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Utv~FOR~~ Cov~N.~tvrs. Borrower anJ 1.enJer covcnant and agrec as fallaws:
1. Paymeot of P~ncipal aad I~teresl. Borruw~r shall promptly pay whcn duc thc principal of and interest on thc
indebtedness evidenced by the Note, prepayment and late chargec ac praviJed in Ihe Note, and the principal of and interes~
on any Future Advances secured b~~ this Mortgage.
2. Fbnds for Tup and lnturance. Subject !o applicable law ar to a written waiver by I.ender, Borrower shall pay
to l.ender on thc day monthly installmcnts of principal and intcrrc~ arr pa}~able undcr the Notc, until the Notc is paid in full,
a sum (hercin "Funds"1 cqual to onc-twclfth of ~hc yearly taticc anJ assessmenls which may attain priarity over this
Mortgage, and ground rents on the Pr+operry, if any, plus one-twelfth of yearly prcmium installments for haz:wrd insura~ce,
plus one-twclfth af ~~early prcmium installmcnts f~r mortgage insurancr, if any, all as rcasonably cstimatcJ initially and from
time ta time by Cc~der on thc basis o[ assesmients and bills and reasonablc estimates thereof.
'i?~e Funds shall t+e heW in an institution the depc~,its or accounts of which are insured or guaranteed b~~ a Federal or
state agency (including Lender if i_ender is such an instilution). I.ender shall apply the Funds ta pay taid taxes, assessments,
insurancc prcmiums and ground rcnts. I.cndcr may not chargc tor so holding and applying thc Funds, anal~•zing said account,
or ve~if}~ing aoJ compiling said asse~~menls and bills, unless l.ender ~ys Borrower interest on the Funds and applicable law
permits Lender to make such a charge. 13c~rrawer anJ Lender ma}• agree in writing at the lime at execution of this
Morigage that interest on the Funds ~hall he paid to $orrowrr, and unlcss such agreement is made or applicahle law
requires such interest to t-e paid, 1_ender shall not he rcyuired tu pa~• Rorrower ~ny interest or earnings on the Funds. t.cnJer
shall give to Barrower, withoul charge, an annual accuuntins of 1he FunJ~ ~howing creJils and dehits to the Funds a~d the
purpose for which cach debit to the f=unds w•as madc. The Fund~ arc pledged a~ aJdi~ion•rl security for the sums secured
hy this ~1ortgage.
If the amount of Ihc Funds hcld by l.cndcr, togc~hcr With thc futurc monthly inslallmcnts of Funds payablc prior to
the due datcs of taxes, as~cs~ments, insuranre prcmiums anJ g~ound rents, shall excccJ the amount reyuired to pay said taxes,
assessments, insurancc prcmiums and ground rentc a~ Ihcy faU duc, surh rrcc~s sh.Jl be, at Borrowcr's option, eithcr
promptl~• repaid to Borrower or crcditcd tu Bormv-~cr on monthly im~~llments of Fundc. If thc amount of thc Funds
held by Lcnder shall not be sufiicient ro pay laxcs, assc~smcros, incur.~ncc prcmiu~iix anJ ground rents as they fall due,
Borrowcr shall pa}• to Lcndcr any amount nccri~an~ ~o makc up Ihc Jcticicncp within 30 .la~s from thc datc notice is mailcd
by Lender to Borrower rcyuesting paymenl ~herco(.
Upon paymcnt in full of all sums sccarcd by this Mun~;agc, Lendcr shall promptly rcf~md to Bormwcr any Funds
held by LenJer. If under paragraph Iti hercof the Pro~xrt~~ ic s~-Id or thc Property is othenn•iK; acyuircd by I.ender. I_ender
shall apply, no later Ihan immediatrly prior to the .ale of ~he Pro~xrty or its acquisition by Lender, any Fundc held by
Lender ;d the time o( application as a crcJit :~gain~t the sum+ secured b~~ thiti Mortgage.
3. Application oi Pa~•ments. U~I~tis applicahle law• provi.les otherH•ix;. all payments recciv~-d by Lender under the
Notc and paragraph~ I and 2 hcre~~f shall b~; applicd by I.cndrr fint in paymcm ot amounts payablc to Lcndcr by~ Bormw~er
undcr paragraph 2 hcrcof, thcn to intcrest p~yablc on thc :\utc. thcn ti~ th~ princip~l of thc Notc, ~nJ thcn t~~ intcrest and
principal on an}• Future Advanccs.
