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Home My WebLink About0260 Borrower and l~ender co~enaat and agree as [ollowe: 1. Payment ot Principal and Intereet. E3orrower ehnll pn~mpQy pay when due the principal of and intereat un the indebtedness evidenced by the Note, pmpaymentand iate chargea as provided in the Note, and the principal of and intereat on any FutureAdvanceasecured by thia Mortgage. 2. F~tnde fot Ta~tea and Ineurance. Subject to applicable li~w or to a writ?rn waiver by l.ender, liorn?wer ahall puy to I.ender un the day monthly inataUments of pri~cipal and interest are payable under the Note, untit the Note is pnid in full, a sum (herein "F unds") equal to one~ twetfth of the yearty tnxea and assexements which may attain priority over this Mortgage, ~nd ground rents on the Property, if uny, ptus onP twelfth of yearly premium inatallmenta for hxzurci ineurunce, plus onc~twelfth of yearly premium insta~ll~nents fur mortguge inaurance, if any, all aa reaeonably eatimated initially and from time to titne by l.ender on the bxais of asseasmentx und bills and reasonable eatimntes thereof. The ~?nde ahall be held i~ an inatitution the depoaite or accounta of which are insumd or guarnnteed by a Federa! or State ugeecy . (including I.ender it l.endet ie auch an institution). l.ender shal! apply the,Funda to pay esid ta:es, asaeaxments, inaurt+nce premiuma and ground renta. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling axid asaessmente and bills, unlesa l.ender paye Borrowe~ intereat on the Funds and applicable law permita I.ender to make euch a charge_ E3orrower and Lender may agree in writing at the time of execution of thia Mortgage that interest on the Funds shall be paid to Borrower, and unlesa euch agreement is made or applicable law requirea auch intereat to be paid, Lender shall not be required to pay E3orrower any intereat or earnings on the FLnde. I.ender shall give to Borrower, without charge, att annual accounting of the Funda ehowing credits and debits to the Funds and the purpoae for w~ich each debit to the Funds wax made. The Funda are ptedged as additionai security lorthe sums secured by thie Mortgage. If the amount of the ~Lnda held by Lender, together with the future monthly inetallmenta of Funds payable prior to the due dates of taxes, asseasmenfs, inaurance premiume and ground rents, ahall excred the amount required to pay said taaes, asseasmenls, insurance premiums and ground rents as they fall due, auch exceas ahall be, at Borrower's option, either promptly tepaid to Borrower or credited to Borrower on monthly installments of F~nde. If the amount of the Funda held by Lender ehall not be sufficient to pay taxes, asseaementa, insumnce premiuma and gtound renta ae they fall due. Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days firom the date notice ia mailed by [.ender to Borrower requesting payment thereof. Upon payment in fuit of all auma secured by this Mortgage, Lender ahall ~romptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is sold or the Y'roperty is otherwise acquired by Ixnder, Lender ahal) apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Ftinda held b> lxnder at the time of application as a credit against the aums s;ecured by this Mortgage_ 3. Application of Paymente. Unlese applicable law providea otherwise, all paymenta received by I.ender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of amounta payable to l.ender by Borrower under paragraph 2 hereof, then to interest payabfe on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liena. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and Ies~sehold payments orgmund rents, if any, in themanner pruvided under paragraph 2 hereof or, if not paid in such manner, by $orrower makinR payment, when due, directly to the payee thereoL Borrowershall promptly furnish to I.ender all notices of amounta due under this paragraph, and in the event I3orrower shali m:~ke payment directly, Borrower shaii promptly fumish to [.ender receipEs evidencing such paymente. I3orrower shaU promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge nny surh lien so lonR as Borrower shali ngree in writing to the payment of the obligation secured by such lien ~n a manner acceptable to Lender, or shaU in Q«d faith conlest such lien by, ordefend enforcement of such lien in, legal proceeciings which operate to prevent the enforcement of the lien or forfeiture of the I'mperty or any part thereof. 