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Unt~ouat Oovat+erm. Bo~rower snd Lender oovenan~ and a~~a as follow::
). ~q~eN of l~1~1 ~i WereN. 8orrowu shall prompd) psY wheo due the principal ot aod interest on the
iadebtednas evidepced by the Note. Prepayment and late chargea ac p~ovided in ihe Note. and the principal ot and interest
aa aoy Future Advances secured by this Mortsaje.
_. Fwi ter TuM a~i Iwe~a~e. Subjoct to applicabk law ~~r to a written waiver by I.ender. Hormwer shall paY
to [.ender on ~he day monthly installmen~s of principal and intcrest arr payat-k under the Note. until the Note is paid in [ull,
a suen (herein "Fund~'~ eqwl to one-tweltth of the yea~l~~ ~axc. aoJ assessments which may attain pnority ove~ ~his
Mwisa~e. and ~round rents on tbe Pwpeny. if sny, plus o~e•twelfth of yearly prcmium installments for huard i~sunnce.
plus oae-tweltth of yearly premium installmems fo~ mortgsge insurancc, if any, all as t~easonably estimated initislly and trom
time to time by Lender on tAe buis of assessmcnts and hills and reawnabk atimata thereof. ~
'ILe Funds shall be held in an institution ~he deposia or ~ccoun~s of which are insured or guaranteed by a Federal or
state asency (ir~cludina Leoder if Lcnder is such an institution). I.ender shall apply the Funds to pay said taxa, sssessments.
iasuraaoe premiums and goound rents. I.ender may not charge for so holding and applying the Fundc. analyzing said account.
or verifyin~ ~nd eompiliog said assessments and bills, unless Lender pays Borrowe~ interest on the Funds and applicable law
pemtia Lender to make such a charge. Borrower and Lender may agrce in writina at the time of exccution o[ this
Mortpae that interat on the Funds shall be paid to Bor~owe~. and unlas such agrcement is made o~ applicable law
roquira such interat to be paid. l.ender shall not be rcquired to pay Borrower any intercst or earnings on the Funds. Lender
'.~~u~~~i ~~~, w wiivw~.i~ wiuiv~~ ~~Hib~,. ~i~ nui.u~i ~~~ ~.:8 C'.~ :*:~ ~un~'s s!~uiag credits and dabits to tht Funds and ihe
purpose tor which each debit to the Funds wu made. ~The Funds arc pledged u additional security [or the sums ucured
by this Mortpge.
If the anwunt of the Funds I~eld by [.tnder, together with the futurc monthly installme~ts of Funds payable prior to
the due data of taxes. assasmeats. insurance premiurtu and ~round rcnts, shall exceed the amount requircd to pay said taxa.
asswments, insunnce prcmiums and ground rcnts as they tall due, such exccss shall be, at Borrower s option, either
prompdy rcpaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds
AeW by I.eoder sbaA not be suRicient to pay taxes. assessments. insurance premiums and ground rents as they tall duc.
Boct+ower shall pty to Lender.any amou~t necessary to make up the deficiency within 30 days trom the date notice is mailed
by Leader to Borrower requesting payment tl~ereof.
Upon paymeot ia full of all sums socurcd by this Mongage, L.ender shall promptly refund to Borrower any Funds
heW by Lender. If under paragraph 18 hercof the Property i~ sold or the Property ~s otherwise acquind by l.ender, Lender
thall spply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held bv
Leader at the time of application aa a credit against the :ums secured by ihis Mongage.
3. Atplication ot Paymeefs. Unless applicable law provides otherwise, all payments received by Lender under the
Note aad pangraphs l and 2 hercot shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under puagraph 2 hereof. t6en to interest payable on the Note, then to the principal ot the Note. and then to interest and
principal on any Futurc Advances.
4. C6~qes; Lkns. Borrower shall pay all taaes, assessments a~d other charges, 6nes and impositions attributable to
tbe Property which may attain a priority over this A~ortgage, and leuehold payments or ground rents, if any, in the manner
pmvided under paragraph 2 hereof or, if not pa~d in such manner, by Borrower making payment, when due, diroctly to the
psyee theroof. Borrower shall promptly furnish to Lender all notices ot amounts duc under this paragraph, aod in the event
Borrower shall make payment directly, Borrower shalt promptly furnish to Lender rereipts evidencing such payments.
