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UN~toa.t Co~~rn~NTS. Borrower and L_ender ~ovenam and agree as follows:
1. rsyment of Prioripd aod Interest. Bc,rmwer shall promp~l~• pay when due thc principal of and interest on thc
indebeedncss ev~denced by the Note, prepayment and late charges a~ proviJed in the Note, and ~he principal of and ~ntercst
o~ aoy Future Advance4 ~ecured by th~s Mortgage.
2. Funds tor Tasss sed lnwrauce, Subject to applicable law or to a writlen waiver by Lender, Borrower sl~all pay
to Lender on ~he day monthly installments of principal and irstcrest are payable under the Note, un1i1 the Note is paid in full,
a sum (herein "Funds") equal to one-twelf~h of the yearly taxec and assessments which may altain priority over ~his
Morigage, and ground ronts on the Property, if any, plus onrtwelfth of yeariy premium instaliments tor hazard insuranre.
plus one-twelfth of ye~r~y premium installments for martgage insurance, if any, all as reasonably estimated initially and trom
time to time by Lender on the basis of assessm~nts and bills and reasonable estimates thereof.
The Funds shall be held in an institu~ion the deposits or accaunts of which are insured or guarantt~d by a~ederal or
state agency (including Lender if Lender is such an institutiont. i.ender shall apply the Funds to pay~ said taxes, asstssments,
insurance premiums and grour~ rents. l.ender may not charge for so holding and applying the Funds, analyzing said account,
~ o~ verif~~ing and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable law
permits ltnde~ to make such a charge. Borrower and Lender may agree in writing at the time o[ execution o( this
Mortgagt that interat on ~he Funds shalt he paid to Borrowtr, and unless such agreement is made or applicable law
requires such interest to be paid, Lcnder shall not he required to pay Bnrrower any interest or earnings on the Funds. Lender
shall give ta Borrower, without charge, an annual accounting nf the Funds showing cretfits and debits to the Funds and the
purpose for which each debit to the Funds w~as made. The ~unds are pledged as additional ucurity for the sums securcd
by this Mortgage.
If the amount of ihe Funds held by Lender. togeiher v?•ith the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed ~he amount required to pay said taxes.
assessments, insurance premiums and ground rents as they (all due, such excess shall be, at Borrower's oPtion, either
promptty repaid to Borrower or credited to Barrower on monthly installments of Funds. If the amount of the Funds
held by Lender shall not be sut~'icitnt to pay taxes, assessments, insurance premiums and ground rents as they fall due,
Borrower shali pay to Lender any amount necessary to make up ~he deficiency within 30 da~•s from the date notice is mailed
by Lender to Borrower rcquating payment thereof.
Upon payment in full of all sums ucured by th~s Mortgage, l.ender sha!! promplly ref«nd to Borrower any Funds
heid by L.ender. If under paragraph 18 hereof the Property it sold or tfie Properly is otherwise acquired by l.ender, Lender ~
shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
Lender at the timt of application as a credit against the sumc secured by this Mongage.
` 3. Applicatton of Payments. Unless appticahte la~• pro~~iJes otherwise, all payments received by l.ender under the
Note and paragraphs ! and 2 hereof shall be appl~ed by l.ender firsl in pa~•ment of amounts payable 1o Lender by Sorrower
under paragraph 2 hereof, then to interest payable un the Ivote, then to the principal of the Note, and then to interest and
principal on any Future Advances.
4. Char6es; Lkns. Borrower shall pay all taxet. actessments and other charges, fines anJ impositions attributable 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 hereof or, if not paid in such manner, by Borrower makin~ payment, when due, directly to the
payee th~reof. Borrow~r shali promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
Borrowtr shall make payment directly, Borrower shall promptty furnish to Lender receipts evidencmg such payments.
Borrower shal! promp~ly diuharge any lien which has prionty over this Martgage; provided, that Barrower shall not be
required to discharge any such lien so long as Borrower shall agree in Hriting to the payment of the obligation secured by
such lien in a manner aceeptable to Lender, or shall in gcwd fai[h contect such lien by, or Jefend enforcement of such tion in,
legal proceedings which operate to prevent ti~e enforcement o( the I~en or forfe~ture of the Property or any part thereof.