5. Hazard Inaurat~ce. Borrower shall keep the improvementa now existing or hereafter erected on the Property inaured againat loss by fire, hazards included within the term "extended coverage; ' and auch other hazards as I.ender may requirn and in auch amounts and for such periods as L.ender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, aa may be required by state or federal regnlations governing activitiea of Lender, or that amount of cove~age required to pay the sams secured by this Mortgage, ' wh~hever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to appro~•al bv I.ender; pmvided, that such approval ' , , . • - • .s.,. shall not be unreasonablv w~thhela. Au prem~ums on ~nsuruucr ~x~ii«rz. ~~~a:: :T -T-- ~ •-r^-•?a~ •~^a~- ~~-~~-R •uiiu~ii'a ......a~: b...o..fnr :f . r~.~ not paid in such manner, by E3orrower making payment, when due, directly to the in~urance carrier. Al) insurance policiea and renewals thereof ahall be in form acceptable to Lenderand shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Botrower shall prompdy furnish to i.ender all rnnewal notices and all receipts of paid premiums. In the event of loss, Sorrvwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unleas Lender and Borrower otherwise agtee in writing, insurance proceeds shall be applied to mstoration or repair of the Property ; damaged, provided such restoration or rnpair ie economically feasible and the security of this Mortqage is not thereby impaired. If auch ; reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insarance proceeds ahall beapplied to the eums aecured by this Mortgage, wiih the excesa, if any, paid to Borrower, lf the Property is abandoned by Borrower, or if Borrower fails to ' reapond to I,ender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier of~ers to settle a claim for insurance benefita, Lender is authori2ed to collect and apply the insurance proceeda at I.ender's option either to restoration or repair of the r Property or the auma secured by this Fiiortgage. ~ . Unless Lender and Borrower otherwiae aAree in writing, any such application of proceedsto principal ahall not extend or postpone thedue ; uate of the monthly installments referred to in para~apha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Pioperty ia acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the sums secured by this s Mortgage immediately prior to such sale or acquisition. f 6. Preaervation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower shall keep ? the Property in good repair and ahatl not commit waste or permit impairment or deterioration pf the Property and ahall comply with the ~ provisions of any lease if this Mortgage ia on a leaeehold. If this Atortgage ia on a unit in a rnndominium or a planned unit development, ~ Borrower shall perform all of $orrowei s obligations under the declaration or covenants creatinQor governing the condominium or planned ; unit development, the by-laws and regulationa of the condominium or planned unit deveiopment, and constituent documenta. It a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and - 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 Lender'e 3ecurity. If Borrower faits to perform the covenante and agreemente contained in this Mortgage, or if any _ action or proceeding ie commenced which materially affecte Lender'a intereat in the Property, including, but not limited to, eminent domain, insolvency, oode entorcement, or arrangementa or proceedinga involving a benkrnpt or decedent, then I.ender at I.ender's option,upon notice to Borrower may make such appearances, dieburee euch eiuns and take euch action as ie neceesary to protect Lender's intereat, - inclading, but not limited to, dieburaement of reseon~ble attorney's feee and entry upon the Property to make repaire. If Lender required mortgage ineurance aa a condition of mal~ing the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain euch insurance in effect until euch time aa the requirement for such inaurence terminatea in accordance with $orrower e and Lender'e written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. My amounte diebursed by Lender pereuant to thia paragraph 7, with intereet thereon, ahall become additional indebtedneee of Borrower eecured by thie Mortgage. Unlese Borrower and L.ender agree to other terms of payment, such amounte ehall be payable upon _ notice from Lender to Borrower re~queating payment theteof, and ehall bear interest from the date of diabursement at the rate payable from ; time to time on outetanding principal under the Note unlese payment of interest at such rate would be contrary to applicable law, in which ` event euch amounta shall bear intereet at the highest rate permieaible under applicable law. Nothing contained in this paragraph 7, shall ; uire Lender to incur an e: ~ ~9 y penee or take any action hereunder. : ~ aco~ 2g6 ~~c~ 2~ ;