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<br />rt...;saa;; rnvp,q,azrc, nn..awer and under covenant and agree as follows:
<br />1. Payneeat of Pritxipal and interest. Borrower shall pramptly pay when due the principal of and interest on the
<br />iauovicciiicos c.i ;arw,', rc - - a Sate ~!:° y°. ~ r.,viiprt in the Nnre. and tlfe orincipal of etas interest
<br />oa any Future Advances secured by this Mortgage.
<br />2. Lands for Taws sad Iusoraace. Subject to applicable law ar to a written waiver by Lender, Borrower shag pay
<br />to Leer on the day motzthly installments of principal aril interest are payable under the Note, until the Note is paid in full,
<br />a sum ('herein `rands"} equal to one-twelfth of the yeariy texas and assesssments which may attain priariry over this
<br />Mort~aee, and ground rents nn zhe Property, if any, plus one-twelfth aE yearly premium instatitnents -.`ar Itazaru' =osiiraF.c'.e,
<br />us a~~-.wai,u, v --x.° -' '..s*.atz~*$ t~,c mr~o insura~e; if any; all as rzasonabl estimated initiall and from
<br />pt 7c `i p'.......,.uz."".z :^ oa$e y Y
<br />time to time by Lender an tits basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be held in an instittuion the deposits or accounts of which aze insured or guaranteed by a Federal or
<br />state agency (including Lender if Leader is such an institution). Lender shall apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may net chazge for so holding and applying the Funds, analyzing said account,
<br />or veti€ying and compiling said assesstnenzs and hilts, unless Lender pays Borrower interest an the Funds and applicable law
<br />permits I.euder to malts such a charge. Harrower and Lender may agree in Writing at the time of execu!ion of this
<br />Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requires such interest to be paid, Lender shall trot be required to pay Borrower any interest or earnings on the Funds. Lender
<br />, shall give w Borrower, without charge, an annual aceaunting of the Funds showing credits and debits to the Funds and the
<br />purpose foe which each debit to the Funds was made. T'he Funds are pledged as additional security for-the sums secured
<br />by th[s Mortgage,
<br />1£ the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to
<br />the dtte dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessmenzs, insurance premiums and ground rents as they fall due, such excess shat! be, at Borrower's option, either
<br />pramptly repeat to Borrower or credited to Borrower on monthly installrrxnts of Funds. If the- amount of the Funds
<br />held by Lender shall net be sufficient to gay taxes, assessments, insurance premiums and ground rants as they fall due,
<br />Borrower shall pay to Lender any amount ner..ssary to make up the deficiency within 30 days from the date notice is malted
<br />by Lender to Borrower requesting' payment thereof.
<br />Upon paymem in full of all sums secured by this Mortgage, Lender shalt pramptly refund to Borrower any Funds
<br />held by Ixnder. If under paragraph fg hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, na later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held 6y
<br />Lender at rho time of application as a credit against she sums secured by this Mortgage.
<br />3. ApplicaBon of Payments. Unless applicable law provides otherwise, all payments received b y Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender fusz in payirtent of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nate, and then to interest and
<br />principal on any Future Advances.
<br />4. Citatge8; Lier~. Borrower shalt pay alt taxes, assessments and other charges, Ernes and impositions atiribntab}e to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner
<br />provided under paragraph 2 boreal or, if not paid in such manner, by Borrower malting payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and itt-the event
<br />Borrower shall make payment directly, Borrower shalt promptly famish to Lender receipts evidencing such- payments:
<br />Borrower shall pramptly discharge any Lien which has priority over this Mortgage, provided, that Borrower shalt not be
<br />required to discharge any such lien so long as Borrower shaIl agree in writing to the payment a# the obligation secured by
<br />such teen in a mater a~tahle to Lender, or shalt in good faith contest such lien by, ar defend enforcement of such -lien in,
<br />legal proceedings which operate to grevet[t zhe enforcemene o€ the lien or forfeiture of the Property or any part thereof.
