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Home My WebLink About0146 t3ur~wer und Lende~ covenant and u~ee us [ollowa: 1. Peyment ot Principal end I~terest. E3orruwer ehall pmmptly pny when due the prinripxl of and intereat on the indrbtednrss evidenced by the Note, prnpttyment and late chargea ns pruvided in the Nute, nnd the pri~cipal of and intereat on nny Fliture Ad~•nncea secured by this Mortgage. 2. F~und[+ for Ta~tea end Ioaurt?nce. Subject to applicnble Inw or k? n writ/en wuiver by Ixnder, Fiorruwer shal! puy to l.ender on the day monthly inatallmenta of principal and intereat are puynble under the Note, until the Note ia paid in full, a sum Ihrrein "Funda") eyu:~l to un~ twelfth of the pr~rly taxes nnd nssessmenta which mt~y ntinin priority o~~er this Mortgage, nnd gruund rents on the Yropcrty, if nny, plua unP twelRh of yearly pmmiwn inatallmenls for iit~2ard insurance, plus onPtwelfth afyearly premium insit~llmrnts fur morlguge insuri~nce, if nny, all as reasonubly eatimated initinlly and from time to time by l.ender on the bs?sis of ~eeisments and bills a?nd reasunnblr estimutc~ thereof. The ~nda shal) be held in an inetitution the deposits or eccounta of which ure inaured or guaranteed by n Federal or State agency (including Lender if I.ender ia such an institution). l.ender ahull apply the F unda to pay said taxes, axssessments, insurance premiums end ground rente. l.ender may not charge for eo holding and applying the Funde, analyzing suid aci~ount, or verifying nnd compiling said asaessmenta and bills, unless I.ender pays E3orrower.interest on lhe Funds nnd applicable law permits Lender to make auch a ch~rge. E3~rrower and Lender may agree in writing at the time of execution of this Murtguge that intereat on the Funda shall be paid to E3orrower, and unlesa such agreement ie made or applicable law requires such interest to be paid, I.ender shall not be required to pay Borrower any interest or earninga on the I~~nde. Lender shall gi~ e to Borrower, without cherge, an unnual accounting of the N unda showing credits and debits tu the Funds and the purpose for which each debit to the E~linds ws~s made. The F unda are pledged as additional aecurity Cor the sums aecured by this Mortgage. ICthe amount otthe Funda held by l.ender, together w~th the future monthly instaliments of F unda pnyable prior to the duedatess of taxes, assessmenta, inaurance prnmiuma and grQUnd rents, ahall excred the amount re~uired to pay said taxes, asseasments, insurance premiums and ground renta as they fall due, auch exceas shall be, at Bo~TOwer's option, either promptly reFaid to [3orrower or credited to Borrower on monthly inatallmente of F~nds. If the amount of the Funda held by I.ender shall not be sufficient to pay tnxea, assessmenta, insurance pretniums and gtound renta aa they fall due, Borrower shall pay tu Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Bonower reqursting payment thereot. Upon payment in full of all aums secured by thia Morigage, Lender shall promptly refund to Borroveer any funds held by I.ender. If under paragraph 18 hereof the ~'roperty is sold or the Hroperty ~s otherv?~se acau~red by [.ender, I.ender shall apply, no later than immrdiately prior to the sale of the Property or its acquisition by I.ender, any Funds held b~• I.ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Peymente. Unless applicable law pro~~des otherwise, all payments recei~-ed by l.ender under the Notr and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of emounta payable to l.ender by Borroveer under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on nny Future Advances. 4_ Chargess; Liena. Borrower shall pay ali taxes, assessmenLs and other charges, finrs and im}wsitions attributable to the Property which m~y attain a priority over this 111ortgage, and leaschold payments or ground rnncra, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Rorrower making pa~•ment, when due, directly to the payee thereof. BorroK•er shall promptl~~ furnish to l.ender all notices of amounts due under this p:~ragraph, and in the event RorroW er shall m~ike payment directly. Iiorn~H er shall promptly furnish tn [.ender receipts evidencing such paytnents_ F~rrower shall pn~mptly discharge any lien w•hich has priority over this Mortgage; provided, that Borrower sha11 not be required to discharKe any such lien so long as Rorn~w•er shall aKree in writing to the payment of theobliRation secured by such lien in a manner acceptable to Ixnder, or shxll in gooci faith cti?ntest such lien i~y, or defend enfonrment uf such lien~h, lc~al proceedings ..~hich operate to prevent the enforceinent of the lien or forfeiture of the Pro~x rty or am• part thercuf. 