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Ut+t*oul~t CoveN~rtTS. Bomower and Lender cove~ant and agree as [ollows: .
1. ~eest o~ hiscl~al ~oi letereN. Borrower shail promptly pay when due the principal ot and interest on the
indebtodnest evidenced by tht Note, prepayment and late chargts as provided in the Note, and the principal of and intercst
on aay Futuro Advanca secured by this Mortg~e.
2. lhroi tor Tues ~nd lerorasce. Subject to appli:able law or to a written waive~ by Lender, Bocrower sha11 pay
ta Lender on the day monthly installments of principal and intercst are payable under the Note, until the Note is paid in [ull.
a tum (hercin "Fundt") equal to one-twtlfth of the yearly taxes and a:sessments whicfi may attain priority over this
Mort~ate, and ground rcnta on the Property, if any, pli~s one-twelfth of ye3rly prcmium installments (or hazard insurance.
plus one-twelfth of ytarly premium installments (or mortgage insurance, if any, all as reuonably estimated initially and from
time to time by Ltnder on the basis of assessments and bills and reasonable es~imatts thereof.
The Funds shall be held in an institution the deposits or accounts~bt which are insured or guaranteed 5y a Ftderal or
state agtncy (includir.g Lender if Lender is such an instiwtion) I ender shall ~pply the Funds to pay said taxa, assessments,
insuranee premiums and grou~d rents. l.ender mav nut charge for ~o holding and applying the FunJs, analyzing said account,
or verifying and compiling said asses~ments and hills, ur.less Lender pa}s BorroW~er interest un the Funds and applicable law
permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
requira such intetat to be paid, Lender shall not be requireJ ta pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accuunting uf the Funds showing credits and debits to the Funds and the
purpose for which each debit to tt~e Funds was made. The Funds are pledged as additional security for tht sums secured
by this Mortgage.
If the amount of the Funds hdd by Lender, together with the tuwre monthly installments of Funds payable prio~ to
the due dates of tazes, assessments, insurance premiums and ground rents, shall e!cceed tht amount required to pay said taxa,
assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
prompdy repaid to Borrower or crediied to Borrower on monthly ~nstallmems of Funds. If the amount of the Funds
held by Lender shall not be sufficient to pay taxes, assessments. in~ur:,ncc premiums and groi~nd rents as ~hey fall due,
Borrower shall pay to Lender any amount necessary to make up the u;~~_iency with~n 30 days from ~he date notice is mailed
by Lender to Borrower requesting payment thereof.
Upon payment in full of ail sums secured by this Mortgage. l.cndrr shall promptly refund to Borrower any Funds
held by Lender. lf under paragraph 18 hereof ~he Propert~• ic sold or the Property ~s otherwise acquired by Lender, Lender
shall apply, no later than immediately prior to the ~ale of the Propeny or its acyuisition b}• I.ender, any Funds held by
L.ender at the time of application as a credit aga~nst the sums secured by this Mortgagc.
3. Apptication of Psymeats. Unless applicable law pru:i.lcs othrrHise. all payments rereivcd b}• Lender under the
Note and paragraphs 1 and 2 hereof shall be applicJ by Lender fint ~n payment o( amounts payabie to Lcn~er by Borrower
under paragraph 2 hereof, then to interest papablc on the Nut~. then tu thc princips! of the Nute, and then to interest and
principal on an_y Future Advances.
4. Chs~rges; Liens. BorroNer ~hall pa~ all ta~c~. a.us~nernls and othcr charge~. fine. and imposilions attributable to
the Properly which may attain a pnority over this ~lortgage. and leaseh~~ld p~}'mcnts ~~r ground rents, if any, io the manner
provided under paragraph 2 hereof or_ ~f not paid ~n such manner, b~ Borrowcr mal~ing pa}ment, Khen due, direcNy to the
payte thereof. Borrower shatl prompily furn~sh to Len~er all not~ces of amounts Jue under this paragraph, and in the event
Borrower shall make payment dirertl~. Borrower ~hall prumptl} lurnish to L~nder rec~ipts c~idencing such payments.
Borrower shall promptly Jischarge any lien ~hi~h hu ~+nor~t~ ~~~cr ?hi, ~turtgag~: pruviJed. that Borrower shall not be
required to discharge any such iien ~o long as Borro~~r shall .~gre~ in wnting to the payment o( the obligatiun secured by i
such lien in a manner acceptable to Lender, or ,hall in gix~d faith cuntr.t ~u~h lien hy, or ~tefend enforcement of such lien in, i
legal proc.edings which operate to pre.ent the enf~~r~ement ol thr fien or fur(eiturr ~~f the Property or an}' part thertof. ,
S. Hazard Insurance. Borrower shall I.cep the impro~rmcnh no~ c~i~teng ~~r hereaftcr crccted on the Property insured
agairrst loss by fire, hazards included within the tern~ '~~lrndc.l c~n~r~Ke". an~ such other hazards a~ Lender may require
and in such amounts and for such periodt at ~ ender ma}' reyuirc; pro~ideJ. that LenJer chall not reyuire that ~he amount of
such coverage exce~:i lhai amuunt uf co~erage r~yuired t~~ p~~ the ~um~ .e~ured h}~ th~t ~tortgage.
