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<br />UNrnoant Covt;nexrs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Princlpal and Interest. Borrower shall promptly pay when due the principal of and interest on tilt.
<br />indebtedness evidenced by the No[e, prepayment and late charges as provided in [he Note, and [he principal of and interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Foods for Taxes and Ittsuranm. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to 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 (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-twelfh of yearty 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 bills 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 shall 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 verifying and compiling said assessments and bills, unless Lender pays Harrower 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 on the Funds shall he paid to Borrower, and unless such agrcement is made or applicable law
<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 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 additioaai security for the sums secured
<br />by this Mortgage.
<br />If the amount of [he 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, suc4 excess shall be, at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If [he amount of the Funds
<br />held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents >u 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 />L'pon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If under paragraph 1N hereof the Property is said ar 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 />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payments. Urless applicable law provides otherwise. all payments received by Lender under the
<br />Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower
<br />under paragraph I hereof, then ro interest payable on the Note, then to the principal of the Note, and then to interest and
<br />prinupal on any Future Advances.
<br />S. Charges; Iaeas. Borrower shall pay all raxes, assessments and other charges, fines anJ impositions attributable to
<br />the Property which may attain a priority over flits Mortgage, and IeaseholJ payments ar 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, dirutly to the
<br />payee thereof. Borrower shall promptly furnish to Lender aft nooses of amounu 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; provtJed, 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 hen m a manner acwptable to L: rider, or shall in gaud faith contest such lien by, or de[tnJ enforcement of such lien m,
<br />legal proceedings which operate to prevent the enforcement nt the lien ur lurttnurr of the Property or any part thereof.
<br />5. Hazard Insurance. Borrower shall keep the Improvements now rctsting or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term °txtendcJ coverage", and such other hazards as Lender may reyuire
<br />and Io such amounts anJ fur such periods as Lender m~ty reyuire; provideJ, that Lender shall nut requite that the amount of
<br />such coverage exceeJ that amount of coverage nyuirtd to pay the sums secured by [his Mortgage.
<br />The insurance carrier providing the iustirance shall be chosen 6y Borrower subject to approval by Lender, provided,
<br />that such approval shall not be unreasonably withheld. All premiums on inaurance policies shall be paid tit Me manner
<br />provided under paragraph ?hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
<br />insurance carrier.
<br />AIt insurance pohctes anJ renewals thereof shall be in form acceptable to Lender anJ shall include a standarJ mortgage
<br />clause m favor of and m form acceptable to lxnder. Lendtr shall have the right to hold the policies and renewals thereof.
<br />and Borrower shall promptly furnish to Lender all renewal notices anJ all receipts ul paid prrmiunts. In the event of Ions,
<br />Borrower shall give prompt notice to the insurance canter and 1_ender. LenJrr may make prool of loss it nut nulJt promptly
<br />by Borrower.
<br />Unless Lender anJ Borrower utherwrse agree in writing, insurance proceeds shall tx applied to nstoratian or repair of
<br />the Property JmnageJ, provtded such restorauun or reprur Is uonomlc:dly feasible and the security of flits Mortgage !.
<br />not thereby impaired. If such restoration or repine is not ecomm~ically I axlhlt ur d the security of this Maftgagt would
<br />be tmpau•eJ, the msu: arise praceeJs shall t+e applieJ In the sums secured by flits Mortgage, wnh flit excess, if any, pall
<br />to Burrower. It the Properly Is abandoned by Borrower, ur d Burrower tails to respunJ to hendar wothut 3H days from thr
<br />date nonce a ntaJeJ b5 Lender w Borrower chat the ntsurance earner utters a+ stnlr a claim for ursucanen benefits, Lender
<br />is uulhunzeJ to aollect anJ apply the uuurancr proceeJs at LtnJer's option elthcr to resturuuon ur repair of the Property
<br />or to the runts secured by this Mor[gagt.
<br />Unless Lerida and Burrower otherwix :rgree m wruing, any such apphceuun tit pnxetcks to pnnttpal shall nut exlcuJ
<br />or postpone the• Jue Dace of flit monthly installments relrrreJ to m paragraph. I and ~ hereof or change the amount tit
<br />such matallntenu. It unJtr paragraph IN hereof flit Property a arywreJ by LrnJer, :JI right, utlt anJ inttrtyt of Horruwcr
<br />in and to any iusuranct pohnes and in anJ to the proceeds thtreut rosulung from Jmnagr to the Property pour to the salt
<br />ur aalutsttion shall pass to LtnJer w the estent o[ the cams aecureJ by thu Mortgage uunteJiately pour n, such axle or
<br />ncyuisitiun.
<br />6. Presrnatfon and :Naiotenancr of Properly; Lttttiehulds: Cundmniniums; Plannsd Unit Utrtlopmtata Boerne at
<br />shall keep the Property m gauxl ropeir and shell out rxrmmit waste or Ix:rmtt Impauatent ur Jetenotahuu tit Ute Pen{carry
<br />•and shell comply with the ptoviswns of any lease If flits Atongagr Ia uu a IeaschulJ. H rtes Murtgagt Ia tin afar m .~
<br />condominuun or a planntJ amt Jrsctopment, Horn,w er shall ptt'fonn :JI nt Borrower's ohhgauons unJcr the declnrauou
<br />or mvtnants creating ur govtnung the antdumuuum or planned ante devrlopntrnt. the by-laws anJ regulations of the
<br />conJominnrm tit planueJ amt Jevelupmtnt, ,ntJ cunatiurrut Jucumenh. It a eonJUnunium ur I:IanneJ unn dcsclopntent
<br />rider Is cxetuteJ by Borrower anJ recnrdeJ together wnh flits Mortgage, the wtcn.urL anJ agree merits tit sudt ndtr
<br />shall hr IncorpurateJ into anJ shall aolenJ :utJ supplement the cownanta .cad agrrentents n( flits Mortgage as It flit uJcl
<br />wart a part hereof.
<br />7. Prolectlon of IwoderK tinurrty. Ii Born,wtr (ails to perlurm the covenants and agreements ..umautcd in flit.
<br />Mortgage, or if ,my acuun ,rc proeeeJmg n conmtatced whrrh ntarttiali} al(ects lender's uucrect w the P•,,pcrty.
<br />including. but not hmaeJ ta?. enuntnt Jomaut, in,nh~tncy. code enrorcenteot. „i an'augrmenh aI pn..~etdmgs ntculvmg e
<br />bankrupt ur Jeardenl. Ihtn [.ender ;u Lenaler•s opwnt, ulxm nohce m Borrower. may make such app[:uan. es. duhw se .u:h
<br />same ar1J take such ncttun .rs Is necessary m protect LrnJers inltl est. u+cludutg, but uu[ t:mucJ t.,. Jnburxnu•nt ,~I
<br />reasonable atuinrcy~s la•es :utJ entry upon the Proper tv to make repa~n If i cnJet icyurrrd ni,n lgage utsw an.r a .,
<br />condo+or, ,a ntakmg the loan secure.i h} rho Mortgage. Bun over .hail pay !ho prenunwa Iry~n rrJ !„ mau,l.un sod,
<br />insurance ua eliect until w:a, rims as the rtyuutment fur such maw arise !ermsuate. =a n...orda:xr wuh H:v rx:u er'. a.,.,
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