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Borrower and Lender covenant and agree as folbws:
1. Paymeat ot Pripcipal ~nd Interea~ Borrow~r shall pwmptly pay when due the principe-1 of snd interest on the i~debtedness
evidenoed by the Note. prepayment and late charges as provided in the Note, and the prir-cipal of and intereston a~y ~tun Advances secured
by this Morfgage.
2. Pltnds for Teucea and [asurance. Subject to applicable law or to a written waiver by l.ender, Borrower ahall pay to l.ender on the day
monthly inatallmenta oI principal and intereat are payable under the Note, until the Note is paid in tull, a sum (herei~ "~nds") equal to on~
twelfth of the yearly taues and asseeaments which may attain priority over this Moctgage, and ground rents on the Property, if any, plua ont
twelRh of yearly premium inatallmente for hazard inaurance, plus onetwelRh of yearly premium installments for morigage insu~ance, if any.
all as reaeonably estimated initially and from time to time by Lender on the basis o[ asaeusments and billa and reasonable eatimates thereof.
The I~l~nas ahall be held in an inatitution the deposits or accounts of which are inaured or gua~anteed by a Federal or State agency
(including Lender if Lender is euch an institution). Lender shaU apply the Funda to pay said ta:ea, assessmenta, inaurance premiums and
ground n~ta. Lender may not charge fos so holding and applying the fi~nda, analyzing eaid account, or verifying and compiling said
aaseasme~ta and bilts, unless Lender pays Borrovrer interest on the Fl~nds and applicable lew permita Lender to make auch a charge. Borrower
and Lender may agrce in writiag at the tiane of execution ot thia Mortgage that intereal on the Funda ahall be paid to Borrower. and unlesa
such agreement is made or applicable law requires such interest b be paid, l.ender shail not be required to pay Borrower any interest or
earnings on the ~ads. Lender ahall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debits to the
Funds and the purpose for which each debit to the Funda was made. The Funds are pledged as additional8ecurity for the suma secured by this
Mortgage.
If the amount of the ~nda held by Lender, together with the future monthly inetallments of Funds payable prior to the due datea of taxes.
assessmenta. insurance premiums and ground rents. ahall e:c2ed the amount required to pay said ta:es, assesaments, inaurance premiums
and ground renta as they fall due. such excess shall be, at Borrower's option, either prompdy repaid to Borrower or credited to Borroweron
monthly instaUmenta of I~nda. If the amount of the F~nds held by Lender ahal! not be aufficient Lo pay taxes, assesamente, insurance
premiums and ground rents as they fall due. Borrower ahail pay to I.ender any amount necessary to make up the deficiency within 30 days
fmm the dete notice ie mailed by Lender to Borrower requesting payment thereoL ~
Upon payment in full of al! sums eecured by this Mortgage, Lender shall promptly refund to Borrower any funde held by Lender. If under
paragraph 18 hereof the Property is aold or the Pmperty is otherwise acquired by I.ender, Lender shall apply, no later than immediately prior
to the aale af the Property or ita acquisition by Lender, any ~nds held by Gender at the time of application as a credit againat the sums secured
by thia Mortgage.
3. Application of Paymente. Unless applicable law providea otherwise, all payments received by Lender under the Note and
paragraphe 1 and 2 henwf shall be applied by Lender first in payment of amounte payable to I.ender by Borrower under ~aragraph 2 hereof.
then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
4. Charges; Giens. Borrower shall pay all taxes, assessments and other rharges, fines and impositions attributable to the Property which
may attain a priority over this Mortgage, and leasehold payments or ground rents, i[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. E3orrower shall promptly furnish to L.ender
all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
[.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that
Rorrower shall not berequired todischarge any such lien so long as E3orruwer shall agree in writing to the payment of theobligation se~ured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend entorcement of such lien in, legal proceedings
which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof.
