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Borrower u~d Lender coven~nt and a~ a~ folbwr.
1. Ps,~rmeat oi Principal tad Interes~. Eiorrower shaU promptly pay when due the principal of and intereat on the indebeedne~a
evidenoed by the Notc, pt~epayment and late chu~e~ aa provided in the Note, ar~d the principal of and interest on any FLtun Advances secured
by thia Mort~a~e.
2 Ftinda for T~e~ at~d Ia~uraace. Subject to applicable (ew o~ to a wrilte~ waiver by Ler?der. Borrower shall pay to I.ender on the day
monthly instal4neats of principal and intertst an pa~yable under the Note. until the Note is paid in full. a aum (hereia "Fu~ds") equal to one
twelfth of the yearly taxes and assesaments which may attain priority over thia Mortgage, and ground rents on the :'i •~+nrty, if any, plus one
twelRh of yearly premium installments for hasard'uuurance. plus onetwelfth of yearly premium ir?stallmenta for mortgage inaurance, if any;
al! as reasonably estimated initially and firom time to time by Lender on the baeis of asseeamenta and billa and reaaonable eatimates ehereot.
The ~nda shall be heW in an institutioa the depoaiLs or aocounta of which are insured or guaranteed by a Federal or State agency
(including Lende: if l.ender is such an institution). Lender shall apply the Flu~ds to pay said ta:es, assesements. inaurance premiums and
ground nt~ts. Lender may not char~e f~ ~o holding and applying the ~nds, analyaing esid acconnt, or verifying and compiling said
assesament8 and bills, u~less Lender pays Borrower interest on the Fltnda and applicable law permits Lender lo make such a charge. Bocrower
and Lender may agree in writing at the time of e:ecution of this Mortgage that intereet on the Funda shall be paid to Borrower, and unless
such agreement is made or applicable law requires such intereat to be paid, Lender shall not be required to pay Borrower any interest or
eamiags on the I~lu~ds. Lender shall give to Borrower, without charge, an annual aecounting of the Funds ahovring credite and debite to the ~
Funds and the purpose for which each debit to the Flinds wa8 made. The Funds are pledged ae additional eecurity for the auma eecured by this
Mortgage.
If the amount of the flinds held by Lender, together with the future monthly installmenta of Funds payable prior to the due dates of taxes,
sesesaments, insurance premiums and ground renta, ahall e:czed the amount required to pay eaid taxea. assessmenta, inaurance premiuma
and ground reats aa they fall due. snch e:ceea shall be, at Borrower e option, either pmmptly repaid to Borrower or credited to Borrower on
monthly inatallments of fi~nds. If the amount of the Funde held by Le~der ahall not be aufficient to pay ta:es, assessmenta, inaurance
premiums and ground renta as they-fall due, Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 days
firom the date notice is mailed by Lender to Borrower requesting payment thereof.
Upon paytnent in full of all suma eecured by this Mortgage, Lender aha11 prompdy refund to Borrower any funds held by Lender. If under
paragraph 18 hen.wf the Property ia sold or the Property is otherwise acquired by L.ender, Lender shall apply, no later than immediately prior
to the eale af the Property or ita aoquisition by Lender, any Funds held by Lender at the time of application se a credit against the sums secured
by this Mortgage.
3. Application of Payments. Unlesa applicable law provides otherwise, all payments received by l.ender under the Note and
paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereot,
then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances.
4. Chargea: Liena. Borrower shall pay, all taxes, assessments and other charges, fines and impositions attributable to the Property whieh
may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or.
if not ~sid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender {
all notices otamounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shal! promptly furnish to
I,ender receipts evidencing such payments. Borrower shall promptly dis:harge any lien which has priority over thislllortgage; provided, that ~
Borrower shall not be required to discharge any such lien so long as Iiorrower shall agree in writing to the payment of the obiigation secured by
such lien in a manner acceptable to L.ender, or shall in good taith cvntest such lien by, or defend enforcement of such lien in, legal proceedinge
w~hich operate W prevent the enforcement of the lien or forfeiture of the Property or any part therec~f.
5. Hazard Insurance. Borrower shall keep the impmvements now exiating or hereafter erected on the Property insured against loss by .
fire, hazards included within the term "extended coverage." and such other hazards as Lender may require and in such amounts and for such ~
perioda as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage
required to pay lhe sums secured by this MortQage:
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The insurance carrier providing the insurance sha~l) t?e chosen by Rorrow~er subject tn appro~•al bq lxnder, provided, that such approval ~s
, shall not be unreasonably withheld. All premiums on insurance pulicic~ shall be paid in the manner provided under paragraph 'l hereof or, if i
not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. ~
All insurance policies and rehewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage clause in favor of •
' and in form acceptable to Lender. I.ender shail have the ri~ht tn hold the policies and renewals thereof, and Borrower shail promptly furnish to
~ i.ender all renewal notices and all receipts of paid premiums_ In the event of loss, Borruwer shall gi~•e prompt notice to the insurance carrier
~ and I.ender. Lender mey~rnake•proof of las~ 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 auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such
~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, theinsuranceproceeds shall be applied
to the sums secured by this Mortgage, with the excess, if any, paid to f3orrower. lf the Property is abandoned by Borrower, or if.Borrower faila to
~ re~pond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for
inaurance benefits, Lender is authorized to collect and apply the ir.surance proceeds at I.ender's option either to restoration or repair of the
Property or the sums secured by this Mortgage.
Unleas Lender and Borrower otherwise agr+ee in writing, any auch application of proceeds to principal shall not extend or postpone the due
date of the monthly installments refemd to in paragraphs 1 and 2 l~ereof or change the amount of such installments. If under paragraph 18
hereof the Property ia acquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the Proceeda
thereof reauldng from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the aums aecured by this ~
Mortgage immediately prior to such sale or acquisition.
6. Preaervation and Meintenance of Property: Leaseholda; Condominums; Planned Unit Deveiopmente. Borrower ahali keep
the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the
provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development,
Bonower ahall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned
unit development, the by-laws and regulations of the condominium or planned unit development, and constituent-documenta. If e
condominium or plaiined unit developrrient rider is executed by Borrower ar.d recorded together with this Mortgage, the oovenants and
agreementx of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the
~ rider were a part hereof.
7. Protection of Lender'e 3eturity. If Borrower faile to perform the covenante and agreemente rnntained in thie Mortgege, or if any
~ action or proceeding ie commenced which materially affecta Lender's intereat in the Property, including, but not limited to, eminent domain,
~ ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option,upon
~ notice to Borrower may make ench appearances, diaburee euch aume and take such action ae is neoeseary to protect Lender'a interest,
~ including, but not l'united to, diebureement of reaeonable attorney'e fees and entry upon the Property to make repaira. If Lender required
~ mortgage ineurance as a condition of malcing the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain
€ such insurance in effect until euch time ae the requirement for euch ineurance terminatee in accordance with Borrower e and Lender'e
~ pay the amount of all mortgage ineurance premiums in the manner rovided und~
[ written agreement or applicable Law. Borrawer ehaU P
paragraph 2 hereof.
My amounte diebureed by Lender perauant to thie paragraph 7, with intereat thereon, ehall become additional indebtednees of
Borrower eecured by this Mortgage_ Unlese Borrower and L.ender agree to other terme of payment, such amounte shali be payable upon
nodce from Lender to Borrower requeeting peyment thereof, and ahall beas intenst from the date of diebureement at the rate payable from
time to time on outatanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which
event auch amounte ehaU bear interest at the highest rate permiaeible under applicable law. Nothing rnntained in this peragraph shall
~ require Lender to incur any eupenee or take any action hereunder.
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