to a
the Property which may attain a priority over this Mortgage. and kssehold payments or ground rents. if any, in the 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 of amounts due unckr this paragraph. and is the event
Borrower shall make payment directly, 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 lien so long u 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,
legal proceedings which operate to prevent the enforcement of the lien oriforfeiture of the Property or any part thereof. ~
s. Huard iwtnraace. Borrower shall keep the improvements now• existing or hereafter eructed on.ihe 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 [or such periods as Lender may require; provided, that Lender shall not require that the amount of
such rnverage txceed that amount of coverage required to pay the sums secured Eby this Mortgage.
'Ibe irtwratxx 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
~ inwr•anee 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 sll 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
g 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 a
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 Morigage. with the excess. if any. paid
! to Borrower. If the Property is abandoned by Borrower, or if 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 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. If 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 th.: 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. Prcservatbn and Maintenance o[ Property; Leaseholds; Condominiuttn~ Planned Urtft Devebpateats. Borrower
r shall keep the Property in good repair and shall not commit yvute or permit impairment or deterioration of the Property i
and shall comply with the provisions of any lease i[ this Mortgage is on a leasehold. It 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
j or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the
l condominium or planned unit develoi,mtnt, and constituent documents. If a condominium or planned unit development i
j rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
shall bt incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
were a part hereo[.
7. Protection of Lender's Secudry. If Borrower fails to 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, 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 Lenders interest, including. but not limited to, disbursement of ;
reasonable attorney's Pecs and entry upon the Property to make repairs. If lender required mortgage insurance as a
condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such msuran:e terminates in accordance with Borrower's and
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342 P~i~o4