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<br />1JT[iFnaM C/JV&Nx[a75. BOrfOWer and Lander covenant and agree as foBaws:
<br />I. Payttratt of Pr{eef}ai aW Irdesat. Borrower shag prosnpUy pay whrn due the principal of sad interert on the
<br />indebtedness evidenced by the Note, prepaymrnt and late charges as provided in the Note, and the principal of std interest
<br />on any Future Advances secured by this Mortgage.
<br />2. Fttade for Taus std Iaaatitree. Subject to applicable law or to a writtrn waiver by Leader, Borrower shall pay
<br />to Lender on the day rrartthly installments of principal and imerest are payable tinder the Nat, umil the Note is paid in ftdi,
<br />a ztttn (herein "Funds") equal [o one-twelfth of the yearly taxes and assessments wht'h ttuy attain ptioritY over this
<br />Mortgage, and ground rents on the Ptopecty, if any. plus otw:welfth of yeuly premium it,vaBtetenu fat t[arard itseurantt.
<br />plus one-Twelfth of yearly premium installments for mortgage insurance, if any, all as reasona'dy estimated initially and flan
<br />time to time by Lender on tbe basis of assessments and 6flis and reasonable estirnara thtxmt.
<br />Tlu Funds shalt be held in an instimtiea the deposiu or amounts of which are tnsttred a guaranteed by a Federal or
<br />state agency (including Lender if Lender is such an institution ). lender shalt apply the Funds to par said taxes, asstastnena,
<br />insumoce premiums and ground rents. Lender may not charge for so holding std applying the Funds. analyzing said accoum.
<br />or verifying and compiling said assessments and bills, unless Calder pay's Borrower interest on the Funds std applicable law
<br />permits Lender to make such a charge. Borrower and Ixnder may agree in writing at the time of execution 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 not 6e required to pay Borrower any interat or eymtngs on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Futuls and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional securitg for the sums secured
<br />by this Mortgage.
<br />If the amount of the Funds held by Lender, together with the future monthly installrcenu of Funds payable prior to
<br />the due dates of [axes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes,
<br />aesessetents, insurance premiums and ground rents as they fall due, such excess shall be. at Borrower's option, either
<br />promptly repaid So Borrower or credited to Borrower tin monthly installments of Funds. If the amount of [he Funds
<br />held by Lender shall not be sufficient to pay razes, assessments, insurance premums 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 [o Bortower requesting payment thereof.
<br />Upon payment in full of all stirrts secured by thts Mortgage. Lender shall promptly refund to Borrower arty Funds
<br />held by Lender. If under paragraph 18 hereot the Property s sold ur the Property s otherwise acquired by Lender, Lender
<br />shell apply, nn later than immediately prior to the sale of the Property ur its acquisition by Lender, any Foods held by
<br />Lender at the time of application as a credit against the sums secured by this Mortgage.
<br />3. Application of Payttieats. Unless applicable law provides otherwise, all payments received by Lender under the
<br />Note and paragraphs l and 2 hereof shall }x applied by Lender first m payment of amounts payable to [xnder by Borrower
<br />under paragraph 2 hereof, then [a interest payable on the Note. then to the principal of the Note, and then to interest and
<br />principal on any Future Advances.
<br />4. Chtttgea; Bens. Borrower shall pay all :axes. assessments and other charges, fines and impositions attributable to
<br />the Property which may attain a priority over tots Mortgage. and leasehold payments or ground rents. rf any, in the mancer
<br />prs-ided -under paragraph 2 hereof or, if not paid m such manner, by Borrower making payment. when due. Directly to the
<br />payee thereof. Borrower shall promptty furnish to Lender all notices of amounts due under this paragraph, and in the event
<br />Horrower shall make payment directly, Borrower shall promptly fumtsh 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 />requised to discharge any such lien so long as Burrower shall agree in wasting m the payment of the obligation secured by
<br />such Gen in a mancer acceptable to Lender, or shall in good faith contest such lien by, or Defend enforcement of such Tien :n,
<br />Legal proceedings which operate to prevent tbe enforcement of the hen or fo:ferture of the Propett}• or any pas thereof.