~t. CharRes: Liens. Bc,rruHer ~hatl pay all ~a~e~, atiu~s~~nrnts and other charges. fine~ a~.l im~„itiunc aunbutable to
the Property ~vhich may attain a priority over thi+ ~tor~gage, and Iearxxhold payments or ground rentti, if an~•, in the manner
proviJed under paragraph 2 h~reof or. if not paid in such manner. M• Barmwer making pa~~ment. ~hen due. JirecOy to the
payee thereof. Borroa•er shall promptly furnish to 1_ender all notices of amounts due under thi~ paragraph, and in thc event
BorroWer shall make pa~~ment dire~tl~~, Borraw~rr ,hall promptl~~ furnitih ~o t.cndrr rerci~tti e~~idcncing such pa~•mcnts.
Borrower ~hal) prompU)• dixharge any lien ~.hich has priont~• uvcr thi~ ~lortgage: pru~~uicJ. th:~t Horrow•er tih~l) not be
rcquired to ~iuhargc anp wch licn w long as Borrow~r ~h~ll agrec in writing to thr pa~m~nt ot thc obligati~~n sccurcd hy
such lien in a manner acceptable to Lender, or ~hall in gocKl faith contr,t such lien h~~, or ~lefen.l enforrrment of such lien in,
Icgal prcxccding. which opcratc to prc~~~nt thc cn(orrcmcnt of th~ licn c-r furtc~~ur< <~f thc ProEx;rt~ ~~r an~• part thcrcof.
S. Hazard Insurance. Horrower shall kccp Ihc impruvcmrnh nu~~ c~i,tin~; ~=n c~rraftcr rrrrtcd on thc PruEx:rry incurcd
against I~xs h~• fir~. hazards included ~~•i~hin thr term "~c~enJc.i ruvcrage". and s~~~h other hazards a~ I.cnder may reyoire
and in surh am~~unts and for surh ~xreociti a~ I.ender ma~~ reyuirc: pru~•idc~l, th:~t Lender .hall not rcyuirc that the amuunt of
such co.•cragr e~reed that amount of coverage rrywred to ~:~c thr .umti ~ccured ht~ thiti :11or~g:+ge.
The insurance carrier providing ttn: incurance sh:dl tx~ chuun by Burn-wcr subject ~o apprm•al b}~ I.ender, provided.
that such approval ~hall nut b~: unreawnshh• withhcld. All prrniium. ~~n insur.uuc pulicirs ~hall t+r paid ~n thc manner
provided unJrr paragraph 2 hereof ur. if nut patd in such manner, h}~ Hormwer makmg payment, w•hen due. directly to the
insurance carricr.
All insu~an.e po6cies anJ rencw:~ls ther«,t ~Lali Iw in form acrr}~t.~bl~ tu Len.l~r en~l ~hall includ~ a.tandarJ mortgage
clausc in favar ~H and in farm a~.cptahle t.• Lrndcr. Lrndrr ~hall ha~c thc richt t~~ hold thc p~~lici~, and renca~alc thcreof.
and Borru:~cr tih~ll promptl}~ furnish to I.~ndrr :~II rcnrwal not~cc~ :~nJ all recripts of paid premium.. In thc c~~cnt of lots.
Borr.~w•er tih;~ll gi~e prompt notic~ tu the imur.~ncr carner and Lender. LenJrr ma~ make pr~x~t of Icxs i[ not made prompU~~
b} Burrowcr.
Unless I.ender anJ Borrowcr othrr~~,c agrec in wnting. imurance pr~.creJc sh:~ll be :l~1~IICd 10 fC~Il1f7U011 or repair of
the Propert}• ~amageJ, pruviJed wch retitorabun or repair is ecunumicall~• feasibk ~nd the se~urity of this Mortgage ~s
not thereb~~ impaired. I( su.h rctitoratu~n or repair is nrt r~~~n~~mic:ill~~ featiihle or i( the securil~~ of Ih~t ~tortgage w•ould
be impair~d. the insurance pruceeJ~ ~hall tx~ ~pplie~l t~~ the ~ums secureJ h~• this ~tortgage. with the ezcess, if any, paid
to Borr~~w-er. U ~hc Propert~ is ah:md~~ncd hy Bi~rr~~w•cr_ ~~r il Born~v-er L•~ilti t~- res~nd to (.cndcr within 30 days from the
Jate notice i, m.uled b~ Lender to Borrow•er that the insur.~nce carricr otTen to settle a claim f~~r in~uranre benefits, I~nder
i~ authorized tu c~~flect anJ appl~ the insurance pn-ceed~ at I.en~cr's oplion either to restoration or repair of the Propert~~
ur to thc sum, xrured hy Ihis ~lortgagc.
