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Home My WebLink About0278 r ~ t~~ UxtFOx~[ CovErc~rm. Borrower and l.endcr ~ovena~t and agree aa [ollows: l. Pa~npcat ot Riacipal and latere~t. Borrower shatl promptly pay when due tt~e principal of and interest on the indebtedness evidenced by the Note, prepayment and late charga u pro~•idcct in the IYote, and the principat ot and inter- 3 est on a~y Future Advanca scc?~reci by this biortgage, i i 2. ~Lads [or Taxa aad Iasurance. Subject to applicable law or to a writteo w•aiver by Lender, Borrower shall pay . ; to l.ender on the day monthlr installments o( principal and interest are payable under the Note, until the Note is paid in ~ tull, a sum (hetein "Fundi') equal to one-twelfth o[ the yeatly taxes and auessments which may attain priority ovcr this f :ltongage, and ground rents on the Property, i[ any, plus onatwdith of yea~ly premium instailments for ha~a~d i~~surance, ~ plus one-twel[th ot yta~ly pren~ium instaUments for mortgage insu~ancc. ii any, a!! as reasonably estimated initially and trom ~ time to uane by Lender on the basis o( assesuneuts and bills a~~d reasonablc estimates thereoL ~ The Funds shall be held in an institution the deposits or accounts of which art insured or guaranteed by a Federal or state agency (including Lender it Lender is such an institution). I.ender shall appty the Funds to Pay said taxes, assaunenu, insurance premiums and ground rents. Lencler may not chazge for so holding and applying the Funds, analyzing said aa count, or veritying and compiling said assesunen[s aad bills, unless Lcnder pays Borrower interest o~ the Funds and ap- plic~l~e law permits Lender co make such a char~e. Borrower and Lender may agree in writing at the time o( execution o[ ; this ~tortgage that inter~st on the Funds shatl be paid to Borrower, and unlcss such agree~nent is macle or applicable law requires such interest to be paid, l.euder shall ~iot be required to pay Borrower any interest or earninp,s on the Funds. Lender shall qive to $orrower, without charge, an annual accou~ting of the Funds showing crectiu and debits to the Funds and che purpose (or which each debit to the Funds was made. The Funds are pledgrd as additional securit~~ [or the sums stcured by this 1?tortgage. lf tht amount oE the Funds held by Lender, together with the [uture monthly ins[allments o[ Funds payable prior to the due dates o[ taxes, assessments, insu~ance premiums and ground rents. shall exceed the amount required to pay said 3 taxa, assessments, insurance premiums and ~ound rents as the} fall due, such excess shatl be, at Borrow~er's option, either promptly repaid to $orrower or aeditec! to Borrower on monthly installments of Funds. If [he amounc ot the Funds held by I.ender sha11 not be su[ticient to pay taxes, assessments, insurance premiums and qround rents as they (all due. Borrower ~ shall pay to l.ender any amount necessary to make up the deficienry within 30 days trom the date notice is mailed by Lender to Borrower requesting payment thereoL Upon payment i~ full oE a11 sums secured by this lfortgage. Lender shall prompth• refund to Borrower any Funds held b} Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwisc acquired by l.ender, Lender shall apply. no later than immediately prior to the sale of the Property or ics acquisition b~ I.ender, any Funds held by Lender at the time of application as a credit agains[ the sums secured by this ~tortgage. 3. Applintion of Payments. Untess appticabie law pru~ides otherwise, all pa}ments received by Lender under the Note and paragraphs l and 2 hereof shaU be applied by Lender (irst in payment of amounts pa}able to Lender by Borror~er under paragraph 2 hereof, then to interest pa}•able. on the Note, then to the principal of the Note, and then to interest and t principal on any Future Advances. . 9. Chargex Liens. Borrower shall pay all taxes, assessmentc and other charges, fines and impositions attributable to the Property which may attain a priority o~~er this ifortgage, and leasehold pa~ments or grou~~d rents, iI au~•, in the man- ner pro~•ided under paragraph 2 hereof or, if not paid in such manner, b~• Rorroher making pavment. Nhen due, direc[ly to the pa~ee thereoL $orrower shall promptly turnish to Lender all notices ot amounts due under this paraqraph, and in the event Borrower shall make pa~~ment directly, BormMer shall prompdy furnish to I.ender rrceipts e~•idencing such payments. Borrower shall p~omptiy discharRe an}' licn which has priority ~rer this ~tnrtqap,e: pro~•ided. that Borrower shall not be re- quired to dixharge anp such lien so long as Borroher shall agree in writing to the pa~~ment ot the obligation secured b~ such lien in a man~~er accepeable to Lender, or shall in Rood [aith coneese such lien by, or de(end en(orcement o( such lien in, le- Ral proceedin~{s which operate to pre~•ent the enforcement of the lien or fotfeiture of the P~opert}• or any part thereof. 