The insurance carrier providing the insur.,rrce chall be ~hosen by Borro~~r sub~ect to approval by Lender; provided,
that such approval shall not be unreasonahly w•ithheld. .All pr~mium. on insurance poli.~es shall be paid in the manner
; provided under paragraph 2 hereof or, if nut paid in such mann~r, b} Brrrower making payment, when du~, direcdy to the
; insurance carrier.
; All insurance policies and rene~ais there~~i ~hall hc in fnrm ac~eptable to Len~ler ano shall ~nclude a ~tandard morigage
~ clause in favor of and ,n form ac~eptahle tu L~zder. LrrJ~r .h.,ll h.~ti~ !he right to hold the policies and rene~ala ihereof,
~ and Borrower shall promptly furnish ro!_endcr alt rencw.il nutice~ :in~l all receipts o( paid prem~um~. ln the event of loss,
Borrower shall g~~e prompt nouce to the ui~ur;~n:~ "~rncr and LrnJer. I en~l~r me} make pro~~f of luss if nut made-prompdy
by Borrower.
Unkss Lender and Borrower othcrw~,c agree in untin¢, inwranre pr~kc~d~ shall be applied to restoration or repair of
the Property damageJ, provi~led su~h re~toratiun ur rcpa~r ~s ccvnami~.ill} fcasible and the secur~ty of this Mortgage is
~ not Ihereby impa~red. 1( w~h re,toratmn or repair is ~~~t «~~numicali~ f.etiihle ix ~i ~ne cecurity uf this ~fortgage would
tx impaired, the insurance pru~ee~t shall be :~pplieJ tu th~, Sumt .~curcJ h~ th~s ~tortgage. w~th the e?ccess, if any, paid
to Borrower. (f the Propert~ is ah;,nJ~~ned b~ Bormwer. or if Borrower tail. t~~ re~~nd to 1 ender within 30 days from the
date notice is ma~led b~ l.cnder to Borr.~wer th;~t the insur~n~e c.~!n~r rtTen t~> >ettle claim for insurance benefits, Lender
is authorizeJ to c~~llect :~nd apply the ~murance proc~eJ~ at Lcn~icr~~ c~pti~~n eithcr to resloraiion or repair of the Property
or ro the sum~ ,ccured b~ ~his Mortgage.
llnless I_endcr ~nd BorrnWer othcrwi.c agree ~n ~rittng. ;~nt ~u,h appii~.~non pr~~,ceds ~o pnr.cipal .hall not ertend
or postpone the duc ~ate of thc mi~nthl~~ in.t:,limcntc i~fcrrrd t~ in per.,~raph. !.~n~ 2 here~~f or changc the amount of
~ such installment~. It iinder paragraph 1b hereof the YmEx:rt} aryu~rc~ h~ 1.~nJcr. ali nght, title and inte:est of Borrower
~ in and to an} insur:~mc poli~ies and in an~i cu thr ~r~~cee~ft there~~t rc~ulting frrm ilam,,ge to the Property prior to the sale
~ or acyuisition Sh:~ll pass to Lender to the extent u( the ~ums securcd hy thu tit~~rtgege ~mmediatel~• prior to ~uch saie or
acquisition.
6. Presenatiun ~nd ~1~intenaoce of Propert~; Lcatichulds; Condominiums; Planned Unit [kvelopments. Borrower
shall keep thc Property in gcx•d r~pair and ,hail not c~mmiz ~~aste or perm,t imp.~irment or deterioration of the Property
f and shaJl comply with the provisions uf any~ lease i( th~, ~1~~rtgage ~s c+n a ~easehold. If this ~lortgage is on a unit in a
condominium or a planncd un~t de~elopmcnt. BorroHer ~h311 perf~rm atl of Borr.~wer's obl~gations undcr the dedaration
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or covenants creating or guverning the condomimum c~r planned uni! developmci~t, the by-laws and regulations o[ the
~ ec?ndominium or Planned unit developmem, and constituenl ~cxumen~~ lf a con~fominium or planned unit clevelopment
~ rickr is executed by Borrower and recorded togeiher w,th th~s Mortgage, the covenants and agreements of sueh rider
~ shall be incorporated into and shall amend and suppfcment the co~enants and agreeme~ts of this Mortgage as if the ridtr
s were a part hereof.
~ 7. Protection of Lender's Security~. 1f Borrower fails to pcrform the covenants and agreements contained in this
~ ~iortgage, or if any action or proceeding is commenced which materially aftects Lender's interat in the Property,
~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pr.xeedings involving a
~ bankrupt or deccdent. then l.en~ier at Lender's option, upon notice to Borrower, ma} make such appearances, disburse sueh
~ sums and take such action as is neceuary to protect Lender's interest. incluJing. but not limited to, d~sburument of
reasonable attomey's (ecs and entry upon the Property tn make rcpa~r~. if Lender required mortgage insurance as a
condition ef making the loan secured b} th~s ~lortga¢e. B~rmwer shall pa}~ the premiums required to maintain such _
insurance 1n efiect until such time as tiie reyuirement for stuh ~nsurance terminates in accordance with Borrower's and
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