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Un~t-ok~! ('ovt:N.~yi~s. f3orro~ti•cr and l.cn~lcr c.~vcn,~nt :?nil :igrrc a~ foUo~~~s:
l. Pnymcnf of Prlnclpnl und Intcrest. l3urru«•cr sh:ill rromptl~• pap• ~~hcn duc thc principal of an~1 intcrest un thc
indcbtedness evidencc~l hy thc Notc, prepayntent an~l latc ~hargc~ as ~~ruvi~led in thc Nc~ie, and thc prin~ipal of and intcrest
a~ any Future ~ldvances securcd b~~ this Martgage.
2. Funds for Taxes nnd Insurnncc. Subjcct to applicablc la~+~ or to a written waiver hy l.endcr, t3arro~ti~cr shaU pay
to Lender on Ihe day monlhly instaUntents of principal and int~rest :irr payahlr undcr the Note, until the Note is paid in full,
a sum (herein "Funds") cqual to ~~ne-t~~•elfth of thc yearl~• taxes an~l ,~sse;smenls ~ti~hich map attain priority over this
I~lortgage, an~l ground rents on the 1'roperty, if ~~ny, plus une-t«~elfth uf y~early premium inslallmer~ts i:~r h~~zard insurance,
plus ane-t~velfth c~i yearly premium installmei~ts f~r mort~agc insurancc, ii any, aU as rcasonably cstimated initi,~lly and trom
• time to tin~c hy I_ender on the basi~ of assessments and hil~s ancl reasonabli estim~tes thereof.
The Funds shall he held in an institution the deposits or arcuunts o( which are insured or guaranteed b~~ a Federal or
stat~ agency (including Lender if Lender is such an institution). Len~er shall :ipply the Funds ro p:~y said taxes, assessments,
insurancc premiums and ground rents. l.cndcr map not chargc for s~~ hol~iing and applying thc Fi~n~ts, analy'7.1(1~ S11(I 1CCOUII~,
or verif~~ing anti contpiling said assessments and bills, unlcss Lender pa~~s I3orrower interest ~~n the Funds and applic~hle law
permits 1_ender to make such a charfie. I~orru~ti~er and Len~lcr m.~~~ agrce in ~ti~riting at the time of execution of this
'~4ortgage that intercst ~~n thc Ftmds shall hc pai~l to E3orruti~cr, and unlcss such agreement is made or applicahle law
' requires such interest to be paid, Lender shall nc~t he require~ t~~ p.?p 13orro~+•er an~~ interest or earnings on the Funds. l.ender
. shall give to [3orro~~~er, withaut charbe, an ;?nnual accuunting of Ih~ t~unds sho~ving credits ae~~l debitt to the Funds and the
purpose for which cach debit t~~ thc Funds ~ti~as madc. The E~unds arc plcdbcd as additional scaurit~~ for the sums securcd
hy this I~9ortgagc.
If thc antount of thc Funcls hcld b}' Len~lcr, togrlhcr ~tiith th~ futurc monthly installmcnts of Fiin~ls payablc prior to
the ~ue dates of taxec, assessments, insuranre premiumti and groun~l rents, shall excecd the amount rcquired to pay said taxes,
assessments, insurance pr~miums and ground rents as the~~ f;ill du~, such cxcess shall he, at f3arro«~cr's aption, cither
promptly repaid to Borro~ti~er ur crcdited to Borro~~~er rni monthl~~ installments of Funds. If the amount of the l~unds
held by Lender shall nut be sidlicient to pay taxes, assessmrnts, insurance premiums and ground rents as thep fall due,
Borrower shall pay to Le~~der any amount necessar~~ to make up !he deficiency within 30 ~la~~s from the date notice is mailed
hy l.ender to Borrower reyucsting paymcnt thereof.
Upon payntcnt in full of all sums sccurcd b~~ this ~tortga~c, Lendcr shall promptly rcfum! ta f3orro~+~cr any Funds
held by LenJcr. If under paragraph 1R hercof .he Proprrty is s~~ld c~r ~hr Property is otherwisc .icquir~d by Lendcr, I.endcr
shali appiy, no latcr than immcdiatcl~~ prior to thc saic uf thc f'rorcrl~~ or its acquisitio~~ hy I.cndcr, an~~ Funds hcld by
Lcnder at thc timc of application as a crcdit against thc sums sccure~l by this ~tortgagc.
