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Utrnwau Oovarr~Nrs. Borrawes and Lender oovenant and asree u foUows:
1. latl~t et le~clNl a¦i INereM. Borrovrer ahall P~~P~~Y Wy When due tbe priacipal of and inte?est on the
iadebtednat evideaoed by tl~e Note, Prepaymeet aad lata chanes u provided in the Note, aad the ptincipal of and interest
on my Future Advances'ecuc~ed by this Mcut~s~e,
~~i [o~ 'i'tus Mi 1ia~ca Slibject to applicabb law or to a written waiver by Lender. Bomower ahap pay
to Lender on the day monthly installments of principal and i~tercst are payabk unde~ the Note, until the Note is paid in tull.
s tum (herein "Fundt'~ eqwl to onatwelfth of the yeady taxes and asu:sments which may attain Qriority over this
Mortsaae. and ground renis on the pneperty, if any. plus onatwelfth of yeuly premium installmenca for hazard insuraace.
Pl~s o~-twd~th of Year~Y P~i~ i:utallmenta for mortgagei insurance. if aay, all as reawnably atimated initially and fran.
time to time by I.ender ot~ the basa of assessmenu a~d bills and rcuonabk estimates theceof.
The Ftinds shall be heW in an institution the depoaits or accounts of which are insured or guannteed by a Federal or
atate agency (including I.euder if Lendtr is such an iastitution). Lender shall apply the Funds to pay said taxa. assessmenta.
insnrance pnmiums and grouad rents. Lender may not charge for so holdi~g and applying the Funds. analyzing said avcount,
~or verityi~g and compiling said asse:sments and bills. urtkss Lender pays Borrower interest on the Funds and applicable law
permits Lende~ to make snch a charge. Borrower and Lsnder may agrce in writing at the time of exceution of this
Mortgage that interat on the Fuads shall be paid to Borrowe~. and unless stuh agrcement is made or applicable law
rcquirea wch interest to be paid. Lender ahall rwt be required to pay Bonower aoy intercst or earaings on the Funds. Lender
shatl give to Borrower, without charge, an annual accounting of the Funds showing crcdita and debits to the Funds and the
purpose for which each dcbit to the Funds was mad~. The Funds arc pledged as additional sccuriry for tlie sums secured
by this Mortga~e. .
If the amount of the Funds held by Lender. together with the future monthly installments of Funds payabk prior to
the due dates of taxes. assessmeats, i~uurance premiums and ground rents, shall exoxd the amount required to pay said taxes.
aasesaments, insurance prcmiums and ground rents as they fall due. such excess shall be, at Borrower's option, either _
pranpdy repaid to Bornow~er or creditod to Bornower on monthly instatlments of Funds. If the amount of the Funds
held by Lender shall not be sutHcieat W pay tues, assessm$nts. insurar?ce premiums and ground rents as they fall due.
Borrower a6a11 pay to Lender any amount nec~ssary to make up the deficiency within 30 days from the date notice is maikd
by Lender W Borrower req~nsting payment thereof. .
Upon paymeat in full of all sams Kcured by this Mortgage, Lender shall promptly refund to Borrower any Fun~
held by Lender. If under pangraph 18 henof the Prope~ty is sold or the Property is otherwise acquired by Lender. L.ender
shaU apply. no Iater than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by
Lender at the time of application ~ a credit against the aums secured. by this Mortgage.
3. Appikatlo~ ot p~a~e~b, Unless applicable law provides otherwise. all paymenis receivod by Lender under the
Note and paragrapl~s 1 and 2 hereof shall be applied by Le~der first in payment of amounts payable to Lender by Borrower
uader paragraph 2 hereof, t6ea to interest psyabk on the Not~. then to the principal of the NMe. and then to interest and
principal on any Future Advaoces. .