Unlesc I.rnJcr and Burruwcr ii~hcrwi.c agrec ~n v-riting, an~ such appliration ~~f pn~cccds to prtncipal ~hall not cttcnd
or ~x~stponc thc duc datc uf thc mi~mhl~ inst:~llmcnt~ rcfcrrcd ti~ in para~,raph~ I and ? hcrcof or changc thc amount of
auch imtallmcnb. N under paragraph l13 hereof the Properh ~~ acyu~rcd h~ I.endcr, ali nght. :ide anJ interest of Borrow~er
in ~nd to an~ ~rourance policiCS and in anJ ti~ the pnxeeJs thereo( resulung trom damage to ~he Property prior to the sale
ur acyui~it~on ~h:~ll pa~s to LcnJcr to thc c~tcnt of thc ~ums sccured M thi~ ~turtg~g~ ~mmcdiatcl}' prior to such salc or
acyuisition.
6. Preser~ation ~nd Jlainfcn~nce of Propert}; I.easehulds: ('undominiumc; Planned Unit Ih~•elopmenls. Aorrowcr
sh:~ll kecp thc Property in gcwd r~pair and shall not commi~ Haste or permrt impairmen~ or deterioration of the Property
~nd shall cumpl~~ ~ith thc provis~uns ut any lease if this ~tor~gagr i, un a Icaxh~~ld. If ihiti ~1c~rtgage is on a unit in a
condominium ~~r a planncd un~t dc~clopmcn~, Borrou•cr tihall Ex rlorm all of Bcrruwcr's obligations undcr thc dcclaration
or covcnant~ crraUng nr govcrning thc ccmdommium c~r plrnncd unit dc~~clupmcnt, thc by-laws and regulations of thc
con.iuminium or planned unit Jevel~~pment. and constituent documents. If a condominium or planned unit Jccelopment
n~lcr „~~ccutcd b}' Norn-wcr anJ recc~rdrJ tug~~hrr ~rth th~ti M~~rtgagc, thc cc~vcnants and agrcrmcntti i~f wch ridcr
,hall be ~ncor~wrated into and ~hc~ll amcnJ anJ wpplemrnt the co~enant~ anJ agrecmcnts oi thi~ M~~rtgage as if thc ri~cr
:+rrc :i part hcrcof.
7. Prolection oi Lenders Security. 11 B~rrin~er failti t~~ ~xrf~~rm the covenant~ anJ :~greemenls runtained in thi~
1lortgag~, ur if ~n}' arUOn ~~r pro:ccd~ng i~ commcncc~f which m.~trriall}~ :~(Trctt LcnJcr's interctit in thc Prupcrty,
including, but n~~t limned .to. ~m~n~nt doma~n. im~.hcnc~, cixle cnl~~rrcmcM. ~.r arrangemcnts or pr~~cccdings ~nvolvmg a
bankn~pt or drecdcnL ~hcn I.cndc~ at Lcndcr'. op~ion, upon nolicc to $orrowrr. ma) mal~c such ap~aranccs. disbursc ~uch
sums and takr such ~c~iun a~ ~s nece~.arti• to prrnect Lender's mterest. includinb. but n~t limited to. J~~bursemcnt ~~f
rcasonahl~ a~tornc)~'~ t~rs and cntry upun thr I'ropcrty to m~kc rcpair~. If Lcndcr reyuircd mortgagc inwrancc a~ a
rondit~on ut m:+king ihr loan u:curcd b~ thiti •:11~~rtg:~gc. Karruwrs sh:di pay thc prcmium~ requ~re~l ti- maintain ~uch
insurancr in ctlc~t until tiuch limc at thc reyuircmcnt for `uch msurancc tcrmin~trs ~n accordan~c a~~~h Bormw~ci a and
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