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<br />Lfatirr:~~E'«ai~t C:cr+t'UE~.ta+'ri5. 13orrowar ~a~:n+N ls;n~d'!e~~ur Wmiw~~naa~i~t and agree as foVltnw.a:
<br />I. Pa'ynxamt oti I't'lra~a"~i!Val ar,~ Intturos~t. Bc,rrr~~owe~rr shay. prompal',fr pay when a~llue 'r'ite principal ¢~tf and interest Dirt iR~ue
<br />irtdat~^edness evidenced by the Nute, prepayment and lane c'Ivarges as lrovided in rite, Note, and ifie principal) oaf grad interest
<br />or. any Future Advances secured by this Mortgage.
<br />2, i"~nds for'f"axcs and Insurance. Subject to applicable law or to a wzitien waiver by [tender, Borrower steal: pay
<br />w Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full.
<br />a sum !:r:erein "Funds"} equal to one-twelfth of the yearl}• taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfrh of yearly premium installmenu for hazard insurance,
<br />plus osarvelfth of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from
<br />time to time by Ixnder on the basis of assessments and bills and reasonable estimates thereof.
<br />The Funds shall be herd in an institution, the deposits or accounts of wfiich are insured or guaranteed by a Federal or
<br />state agency 'including Lender if Lender is such an institution). Lender shalt apply the Funds to pay said taxes, assessments,
<br />insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br />or re:ifling and compiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and applicable law
<br />permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br />Mortgage that interest cn the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw
<br />requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without c}-:arge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, rogether with the future monthly installments of Funds payable prior to
<br />the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br />assessments, insurance premiums and ground rents as they Eall due, such excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due,
<br />Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br />by Lender to Borrower requesting payment thereof.
<br />Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. It under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shad apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Mote and paragraphs 1 a.-td 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph 2 hereof, then tcs irteres[ payable on the Note, then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />d. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly io the
<br />payee thereof. Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments.
<br />Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
<br />required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br />such flier. in a manner acceptable to Lender, or shall in good faith contest such Gen by, '~- defend enforcement of such lien in,
<br />legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propert}' insured
<br />against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br />and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br />such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br />Toe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lander, provided
<br />that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner
<br />provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />Afl insurance p;'.liciv~ and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br />clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof.
<br />and Borrower shah promptly furnish to Lender all renewal uotices and all receipts of paid premiums. In the avant of ?ose.
<br />$orrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
<br />by Borrower.
<br />L'niess Lender and Borrowci otherwise agree in writing, insurance proceeds shalt be applied to restoration or repair of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is
<br />not thereby impaired. If such restoration or repair is no[ economically feasible or if the security of this Mortgage would
<br />6e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. It the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender
<br />is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br />or to the sums see:ured by this Mortgage.
<br />Unless lxnder and Borrower othernise agree in writing, any such application of proceeds to principal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br />such installments. if under paragraph 18 hereof the Property is acquired by [.,ender, all right, title and interest of Borrower
<br />in and to an} insurance policies and in and to the proceeds thereat resulting from damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender ut the extent of the sums secured by this '4Axtgage immediately prior to such sole or
<br />acquisition.
<br />6. Presrnation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shat! keep the Property ir, gold repair and shall not commit waste or permit impairment or deterioration of the Property
<br />and shall comply with the provisions of any tease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a
<br />condominium or a planned unit development, Borrower shah preform alt of Borrower's ahligatiors under the declaration
<br />or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br />rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider
<br />shall be incorporated into and shalt amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects L.ender's interest in the Property,
<br />including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
<br />bankrupt or decedent, then Lender at Lender s option, upon notice to Borrower, may make such appearances, disburse such
<br />stuns and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of
<br />reasonable attorney's fees and entry upon the Pro~rty to make repairs. If Lender required mortgage insurance as a
<br />condition of making the loan secured by this Aiortgage, Borrau~er shat! pay the premiums required to maintain such
<br />insutaziee in eftecY until such time as the requirement for such insurance terminates in accordance with Borrower's and
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