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Home My WebLink About0603 Borrower and Lender covenant and a~re,e as tullows: . 1. Paymeat of Pripcipal aad Intereat~ BoROwer shali pmmptly pay when due the principal of and intereat o~ the indebtednees evidenoed by the Note. prepayment end late charges as provided in the Note. and the principal o[and intere~t on any PLture Advances secu~ed by thia MoTtga~e. 2. Ptiad~ for Tazea and [ruurance. Subject w applicable law or io a written waiver by I.eoder. Borrower ehall pe~y to I.endu on [he dqy a?onthly inrtallments of principal and interest are.payable under the Note. unW the Note ia paid in full. a aum (herein "~1nds") equal tc?ons twelfth of the year~jr taxes and asseasments which may attain priority over thia MortQage. and ground reats on the Property. if any, plus oae- twelRh of yearly ptemiwa tnatallmenta for hazard inaurance, plus onetwelRh of yearly p~emium installmente for mortgage insurance, if any, all as neaonaWy estimated initially and irom time to time by l.ender on the baais oi aasesemente and bills and reasonable eetimates thereof. The fi~nda shall be heW in an iastitution the depoaita ~ aecounts of which ara ineured or guaranteed by a Federal or 3tate ageacy (inclu~ing Lender if Lendar is such an institution). I.eader shall apply the ~nda to pay said taxes; aseesamenta. inaurance premiums and ground rents. Lender mqy not chArge for eo holding and applying the flinds, analyzing said aocount, or verifying and compiling said assesaanents and billa. unlas Leader pays Botrower interest on the Fbnds and applicabk law permits l.ender to make such a charge. Borrower and Leader may sgcea in writing at the time oi e:ecution of this Mortgage that interest on the ~nds ahaU be paid to Borrower, and unleas euah aQreement is made or applicable law requires such interert to be paid. Lender ahall not be required to pay Borrower any intereat or earnings on the ~nds. l.ender ahell give to Bore~ower, withoi~t charge, an annual acootu~ting of the Runds ehowing credits and debits to the I~nda and the purpoee for which ~ch debit to the PLnde wae made. The ~nda are pledged as addi~ional eecurity for the suma eecured by thia Mortgage. ~ ' Itthe a~aount of the I~nds held by Lender, together with the futare monthly instaliments of ~nde payable prior to the due datea of tauces, seeeeameats. insuraace premiums and grouad rente. shall esc~ed the amount required to pay said taxes. aeaeasments, inaurance premiume and ground rents as they fall dne. such excess ahall be. at Borrower e option. either promptly repaid to Borrower or credited to Borrower on monthly iastallmenta of P1~nds. It the amount of the I~l~nds held by Lender ahaU not be euiTicient to pay tauea, assessmenta. inearance premiutns and ground renta as they fall due, Borrower ahall pay to l.ender any amount necessary to make up the defiriency within 30 daye from the date notice ie mailed by Lender to Borrower requeating payment thereot ~ Upon payment in full of al1 sums eecured by this Mortgage, Lender ehall promptly reEund ty`tlofibwee tu?y funds held by Lender. If under paragreph 18 hereof the Property is aold or the Property ie otherwiee acquired by I.~cirry~~~r ~1 apply, no later than immediately prior to the sale of the Property ~ ita soquiaition by Lender, any Funde held by I,endeF at t~ie,~~9f a~c~t~on se a credit against the sama secured by thia Mortgage. - 3. Application of Paymente. Unlesa appliceble law pmvides othe:wibe~.iU p1i~A~l~ ~eived by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender fust in paym~,a~~no~~ayaiiste I.q~Lby $orrowes ander paragraph 2 hereof, then to interest payable on the Note, then to the pirincipal of the ote, and then to intereet and principal on any Future Advancea 4. Charges; Liens. Borrower ahall pay all taxea, asae8aments and other chargea, fines and impositions attributable to the Property which roay attain a priority over thie Mortgage, and leasehold payment8 or gro ~ind renta, if any, in the manner provided under paragraph 2 hereof or; if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnieh to Lender all notices of amounts due under this paragraph. and in the event Borrower shall make paymenk directly. Borrower ahaU promptly furnish to Lender reoeipts evidencing such p~ymenta. