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Borrower ar~d Le~der covenaat and a~ree as folbwr
1. PaymeM o[ Principal and lnterea~ Borrowe~ ~hall pwmptiy pay when due the principol oi and intereat on the iodebtedneN
evideaced by the Note, prepayment a~d late charQa as provided in the Noee. and the priocipal otand inte~eat on any i~ture Advances ~ecured
by tAu Mortgage.
2. FLnd~ forTues and In~urance. Subjcct to appliceble law or to a written waiver by Lender, Bomowerahall pay tol,enderontheday
monthly i~stallmmta of principnl and intereat are payable under the Note, until the Note is paid in full, a aum (herein "f~nds") equal b oas
twelfth of the yearly ta:ea and aseessmenb which may attain priority over this Mortgage, and ~round rents oo the Property, if any, plus ons
twelfth otyearly premium inatallments [or hazard inaurance, plus onetwelfth ofyearly premium i~stallments [o~ mortgage inaurence. if any~
all as reasonably estimated initially and trom time to tirr,e by l.ender on the basis of asseasments and bills and reasonable estimates thereot
The Pt~ads shall be held in an inditutio~ the depo~ib or aecounta of which an inaured or guaranteed by a Rederal or 3tate agency
(including Lende~ if Lendar u anch an itutitution). l,ender shail apply the Funda to pay said ta:es, aaaeasment~, insurance premiums and
~ ground rente. Lender ma~y not charge !oc io holdin~ and applying the Funds, analyzing said account, or verifying end compilinQ said
es~es~meafa and bilb. unless Lender pay~ Bortower intereat on the Funds end applicable law permita l.ender to make such a cherge. Borrower
and I.ender may agree in writing at the time of execution of this Mortgage that interest on the Funds shaU be paid to l3ormwer, and nnlep
~uch agreemeat is medt or spplicable law requires such intereat to be paid, Lender shall not be required to pay Borrower any inferM or
earniags on the ~nd~. Lender shall give to Borrower, without charge, an annual acoounting of the Funds showing credita and debita to the
F'und~ and the purpoee for which each debit b the [~nda vYea made. The Funda arr pledged as additional eecurity for the sums secured by thu
Mortgage.
If the amount oithe PLnda held by Lender. togethe~ with the future monthly installments otFunda payable prio~ to the duedates of ta~ce~.
asseeaments. insurance premiums and gmurtd rents, shall e:cred the amount rrquired b pay said taaes, aaseaaments, ineurance prewiunu
and ground nnts as they fall due, auch exceas ahall be, at Borrower s option, either pmmptly repaid to Borrower or creditrd to Borrowrer on
monthly installmenta of ~nds. If the amount of the Funds held by Ixnder ahall not be sufficient to pay ta:es, assessmenta, insuranca
premiutas and geound renta as they lall due, Borrower ahall pay to Lender any amount neoeasa~y to mate up the deficiency aithin 30days
[rom the date notice it mailed by L.ender to Borrower requeeting payment thereot.
Upon paymeat in fnll of ali suma secured by thia Mortgage, Lender shaU promptly refund to Borrower any tunds held by Lender. I[nnder
paragraph 18 hen.wf the Property ia sold or the Property ie otherwise acquired by Lender, Lender ahall apply, no later than immediateiy prior
fo the sale of the Property or its aoquisition by Lender. any Funds held by I.ender at the time of application aa a credit against !he sums rec~red
by this Mortgage.
3. ApplkaUon of Ps~+meats. Unless applicable law provides otherwiee, all payments received by [.ender under the Note and
paragraphs 1 and 2 hersof ahall be applied by Lender firat in payment of amounta payable to [.ender by Borrower under paragraph 2 hereof.
thea to intereat payable on the Note, then to the principal ot the Note, and then to interrst and principa) on any Future Advanoea.
4. Charges; I.iena. Borrower ahall pay all taxes, assessmenis and olher charges, fines and impositioas attributable to the Propetty which
may attain a priority over this Mortgage, and leasehold payments or goound rents, if any, in the manner provided under paragraph 2 hereofor,
it not paid in auch manner~ by Borrower makinq payment, when due, directly to lhe payee thereof. Borrowershall promptiy fumiah to Lender
all noticea of amounts due under this paraqraph, and in the event Borruwer shall make payment directly. Borrower shall prompAy tumiah to
Lender receipts evidencing such payments. Borrower shall prumptly discharge any lien v~hich has priority over this Mortgage; provided, thet
Borrower aha11 not be required to discharge any such lien so long as E3orrower shpll agree in writing to the payment of the obligation secured by
auch lien in a manner acceptable to Lender, or shall in good taith contest such lien by, ordefend enforcement ofsuch (ien in, legal proeeedinga
which operate to prevent the enforcement of the lien or [orfeiture of the t'roperty or any part thereof.
