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Borrower and I.ende~ rnvenant and s.~ree as folbvw:
1. Payment of Priacipal a~d Intere~t. Bormwer ahail promptty pay when due the principal of and intrrett on the indebtrdneaa
evidcnced by the Note, prepayment and latechazges a~ prvvided in the Note, and the principal of and intete~t on any Flture Advancce eecured
by thi~ Mortgage.
2. Ftinde tor Tue~ and Insurance. Subject to applicable law o~ to a written waiver by L,ender, Borrower ehall pay to Lender on the day
monthly instatlmtnLs of principal and intereat are payable under the Note, unti! the Note ia paid in ful1, a eum (herein "Fl~nda") equal to one
twelRh of the yearly taxea and aaseaements which mey attain priority over this Mortgage, and ground renta on the Property, if any, plua one
twelfth of ycarly premium installments for hazard insutance, plua onetwelRh of yearly premium inetalimenis for mortgage inaurance, if any,
all as reasonably estimated initially and from time to time by I.ender on the basis of eeaesamenta and bitla and reaaonable eatimates thereof.
TAe ~nda ahall be held in an institution the deposita or accounte of which are inaured or guaranteed by a Federal or State agency
(including I,ender if Lender ia auch an institulion). Lender ahall apply the Funds to pay eaid tazea, aseesamenta, ineurance premiums and
ground reata. L.cnder may not charge for so holding and applying the fi~nds, analyzing said account, or verifying and compiling eaid
asaeeamente and bilb, unless Lender pays Borrower intereat on the Funds and applicable taw permita Lender to make euch a charge. Borrower
and I.ender may agree in writing at the time of txecution of this Mortgage that interest on the Funds ehall be paid to Borrower, and unless
auch agreement is made or applicable law requirea such intereet to be paid, Lender ehall not be requited to pay Borrower any intereat or
earnings on the FLnds. Lender shall give to Bortower, without charge, an annual accounting of the Funds ahowing credite and debita to the
Funda and the purpose for which each debit to the Funde wae made. The Funda are picdged as additionat aecurity for the suma eecurNd by thu
Martgage,
If the amount of the ~nds held by L.ender, together with the futum monthly inetallments of Funda payable prior to the due datea of ta~tes,
aeeeaamenta, inaurance premiums and ground rents, ehall e:cxd the amount required to pay eaid taxee, aasessmenta, insurance premiums
and around rente as they fall due, euch exceas ehal! be, at Borrower's aption, either prompdy repaid to Borrower or credited to Borrower on
monthly inatal~~nents of Funds. If the a~ount of the Funds held by Lender ahall not be sufficient to pay taxes, asaeaements, ineurance
premiuma and ground tente aa they fall due, Boirrower ahall pay to I.ender any a;nount neressary to make up the deficiency within 30 days
from the date notice ia mailed by Lendet to Bortower requeating payment thereof.
Upon paymeat in fuil of ait sums secured by this Martgage, Lender shall promptly refund to Bonower any funds held by Lender. If under
paragraph 18 hereof the Properiy is sold or the Property is otherwise acquircd by Lender, Lender shall appiy, no later than immediately prior
to the aale af the PropeKy or ite acquisition by Lender, any Funds held by Lender at the time of application aa a credit against the sums secured
by thie Mortgage.
3. Appticatioa of Payments. Unless applicable law provides otherwise, aA payinents received by L.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by I.ender firat in payment of amounta payabte to Lender by Borrower under paragraph 2 hereof,
then to intereet payabie on the Note, then to the principal of the Note, and then to inLerest and principal on any Future Advancea.
4. Chargea; Liene. Borrower shall pay all taxes, assessments and other rharges, fines and impositions attribatable to the Property which
, may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor,
if not paid in such manner, by Borrower making payment, when due, directiy to Ihe payee thereot. Borrower shall promptly furnieh to Lender
~ all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to
Lender receipts evidencing such payments. Borrower shali promptly discharge any lien which has priority over this Mortgage; provided, ihat
~ Borrower shall not be required to discharge any such lien so long as E3orrower shaU agree in writing to the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shal! in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings
which operate tu prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
5. Hazaxd tnaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againat losa by
fire, hazards included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and for such
periods as Lender may require; provided, that Lender shail not require that the amount of auch coverage exceed that amount of coverage
required to pay the sums secured by this Mortgage.
