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Un~poRt.~ CovFtv.~Hrs. &~rrov?•er ancl I.enJcr c~~~~enant and agrrt as fall~~wc
1, hymesl oi r~iaclpal aod laterest. Horrrwrr .hall ~?rom~tl~ pay when Jue the pri~ripal and mtcrcst on the
~:~debtedneu evidenced by the Note, prepaymco~ and Iaic char~;~~ r~ rrt~vi~kd ~n ~he No~e, and the principal of and ~ntercs~ .
on any Futurc"Advances secured by this Martgage.
2. F'~~dt tor Tua aad lawnuce. Subject to appli.:,hlc I~w .•r to a N•riUen warve~ by Lender, Borrower shall pay
to Lender o~ ~he day monthly installmen~s ot pnn.ip~l anJ uurrr.t .~rc ~~y~blr under Ihe Note, until the Note is paid in full.
a sum (herein "FunJs"? equal to ont-twcl(th the >•rarl~ ta~~• anJ ~c.cssmcn~c which ma~• attain p~ioriry over ~h~s
Mortgage, and ground rrnts an the Pm~rty. ~f any. plui ~~nc-twcl(Ih oi yearl~~ premwm mstallments for hazard insurance.
plus one-tweltth of ytarly premium installmen~s t~~r mi~~tgage insurancc. an~~, all ac reasonably estimated initially a~J from
time to time by I.ender on the basi. of a.se~.mcn~s and h~lls a~d rea~onable estimales thereof.
'I?~e Funds shall be held in an ~nst~t~uion ~he de{xxu. or accuunts of which are insured or Etuaranteed by a Federal or
state agency (induding Lender if Lcndcr iti ~uch an instiwtionl. Lender ~hall apply Ihe Funds to {~ay said taxes, asseuments,
insurance premiums and ground rents 1 ender ma} nnt ~harge tor ~c. holding and applying the Fiindc. analyzing zaid account.
or verifying and compiling said asses.ments and bills, unless Lender pays Borrow•er interest on the Funds and applicable law
permits Lender to make such a rharge. Bc.rrower and Lender may agree in wnting at the time ot execution of this
Mortgagt that interest on the Funds sh~ll tx p:iiJ to Borrower, and unless such agreement is made or applicable law
requira such interest to he paid, l.ender ~hall nM be reyuired to pay Borrower an~~ inte~est or earnings on the Funds. Lender
shall give to Borrower, withaut rharge. an :~nnu~l accounting of the FunJs showing credits and debits to the Funds and the
purpose for which each debit to Ihe F=unds w;~. madc. The Funds aft pledged as additional security for the sums secured
by this Mortgage.
If the amount of the Funds held by I.cnder, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall excerd the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall due, such ezcess shall be, at Borrower`s option, either
protnptly ropaid to Barrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sufficieot to pay taxes, assessments, insura~ce premiums and ground rents as they fall due,
Borrower shall pay to Lender any amount necessar}~ to make up the deficiency within 30 day~s from the date notice is mailed
by Leader to Borrower requesting paymcnt thereof.
Upon payment in full of all sums secured by this Mortgage, l.ender shall Fromptly refund to Borrower any Funds
held by Lender. If under paragraph 1R hereoi the Property i, sold or thc Property is otherwise acquired by t.endcr, I_ender
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
L.ender at the time ot application .~s a credrt against the sums secured by this Mortgage.
3. Applicatian of Payments. Unless applicable law provides otherw~ise, all payments received by Lender under the
hote and paragraphs 1 and 2 he~e:~f shall be applied by Lender first in pa~•ment ot amo~mts payable to Lender by Borrower
under paragraph 2 hereof, then to intcrest payahle on the Note, then t~ thc principal of the Note, and then to interest and
ptincipal on any Future Advancrs.
4. Charges; Liens. Borrower shall pay all taxes. assessments and othcr charges. fi~es anJ impositions attributable to
j the Propert}~ which may attaii: a priority over this Mortgage, and leaseho{d payments or ground rents, if any, in the manner
provided under paragraph 2 hercof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payee lhereoE. Borrower shali promptly furnish to Lender all notices of amounts due under this paragraph, aad in the event
Borro.?e. shall make payment directly, Borrower shall promptly furnish to Lender receipts e~idencing such payments.
Bonower shall promptly disrharge any Gen which has priority over this I?lortgage; provided, that Borrower shall not be
required t~~ discharge any su;h lirn w lung as Borrower shall agree in w•riting ta the payment of the obligation secured by
such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in.
i legal proccedings which oper:~te to pre~ent the enforcement of the iien or forfeiture of the Property or any part thereof.