<br />5. Biavard hYrance. Borrower steal: keep [he improvements now existing or hereof*.er erected tin the Property insured
<br />agaimi toss by fire, hazards included within the germ "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 />'Tihe i»suranct carrier providing the insurance shall be chosen by Borrvwzr sulsject to approraE by Lender: provided,
<br />that such approval shall not be uvreasonabty withheld. All premiums on insurance policies shall he paid :n the manner
<br />provided under paragraph 2 hereof ur. if nut paid in such manner, by Borrower making payment, when due, direct}y :o the
<br />irtsurattce cattier.
<br />A}I insurance policies and renewals [hereot shall be in form acceptable to Lender anJ shall include a standarD mortgage
<br />clause in favor of and in form acttptab}e to Lender. Lender shall have the right to hold the polices and renewal. thereof.
<br />and Borrower shall promptly furnish [o Lender all retrewal notices anJ all receipts of paid premiums. In the event of loss.
<br />Borrower shall give prompt notice to rbe insurance cazrier and Lender Lender may make proof of loss if not made promptly
<br />by Borrower
<br />Unless Lender and Bortower otherwise agree in writing, insurance proc:eeJs shall be applied to restoration or repay of
<br />the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage s
<br />not thereby impaireJ. if such restoration or repair is nut economically tensible or iC the secunry of the Mortgage would
<br />be impaired, the insurance proceeds shall be applied w the sums secured by this Mortgage, wash the excess, if any, paid
<br />to Borrower It the Property is abandoned by Borrower, nr it Borrower toils to responD to Lender within 30 days tram the
<br />date notice is mailed by Lender to Borrower that the insurance carrier offers ro settle a claim for insurance benefits. Lender
<br />is authorized to toiltxt and apply the insurance proceeds at Lenders option eiuSer ro restoration or repair of the Property
<br />or to the sums secured by this Mortgage.
<br />Unless Lender and Borrower otherwise agree in writing, cry such application of prxeeds to pnnctpal shall not extend
<br />or postpone the due date of the monthly installments referred to in paragraphs I anD 3 hereof or change the amount of
<br />stuh installments. If under paragraph l8 hereof the Property s acquueD by Lender, all right, title anD interest of Borrower
<br />in and *.a any insurance policies and in and w the proceeds thereof resulting from damage to the Property prior to the sale
<br />or acquisition shalt pass to Lender to the extent of the sums smureD by this Mortgage Immediately prior to wch sale or
<br />acquisition.
<br />6. Pittaervtstioo and M[rinteaaace of Property; Leaseholds; Coudotttiaiatns; Planned Utsit Developments. Borrower
<br />shall keep the Property in good repair and shag not commit waste or permit impairment or deterioration vi the Property
<br />and shall comply with the provisions of any least if this Mortgage a on a leasehold. If this Mortgage is on a unit in a
<br />coadomGrium ur a planned unit development, Burrower shalt pericrm aG of Borrowers nbirgauana under the declaration
<br />or covenants creating or governing the condominium ur planned unu devebpmcnt, this by-laws snD rtgufauons of the
<br />condominium or pL•mced unit development, and constituent Documents If a condominium or planned unit development
<br />rider ]s executed by Borrower and recorded together with this Mortgage, the cmenants and agrmments of such rider
<br />shat) be incorporated imp sad shall amend and supplement the covenants anD agreements of this Mortgage as if the rider
<br />were a part hereof.
<br />7. PrtatecE~a of Laodtr's Sectuity. If Borrower fails to perform the covenants anJ agreements vntained m ems
<br />hfurtaaae. or if anY action or proceeding Is commenced which materially affects Lender's interest in the Property,
<br />ittciuding, but not Eimited to, eminent domain, insolvency, code enforcement, or arrangements or prxee¢ings involving a
<br />bankrupt ai duxdeat, ttun Lender at Lender's option, upon notice ro Burrower. may make such appearances, dishurse such
<br />sums and take such action as is necessary to protect lenders interest, mcluDtng, but not limned ro, disburstmtut o,
<br />reasonable attorney's fees and entry upon Fhe Property to make repairs. It Lender rcyuin:d mortgage insurance a .i
<br />cor[dihon of making the loan secured by this Mortgage. Borrower shall pay the psemtums regwrtd to maintaut such
<br />insurance ir. effu:[ until such tittle as the requirement for such insurance tttmmatts m accordance wish Burrower': uaJ
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