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~ UnnFO~tt+t CovpN~r~rs. Borrowtr and l.ender covenent and agrte as follows:
~ l. l~tyment oi hiecip~l ~ad Intercsl. Borrawer shall promptly pay ~~hen due Ihe principal o! and interest on the
indebtedne~i evidenced by the Not~, prepayrttent and late charges as provided in ihe Note, and the princ~pal of interest
~ on any Future Advancas securad by this MortgaQe.
T. PY~nd~t t~r T~p ~d Iowe~ce. Subject to applicable law or to a written wAi~er by Lender. Ilorrc~wer shal! pay
j to I.cnder or. the day monthty installments of principal an~ intcrest aro payable undcr the Note, until the Note is paid in full,
I a sum (herein "Funda") ~equal to one•twelfth at the yearly taxes and assessments which may attain priority over this
~ Mort~age, and g~ound rent• on the Property, if any, plus one-twelfth of yearly p~emium instalimenta for huard insurance.
j , plus one•twclfth of yearly premium installments for mortgege insurance, if any~ all as reasonAbly estimaied initially and from
~ time to time by Lender on tPte basis of ass~sments and bills and reasonable estimata thenof.
The Furtds shall be held in an institution the deposits or accounts of which are insured or guarantetd by a Ftderal or
a state ageney (including Lender if Lendec is such an institution). Lender shall aoply the Funds to pay said taxa. assessments,
insuranco premiums and ground rcnts. Lender may not char~t for so holding and applying the Fureds, analyzing ~id account,
. or verifying and compiling said assessments and bills, unlc:~s Lender pays ~orrower interest on the Fu~ds and applicable law
permits Lender to make such a charge. Bor~ower A~1 I.ender may agrre in writing at ihe time of execution of th(s
Mortgage that interest on the Funds shall i~.~ paid to Borrower. and e^;ess ~uch agreermnt is made or applicabk law
requi~ea sucti interest to be paid, Lender sfiall not be required to pay Borrower any interest or taraings on the Funds. i.ender
shail gire to Borrower. without charge. an annual accounting of the Funds showing credita and debits to the Funds and the
~ purpose for which each debit to the Funds was made. The Funds are plodged as additional security for the sum~ sc~:u~~
by this Mortga~e.
~ If the r+mount of the Funds held by Lender. together with the future monthly installments of Funds payablc prior to
the due dntos of taxes, asseasments. insurance premiums and ground rents, shall excetd tht acnount requircd to pay said taxa.
~ aasesacaents, inaurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either
promplly repaid to Borrower or crodited to Borrower on mo~nthly i~islallments of Funds. 1f the amount of the Func4
held by Lender shaJl not be sutBcient to psy tates, aasessments, insurance premiums and ground rents a~ they fall due,
Borrower shall pay to L.ender any amount nocessary to make up tl-K deficiency within 30 days frorn th~ date notice is mailed
by Leader to Bonowar rcquestiag payment thereof.
Upon ~ayment in full of al! :ums securEd by this Mortgage, l.end~r shnll promptly rcfund to Borrower any Funds
held by L.ender. 1f under paragraph 18 hereo[ the Property is sold or the Property is otherwise acquir~d by Lender. Lendtr
shall apQly~ no later thsn immediately prior to ihe sale of the Property or ita acquisition by Lend~r, any Funds held by
Leader at the time of application aa a credit against the sums secured by this Mortgage.
3. A~icatiew ot ~weNs, Unless applicable !aw provides otherwise, all payments receivtd by Lender und~r the
Note and paragraphs 1 and 2 hereof shall be applied by Lender 8rst in payment of amounts payab{e to Lender by Borrower
under partgraph 2 hereof~ then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal on any Future Advancts. .
4. C~a; Lkws. Borrower shall pay all taxes, assessments and other charges, flnes and impositioas attributable to
the Property ~hich may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any, io the manaer
~ provided under paragraph 2 hereof or. if not paid in such mannet, by Borrower making payment~ when due, directly to the
~ paya thereof. Borrower shall prompdy furnish to Lender all,noticcs of amounls due under this paragraph~ and in the eveot
= Borrower shall make payment directiy, Borrower shall promptly fumish to I.ender receipts evidencing suc.h paym~nts. }
~ Borrower shali promptly discharge any lien which haa priority over this Mortgage; pravided, that Borrower shall not be (
required to discharge ~ny such lien so long as Borrower shall agree in writing to the payment of the obligation stcured by . ~
~ such liea in a manrser acceptable to I.endec. or shall in good faith contest such lien by. or defend enforcement of such lien in.
legal procecdings which op~rate to prevent the enforcement of the lien or forfeitur~ of the Property or any part thereof.