Borrower shall promplly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be
rcquired to discharge any such lien so long as Borrower shall agree in w~ri~~ng to the payment of the obligatiun securcd by
such liea in a manner acceptable to Lender, or shall in good (aith contes~ such lien by, or defend enforcement of such lien in.
legal proceedings which operate to prevent the entorcement of the lien or forfe~ture of the Property or any part thereof.
S. Huard Iosuraace. Borrower shall keep the improvements now~ existing or hereafter erected on the Property insured
against loss by firc, hazards included with~n the term "extended coverage", and such other hatards as Lender may require
~nd ~n such amounts and for such periods as Lender may requirc; provided, that Lender shall not require that the amount of
such coverage eaceed that amount of coverage required to pay the sums secured ~by this Mortaaat.
'It~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
tbat such approval sh~l not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provedod uuder paragraph 2 hereof or, ~f not paid in such manner. by Borrower makmg payment, when due, directly to the
insurance carrier.
All insurance policies and renewals thereof shall be in form accep~able to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall ha~e 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. ln the event of loss.
Borrower shall grve prompt notice to the insurance carrier and l_ender_ Lender may make proc~i of loss if not made promptly
by Borrower.
Cinless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property damaged, provided such restoration or repair is economically (easible and the security of this Mortgage is
rwt ~hereby impaired. It such restoration or repair is not economically feasible or if the stcurity of this Mongage would
be impaired, the insurance proceeds shall be •rpplied to the sums secured by this Mortgage. with the excess, if any, paid
to Borrower. If the Properry is abandoned by Borrower, or if Borrower fails ~o respond to Lender within 30 days from the
date notice is mailed by l.ender to Borrower ~ha~ the insurance carrier ofiers to settle a claim for insurance benefits, Lender
is authorized to coiiect and apply the insurance proceeds at Lender's option either to res~ora~ion or repaer of ihe Propert~~
or to t6e sums secured by this Mortgage.
Unless Lender and Borrower othervrise agree in writing, any such upplication of proceeds to principal shall not extend
or postpone th~ due date of the monthly installments rcferred to in paragraph~ I and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the ProF,erty is acqu~red by l.ender, all right, title and interest of 8orrower
in and to any Aisurance policia and in and to the proceeds thereof resul~ing from damage to ihe Property prior to thc sale
or acquisition shall pass to Lender to the extent of the sums secured by ~his Mortgage immediately prior to such sale or
acquisition.
6. Prssenation and Maintenance of Property; Leasehulds; Condominiums; Planned Uuit Devebpments. Borrowcr
shall kcep the Property in good repair and shall not comroit yvaste or permit impairment or deterioration of the Property
and shall comply with the provisions ot any lease if Ihis Morlgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a Planned unit devclopment, Borrower shall pcrform all of Borrower s obligations under the declaration
or coveoants creatiag or governing ~he condomiaium or planned unit development, the by-laws and regulation~ of the
condominium or planned unit developmen~, and constituenl Jo~-umentc. I( a condominium or planned unit development
rider is execwed by Borrow•er and recorded t~gether w:th th~s Mortgage, ~he covenants and agreements of such riJer
shall be incorporated into and shall amend and suppkment ~he covenants and agreements of this Mortgage as if the riJer
were a pari fereof.
7. Protection of i.ender's Security. If Borrower fa~lt ~i. pcrform the covenants anJ agreements contained in this
Mortgage, or if any action or proceeding ic commenced w•hich materially afiects I.ender's interest in the Proper~}•.
includmg. but not lim~led to, emment doma~n, msoh•ency, code enforcement, or arrangemcnts or proceedings +nvohing a
bankrup~ or deceden~, then Lender at I.ender's option, upon notice to Borrower, may make such appearances, d~shurse such
sums and take such action as is necessary to protect Lender's mteresl. incluJing. bot not lim~ted to. d~sbursement ot
reasonable aUorney's (ees and entry upcm the Proper~y to makc repairc. If Lcnder rcyuircJ mortgage inwrance as a
condition ot making the loan secured b~• th~~ hlortgagr. BorraNC~ sh.ill pay the premiums required lo mainta~n such
insurance in rfTec~ until such .time as the rcyuiremem for wch in~uran:e ~ermuiates ~n :iecordanee w•ith Borrower's and
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