<br />S. ]Itaard Lmcaaanee. Borrower shall keep the improvements new exiting or hereafter erected on the Property insured
<br />against loss by fire, hazards itzcluded within ibe term "extended caverag_', a.-td such ether hazards as I.ettder may require
<br />and in such amounts and for such p-eriads as Lender may require; provided, that Lende*. shalt not rezjuire that zhe amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />"12te insurance carrier providing the insurance shall be chosen by Borrower snb}eC to approval by Louder; pravidsal,
<br />that such approval-shall not be unreasonably wrrhheld. All premiums on ursurame policies shall be paid in the manner
<br />provided under paragraph 2 hereof ar, if not paid in such meaner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All irtstrance policies and renewals thereat shall be in font acceptable to bender and shaft include a standard mortgage
<br />clause is favor of and in form acceptable to Lender. Lender shall have the right to hr,}d the policies and renewals thereof,
<br />sad Harrower shat[ gtompdy furnish to Leader all renewal notices and all receipts of paid premiums. In the event at loss,
<br />13orrawer shalt give prompt notice to zhe insurance carrier and Ixnder. Ixnder may make proof of 3oss if not made promptly
<br />by Borrower.
<br />UnIesa Lender and Boaower otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is ecanamically feasible and the security o€ this Mortgage is
<br />not thereby impaired. 1€ such restoration or repair is oat econom:`ally feasible cr if the stxurity of this Mortgage would
<br />be impaired, the insurance proceeds shalt be applied to the sums secured by ttris Mortgage, with the excess, if any, paid
<br />to Borrower, If zhe Property is abandoned by Sorrawer, or if Harrower fails to respond to Lender within 30 days from the
<br />data notice is mailed by Lender to $orrower that the 6nsurance carrier offers to settle a claim for insurance beaeftts, Leader
<br />is authorized to collets and apply the insurance proceeds at Lenders option either to restorton or repair of the-Property
<br />or W the sums secured by this-Mortgage.
<br />Unless Lender amt Borrower ozirerwise agree in writing, any such application of proceeds to principal shalt-not extend
<br />or postpone the due date of the monthly i~taliments referred to in paragraphs 1 -and 2 hereof or change the amount of
<br />such installments, If utuler paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower.
<br />in sad to any insurance policies and in and fa the prods thereof resulting from damage to the Property prior tQ the -sate
<br />or acquisition shall pass za Lender to the ecteat of zhe surzts secured by this Mortgage immediately prior to such sale or
<br />aaluisition.
<br />6. Preaervsttion a~ Malnteaxace of Property; Leaseholds; Condominiums;. Planned Unit Aeveiopmeatc. Borrower
<br />shat! >~ the Property in good repair and shall oat commit waste or permit impairment ar deterioration of the Prtgrerty
<br />artd shalt crostgly -with the gzovisicma of any tease if lists Mortgage is on a teasehotd. tf this Mortgage is on a unit in a
<br />eondoirtittiutn or a ~rurned unit development, 13onowershalt perform a!1 of Borrower's obligations under the declaration
<br />ar covenants eventing ar governing the condomitrituR yr planned unit development, the by-laws and regtiiatwns of the
<br />cgadaminium of planned unit development,-and constituent documents. If a condaminitrm or pianntxl unit development
<br />ridgy is executed b3' Bgrrctwer and"recorded together with this Mortgage. cite covenants and.. agreements- of such rider- -
<br />shall he i>icor~CUated unto and shall amend and supplement rite: cttvenanis and agreements of this Mortgage as_ tf the rider
<br />were a part hereof.
<br />3. Pivtectian of LendcYs 8e~entity. If Bor~twar fails tp, perform -the t:ovsnants-and agreements- contained in this
<br />Ii~ortgagc, or if any acr:o¢ _ot prosing is commenced wtsictt materially. atfccts tinder's interest itt the Property,
<br />ietetyding, but not limited tar etttitrent dtttnain; ittsolvetxey, code enforcement, of arraitgem_aMs or proceedings involving a
<br />baalr,z:pt r;r dcccde:,t, titan Lcttder at Lt's omi.-n, upon, ttmier. to Borrower, may-make such appearars~s; disburse such
<br />sums"and take sztch acriott as zs t;~.essary to pmtat Lender's. interest including, but -not limited to, disbursement- of
<br />reasouatile auuraey°s fens and entrg upon the- Pro~rty to make repairs. If Lender required mortgage insurance as a
<br />ooriditiotr cif leaking the loan- secured by this Mortgage, Borzower shad pay the premiums required to maintain such
<br />anattratxx in eHtxt until. such titrte m the requiretneat for such instrance termrnates in accordance with Borrower's and
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