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall 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 e manner acceptable to Lender. or ahall in good taith contest such lien by, or defend enforoement of such lien in, legal proceedinga which operate to prevent the enforoement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuranoe. Borrower shall keep the impmvemente now e:isting or heresRer erected on the Property inawed egainat lose by fire, hszarda included within the term "e:tended ooverage," and auch other hazards as Lender may require and in auch amounte and for such periods as Lender may require; pmvided, that Lender ahall not require auch ooverage amount exceeding the minimum, as may berequired by atete or federal regulations goveming activitiea of Lender. or that amount of coverage required to pay the suma secured by thia Mortgage. whichever ia the greater. • • The insurance cs?rrier providing the inaurance ahall be chosen by Borrower subject to approval by Lender; provided, that such approvel shall not be unreasonably withheld_ All premiums on inaurance policies ahali be paid in the manne~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineura~e policies and renewala thereof shall be in form acceptable to Lender and shall include a standard mortgage clauee in favoi of and in forw aoceptable to Lender. Lender shall have the right b hold the poGcies and renewale thereof, and Borrower shall pmmptly furniah to 'I i.ender sA rene~ral noticee and all receipta of paid premiuma. In the event of laes, Borrower shali give prompt notice to the insarance carrier ; ~ and Lender. Lender may make proof of loss if not• made prompUy by Borrower. ~ Unleas•Lender and Borrower otherwiae agree in writing, insurance procc~eds ahall be applied to reatoration or repair of the Property damaged, provided auch reatoration or repair ie economically feaeible and the security of this Mortgage is not thereby impaired. If auch reatoration or repa'v ie not cconomically feasible or if the eecurity of this Mortgege would be impaired, the insurance pmceede ehall be applied ~ to the aume eecared by this Mortgage, with the e:ceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ reapond to Lender within 30 daya from the date aotice is mailed by I.ender to Borrower that the inaurance carrier offers to eettle a claim for ~ ineurance bene5fa, Lender is authorized to collect and apply the insurance proceeda et Lender's option either to reatoration or repair of the ~ Property or the enms eecared by thie Mortgage. ~ ~ ' ° Unlese Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not e:tend or poetpone the due date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property is aoquired by Lender. all right, tide 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 soquiaition shall paea to Lender to the eztent of the auma eecured by thia Mortgage immediately. prior to auch eale or acquiaition. 6. Preeervation aad Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmenta. Borrower shall kerp the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaions of any lease if this Mortgage ie on a leaeehold. If this Mortgage ia on a unit in a oondominiam or a plenned unit development, ~ Borrower ahall pertorm all of Borrower's obligations under the declaration or oovenante creatingor governing the ooadominium or planned i unit developmenf, the by-lawe xnd reg~lationa of the oondominium or planned unit development, and oonatituent documenta. If a : condomininm or planned unit development rider ia ezecuted by Borrower and recorded together with thia Mortgage, the covenante and ~ agreementa of auch rider ehall be inrnrporated into and ahall amend and aupplement the covenanta and agreemente of thie Mortgage aa if the i rider were a part hereof. - 7. Protection of Lender'~ Secnrltp. If Borrower fails to per[orm the ooveaanfa and age~eementa oontained in this MortBage. ar if eny E # ; action or prooeeding is oommeaoed which materially at'fects Lender'a interest in the ProPatY. inclnding, but not limited to. eminent domain. ~ ~ insolvency, oode enforoement, or arrangements or prooeedinge involviag a banlwpt ar deoeden~ then I.ender at Laider's option.npon ~ ~ aotice to Borrower may mal~e snch ap~earanoe~, disbnrse snch anms and take snch actioa a~ u neoessary b protect Lender's interest, ~ indnding~ but aot limited to, disbnrseanent of nawnable attomey's fees and entry npon the Property to make repair~. If Lend~ required ~ mortgage insnrance as a condition of mal~ing tbe loan secured by this Mortgage. Borrower shall pay We preminms required to maintain snch inenrana in egect antil ench time aa the reqnirement for mcb insurance terminates in aooordanoe with Borrower's and Leader's ~ vvriua~ egreemenc or a~ticebk I.e.v. Borrower ahaA vey the amount of all mortgage insuranoe pr~iums in the manna provided nnder ~ paragraph 2 henof. ~ ~ My amount~ diabnned by L.ender persuant to this peragraph 7, with interest thereoa. shall beoome additional indebtedness of Borrower secvred by this Mortgage. Unl~s Borrower and I.ende: agree to other ttrms of payment, ~uch amounts shall be payable upon notice from L.ender to Borrower requeating payment thereof. and rhall bear intereet hom the date of disbnrsement at We rate payable irom time to time on outatending principal nnder the Note anleas payment of interest at auch rate would be oontrary to appUcable law. in which event snch amounta shall bear intereet at the higheat rate permiaeible under applicable law. N~hing contained in this paragraph 7, shall reqaire I.ender to incur any e~cpecue or tal~e any aetion hereunder. ~ - 6001( ~.OD ~ACi ~ ~ ~ ~ . - . ~