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Home My WebLink About0740 ~ i . . . . Borrower and Leadet covenant and aQrrs as foUows: - 1. Payment of Peiacipal aad l~teres~ Borrower ahaU promptly pay when due the principal of and interest on the indebtednees evidenoed by the Note, ptepsyment and late chargee aa provided it~ the Note. and the ptincipal of aad interest on any fi~ture Advancea secured by thu Mortga~a. 2. ~adi for T~ceo and laauranve. 3ubject to applicable law or to a writte~ waivet by i.ender, Borrower ehall pay to l.ender on the dqyr monthly installments of principal and intereat are payable under the Note, uaW the Note ie paid in tiitl, a eum (herein "Funda") equal to one tweltth of the yeariy taxes and asseaeme~te which may attain priority over thie Mortgage, and ground renta on 1he Property, if any, plua one twelRh of yearly premium inataltments for hazard inaurance, plus onetwelRh of yearly ptemium inatallmenta for mortgage insurance, if any. all as reasonably estimated initially and firom time to time by I.ender on the baais o! aeeeeaments and billa aad rnasonable estimatea thereoL The Phnda shall be heW in an iaatitution the deposita or acoour~ts of which are i~sured or guaranteed by s Federal or State agency (including Lender if Lencler is auch an institu6on). I,end~ ahaU epply the PLnds to pay said tases, asaessmenta. insurance premiuana and ground nnb. Leinder may aot chsrge for w holding and applying the PLnds, analyzing eaid account, or verifying and compiling said asseeameata and bilis. unless Lender pays 8ortower intereet on the Ftinda and applicabte taw pemuta I,ender b muke such a charge. Bo:rower and [.ender may agree in wrriting at the time of execution of this Mortgage that interest on the ~nda ahall be paid to Borrowes. and unleaa euch agreement ia made or applicable law reqaires such intereat to be paid. Lender shall not be required to pay Borrowet any interest or earnings on the ~nds. I.ender ahaU give to Horrower, without charge, an annual acoounting of the I~nde showing credits and debite to the Funds and the purpose for which each debit to the I~nds wae made. The Funde are pledged aa additional eecurity for the sums eerurod by thie Mottgage. . • If the amount of the P1~ads held by Lender, tagether with the future awnthly instaltments of F~nds payableprior to the due dates of taxea, aeseeamenta, inauranoe premiums and ground rents, shall exc~red the amount required to pay said taxen, asseeaments, inaurance premiuma ~ and ground renta as they fall due. such esase shaU be, at Borrower'a optioa. either pmmpdy repaid to Borrower or credited to Borrowe~ on monthly installments ot FLada. If the amount o! the I~nds held by Lender ahall not be aufficient to pay tauea, asseaemente, it~aurance premiums and ground rents as they fall due, Borrower ahall pay to Lender any amount necesaary to make up the deficiency within 30 days from the date notice is mailed by l.euder b Borrower requesting payment ihereof. Upon paytnent in full of atl sums secured by this Mortgage. Lender ehall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property ia otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the aale of the Property or its aoquiaition by I.ender. any F~nds held by Lender at the time of application ea a credit against the sums secured by this Mortgage, 3. Appikatioa of PeyQients. Udlesa applicable law pmvidea otherwiee, all paymenta received ~y I.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firaL in payment of amounts payabie to i.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note. and then to intereat and principal on any Future Advancea. 4. C6arges; Liens. Borrower ehell pay aIl ta~ces. aesessments and othercharges. fines and impoeitions attributable to the Property which may attsin a priority over Lhia Mortgage, and leasehold paymente orground rente, if any, in themanner provided under paragraph 2 hereofor, if not paid in auch manner, by Borrower making paymenL~ when due, directly to the payee thereof. Borrower shaU pmmptly fumish to Lender all notices of amounts due under this paragraph, and inthe event Borrower ahall make payment directly, Borrower ahall promptly furnish to I.ender receipts evidencing auch paymenfs. Borrower shall promptly discharge any lien whieh has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by . } such lien in a manner acceptable to l.ender, or ahall in good faith rnntest such lien by. or defend enforcrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shel) keep the improvemente now exiating or bereafter erected on the Property inaeued against loss by fir~, hazarda included within the term "r~teaded coverage," and anch other hazards as Lender may require and in auch amounts and for auch periods as Lendez may require; pmvided, that Lender shall not require $uch wverage amo~u?t exceeding the minimum, aa may be requited by state or federal regulationa governing aetivities of Lender. or that amount of ooverage required to pay the aums eecured by this Mortgage, whichever