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Home My WebLink About0291 ilt`IFORIt CoveH~xTS. Borrower and I.ender covenant and agrec as fotlows: 1. Papmeat oE Priatipa! and Iatereit. Borro~ver shail pramptly pay when due the principa) o[ and int~rest on tht indebtedness evidenced br the Note, preparnent and lue charges as provided in the Note, and the principal oE and inter- est o~ any Future Advanca securcd by this Nlortgage. 2~Lads for Ta~ca and Inwcance. Subject to applicable law ot to a writt~n waiver by I.ender. Bortower shall pay to Lender on the day monthly instalime~es ot pri~cipal and interest are paYable under the Note, until th~ lVote .is paid in iull. a sum (herein "Funds'~ equai to one-twelf~h oI the yearly taxcs and asussments which may attain priority o~•er this Atortgage, and ground renu on the Property, if any, plus one-tweltth o[ yearly premium installmen~s tor ha:ard insurance. plus onatwelEth ot ytarly preroium insallments [or mortgage insurance. iE any, all as reasonably cstimated initially and itom time to time by I.e~der on the basis o( assessments and bills and reasonable estimates chercnf. The Funds shall be hetd in an institution the deposits or aaou~ts of whith are i~~sured or guaranteed by a Federal or state agency (intluding Lender iE Lender is such a~ institution). Lender shall apply the Funds to pay said taxes, assesunenu. inwrance premiums and ground rents. Lender may not thatge for so holding and applying th~ Funds, analyzing said ac- count, or reriEying and compiling said assessments and bilts. untess Lender pays Borrower intetest on the Fuads and ap~ plicable !aw Permiu Lender to make such a charge. Eorrower and Lender may agree in writing at the time o[ execution ot thic Atoregage that intera[ on the Funds shall be paid to Borrower, and unless such agreement is made or applicable larv requires such interest to be paid. I.ender shall not be required to pay $otrower any interest or earnings on the Funds. Lender shali give to Borrower, ~rithout charge, a~ annuai actounting oi the Funds showing crediu and debits to ehe Funds and tht purpose [or whith eath debet to the Funds was made. The Funds are pledged as additional security for the sums secured b} this Mortgagt If the amount oE tht Funds held by Lender, together with the Euture monthly installmenu o[ punds payable prior to th~ due dates of taxes, assessments, insurance premiums and gmund rents, shal! acceeii the amount required to pay said taxes. assessments, insunnce r*emiums and ground te~ts u they (all due. such excess shall be, at Borrowers option, either pmmptly repaid to $ortower or credi~ed to Borrower on monthly installments o[ Fundx. If the amount of the Funds held by L.ender shall not be suffici~nt to pay taxes. assessments. insurance premiums and ground rents as they fall due. Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requating paytnent thereoE. Upon payment in fuli oE all sums secuted by this Mortgage, Lender shall promptly refund to $orrower any Funds held by Lender. IE under paragraph 18 hereof the Property is sold or the Property is otherwix acquirect by Lender, Lender shall apply, nq later than immediately prior to the sale of the Property or iu acquisition by l.ender, an~ Funds held by Lender at the time oE application as a ctedit against the sums secured by this \tortgage. 3. Application oE Pa~nnents. Unless applicable law provides otherwise, all payments recei~ed by Lender under the Note and paragnphs 1 and 2 hereo( shail be applied by T.ender iint in payment of amounts payable to Lender by Borrower under paragraph 2 hereot, then to interest payable on the Note, then to the principa! oE the Note, and then to interest and ptincipal on any Future Advances. 4. Charge~ Liens, $orrower shall pay all taxes, assessments and other charges, fines and impositions attributable to ; the Property which may attain a priorit} over this \tortgage, and leasehold paymen[s or ground rencs, if any, in the man- ' ner pro~•ided under paragraph 2 hereof or, it not paid in such manner. b} Borror.er making payment, when due, directly ta the pa~~ee theteof. Borrower shalt prompclr turnish to I.ender all notices of amounu due under this paragraph, and in the evEnt $orrower shal! make payment directlp, Borrower shall promptly furnish to L.ender receipts evidencing such pa}ments. Bonower shall promptly discharqe any lien which has priority orer this \tortgap,e: pro~ided, that Borrower shaU not be ra quired to discharge any such lien so lo~~g as Borrower shall agree in writing to the payment o[ the obtigation secured bf• such iien in a mauner acceptable to Lender, or shall in gcxx! faith coritest such lien by, or defend enformment o! such lien in, le- Ra! proceedings which operate to prevent the enforcement of ~the lien or [orfeiture oi the Propeny or anr part thereof. 