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1. Payment of Pirincipal and Intereat. Korruwer shnll promptly pay when due the principal of and interest un the indeLtednesa
evidenced by the Note, p~epayment und Inle cha~gea as pro~•id~ in the Nute, and the principal of and interrato~ any Future Advanceasecu~ed
by thia Mortgage.
2. ~nde for Taxee and Ineurance. Subject a~ Applicabie Ii1W O[ ~U N WryI(t'fl waiver by lxnder, t3~-rrower shall pay tu I.ende~un thedey
monthly inataUments of principal and intereat nre payable uncler the N~~te, until the Nute is paid in full, a aum fl~errin "Funda") equal to one
twelft}- of the yearly tnxes and asseasmrnts which may attnin priont~ u~~er this Mortg:ige, nnd Kruund rents on the E'ruperly, if any, plus o~e
twelfth of yea~ly premium instxllmenGv for haznrd insur;~nm, pluti une tM elfth uf yrurly premium instullmi•nt~+ for murtKage insurance, if Any,
all as reasonably eatimated initially and from time to time by I.endrr un the basis of .-.sses.smrnts a~d bills and rensunable cwt~malrs thereof.
The Fl~nda ahal) be held in an institution the drpoaits or acrnu~ts of which arr inaured ur guaranterd by a Federal or State agency
~~uc~uauuK i.ruurr ~i i.ruur~ ~a euci~ au iueuiuuvt~). i.ruurc r,uuii aNNiy ii~r i uuiib tu }ray auiu inary, unarsstn~•Ilul, ~nsuranc~r prem~uma and
grou~d rente. l.ender may not charge for eo holdinq and applying the Munde, ~nalyzing said accuunt, or verifying and campiling said
aeaesementa and bills, unlesa l.ender paye Borrowe~ interest un the Funds and ~pplicable law• permits I.ender to makr such x charge. Borrower
and l,ender may agree in writing at the time of executiun o[ this Mortg:~Ke thnt interest on the h unds shall be paid tn f3orrov-er, and unlea~
euch agreement is made or applicable law rcquires such interrxt to be paid, l.ender shall oot be reyuired to pay E3orrawer any intereat or
earninge on the Fu~de. Lender ehall give to Born,wer, v-~thout charge, :~n annual accounting of the N unds showinK credita and debita to the
Funds and the purpoae for which each debit to the F und~ w;is ~nade. 7'he h'unds arc~ pledgrd :+s addition:il security for the sums secured by this
MoKgage.
I[the amount of the Funds held by l.ender, together with thc future munthly installments of Funda payable prio~ totheduedatesortaxee,
assesamente, inaurance premiums and gniund rents, shall exrred the amount reyuired to pay said taxes, ussessments, insurance premiums
artd gro~nd renta as they fttil due, such exceas xhall t-e, nt Bo~TOwi•r's option, either promptly repaid to Rorrower or creditrd to Borroweron
monthly installmenta of Funda.'If the amount of the Funds hrld by l.ender shall not be sufficient to pay taxea, assexsments, inaurance
premiums and ground rents ae they fall due, E3orrower ah:df puy to I.r.nde~ any amuunt necr.,sary tc, make up the deficiency within 30 daya
from the date notice is mailed by l.ender to F3orn~w~•r reyuestuiK E~ayment thereuf.
Upon payment in full of all aume secured by this MortKaKe, I.ender shall promptly refund to t3orrower any funds held by l.ender. if under
paragraph 18 hereof the Property is sold or the Property is othrr.~•i~c~ .~cyuired by l,ender, l.ender shHU apply, no later than immediately prior
to the sale of the Propertv or its acquisition bv l.ender, anv H unds hrld bv I.e~der at the time of application as a credit a¢ainat the sumF xecarPd
by this Mortgage.
3. Applieation of Paymenta. Unless applicable law• prnvidec othrrwise, all payments received by I.ender under the Note and
paragraphe 1 and 2 hereof shall be applied by Lender firct in p:+ymrnt of a~r.ciunGs payaole to I.ender by Borruv-•er under paragraph 2 hereot,
then W interest payable on the Note, then to the princip~) of the tiote, and then tn interest and principal un any Future Advances.