5. Hazard Inaurance. Borrower shall keep the improvements nov- existing or hereafter erected on the Property insured against losa by
fire, hazards included within the term "extended coveraqe," and such other hazards as l.ender may requim and in such amounts and tor such
periods as Lender may requirn; provided, that Lender shall not require ths~t the amount of such coverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
The insurance carrier providing the insuranrn sha+ll be chwen by Korr~,wer subject to approval by I.endrr, pmrided, that such approval
shall not be unreasonably withheld. All premiums on insurance p~~licie. shali t-e paid in the m.inner pn~vided under paragraph 2 hereof or, if
not paid in sueh manner, by E3orrower making payment, ~hen due, directiy t~- the insurance carrier_
All inaurance policiea and rnnewals thereotshall be in form acceptable to l.ender and shall include a standard mortgage clausein favorof
and in form acceptable to Lender. I.ender shall have the right to holJ the policies and renewals thereot, and I3orrower shall promptly furnish to
i.ender all renewal noticea and all receipts of paid premiums_ (~ the event o[ loss. E3orn,wer shall gi~e prompt notice to the insurance carrier
and Lender. i.ender may make proof of loss if not made promptly by Rorrower.
Unlesa Lender and ~3orrower othervvise a~re in writing, insurance proceeds shali be applied to restoration or repair of the Property
damaged, provided such restorati~n or repair is economically [easible and the security of this Mortgage is not ihereby impaired. If such
restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied
to the auma secured by ihis Mortgage, with the excess, if any, paid to I3orrower_ If the I'roperiy is abandoned by Rorrowe"r, or if Borrower fails to
respond to L.ender within 30 days from the date notice is maited by I.ender to Borruwer that the insurance carrier of~era to settle a c!aim [or
inaurance benefits, I.ender is authorized to collect and apply the insurance proceeds at l.ender s option either to restoration or repair of the
Property or the suma secured by this MortgaRe.
Unleea Lender and Borrower otherwise agree in writinq, any such application of proceeda to principal ahall not extend or poetpone the due
date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of such instaliments. If under paragraph 18
hereof the Property is acquired by Lender, all right, title and interest of E3orrower in and to any insurance policies and in and to the proceeds
thereof reeulting from damage to Property prior to the sale or acquisition shall pass to l.ender to the extent of the auma secured by this
~tortgage immediately prior to such sale or acquisition.
6. Preaervation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower ehall keep
the Property in good repair and shaU not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the
proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on u unit in a rnndominium or a planned unit development,
liorrower shall perform all of E3orrower's obliqations under the declaration or covenants creatinQor governing the rnndominium or planned
cnit development, the by-lawa and regulations of the condominium or planned unit development, and conetituent documenta. If a
condominium or planned unit development rider is executed by &-rrower and recorded together with this Mortgage, the oovenants and
:+Rreements of such rider shall be incorporated into and sh:dl amend and supplement thecovenants and agreementsofthis btortgage asifthe
rider were a part hereuf
7_ Protection ot Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreementa rnntained in thia Mortgage, or if any
aMion or proceeding is rnmmenced which materially affects Lender'a intereet in the Property. including, but not limited to, eminent domain.
ineolvency. aode enforc.ement, or arrangemente or proceedinga involving a bankrupt or decedent, then I.ender at Lender s option.upon
notice to Borrower may meke auch appearanoee, disburee auch aums and ta1~e auch aMion as ie neceseary to protect Lender's interest,
including, but not limited to, diebursement of reaeonable attorney e feee and entry upon the Property to make repaire. [f Lender required
mortgage ineurance as a condition of making the loan secured by thia Mortgage, Borrower ahal) pay the premiuma required to maintain
euch insurance in effect until euch time as the requirement tor euch inaurance terminatea in accordance with Borrower'e and Lender's
written agreement or applicable [~w. Borrower ahaU pay the amount of all mortgage inaurance premiums in the manner provided under
paregraph 2 hereof.
My amounts diebursed by Lender persuant to thia paragraph 7, with intereet thereon, ahall become additional i~debtedneas of
Bonower eecured by thia Mortgage. Unleae Bonower and Lender aRree to other terma of payment, euch amounta ehall be payable upon
notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diabursement aE the rate payable irom
time to time on outstanding principal under the Note unlese payment of intereet at auch rate would be rnntrary to applicable law, in which
event such amounta shal) bear interest at the higheet rate permiaeible under applicable law. Nothing rnntained in this paragraph 7, shall
reqnire Lender to incur any expenee or take any aMion hereander.
a~345 ~~1493
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