S. Hazard Insnranca Borrower shaU keep the ~mprovements now e~isting nr hereafter erec~ed on the Property insured
against loss hy fire, hazards included within the term "e~tendeJ coverage", anJ such other hazards ac l.ender may require
and in such amounls and for such periods as Lender may reyuire; provided, that Lender shall not require that ~he amount of
such coverage exceed that amount of co~erage reqwred to pay the sumc secured by~ this Mortgage.
The ~nsurance carrier providing the insurance sF~all be chosen by Borrower subject to approval by Lender, provided,
that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
provided under patagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
insurance curier.
Atl insurance policies and renewals thereof shaN be in form acceptable to LenJer and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. Lender shall have the right to hold ihe policies and renewals thereof.
and Borrower shall promptly furnish to Lender all renewal notices and all receiPts of paid prcmiums. In the e~•ent of loss,
Borrower shall gi~~e prompt notice to the insurance carrier and [.ender. Lender may make proof of loss if not made promptly
by Borrower.
Unkss Lender and Borrower othen?•ise agree i~ v?riting. insurance proceeds shall be applied to restoration or repair of
the Property damaged, proviJed such restoration or repair is economicall}~ teasible and the security of tfiis Mortgage is
not thereby impaired. lf such re3torat~on or repair is not economic~ll~~ (easible or ~f the security of th~s Mertgage would
be impaired, the insurance proceeds shal! be applied to the sums s+ecured by ihis Mortgage. with the excess, if any, paid
to Borrower. !f the Ptoperty is abandoned hy Burrower. or it Borrower ta:ls to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the ?nsurance carrier oBers to seule a claim for msurance bentfits, IxnQer
is authorized to collect and apply t6e insurance proceeds at LenJer's option either to restoration or repair of the Property
or to the sums secured by this Mortgagr.
. Unless Lender and Borrower othorwise agree i~ wnting, any such application of proceeds to principal shall not eztend
or postpone the duc date of the monthly insiallments referred to in paragraphs 1 and 2 hereof or change thc amount of
sucfi installments. If under paragraph I S hereof the Propert}' is acyuired by i,ender, al! right, tiUe and irrterest of Borrower
in and to aoy insurance policies a~d in and to the proceeds ~hereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent ot the sums secured by this bfortgage immediatel}• prior to such sale or
acquisition.
6. Preservstjon aad l?taintenance af Prope~t~; Leaseholds; Condominiums; Pfanned Unit Devdopments. Borrower
shali ~eep the Property in good repair and shall not commit waste or perm~t impairment or dettrioration of the Property
and shall comply with the provisions of any lease if th~s Mortgage is on a leasehold. If th~s Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform alt of Borrower's obligations under the declaration
or covenants creating or governing the condomin~um or E~lanned ?inn devetopment, the by-taws and regulations of the
condominium or planned unit development, and constituent documentc. It a condominium or planned unit development
rider is executed by BorroK•er and recorded together with th~s Mortgage, the covenants and ag~eements of such nder
shall be incorporated into and shal) amend and supplement the covenants and agreements of th~s Mortgage as if the rider
wtre a part hereof.
7. Protection of Leode~'s Securify. If BorTOw~er faik ro per(orm the covenants aRd agretments contained in this
Mortgage, or if any action or proceeding is commenceJ which materially afiects Lender's interest in ~he Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangem~ r,R~~edints involving a
bankrupt or decedent, then Lender at Lender's option, upon notice tn Borrower, map make suc~appearances. disburse such
sums and take such action as is necessary to prorect Lender's ~nterest, rncluding, but nc~` li(nited~ ta.~ disbursement of
re~sonable attorney's fees and entry upon the Property to make rcpairs. I( Lender required mortgage insurance as a
condition of making the loan stcured by this Mortgage. BorroKCr shall pay the premiums required to maintain such
insurance in effect until such time as the rcqui~ement for such ~nsurance terminates in accordance with Borrower's and
. eoo~ 498 ~acf 9?1
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