3. ~lpplication of Payments. Unlcss applicablc la~~• pro~~i~ics othcn~-isc. all ~~aymcnts rccci~•cd b}~ I.cndcr unclcr thc
Note and paragraphs 1 and 2 hcrc~~f sh.~l! be applicd hy I.ender first in pa~~ment i~f anu~unts pa}~able ta Lender hy Borro~scr
undcr paragraph 2 hcrcof, thcn to intcrest payablc un thc Nutc, thcn 1~~ thc principal af thc Notc, and Ihen to intcrest and
~~rincipal on an)~ Futurc Advanccs.
4. Charges; Liens. Borro~ti~cr shull pa)~ all tax~s, asscssmcnts an~ c~th~r chargcs, fincs ancl imposiliuns attributahle to
the Propertp :vhich may attain a priority ovcr this Afortgage, and Ieasehold naymcnts or ground rents, if any, in the manncr
, provided under paragraph 2 hereof or, if not p:+id in such manner, by E3orro~~•er making pa~~ment, when due, directly to the
papec thcrcof. Borro~ti•cr shall promptly furnish to 1_en~ler all noticcs of amounts duc under this paragraph, and in the event
- Borro~ti~cr snall make payment directl~•, Borru~ser shall promptl~~ furnish to I_ender receirts evi:lencing such pa}~ments.
Borrower shall prontptly clischargc any licn ~+hich has priorit~~ o~~cr this ;~lortgagc; provi~lcd, that Borrowcr shal) not bc
required to discharge anp such Iien so lonb as I3c~rro~~~er shall agree in ~~ritinb to ttie pa}'ment of the obligation securcd h~•
such lien in a manner acceptable tu Lender, or shall in go~~d faith conte~;t such iien by, or defend enforcement of such licn in,
Icg,~l procredings ~~•hich oper,~te tu p?event thc cnfor~ement of thc licn or for(eiture of the Propcrty or any part thcreof.
5. Hazard Insurancc. Borroncr shall kc~p thc imrro~•cmcntti no+~ cxistin~ on c~rcafter crrclc~i on thc Propcrty insurcd
against loss hy fire, hazards included ~vithin the term "r~tcnde~i cu~~er.ibe", and such other hazards as Lender may require
and in such amounts atul fcr such pcriudti ati f_cnder may reyuir~; rr~~~~idc~l, that i.cndcr shall not rcyuirc that thc amou~t of
siich co~•cragc eseeed that amount of cm•~rag~ reyuired to pa~• ~he sums .cc«red h}~ this titort~age.
' The insurancc carricr providing the insurancc shall be rhoscn h}~ E3orro~~er subject to approval h}' I_ender, provided,
that such appro~~:~l shall not be unreasonably withheld. All ~~rcmium~ on insurance policies shall be paid in the manner
. providc~l under paragraph 2 hcreof or, if not paid in such mannci, hy E3orro~~er making payment, whcn due, directly to the
insurancc carricr.
All insuranee policies anel rene~cals there~~f shall b~ in fornt :irceptable to I.en~ler :in~l sh:ill include a stan~lard mortgage ~
clause in favor ~f and in forn~ acceptahle to Lender. I,endrr ~hall hav~ the right to hold thc policies ar.d r~ne~~~als thereof,
and Borro~t•cr sh.~ll promptl~~ furnish to Lcndcr ali rcnc~~~al nc~tices and all reccipts of l~aid premium.. In the c~•cnt of loss,
j Borruwer shall g~~~e prompt notic~_ to the instir;ince ~arrier .in~ Len~ier. Len~rr ma~~ make prc~of of loss if not made pr<~mptl~~
b~~ Borrowcr.
