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authorizations of all governmental or regulatory authorities or ~
of any persons, corporations, partnerships or other entities, `
used or intended to be used in connection with said real estate;
all of which, including all proceeds and products thereof, and
all replacements, additions and accessions therefor or thereto,
shall be deemed to be and remain a part of the real estate
encumbered by this Instrument. All of the foregoing, together
with said real estate, are hereinafter referred ~o as the
"Project."
Borrower covenants that Borrower is lawfully seized of
the estate hereby conveyed and has the right to mortgage, grant,
convey and assign the Project, that the Project is unencumbered,
and that Horrower will warrant and defend generally the title to
the Project against all claims and demands, whatsoever. ;
Borrower and Lender covenant and agree as follows:
1. PAYMENT OF PRINCIPAL AND INTEREST. Borrower shall
promptly pay when due the principal of and interest on the
indebtedness evidenced by the Note, any prepayment premiums and
lats charges provided in the Note, and all other sums secured by
this Instrument.
2. FUNDS FOR TAXES, INSURANCE AND OTHER CHARGES. If ,
requested in writing, Borrower shall pay to Lender on the day
monthly installments of principal or interest are payable under
the Note (or on another day desiqnated in writing by Lender), ~
until the Note is paid in full, a sum (herein "Funds") equal to
one-twelfth of (a) the yearly water and sewer rates and taaes
and assessments which may be levied on the Project, (b) the
yearly ground rents, if any, (c) the yearly premium installments
for fire and other hazard insurance, rent loss insurance and
such other insurance covering the Project as L~nder may require
pursuant to paragraph 5 hereof, and (dj the yearly premium
installments for mortgage insurance, if any, all as reasonably
estimated initially and from time to time by Lender on the basis
of assessments and bills and reasonable estimates thereof. Any
waiver by Lender of a requirement that Borrower pay such Funds
may be revoked by Lender, in Lender's sole discretion, at any
time upon notice in writing to Horrower. Lender may require
Borrower to pay to Lender, in advance, such other Funds for
other tazes, charges, premiums, assessments and impositions in
connection with Borrower or the Project which Lender shall
reasonably deem necessary to protect Lender's Interests (herein
"Other Impositions"). Unless otherwise provided by applicable
~ law, Lender, at Lender's option, may require Funds for Other
' Impositions to be paid by Borrower in a lump sum or in periodic
~ installments.
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€ The Funds shall be held in an institution(s), the
~ deposits or accounts of which are insured or guaranteed by a
~ Federal or state agency. Lender shall apply the Funds to pay
~ said rates, rents, taaes, assessments, insurance premiums and
; Other Impositions so long as Horrower is not in breach of any
~ covenant or agreement of Borrower ~in this Instrument. Lender
~ shall make no charge for so holding and applying the Funds,
~ analyzing said account or for verifying and compilir.g said
~ assessments and bills, unless Lender pays Borrower interest,
~ earnings or profits on the Funds and applicable law permits
Lender to make such a charge. Borrower and Lender may agree in
writing at the time of ezecution of this Instrument that ~
; interest on the Funds shall be paid to Horrower, and unless such
F aqreement is made or applicable law requires intere5t, earnings
or profits to be paid, Lender shall not be required *o pay
f Borrower any interest, earnings or profits on the Funds. Lender :3
~ shall give ta Borrower, without charge, an annual accounting of
£ the Funds in Lender's normal format showing credits and debits
~ to the Funds and the purpose for which each debit to the Funds
~ was made. The Funds are pledged as additional security for the
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