~ S. Hazud I~wrarce. Bonower shall keep the improvements now existing or hereafier erected on the Property insura!
againat lou by Bra, hazar~s inclieded within the term "extendtd coverage", and such other hazards as Len~er may requirt
~ aad in such amounts and for auch periods as Lender may rcquire; ~rovided, that Lender shall not require that the amount of
~ such co~erage excced that amaunt of coverage requircd to pay ihe sums secured by this Mortgage.
The i~uranee curier providing tbe insurance shal! be chosen by Bonower subjeet to approval by Lencier, proyided,
that such approval shalt not be unressoaably withheld. All premiums on insurance policies shall be paid in the manaer
~ provided under parag,raph 2 hereaf or, if not paid in such manner. by Borruwer making payment, when due, directty to the
~ iosurance carrier. . .
~ All insurance policies and renewala thereof shall be in form acceptable to Lenckr and shall include a standard mortgage
~ ciause in favor of and in form acctptable to Lender. Lender shall have the right to hold !he policies and renewals thereof.
i~ ~ and B~rrower shall proroptly furnish to Leadtr all renewal notices and all receipta of paid premiums. In the eveat of loss,
~ Borrower shall give prompt notice to the insurance carrier and Lender: Lender may make proof of loss if not mad~ Qrompdy
~ by Borrower.
Unlea~ Lender and Borrower otherwise agree in writing, insvrance procoeds ahall be applied to nstoration or repair of
the Property damaged, provided such reltoration or repair is economically feasible xnd the stcurity ~f this Mortgage is
not thereby irnpaired. If such rtstoration or repair is not econoinically feasible or if the s~curity of this Mortgage would
be impaired, the insurance procads shall be applied to the sums secured by this Mortgage, with the excess. if any. paid
to Borrower. 1f the Property is abandoned by Borrawer, or if ~orrower fails to respond to Lender within 30 days from the
~ date notice is mailtd by Lendsr to Borrow•er that the insurance carrier offers to settle a claim for insurance benefits, Lender
is aut6oriztd to colla;t and apply tbe insurance procesds at Ltnder's option either to restoration or rcpair of thz Propesty
or to the sums sccurod by ttiis Mortgage.
Ualtss I.tnder and Borrower otharwise agree in writing, any such application of procetds to principal shall not extend
or postpane the due date of the monthly installments referred to in paragranhs 1 and 2 hercof or cha~ge the amount of
such installments. If under oaragraph 18 hereof ttx Property is acquired by Leader, all right, title and intsrest of Bonawer
~ in and to any insurance policica and in and to the proc~ods thereof resulting from dacnage to tbe Property prior to the sale
or acquisition shall pa,ss to Len~'er to the extent of the sums sec~rod by this Mortgage immediately prior to such sale or
t acquisition.
~ 6. Prsaervatioe ssd Malatenance of Property; Leaaeholds; Condomlain~; I'lanned Udt Derdop~aeets. Borr~wer
~ - shall kap the Property in good repair and shall not commit waste or permit empairment or deterioration uf the Property
M~ and shall comply with the provisiona of any lease if this Mortgage is on a leasshold. If this Mortgage is oh a unit in a
condarr,inium or a ptanne~ unit devel~pment, Borrower shall perform all of Borrower's obligations under the declaration
or covenants creating or governing the canc~ominium or planned unit deveiopment, the by-laws and regulati~ns of th~
condominium or planaed ucit dtvelopmtnt, and constituent documents. If a condoruin~um or planntd unit development
~ rider is executed by Borrower and recorded together witti this Mortgage, the covtnants and agreemeQts of such rider - _
~ ahal! be incorporated into an~i shal! amead and supplemtnt the covenants and agreements of lhis Mongage as ~f tht ricler
` were ~ part h~reof.
7. ~rotectioe af Leoder's Seeotfl~. If Bortower fails to perform the covenants and agrcements contained in this _
Mortgage, or if any action or procading is commenced which materialiy aftects Lendtr's interest in the Property,
~ including, but not limitzd to, eminent domain, insulven~y, code enforcement, or arrangements or praceedings involving a
bankrupt or dacdent, thtn I.ender at Lender's opiion~ upon notice to Borrower, may make such appearances. disburse ~such _
sums an~ take auch actioa as i: necessary to protect I.eader's interest, including, but not limited to, disbursement of
reasonable attornty's fces and entry upon the Property to make repairs. If Lender rcquircd mortgage inaurance as a
~ condition_ of makin~ the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such
i~surance in affoct uni;f cuch ticne as the reyuirement for such insurance terminates in accordarice with Borrower's and
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