4. Charges; I.iena. B~rrow~er chall pay all taxes, asses~ments and uth~r ~~harKec, finc~ and im~H~tiitinn. attrihutable G, the Properiy which
may attAin a priority uver this 11urtKaKr, and Ira+cehuld pa>•nu•nt. ur ~;round rrnts.if am•, in the manner pruvidcd under par.~graph 2 hereofor,
if not paid in such manner, by Borruwcr makinK p:+ym~~nt. whrn ~iae, dirf~•tiy to the p:n~~~• thrnY~C Rurn, xf•r.hall prumptly furnish to I.ender
all notices of amuuni~c due under this par~~;r.~ph, and ir. the r~ i•nt Iir~rn~w•F~r shall mc~ke payment dirt~c•th•. li~~rruwe•r sh:~ll promptly furnish to
l.ender receipts evidencinK such paym~•nt~. li~~rrn~vi~r chall pnrmpth• di.~•h:~rKc~:im• lie•n ~•hich h:~s prinrit~• ~~ver!hi.llortKage: Provided. that
Borro~•er shall not be reyuirtv! tu disch,ir~;e any su~•h lit•n tiu!un~ as liorn~wer.hall axmr in N•ritin~; tn the pa~•~ne•nt ~~f throhli~;ation secured by
such lien in a manner acceptablr to Le•nd~•r, ~~r shall in KiNxi fo-iith ~•~~ntest wc~h lie•n bt•, ~,rdefend enfur:~eme•nl ~rf sw•h li~•n in, l~•Kal procrc~finqs
which operite to pre~•ent the i•nfurcement uf the I~er2 ~~r forC~•iturt~ ~~f the• !'rupert~~ ~~r anp p:+rl there7~f.
5. Hazard Inaurance. Bo; n~w•er shall kec~p the impru~~i•mi•nt~ nuw• e•xisiinK or bemaftrr rrec•ted un the ['ruperty insured against loss by
fire, hazards includecl within the term "extE•nde~ cu~•era~;r." :~nd .uch ~Kh~r h.~zard..-s I.ender ma>• r~yuim and in such amounts and for sueh
periodx xn ay r:ryuim; pru~•~d~r1, that Lend~•r ~hul1 nnt r~~yuin• that tht~ .~muant of s~ch rn~•eraK~~ exce~d that amount of coverage
required t~ pay the sums secvnd b~• this ~irirtK<iKe.
"Che i~surance carrier pruv~dinK the insur:iricr sh:~U 'tk• ~. h~~.~•n h~ Ii~~rn~wi~r wh~ect t:~ apNr~~~~:~! h:• I.c~nd~•r. providc~cl, that such appro~•al
shall noL be unre.isunablt• w•~thhrld. All prcmium~ ~m ~n.ur.inre• puh~~u•~ .hall }N• p.u~1 in th~• m:~nn~•r prucid~~ci undt~r paraKraph 2 hereof or, if
n~t paid in such manner, by li~~rruwer makinK p:~ym~•nt. ~chrn du~•. ~tirr~~tl~• t~~ ihr irt~ur:~ncF:•:~rner
All iosurance policies and renew•als thrreuf sl~all tx• in fi~rm accrptablt• G~ 1 ~•nde-and shall include a titanclard mortgageclause in favorof
and in form acceptable to [.ender. [.er~der sh.ill ha~•e the ri~;ht d~ h~~ld thr p~ du•~~s:~nd re•nrw•als thereuf, and R~~rrower shall promptly furniah to
i.ender all renewal nouces and al! recr~pt~ nf paid pmm~umti In th~• ~~~t•nt :~f I~~~c, It~~rn~~+~Fr shall Qi~~e prumpt notice to the inausance carrier
and [.ender. l.ender may make pr~f of luss if not made• pru~npth bc liurruwer
Unlesa I.ender and W.~rrox~er otherw•ise aKree in w nUn~;. ~n.uran~w pr~K ~~•w. ,half M• appl~ed t~~ r~•sb~ration or repair of the Propetty
damaged, pro~~ded such restnra!iun ~~r repair i~ Eti~~~nomi~:~ll~~ fE•~~~bl~• and lht~~sf~~unty ~~f thiy'.11ortK:+ge is not thereby impaired. If auch
restoration ur repair is not econumically fras~hlr ~~r if thr s~r~unty- ~~f ~hia \1~~rtK:iKt~ w~~uld t,~• imp:ured, thelnsurance proc-eedsshall beapplied
to the sums secured by this ~tortKaKr, w-ith th~• c~xct•.s, if ;~ny, p:u~l tir fSurr~~w~~r. If th~~ Pru~K~rt>~ is aband~~ne~i by I~rtow•er, orif F3orrower fails to
reapond to l.ender withi~ :it~ days fr~~m th~• d:~tF n~~uri• i. mc~ilt~i hy 1 ~~ndt~r t~~ It~~m~w~cr that the inwran~-e camer offers to settle a claim for
insurance M~nefits, [.ender ~s aathnnzeyl t~~ ~~~Ile•~•t ~~nd api~h- the~ in~uranrc pnN~~•~~ds ,it Iw~nder's uptiun rither tn recturation or repair of the
Property or the sums scrureci hp thi~ ~1nrt~:+K~•
lJnless I.ender and }i~rr~~w•rr utherwist• a~;ny in :~ ntink.:+n~ ~u~ h ap~~l~cahun ~~f pmccti•d; t~~ pnncipal shall n~~t extend or postpone thedue
date of the monthiy inst.~llment~ n•ferred t~~ in par.+~:r:+ph. 1.~nd ~_"~f~n•~~f ~~r ~•h:in~;~~ th~~ :um~unt ~~f suc•h m.tailmentc. lf under paragraph IR
hereof the Pmperty is acyuirf~c! b~~ I.e~ndf~r, :ill riKht, htle :,nd ~nirr~~~t ~~f fi~~rr~~w•~•r in and b~ am~ insur:fil!'P Fl11Ill'IPS and in and to the proceeda
thereof resultinR frum damaKe tu Proprrt~• pnur tu the .al~• ur a~ yui~!ti~~n .hall p.+s~ t~~ (,e•ndt•r tu the extent of the sums secured by this
MortKaRe tmmeciiateh~ prior to ~uch s~~ie or ai•yuis~tinn.