5. Hazard Insurnnce. Rorrow•er shall keep the improvements now existing or hereafter erected on the Property insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may require
I anc' in such amounts and (rr such peri~xis as Lender may require; provideJ. that Lender shall.not requere that the amount of
! ~~~ch c.~verage exceed that ~mou~t of coverage reqwred to pay the sums secured ~by this Mortgage_
"Il~e in~urance carrier ~ re~viding the insurance shall be chosen by Borrower subject to approval by Lender. provided,
~ ttat sucl: approval shall n~~t be unreasdnahly withheld. All premiums on insurance policies shall be paid in the manner
prov~,~eu i.ndrr paragraph 2 hereui or, ~f not paid in such manner, by Borrower making payment, when due, directly to the
insurance car:ier.
; All insurance Fx~luie~ and renrwals thereof shall be in form acceptable ro Lende~ and shall include a standard mortgage
~ clause m fav~r of and in f.~rm acceptable ~o Lender. Lender shall have the right to hoid the policies and renewals thereof.
; and Borrower shall promptl}~ Curnssh to Lender alf renewal notices and all receipts of paid premiums. In the event of loss.
Bvrrower shafl give prompt rn~~~ce tu the ~nsurance carrier and Lender. Lender~may make proof of loss if not made prompdy
by Borrower.
~ Unless i_ender sn.i Borruwer othcrwi,~: a~ree in w•riting, insurance proceeds shall be applied to restoration or repair of
~ the Property ~amaged, pro:ul:el .urh re~torattun or repair is economically feasible and the securiry of this Mortgage is
~ not thereby impaired. If :u~h retituration ur rcpair is not economically feasiMe or if the security of this Mortgage would
~ be impaired. :he insurance p«ti~~~i: shall be applied to the sums secu~ed by this Mortgage, with the excess, if any, paid
i t~ Borrower. If the Proper~: i, aha~doncd by Borrower, or if Borrower fails to respond to l.ender within 30 days from the
i da~e notice is mailed by Len.ler tu Borro~ver that the insurance carrier otTera to setde a claim for insuranee benefits, Lender
~s authorized to collect and .ip~it~ the insurance proceeds at Lender's option either to restoration or repair of 1he Propert~~
~ or to the sums secured by this ~lorigage.
Un(ess Lender and B~~rruwer othenvice agree in writing, any such application of proceeds to principal shall not extend
or postpone the due date of the m,mthl} installmcnt~ referred to in paragraphs 1 and 2 hereof or change the amount of
such installmeats. If under paragraph I8 hereof the Property is acyuired b}~ L.ender, all right, title and interest of Borrower
in and to any ~nsuran.e policies an.i in and to the pra:eeds thereof resulting from damage to the Property prior to th~ sale
~ or acquiaition shall pass to Lei~der to the extent of the sums secureJ by this Mortgage immediately prior to such sale or
acquisition.
~ 6. Presenation and 3Saiutenance of Properiy; Leaseholds; Condominiums; Planned t3nit Dtvebpments. Borrowcr
~ shall keep the Propert~~ in 3uo:i rcpair an~ shail not comro~~ W'aste or permit impairment or deterioration of the Properry
and shall compl~~ with the pro~•isions of any lease if this Mortgage is on a Icasehold. If this Mortgage is on a unit in a
condominium or a planned unit de~•elopment, Borrow~er shall perform all oi Borrower's obligations under the declaration
or covenants creating or g~~vern~nb the condominium or planned unit development, the by-laws and regulations of the
condominium or plan~ed unit devrlopment, and constituent doc;uments. If a condominium or planned unit de~•elopment
rider is eaecuted by Borrower and rec~rded together with this Mortgage. Ihe covenants and agreements of such rider
shall be incorporated into and shall :unend and supplement the covenants and agreements of this Mortgage as if the riJer
were a part hereof.
7. Protectioo of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
_ Mortgage, or if any act~on or proceeding ;s commenced which materially afiects Lender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such
sums and take n~ch action as is necetsary to protect Ixnder's mterest, incluJing. but not limited to, disbursement of
" reasonable attorney's fees and entry upc~n the Properly to make rcpairs. lf Lender requircd mortgage insurance as a
condition of making thc loan secured by this Mortgagc, Borrc~~cr shall pay thc prcmiums requireJ to msintain such
z iasurance io eiiect until such time as the reyuirement for such_ msurancc terminates in accordanc~ with Borrower's and
' ~tl~!K ~~5 P!~E ~705
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