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Home My WebLink About0240 ~ . ~ i ; UNtpoRM CovErreNrs. 8orrowe~ and Lender covenanl and agree as follows: ~ 1. Py'111tq~ Of P/'IIMI~) illd ~Alt!!~. Borrower shall promptly pay when due the principal of and interest on the ~ indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest f on any Future Advances securcd by this Mortgage. ~ ~ Z. Faeds tor Taxa aad In~uraace. $ubject to applicabla law or to a written waiver by l.ender. Borrower shali pay to Le~der on thc day monthly inualtments of prirtcipa! and interest arc payable under the Note. until the Note is paid in (ull. s sum (herein "Funds") oqual to onatwelfth of the yearly taxes and assessments which may Attain priority over this Mortgage. and ground nrtts on the Propehy. if any. plus ono-tweltth ot yea~ly premium installments for hazard insurance. plus oae-twelfth of yeatly premium in~taltments [or mortgage insu~ance. if any. all as reasonably estimaled initialiy and from , Nme to time by I.ender on the basis of assessments and bilfs and rcasonable estimates thereof. "Ilie Fu~ds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Fedenl o~r state agency (including Lender if Le~der is such an institution). 1_ender shall appty the Fu~ds to pay said taxes. sssessmeats. insuranc~ prcmiums and g~ouad rents. Leoder may not charge tor so holding and applying the Funds, analyzing said acrnunt. or verefying and compiGng said assessments and bills, unless Lender pays Borrower interest on thc Funds and applicable law permits Lender to make such a charge. Borrawer and l.ender may agree in writing at the time of cxecution oi this Mortgage t6at i~terest on ths Funds shall be paid to Borrower, and unless such agreement is made or applicable law requira such interest to be paid. Lender shalt rtot be required to pay Borrower any interest or earaings on the Funds. Lender shall giv~ to Borrower, v?itheut charge, an annual aceounting of the Funds showing credits a~d debits to the Funds and the purpose for whie;h each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by tbis Mortgage. . If the amount of the Fundt held by Lender, together with the futurc monthly i~staUments of Funds payable prior to the due dates of taxes; assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. assessments. insurance pretniums and ground rents as they fall due, such excess shall be, at Bonower s option, eiiher promptly rcpaisl to Borrower w credited to Borrower on monthly installments of Funds. lf the amount of the Funds held by.Lender shal! not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amouM ~ecessary to make up the deficiency within 30 days from the date notice is maited by I.ender to Borrower requesting payment thereof. ~ ' Upon payment in fult of a11 sums aecured by this Mortgage, l.ender shall promptly refupd to Borrower any Funds held by I.ender. If under paragraph 18 he~reof the Property is sold or the Propeny is otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any fiunds held by I.eader at the time of application as a credit against the sums secured by this Mortgage. 3. Applicatioa of Paymeots. Unless applicable law provides olherwise, all payments received by Lender under the Note and parag~aphs 1 and 2 hereof shall be applicd by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to ~nterest payable on ihe Note, then to the principal of the Note, and then to i~terest and principal on any Future Advances. . . 4. CharEes; Ek~. Borrower shatt pay ali taxes. assessmcnts and other charges,'fines and impositions attributable to the Pro~rt~ x-hi~t~ ac~32it ~~fl4il~I OYCi 1~15 M4r1~~~@, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. wi~eo due, directiy to t~ payoe the[+eof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrowcr shall Qromptljr fumish to Lender receipts evidencing such payments. Borrower sha!! promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be requited 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 shal! in good faith contest such lien by, or defend enforcement of such lie~ in, iegal proceedings which operate to prevent the enforcement flf the lien or forfeiture of the Property or any part thereof. S. Hazard Inserance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the tern? "extended coverage". and such other hazards as [.ender may require and in such amounts and for such periods as. Lender may require; provided, that Leqder sha11 not require that the amount af such coverage exceed that amount of coverage required to pay the sums secured by this _Mortgage. "!Le insurante carrier providing the it?surance shall be chosen by Borrower subject to approva! by Lender. provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner _ provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment. when due, directly to the insurance carrier. Al) insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morigage clause in favor of and in form acceptable to l.ender. Lender shall have the right to hold t6e policies and renewals thereof, and Borrower shall promptly furnish to I.ender aIl renewal notices and alt receipts of paid premiums. In the event of loss, 8orrawer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy ~by Borrower. . Unless Lender and Borrower otherwise agree in writing, insurance proceeds s6atl be applied to restoration or repair of the Property damaged, provided soch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the• sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date twtice is mailed by L.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benents, I.ender is auihorized to collect and apply the insurance proceeds at Lender's oplion eithet to restoration or repair of the Property or to the sums secured by this Mortgage_ Unless Lender and Borrower otherwise agree in writing, any such application of prceeeds to principal shall not extend or pastpone the due date of the monthly installmcrtts referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shali pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Pr~cervaiioa and ,lfainfenance of Property; Leascholds; Condominiums; Planned Unit Developments. Borrower r ce shall 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 4lortgage is on a ieasehold. !f this Mortgage is on a unit in a condoininium or a ptanned unit developmertt, Borrower shall perform all of Borrower s obligations under the declaration or covtnants creating or governing the condom~nium or planned unit development, the by-laws and regulations of the ~ condominium or planoed unit development, and constituent documents. lf a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covena~ts and agretmenis of such rider ; shall be incorporated into and shal! arneod and .supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. f 7. Protection of Lender's Securitj~. If Borrower fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced which materially aRects Lender's interest in ihe Property. ; ~ including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ baakrupt or decedent, ther :xnder at L,ender s option, upon notice to Borrower. may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but oot limited to, disbursement of r~asonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insuraace as a ~ coadition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such ensurance terminates~ in acxordancx with Borrower's and ` ~ ' 288 239 ~ s E ~ . - - - _ _ _ ~ _ _ - - - _ _ m_e _ _