6. Yreeervatian end ilaintenanceof Property; Le•a,~•h~~lds; ('~-ndomir~ums; Planned l'nii U~~velopmente. Burrowershall keep
the f'roperty in K~wd repair and ~hall nnt c~~mmit K:~~t~• ~,r pr~rm~t im{r.~irm~•nt ~~r drteri~~r:U~~m uf the Fropert>• and shaii complp :iith the
pro~•isinns of any le:isr if this 11nrtK:-ge is ~:n a!~•as~•hnld- If thi~ \t~~rt~;:+~;i~ is ~m a unit ~n :~ ~•unduminium or a planned unit deve{opment,
Fiorrower shall perform a!I nf Rorn~wer'c ~,bli~;:itiuns und~•r th:• dtv l:ir.~t~~~n ~~r c~~~~f~n:inl~ ~ rr:~tin~;irr Ku~•e~rn~nK iheconduminium or planned
unit devetopment, the by-laK~s and reKulatiuns uf th~ ~•un~l~~rn~nium ur ~~I:inntd unit dr~•rlupmrnt, and constituent documents. If a
condominium or planned unit dr~~rl~~pmt•rzt ridF•r i, rx~•i•utt~cl h~• 1{~~rn~«~t•r :~nd n•runit~l t~~K~~ther w-ith this ~lortgaKe, thN covenanta and
~iqre~~mt•nts e:f tiuch reder ~h.~ll hr ~n~ ~ rrpnrali•d intu an~1 >h:~ I I:mu•nd :init ~upplrmrnt th~• ~•~~a ~•n:~ntv and aKre~•menGs uf th~s 11ortKaKe as if the
ritler ~a•err a part hf•rf•~rf.
7. Protection of i.ender'e Security. If Borr~~x•Pr fails G~ perform the rnvenanti+ nnd a~creements contained in thie Mortgage, or if any
aMion ar proceeding ie commenced which materially siffectt+ I,~ nder'y intereat in the Prc~pertc, including, but not limited to, eminent domain,
ineolvency, code enforcemPnt, or arrangements or pn~ceedin~;s in~~~~lvinR a bankrupt or decedent, then I.ender at t.ender'e option.upon
notice to Aorruwer may make auch appearancee, disburee such auma :~nd take auch actiun ae is neces.vary to protect l.ender's interest,
including, but not I~mited to, diebureement of reaaonHble atturne~'y feea and entry upun the I'roperty to make repaire. If l.ender required
mortgage ineurance ae a condition of'fiieking the lo:-n securcd by this 1lortR~ge, &muwrr shall pay the premiume required to maintain
eueh ineurance in effect until euch time as the reyuin•ment f~~r su~~h insurance terminatee in accordance with Rorrower'e and Lendeis
written agreement ot applicahle l.t~w. Borruwer Phatl par th~~ amuunt of all mortKaKe inaurance premiuma in Lhe manner provided under
paragTaph `L hereof. ~
Any amountn diabursed by i.ender persuant G~ this ~ar.~Kraph ~, with inlrreat thereon, shall h~ecome additional indebtedness of
Rorrower aecurcd by thie M~rrtKage. l'nlesA F3orruwe~r and I.e~nder aKree tn uther tern~s of payment, such amounte ehall be payable upon
notice ftom I.ender to Borrower reyuestinK payment thereof,'~nd ahall bear interest from thr date uf diAbureement at the rate payable fi~om
time to time on outatandinK principa) under the Note unlesa pa~•ment uf interert at such rate wuuld be contrary to applicable law, in which
event such amuunts ehall bear interest at the higheat rate {~ermiaeiMr under applicable law. Nothing contained in thie paraqraph 7, ehall
require I.ender to incur any expen»e or take any actinn hereunder. ~
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~o x 351 ~~~ 33
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