5. Hazard lnaurance. Borrorrer shall keep the improvementss now existing or hernafter erected on the Property insured againat loes by
fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in auch amounta and for such
periods as Lender may require; pmvided, that Lender ahall not reyuire that the amount of such coverage exceed that amount of coverage
required to pay the aums secured by this Mortgaqe. ~
The insurance carrier providing the insurance sh:~ll be chosen by Fiorrower subject to appmval by I,ender: provided, that such approval
shall not be unreasonably withheld. All premiums on insurance policies shaU be paid in the m~nner provided under paragraph 2 hereof or, if
not paid in such manner, by E3orrowet making payment, when due, directly to the incurance camer.
All insurance poliries and renewals thereof shall be in form acceptable to [.ender and shall include a standard mortgage clause in favor of
and in form acceptable to Lender. Lendershal) have the right to hold the policies and renewala thereof, and Borrower ahall promptly fumish to
i.ender all renewal noticea and all receipta of paid premiuma. In the event of lo.4s, Borruwer shail give prompt notice to theinsurance carrier
and Lender. Lender may make proof ot loss it not made promptly by Rorrower.
Unlese Lender and Aorrower otherwise agree-in writinq, insurance procee~ shall be applied to restoration or repair of the Propeety
daonaged, provided such restoration or repair is economically feisible and the~serurity of thia Mortgage ia not thereby impaired. If such
reatoration o~ repair ie not economically feasible or if the security uf this Mortgage would be impaired, theinsurance prooeeda ahall beapplied
to the auma securnd by thia Mortgage, with the exceas, if any, paid to I3orrower. If the F'roperty is abandoned by Rorrower, or if Borrower faile to
reapond to Lender within 30 days from the date notice is mailed by I.ender to Korrower that the insurance carrier offera to settle a claim for
inaurence benefits, Lender is authorized to collect and apply the insurance pmceeds at [.ender's option either to reators~tion or repair of the
Property or the suma secured by this Mortgage.
Unlesa Lender and Borrower otherwise agree in writinR, any such application otproc~eeds to principal ahall notextend or postpone thedue
date of the monthly in~tallments referred tu in paragraphs 1 and 2 l~ereof or change the amount of auch installments_ I[ under paragraph 18
hereof the Property ia acquired by Lender, all right, title and interext of fiorrower in and to any inaurance policies and in and to the proceeds
thereof reaulting from damage to Property prior to the sale or acqwsition shall pass to Lender to the extent of the euma eecured by this
Mortgage immediately prior to such sale or acquisition.
6. Pteservation end MaintenanceofProperty; Leaseholds;Condominuma; Planned Unit Developments. Borrowershallkeep
the Property in good repair and shall not commit waste or pennit impairment or deterioration of the Property and ahall comply with the
provisiona of any lease if this Mortgage ie on a leasehold. If this Mcrtgage is on a unit in a rnndominium or a planned unit development.
Borrower ahall perform all of E3orrower a obligations under the declaration or covenants c~reatinKor governing the condominium or planned
unit development, the by-lawa and regulations of the condominium or planned unit development, and conatituent dceuments. If a
rnndominium or planned unit development rider is executed by E3~rrower and recorded together v~-ith thie Mortgage, the oovenants and
agreements of such rider shall be inrorporated into and shall amenJ <ind supplement thecovennnts and agreements ofthia Mortgageas ifthe
rider were a part hereoL
7. Protection ot I.ender's Security. If Borrower faile to perform the rnvenante and agreements contained in thi~ Mortgage, ar if auy
setioo or prooeeding ia commenoed which materially affecte Lender's interest in the Property, including, but not limited to, eminait domain.
inwlve~cy, oode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then i.ender at I.ender's option,upon
notioe to Borrower may make ~uch appearances, disburse auch aums and take auch action as is neceasary to protect I.ender ~ inLe~est~
including, but not I~mited to, disbureement ot reasonable attorney'e feea and entry upon the Property to malce repai». If I.enda reqairad
mortgage insnrance as a condition of making the loan secured by thie Mortgage, E3orrower ahaU pay the premiucn~ reqaired to maintain
tuch in~urance in effect until such time as the requirement (or auch insurance terminatee in accordance with Borrorrer'~ and Lenda'~
wrritten agrcement or spplicable I.aw. Borrower ahall pay the amount of all morigaqe ineurance premiume in the manner provided under
paragraph 2 hereot.
My amounts disbursed by Lender persuant to thie paragraph ?, with interest thereon, shall become sdditional indebtedne~s ot
Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terms ot payment, such amounts ~hall be poyabk apop
notice from Lender to Borrower requesting payment thereof, and ahall bear intereat tmm the date ot diebursement at the rate yaysbk from
time to time on outstending principal under the Note unleas payment of intereat at such rate would be eontrary to applicable law. in wrhicb
evtnt such amounts shall bear interest at the highest rate permiseible under applicable law. Nothing ~ontained in thu paragraph 7, rhall
require i.ender W incur any expense or take any action hereunder.
~~345 P~~2