Unless Lcndcr and Borro~~cr oth~nti~is~ asrec in ~rritin~;, insur,~rire pre~cre~ls shall be applied to restoratian or repair ef
thc Pri~pcrty ~i:~mabccl, provi~lccl such « titoratian ur rcrair is cc~~n~~micafl~~ fcasihlc and thc sccurity of this A'Iortgagc is
not thereby impaired. If such restur.,tion or rcpair is not c~unc,mirall~• (casihlc or if the securit}~ of this ~tortgage «~ould
be impaired, the insurance proceeds shall be applie~i tu the sums sec~~re~l h~~ this ;ltortgaer, ~+~ith the exeess, if an~•, paicl '
to Qorrowcr. If thc Property is abandoncd h} Bnrro~ti~cr, or if Borm:ticr l:iils ti~ respond to Lendcr ~ti•ithin 30 da}'s from the
~Jate noticc is mailed b}~ Lender t~~ I3orrot~er that the insi~rance carrirr otTer, to settlc a claim for insurance t~enefits, I_ender
~ is authorired to collect and apply~ the insura~~cc proceeds at Lrn~ier's option either tu restoration or repair of the Property E
or to thc sums securcd b}• this ,4lortgagc. ~
Unlesc Lend~r and f3orro~ti•er other~tiise agree in ~sritinb, an} such application i~f ~~oceeds to princi~.~l shall not extend
or postpone the due date of the monthl~~ installmentti referred t~~ in paragraphs 1 and 2 hereof or change the amount of
such inslalimcnts. li undcr para~r.iph I b hcrcof thc 1'rc~~rt~ i~ acyuirc~l b}• Lcndcr, all right, titlc and intcrest o[ I3~rro~ti~cr
in and ;o .ui~ insurance policies and in and tc~ the procceJs thereu( resulting frum dama~c t~~ the Property ~rior to the sale {
ar aci~uisition shall pass to Lcndcr to thc cxtcnt uf thc sunu sccured h}' this ~f~~rtg.i~~ immediatcl~~ prior to such salc or
acquisition.
6. Yresenalion and \tainlenance of Propertc; I.easeliolds; Cnndominiunu; Plaiu~ed Unit lle~•eiopments. Borro~ser 5`
shall kecp thc Property in good r~pair and shall not commit ~sastc or permit impairment or deterioration of ihe Property ~
and sh.~ll cc~mpl}' ~~~ith thc provisiuns of any Icasc if thiti ~tortgagr is on a Icasch:~l~. If this ~lortgagc is on a?mit in a
,
conc~ominium or a plat~n~.d unit ~Icvclopmcnt. [3orn~~scr ~hall ~crfurm all of F3orro~scr's obligations undcr Ihc dcclaration
or covcnants crcating or bovcrnino the condominium or ~~lanncd unit devclopmcnt, ti~c by-la~+~s and regulation~ of thc
con~ominium or planned unit de~~elopn~cnt, :+nd constituent ~iocumrnts. 1f cunelnminium or planned unit cle~-r_Io~ ment
rider is executed by Borro«~er and recorded toe;ether v~ith thiti ~fort~age, the co~~enants and agreemenls of sE~ch ricler
_ shall be incorporated into and shall an~end an~i supplrment the co~~cnantti and agreements of this A1o~tgage as if the rider .
w~erc a pzrt hcrcof. ~
7. Proteclion of Lender's Security. If i3~rro~+er fails tc~ perf~~rm lhe covenants ancl agreements rnntained in this
tilortgabe, or if any~ action c~r ptoceeding is comme~~ec.! i~ich mciterially atiects Lencler's interest in the Propert~~,
including, but nut limited to, eminent domain. ins~~l~~enc~~, cc~dc enf~~rcement, ar arranbemenls or proceedings invol~~in~ a
bankrupt or decede:~t, then I_ender at l.ender's optiun, upon n~tice ti~ 13orrowrr, ma~- make such appearances, Jishurse such
sums and take such action as is neccssary to protect I.ender's interest, including. but n~t limited to, disbursement c~f
rcasonable attorney's f~;.cs and cntry upon thc Propert}~ to m~ike repair~. If I.ender reyuired morlba~e insurance as a ~
" condition • of nzaking thc loan sccured b}~ this ;~i~~rtgagr. B~,rm~crr shall pa~~ thc prcmiums rcquircd to maintain such Y
" insurancc in cffcct until such timc as thc rcquircmcnt (or surh insurancc tcrminatcs in accordancc ~ti~ith Borro~ti~er's and `
~ . ~ ~ - , . . , , , , ~ ~ ~ ~ ~ g~»~ ~~3 F~A~E ~3
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