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Utrrrwant Cotrartatrts. Borrower and leader covenant and agree ss follows:
L >!alyttaetN N TelaelMl ttrsd 1Nena1. Borrower shall promptly pay when due the ptirtcipal of and inteteat on the
iarkbtedttaa eviderreod by the Note, prepayatertt and late charges ax provided in the Nate. and the principal of and interpt
aft aay Future Advaaas ttectrred by this Mortgage.
B. FWi ter 7lsauss ttrttl lasttrsrrw Subject to applicable law .x to a written waiver by lender. Borrower shall pay
to Leader on the day monthly ittstsNments of principal and interest arc payable under the Note. until the Note is paid in full.
a aunt (ht+'rin ••Funds'~ equal to one-twelfth of the yearly tax~~. and asssessrrtettts which may attain priority over this
Mortgage, and grotrrtd rata on the Property. it any. plus one-twelfth of yeatfii~ premium inualltttents for hazard insurance.
plus otto-tweltth o[ yearly premium itwallments for mortgage inu~rance. it any, all as reasortabiy estimated initially and from
times to time by Leader on the basis of assessments and hills and reasonable estimates thereof.
'Ibe Funds shall be held in an instituticat the depoaip or accounts of which are insured or guaranteed by a Federal otr
start: agency (including Lender i[ Lender is such an institutionl. Lender shall apply the Funds to pay said taxes. assessments.
instrrartce Premiums and ground rents. lender may not charge for so holding and applying the Frrnds. analyzing said account,
or veritying.snd compiling said assessments and bilk. unless Lender pays Borrower interest on the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution o[ the
Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law
rcgtrir+ea such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall g~ to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpttae for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
this M '
~ TE the artwtutt o[ the Funds bdd by Lender. together with the future matthly installments of Funds payable prior to
the due dales of taxes, asse::mdtts. ittaurartce premiums and ground rents, shall exceed the atttount required to pay said taxes,
asseatmteats, irtsuranoe premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either i
promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds
held by Leodee shall not be sufficient to pay taxes. assessntenu. insurance premiums and ground rents ss they tall due, i
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
by I.ertder to Borrower requesting payment thereof. I
Upon payment in full of all sums secured by this Mortgage. tender shall promptly refund to Borrower any Funds
beW by Lender. If under paragraph 18 hereof the Properly is sold a the Property a otherwise acquired by Lender. Lender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by
I.eoder at the time of application as a credit against the sums secured by this Mortgage.
3. Applieatioa of Pap~esewb. Unless applicable law provides otherwise, all payments received by Lender under the
Note 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.
1. CVrges; bkas. Borrower shall pay all taxes, asxssments and other charges, tines and impositions attnbutabk to
the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
providod under paragraph 2 hereof or, it 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 paragtsph, and in 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 bng 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,
legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part therwf.
S. Aazara Iwwrawee. Borrower shall keep the improvements now existing or hereaher erected on the Property insured
agairut 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 coverage exceed that amount of rnverage required to pay the sums secured Eby this Mortgage.
II 'Ihe inwranx 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.
4 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 farm 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 ratite 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 a 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 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, ail right, title attd interest of Borrower
in and to any Rtsurance policies and in and to the proceeds thereof resulting from damage to the Property 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. i
6. Preservation and Maieteaance of Property: Leasthofds; Condominiums; Planned Ualt Deveilopttseats. Borrower `
shall koep the Property in good repair and shall not commit yvaste or permit impairment or deteraration of the Property
1 and shall comply with the provisions of any lease if this Llortgagc- is on a leasehold. U this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration
or covenants creating or governing the condominium or planned unit devebpment, the by-laws and regulations of the -
condominium or planned unit development, and constituent documents. 1f a condominium or planned snit development
I rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
l shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider
1 were a part hereof. £
7. Protection of bender's Security. It 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 ncx limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then l.encier 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's interest. including, but not limited to, disbursement of
a reasonable attorney's fees and entry upon the Property to make repairs. If I~nder required mortgage insurance as a
condition of making the loan secured by this Mortgage. Bnrn:wer ah~ll pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and
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