1• Crar~e~ Lk~s. Borrevrer shall pay all taxes, assessments and other charges, fines and impositions attributable to
I the Property which may attain a priority over this Mongage, and leasehold payments or grou~d rents, if any. in the manner
pmvided under paragraph 2 heroof or, if not paid in such manner, by Borrower making payment. when due, direcdy to the
WYa ~~f• sha1~ pranpdy furnish to Lender all notices of amouats due under this paragrsph. and in the event
Borrower shalt make paymeat diroctly. Borrower shal! promptly furnish to l,ender roceipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower ahal! agree in writing to the payment of the obligation securod by
such lien in a manner aocepta6le to Lender. or shall in good faith contest such lien by~ or defend enforcement of such lien in.
legal proceedings which operate to prevent the enfoc~cement of the lien ot forfeiture of the Property or any part th~rcof.
s• Hazard Im~raece. Borrower shall keep the improve~r~ents now existing or hereafter erected on the Property iosured
agai~t loss by fire, hazards included wit6in the term "extended coverage". and such other-hazards as Lender may require
! and in such amounts and for:uch periods as Lender may require; provided, that Lender shall not require that th~ amount of
; such rnverage exoad that amouat of coverage requirod to pay the sums secured by this Mortgage. ~
; "!be insuranoe carrier providing the insurance shall be chosen by Borrower :ubject to_ approval by Lender. provided,
' that such approval shall not be unrcasonably withheld. Ail premiums on insurance policies shall be paid in the manner
i provided under paragraph 2 hereof or, if not paid in such mauner, by Borrower making payment, when due, dirxtly to the ~
; insurance carrier. ~
~ All insurance policies and reoewals thereof shall be in form accxptable to Lender and shall include a standard mortgage
~ clause in favor of and in form acceptable to I.ender. I.ender shall have the rig6t to hold the policies and renewals thereof, .
and Bonower shall prompdy furni:6 to Lender aU renewal notices and all receipts of paid p~+emiums. In the event of loss,
€ Borrower shall give prompt nodce to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
F by Borrower.
E Unlest Lender and Borrower otherwise agree in writing, insurance procceds shall be appliod to ratoration or npair of
~ the Property damaged. provided such restoration or repair is economically feaaible and the security of this Mortgage is
not thereby impaired. tf such restoration or repair is not economically feasibk or if the security of this Mortgage would
~ be impaired, the insurance proceeds shal! be applied to the sums secured by this Mortgage.~ with the eaccesa. if any. paid
to Borrower. lf tbe Property is abandoned by Borrower, or if Borrower fails to respond to Lender witt~in 30 days from ihe
~ date notice is mailed by Lender to Bonower that the inaurance carrier offers to setde a daim for insurance benefits, I.ender
is aut6orizod to wllect and apply the insurance proce~s at Lender's option either to rrstoration or repair of the Property
or to the sums secured by this Mortgage.
~ Unless I.ender and Borrower otherwise agrce in writing, any such application of proceeds to principal shall not extend .
~ or postpone the due date of the monthly inuallments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, titk and interest of Bonower
~ in and to any insuranee policia and in and to the proceods t6ereof resulting from dam~ge to the Property prior to the sale
~ or acquisition shall pass to Lender to t6e eactent of the sums secured by this Mortgage immediately prior to such sak or
acquisition.
€ 6. P~eservadoo aad Mainteaance of Ptoperty; I,ease~oids; CondomLuu~ Planoed Uoit Devebpmeats. Borrower
~ shall koep the Property in ~ood repair and s6aU not commit waste or permit impairment or deterioration of the Property
: and shall comply with the provisions of any kase if tbis Mortgage is oa a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit devdopment, Borrower shall perform all of Borrower's obligationa under the declaration
or covenaats creating or governing the condominium or planned unit development, the by-laws and regulations of the
condomiaium or planned unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrowu aad recorded toguher with this Mortgage. the covenants and agrcements of such rider
shaU be incorporated into aad s6all amend and supplement the covenants and agreements of this Mortgage aa if the rider
wen a put heroof.
7. ProteNio~ d I.e¦ia's Secorit~. If Boaower fails to pedorm the covenanta and agreements coatained in this
¢ Mongage. or if any action or proceCding is comcnonoed which materially atiects Leader': interat in the Property.
incloding, but not limited to, eminent domain, insolrency, code enforcement, or arrangementa or proceedings involvina a
bankcupt or decedent, then L~nder aE LendeCs option, upon notice to Bonower~ may maice sucb appearances~ di;burse such
sums and take such action u a neoessary to protcet Lender's interat, inciuding, but not limited to. disbuneme~t of
reasonable attomey's foa and entry upon the Property to make repairs. If Lender roquired mortgsge insurancx as a
~ condition of makiag tbe loan secured by thia Mortgage. Borrower shall psy the premiums required W maintain - s~uh
iaswanoe in eHect until such time as the requiremeat for such inswance terminata in aooordance with Borrower's aad
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