5. Hazerd Inaurance. E3orrower shall keep the improvements now existing or hemafter erecteci on the Property insured ugainst loss by fire, hazards included within the term "extended coverage," and ~uch olher hazards as Lender may require and in such amounts and for such periods as I.ender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by State or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this 111ortgage, whichever is the greater. The insurance camer pro~•iding the insurance shall be chusen by Rorrower suhject to appruval b~• I,ender; pmvided, that such appro~~al i ,hall not be unreasunably withheld. All pmmiums on in~uran~r pulicies shall be paid in the m.inner pru~~id~d under partlKraph 'l hen~?f or, if i nut paid in auch manner, by Burrower makinK payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgageclause in favor of ~ and in form accepiable to Lender. I.ender sha11 have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to l ?.ender all rer.ewal noticea and all receipts of paid premiums. In the event of losa, Borrower shall give prompt notice to the insurance carrier ~ and Lender_ I.ender may make proof of toas if not made pmmptly by Borrower. ; Unleas Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied tu restoration or repair of the F'roperty € damaged, provided such restoration or repair is economically feasible and the security of this blortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the sums secured by this Mortgage, with the excess, if any, paid to E3orrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 days from the date notice is mailed by I.ender to E3orrower that the insurance tamer ofTers to settle a claim for inaurance benefita, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either to restnration or repair of the Property or the sums secured by this Mortgage. = lJnlesa Lender and Bonower otherwise agree in writing, any such application of proceeds to principal sha11 not extend or postpone thedue z date of the monthly installments referred k? in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of E3orrower in and to any insurance policies and in and to the proceeda . thereof reaulting from damage to Property prior to the sale or acqwsition shall pass to I.ender to the extent of the sums aecured by this ~ itortgage immediately prior to such aale or aoquisition. ~ 6. Preservation and MaintenanceofProperty; Leaseholds;Condominuma; Planned Unit Develapments. Borrowershall keep s3 the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shal) comply with the provisiona of any leaae if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit deeelopment, F3onower shall perform all of Borrower's obligations under the declarafion or covenants creatinKor governing the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the co~enants and y~ agreements of such rider shall be incorporated into and Shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. _ 7. Protection of I.ender'e 3ecurity. If Borrower faila to perform the oovenants and agreements rnntained in this Mortgage, or if any action or proceeding ie commenoed which materially affecte Lender'a interest in the Property, including, but not limited to, eminent domain. - ineolvency, aode eniorcement, or arrangemenis or proceedinge invoiving a oanirupi or deculrnt, then i.e~,~er ~t I.cr,uc~'e uNtiun,uF,u~i - notice to Burrower may make auch appearancea, diaburee euch aume and take auch aMion ae ie neceasary to protect Lender'e intereet, v,~i including, but not limited to, diebureement of reaeonable attorney'e fees and entry upon the Property to make repaire. If Lender required mortgage ineurance aa a condition of making the loan secured by thie Mortgage, Borrower ahall pay the premiume required to maintain = such inearance in effect until such time as the requirement for auch inaurance terminates in accordance with Boreower'a and Lender e written egreement or applicable Law. Borrower ahal) pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. - My amounta diebureed by Lender pereuant to this paragraph 7, with intereat thereon, ehall become additional indebtednesa of ~ti Borrower eecured by this Mortgage. Unlees Borrower and Lender agree W other terma of payment, auch amounte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ehall bear intereat from the date of diabursement at the rate payable from `;:.Y time to time on outetanding principal under the Note unlese payment of interent at such rate would be contrary to applicable law, in which =Y~ event auch amounte eha11 bear interest at the higheet rate permisaible ander applicable Iaw. Nothing contained in thie paragraph 7, ehall require .Lender to incur any expense or take any action hereunder. F=~ Un k ~U = ~~~K ~~~:146