7'he insurance carrier providing the insurance shaU tx chusen by 13orruw~er subject to appru~~al by I.ender: pro~~ided, that such approval '
ahall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manne~ provided under paragraph 2 6ereof or, if
not paid in such manner, by Bonower ma{:inR payment, w•hen due, directty to the insurance carrier.
Att insurance poticies and renewals thereof sha!! be in form accepfable to I.ender and shall include a standard mortgaqe dause 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
i.ender all renewal notices and all receipts of paid premiums. In the evet~t of loss, Borruwer shall give prompt notice to the insurance carrier
and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
damaged, provided such restoration ur repair is economically feasib?e and the security of this Mortgage is not thereby impaired. If such
reatoration or mpair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied
to the auma secured by this Mortgage, wzth the exress, if any, paid to Horrower. If the Property is abandoned by Borrower. or if Borrower faile to
respond to L,ender within 3d days from the date notice is mailed by Lender to Borrower that the insurance carrier offere to settle a claim for
insurance benefits, Lender is authorized to collect and app~y the insurance proceeds at Lender's option either to restoration or repair of the
Propetty or the sums secured by this Mortgage.
Unlesa Lender and Borrower otherwise agree in writing, any such applica tion otproceeds to principal shall not extend or poetpone the due
date of the monthly installments referred to in paraQraphs 1 and 2 hereof or change the pmount of auch installments_ If under paragraph 18
hereof the Properiy is acquired by Lettder, all right, title and inlerest of Borrower in and to any insurance policiea and in and to the proceeds
thereof resulting from damage to Property prior to the sate or acqu~sition shait pass ta Lender to the extent of the auma secured by this
biortgage immediately prior to such sale or acquisition.
6. Preeervation and Maintenanceof Property; Leaseholds; Condominume; Planned Unit Developmente. Borrowerahall keep
the Property in good repair and shall not commit w•aste or permit impairment ur deterioration of the Property and ahall comply with the
pro~rieiona of any lease if this Mortgage ia on a ieasehold. If this l4fortgage is or. a unit in a coredominium or a planned unit development,
Borrower ehall perform all of Bonower's obfigations under the declaration or covenants creatingor governing the condominium or planned
unit development, the bylaws and regulations of the condominium or planned unit development, and conetituent documenta. If a
condominium or planned unit development rider is executed by Borrower and recoru'ed together with this Mortgage, the oovenante and
agreements of such rider shatt be incoryorated into and sha11 amend and supplement thecovenants and agreements of thia Mortgage as if the
rider were a part hereof.
7. Protection of Lender's $ecurity. If Borrower faila to perform the covenante and agreementa rnntained in thia Mortgage, or if any
action or proceading is commenced whizh materialiy affecte Lender'e intereat in the Property, including, but not limited to, eminent domain,
ineolvency, code enforcement, or ana.ngemente or proceedinge involving a bsnkrupt or decedent, then Lender at Lender'e option,upon
notice W Borrower may ma~e euch appearances, disburee auch aunie and take such action aa ie neceesary to protect I.ender's interest,
including, but not limited to, diebureement of reasonable attorney'e feee and entry upon the Property to make repairs. If Lender required
mortgage ineurance as a condition of making th~ loan secured by this Mortgage, Borrower ehall pay the premiume reqnired to maintain
euch inaurance in effect until such time as the requirement for auch insurance terminatea in accordance with Borrowei e and Lende~s
written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiuma ln the manner provided under
paregraph 2 hereaf.
Any amounte dieburaed by I.ender persuant to thie paragraph 7, with intereet Lhereon, ehalf become sdditional indebtednesa of
Borrower secured by this Mortgage. Unlees Borrower and Lender agree to other terma of payment, auch amounte ehal) be payable upon
notice from Lender to Borrower requesting payment thereof, and ehall bear intereat from the date of dir~bureement at the rate payable from
time to time~on outetanding principal under the Note unieae payment of intereet at such rate would be contrary to applicabie iaw, in which
event euch amounta ahall bear intereet at the highest rate permiseihfe under applicabie ~aw. Nothing contained in thie paragsaph 7, shall
require I.ender to incut any e:penae or take any action hereunder.
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