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<br />C.tt:r&aR:st CavEt~eht•ts. B^rrower and Lender eo;~enane a,nc! agree a^s foIlt>ws.
<br />L PagrrnenII of Pr#ncip~ai avid intcr~t. Eks~~rrower tsftiall prantptl~y ~paa w},tern dote the principal of and inrten~ t an ttez
<br />indebtatln:!ss evi~,ttcest by tb,a~ T+late„, pre~apayment and Late charges ins p~rarA:ided in tf~ ;!Jote, and the principal of ~t~ad interest
<br />on any Future Advances secured try this Mortgage.
<br />2. F'nads for T$aex and Insurance. Subject to applieabie taw or to a writr~n waiver by Lender, Borrower shall pay
<br />to Lender on the day inanihiy installments of principal and interest are payable under the Note, until the emote is paid in full,
<br />a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this
<br />Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance,
<br />plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br />time to time by Lender on the basis of assessments and buts and reasonable estimates thereof.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution). Lender shat( apply the Fords 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 verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds end 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 chat interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br />requiters such interest to ix paid, Lender shall not be required to pay Borrower any interest or earnings or. the Funds. Lender
<br />shah give to Borrower, without charge, 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 sump secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together 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 fall due, such excess shall he, at Borrowers option, either
<br />promptly repaid io Borrower or credited to Borrower on monthly installments o€ Funds. If the amount of the Funds
<br />held by Lender shall not be sufficient to pay faxes, assessments, insurance premiums and ground rents as they fall <iue.
<br />Borrower shall pay to Lender any amount necessan• to make up the deficiency within 30 days from the date notice is nruled
<br />by Lender to $arrower requesting- payment thereof.
<br />Upon payment in full of all sutras eecured by this Mortgage, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender
<br />shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br />Linder at the time of application as a credit against the sums secured by this Mortgage.
<br />3. t#ppiicaiion of Payments. Unless applieabie law provides otherwise, all payments received by Lender under the
<br />Mote attd paragraphs I and 2 hereof shall be applied by Leader first in payment 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 Note, and then to interest and
<br />principal on any Futuze 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 no4 paid in such manner, by Borrower making payment, when due, directly to the
<br />payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due tinder 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 lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or 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 />3. hazard Insurnnce. Borrower shall keep the improvements now existing or hereafter erected on the Property 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 />The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided,
<br />titer such approval siadi not be unreasonably withheld. Ail premiums on insurance policies shalt be paid in the manner
<br />provided under paragraph Z hereof or, if not paid in such manner, b}• Borrower making payment, when due, directly to the
<br />insurance carrier.
<br />All Insurance policies and renewals thereof shall be in farm acceptable to Lender and shall include a standard mortgage
<br />clause in (aver :, and :.-..:;:m accepta$i~ to Lender. Lender shah :lave trz right to hold thz polities and ren;.wats thereat.
<br />and Borrower shall uromptly furnish to Lender all renewal notices and all receipts of oaid uremiums. In the event of lass,
<br />Berrawcr shall give prompt notice to the insurance carrier and Lender. Lender may make pnwf of lass if net made promptly
<br />by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar 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 not economically feasible or if the security of this Mortgage would
<br />be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid
<br />to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days Pram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier atTers 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 ar repair of the Propery
<br />or to the sums secured by this Mortgage.
<br />Ural€ss Lender and Aorrower otherwise agree in writing, an}• such application of prtxeeds to principal sha}I oat extend
<br />or }astpone the due date of the monthly installments referred to in paragraphs 1 and ? heeeaf or change the amount of
<br />such installments. It under paragraph 18 hereof the Property is acyuired h}' Lender, all right, title and interest of Borrower
<br />in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the safe
<br />or acquisiUan shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale i~r
<br />acgUiSFttan.
<br />6. Preservatlon and Maintenance of Property: Leaseholds; Condominiums; Planned Unit Developments. Borrower
<br />shall keep the Property in good repair and shall not commit waste ar permit impairment or de¢eriaration of the Properly
<br />and shall comply with the provisions of env leap. if this Mortgage is on a leasehold. if this Mortgage is ea a unit in a
<br />condominium or a planned unit development, Borrower shat! perform a!! of bnrrawer's ahhgatians under the dec]ara[ion
<br />or covenants creating or governing the condominium ar planned unit development, the by-laws and regulations of the
<br />condominium or planned unit development, and constituent documents, if a condominium or planned trait 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 shall amend and supplement the covenants and agreements of this Mortgage as if the rider
<br />were a part hereof,
<br />7. Protection of Landers Securii~,. €f Borrower 'tails to perform the covenants and agreements contained in this
<br />Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property,
<br />including, but not limited [o, 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 />sums 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 Property to make repairs. If Lender required mortgage insurance as a
<br />candiiion of making the loan secured by this Mortgage, Borrower shall pay the premiums enquired to maintain such
<br />insurance in effect unlit such time as the requirement for such insurance terminates ir. accordance with Borrower's and
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