5. Hazard Inwrance. Borrower shall keep the improvtments now existing or herea(ter etected on the Property in- sured against toss by iire, hatards induded within fhe term~ "extended co~•erap,e", and such other hazards as Lender may re- ; quire and in such amounts and [or such peri«ls as l.ender ma}• require: procided, thae I.ender shall not require that the - amount of such coverage exceed that amount of co~•erage required to pav the ~ums secured by this ~tortp,aRe. The insurance carrier pro~•iding the insurance shalt be ci?osen b~ BorroNer subject to appro.•al bc Lender. proa~eded. that such appro~•al shall not be unreasonabl~• w•ithheld. :~11 premiums on insurance policies shall be paid in the manner pro.•ided under paragraph 2 hereof or. if r.oe paid in such manner, by $orrower makinR pa}'ment. Nhen due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in torm acceptabte to Lender and shall include a standard mort- gage dause in fa.•or o( ar~d in fonn acceptable to Lender. Lender shall ha~r ehe right to hold the policies and renev~als thereoE, and Borrower shall prompel} [urnish to Lender all renewal notices and ali receipts o( paid premiums. In the event of loss. Borrower shall giee prompt notice ta the insurance carrier and Lender. Lender ma~- make proo[ o( lou if not made prompcly by Borrower. ~ . Unless Lender and Borrower otherrcise aqree in Nrieing, insurance prcxeeds shall be applied to restoration or repair oE the Propetty damaged, pro~•ided such restoration or repair is etonomically [easible and the security of this ~iortgage is not theteby impaireci. If such restoration or repair is not economicall} feasible or if the securitr of this \fortgaqe hould be im• paired, ehe insurance proceeds shall be applied to the sums secured b}• this ~tortqage, with the excess, if any, paid to $or- roH•er. If the Property is abandoned by BorroNer, or if Borrower fails to respond to Lender Mithin 30 da~~s from the daee notice is mailed by Lender to Borrower that the insurante carrier otfers to settle a claim for insurance benefiu, Lender is - authorized to collect and aPpl}• the insurance proceeds at I.ender's option eilher to restoration or repair of the Property ot to the sums secured by this \fortqal{e. Unless Lender and Borrower otherwise ay,ree in writing, an~ such application of proceeds to principal shall not extend or postpone the due date of the monthl~ installmenes referred t~. in paraRraphs 1 and 2 hereof or chanpe the amount of such inatallments. If under paraqraph 18 hereof the Property is acquired b~- Lender, a11 riRht. title and interest of Botrowet in and to any insurance policies and in anc! to the proceeds thereof resulting trom damage to the Property prior to the sale or acyuisi[ion shall pass to I.ender co the extent o( che sums secured bv ehis ~tortqaRe immediately prior to such sale or acquisition. ~ 6. Preaervation and :lfaintenance of Propertv; I.easeholds; Condominiums; PYahnecl Unit Devclopments. Borrower st~all keep the Property in Rood repair and ~hatl not commit waste or permit impairmenc or deterioration of the Property and sha11 comply w•ith the pro~•isiot~s of any lease if this ~Iorry{age is on a leasehold. If this ~IortRaRe is on a unit in a condominium or a planned unit de~•elopment, Borrower shall per(orm all of BorroMer=s obliqations under the declaration or tovenants creating ot governing the condominium or planned unit decelopment, the by-laws and regulations of the condo- minium or planned unit de~•elopment, and constituent documerits. If a condominium or planned unit de.~elopment rider is ezecuted by $orrow•er and retorded toRether vrith this \fortgage, the covenants and agreements of such rider shall be in- corporated into and shall amend and supplement the covenants and aqreements of this ~fortgage as i( the rider Mere a pan hereof. 7. Protection of Lender's Seairity. If $ortower fails to Perform the co~•enants and agreements contained in . this ~fortgage, or if any action or proceedinR is commenced which materialty affects Lender's interest in the Property, influding, f but not limited to, eminent domain, insol~•ency, tode entorcement, or arranqemen.s or proceedings im•ol~~inq a bankrupt or decedent, then Lendet at Lender's oPtion, upon notite to RorroMer, mav make such appearances, disburse such sums and take such action as is necessary~ to protect l.ender's interext, indudinR, but not limited to, disbursement o[ reasonable ~ attorney's fees and entry upon the Propertc to make repairs. If Lender required mort~age insurance is a condition oE making the loan secured by this ;1lortgage, RorroMer shall pay the premiums required to maintain such insurance in ef- fect until such time as the reyuitement for such insnrarste terminates in accordance with Borrower's and i.endtr's written ~ ~~cK 284 PACE 2? S ~ -