5. Huard Inwrance. Borrower shall keep the imptovemencs now existing or hereafter etected on the Property in- sured against loss by [ire, hazards included within the term "extended co~~erap,e", and such other hazards as l.ender may re- quite and in such amounts and for such periods as L.ender may rcyuire: provided, that Lender sha11 not require that the amount oi such coverage exceed that amount of corerage tequired to pay the sums secured bp this ~tortgage. The insurance carrier pro~iding the insurante shall be chosen by Borrower subject to appro~•al b}' Lender: provided, that such appro~~al shall not be unreasonably Mithheld. :~11 premiums on insurance policies shall be paid in ehe manner provided under pangraph 2 hereof or, if not paid in such manner, by Borrower makinq pa}~ment, when due, directlp to the insurance carritt. Al! insurance policies and renewals thereof shall be in torm acceptable to Lender at~d shall include a standard mort- gage clause in [a~or of and in form acceptable to Lender. Lender shall hace the right to hold the policies and renevrats thtteof, and Borrower shatl promptl~ furnish to L.ender all rene~cal notices and all receipts of paid ~remiums. ]n the e~ent of loss. Borrowet shall give prompt notice to the insurance carrier and Lender. Lender may make proof oE loss i[ not inade promptly by Borrower. Unless Lender and Borrowet otherwise a~ree in writinq, insutance proceeds shall be applied to restoration or tepair ot _ the Propetty damaged, provided such restoration or rrpair is economica~ly feasible and the seturity of this ~lortgage is not thereby impaired. I~ such restoration or repair is not economically teasible or if the securit} of this ~[ortqage would be im- paired, the insurance proceeds shall be appiied to tlie sums xcured by ehis ~tortp,age, wieh the excess, i[ an}, paid to Bor- rower. If the Property is abandoned by Borrower, or if BorroMer fails co respond to Lender within 30 da}s from the date notice is mailed by Lender to Borro~ver chat the insurance tarrier offers to settle a claim tor insurance benefits, I.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this ~iongage. Unless Lender and Borrower othenvise aqree in writing, any such appiication of proceeds to principal shall not extend or postpone the due date of the monthly installments refened to in paraRraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all ripht, title and interest oE Borrowet in and to any insurance policies and in and to the prcxeeds thereo[ resulting from damage to ehe Property prior to the sale or acyuisition shall pass to I.ender to ehe extent of [he sums SfNfCd ~V this ~iortRage immediately prior to such sale or acquisition. 6. Frcterration and Maintenatece oE Property; Leaseholds; Condominiums; Planned Unit Devdopments. Borrower st~all keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the ProPerty and shall comply with the provisions of any lease if this ~tortqage is on a leasehold. If this ~tortqaqe is on a unit in a condominium or a planned unic deceiopment, Borrower shall perform all o( Borroker's obligations under the dedaration or covenants creating or governing the condominium or planned unit developmeot, the by-laws and regulations oE the condo- minium or planned unit decelopment, and constituent documet~ts. if a condominium or planned unit development rider is executed by $onower and recorded eogether M ith this Zfortgage, the covenants and agreements o( such rider shall be in- - corporated into and shalt amend and supplement the covenants and agreements o( this liortgaqe as if the rider Nere a pan hereoE. 7. Protection of Lender's Smirity. If Borrower fails to per(otm the covenants and aqreements contained in this 1liottgage, or it an~ action or proceeciing is commenced which materially aftects Lender's interest in the Property, including, but not limited to, eminent domain, insoh•ency, code entorcement, or arrangements or proceedings incolving a bankrupt or decedent, then I.ender at Lender's option, upon notia to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect I.ender's is?tere~t, induding, but not limieed to, disbursement of reasonable attorne}'s tees and entry upon the Property to make repairs. It I.ender required mortRage insurance as a condition of making ehe loan secured by this ~tortgaqe, Borrower shatl pa~ the premiums required to maintain such insurance in ef- fecc until such time as the requirement (or such insurance terminates in accordance with Borrower's and Lender's written h«rf ~~ln[L. ~.'7 Dlrr 3