is the greater. The insuranae carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval $ shall not be unreasonably withheld. All premiums on insursnce policies ahall be paid in the mannec provided under paragraph 2 hereof or, if ~ not sid in auch manner, Borrower makin ~ s P bY g payment, when due, directly to the insurance carrier, ~ All inaurance policiea and renewals thereof ehall be in form acceptable to I.ender and ahall include a standard mortgage clause in favor of ; and in form aooeptable to Lender. I.ender shall have the right to hold the policies and renewals thereof, and Borrower ahall prompdy furniah to F i,ender all renewal notices aad all receipta of paid premiume. In the event of loes, Borrower shali give prompt notice to the inaurance carrier ~ and Lender. Lendtr may mal~e proof ot loss if noi made promptly by Borrower._ Unleas I.ender and Bonower otherwiee agree in writing, inaurance proceeds.shall be applied to reatoration or repair of the Property damaged, provided euch reatoretion or repair ia economicaUy feasible and the aecurity of this Mortgage ie not thernby impairetl. If auch reetoratioa or repair ie not economically feasibie or.if the security of this Mortgage would be impaired, the ineuranceproceeds ahall be applied to the sums aee~u+ed by tl~ie Mortgage, with the e:ceas, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to reapond to Lender wiWin 30 days from the date notice is mailed by Lender to Borrowei that the inaurance carrier otiers to eetUe a claim for ~ inewance benefite, Lender is anthorized to cQlleet and apply the insurance proceeda at I.ender's option eit}?er to reatoration or repair of the ; Property or the awms eecured by thia Mortgage. ~ . : Unless Lender end Borrower otherwise agtee in writing, any such application of proceeds to principal ahall not e:tend or poatpone the due ; date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. ff under paragraph 18 hereof the Property ie aoquired by Lender, all right, titie and intereet of Borrower in and to any insurance poGcies and in and to the proce~eds t thereof reaulting from damage to Pmp~ty prior to the aale or aoquiaition shall paea to Lender to the e:tent of the s~une aecured by this ; Mortgage immediately prior to auch aak or aoquiaition. 6. Preservatlon and Maintenance of Property; Leaseholds; Condomiaums; Planned Unit Developmente. Borrower ahali keep ; the Property in good repair and shall aot commit waete or permit impairment or deterioration of the Property and ahall comply with the ~ pmvisions of any lease if thie Mortgage is on a leaaehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower's obligationa under the declaration or rnvenant8 creatingor governing the condominiwn or plenned ~ unit development, the by-lawe and regulations of the condominium or planned nnit development, and constitnent dceuments. If a condominium or planned unit development rider is e:ec~ited by Bonower and recorded together with thia Mortgage, the oovenante and ; agreements of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreemente of thia Mortgage as if the rider were a part hereof. r Protection of I.e~er's Securit3r..If Borrower fails to perform the aovenants and agreements contained in thie Mortgege. or if any achon or proceeding is comcnenoed which materially affecta I.ender's intetest in the Property, including, bnt not limited to, rminent domain, insolvency, oode enforoem~i, or arrangements or procxedings involving a banlQUpt or deoedent, then Lender at I.ender'e option,upon notioe to Borrower may maice such eppearences. diabnree anch sums end take such action as ia neoeseary to protect Leadez's interest, inclnding, but not limited to, disbu~neat of reasonable attorney's fees end entry upon the Property to maice repaira. If Lendar reqaired mortgege insnrance as a oonditioa of mal~ing the loan secured by this Mortgege, Borrow~ ahaU pay the pnmiums required to maintain ` snch fnsnraaoe in effect nntil such time as the requirement for snch inanrance terminatea in aooordance with Borrowds and I.endei'e ` writt~n egrcement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the mennet provided under paragraPh 2 hereof. ' ; Any amonnts diabnrsed by Lender persuant to this paragraph 7, wiih interest thereon, ehaq beoome additioaal indebtednees of ~ Bo~rowe: secured by this Mortgage. Unless Borrowez and I.ender agree to other terms of paymeat, snch amounta shall be payable upon ~ notioe from Lendez to Borrower requeating payment thereof, aad ehail bear interest from the date otdiabuseement at the rate payable from ~ time to time on ontstanding principal under the Note nnlesa ~ayment of interest st auch rate would be contrary b applicable law, in which eveat anch amoants ehall bear intcrest at the higheet rate permiseible nnder applicable lavr. Nothing contained in thia paragraph 7. ahall reqnire Leader to incur any eupense or take any action hereunder. 4 ` . V~/ll~~~V ~ ~ ~ ~ • . ' ~ ~ ~ ~Y`'.~"~_'~ _ G...'. , _ . . _ ' ' ' ~ ~M~ .,v. N'%~_ ~ ~~r_~