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Home My WebLink About0207 Rnrrower and l.ender covenant and aRrn+ aa followp_ 1. Payment ot Princlpal and intereet. Borrower ahall prompdy pay when due the principal of and intereet on the indebtednexa evider?ced by the Note, prepayment and late chargea ae provided in the Nute, and the principal of and intereet on any Fl~ture Advances secured by this Mortgage. 2~unds for Teucee and Insurance. Subject to applicable law ~ to a written waiver by t.ender, Borrower sha11 pt?y to l.enderon the day monthly inatallmenfa of principal and interest are payable under the Note, until the Note ia paid in full, a aum (herein "Funda.'7 equal to one twelRh of the yeariy tanes ar~d assesaments which may attain priority uver this Mortgage, and ~oand renta on the Property, if any, plua one twelfth of yearly premium instnllments for hnzard ineura~ce, plus on~twelRh ofyearly premium installmrnta for mortgage inaurance, if any, all as reasonably estimated initially and from time to time by l.ender o~ the basie of naseasmenta und billa and reaaonnble eatimatea thereoL The ~nda dhall be hrld in an inatiluliun the dr~itu u~ artvunNr uf which arr iuaur~at ur guareuitrrcl by a Fcrlrrul or Slale agrncy (including I.ender if I.ender ie euch an inetitution). Lender ahalt apply the Funda to pay said taxee, assesemente, inaurance premiums and ground tenta. L.ender may not charge for eo holding and applying the Flinds, analyzing said account, or verifying and compiling eaid aeee8amente and bills, unleae I.ender peya Borrower i~tereat on the ~nda and applicable law permits I.ender to make such a charge. Borrower and l.ender may agree in writing at !he time of e:ecution of thia Mortgage thet intereet on the ~unde ahall be paid to Borcower, and unleaa auch agreement is made or applicable law requirea such intereet to be paid. Lender ehall not be requind to pay Borrower any inLereat or earninga on the F~nds. l.ender shall give to Borrower, without charge, an annual accaunting of the Funda ahowing credits and debita to the Funds and ihe purpoee for which each debit to the Funde was made. The Funda are pledged as additiona! eecurity for the sume secured by this Mortgage. If the amount of the ~nda held by Lender, together with the future monthly inetalimente of Funda payable prior to the due datea of taxee. asseasmenta, inaurance premiums and ground renf$, ehall excYed the amount required to pay said ta:es, asaeasmente, inaurance premiume and ground rents aa they fail due. auch e:cees shall be, at Borrower'a option, either prompdy rnpaid to Borrower or credited to Borrower on monthly installmente of i~nda. V the amount of the Funde held by I.ender ahall not be eufficient to pay taxes, aeaeasments, i~aurance premiums and ground renta ea they fall due, Borrower ahall pay to L.ender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in fuU of all auma secured by ihie Mortgage, Lender ahall pmmptly retund to Borrower any funda held by l.ender. lf under ~ paragraph 18 hereof the Property ie sold or the Property ie otherwiee acquired by Lender, l.ender ahall apply, no later than immediately prior to the sale of the Property or ite acqaisition by L.ender, any fi~nds held by [.ender at the time of application as a credit e?gainst the sume eecured by thie Mortgage. 3. Application of Paymente. Unless applicable law provides otherwiae, al! payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounte payable 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 Advances. 4. Charges; Liena. Borrowerahall pay all taxes, assessmenta and otherchargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrawer shall prompdy furnish to I.ender all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Botrower ahall promptly fumish to [.ender receipts evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shatl in good faith contest such lien by, orde[end entorcement af such lien in, legal proc~eedings which operate to prevent the enfotcement of Lhe lien or forfeiture of the Property or any part thereof. 5. Hazard Iasurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured against lose by fire. hazarde included within the term "extended coverage," and ~uch other hazards as Lender may require and in such amounts and for such periods as L.endet may require; provided, that Lender shall not requirn such cbverage amount exceeding the minimum, ae may be required by atate or federal regulationa governing activitiee of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever is the greater. The insurance carrier ~roviding the insurance shall be chosen by E3orrower subject to approval by Ixnder, provided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies shali be paid in the manncr pro~•ided under paragraph Z hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insura~ce carrier. ~ All inaurance policiea and rnnewala thereof ahall be in form acceptable to I.ender and shal! include a standard mortgage clanse in favor of i and in form acceptable to I,ender. Lendes shall have the right to hotd the policiea and renewals thereof, and E3orrower ahall promptly furnish to ~ i.endet all renewal noticea and all receipta of paid premiume. In the event of loea, Bormwer ahall give prompt notice to the insurance carrier and I~nder. Lender may make proof of loes if not made promptly by Borrower. ~ Unlea~a Lender and Borrower otherwise agree in writing, inaurance proceeda ahall be applied to restoration or rnpair of the Property # damaged, provided euch restoration or repair ia economically feasible and the eecurity o[ this Mortgage ia not thereby impaired. If such ! restoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied t to the suma secured by this Mortqage. with the exceas, if any, paid to Borrower. I f the Propedy ie abandoned by Borrower. or if Borrower fails to ~ reepond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ ineurance benefita; Lender is authorized to collect and apply the insurance proceeds at Lender s option either to reetoration or cepair of the ~ Property or the sume eecnred by thia Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poetpone thedue € date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda ~ thereof rnaulting from damage to Property prior to the sale or acquieition shall pasa to Lender to the extent of the suma eecured by this ~ Mortgage immediately prior to such sale or soqnis~tion. ~ 6. Preeervation and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahall not commit waBte or permit impairment or deterioration of the Property and ahall rnmply with the ~ proviaions of any leaee if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, v Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatingor govemin~ the condominium or planned ~ unit development; the by-Iaws and regulatione of the condominium or planned unit development, and constituent documenta. If a~ ' condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenente and ~ ments of such rider shall be inco agree rporated into and shall amend and supplement the covenants and agreements of this Mortgage ae if the rider were a part hereof. ~ Protection of Lender's 3ecarity. If Borrower faile to perform the oovenante and agreementa cantained in this Mortgage, or if any action or proceeding ie commenced which matezielly affecta Lender e intereet in the Property, including, but not limited to. eminent domein, ineolvency. oode e~forcement, or arrangements or proceedinge involving a bankrupt or deoedent, then Lender at Lender's option,upon notice to Borrower may malice auch appearances. dieburse euch aums aad take such action as is neoeaeary to protect Lender's interes~ inclnding, but not limited to, diebursement of reaeonable attorney's feee and entry upon the Property to maice repairs. If I.enda required 3 w8ais3g8 Se~iT871C8 as S Cf3uiii'ai~0i1 8i ra'idiiTig u~2 ivaii eia:~iTca'~ j3j~ ~iI6 i,1'v~~2. B~rr~~er shal! pay the pr~miuir.s r~uired to ma;nis:n ; such insurance in effect untii such time aa the reqnirement for auch ina~uance terminatee in aooordance with Borrower's and Lendei s wtitten agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiuma in the manner provided under ~ paragraph 2 hereof. . ~ My amounts die~jureed by Lender pereuant to thie paragraph 7, with interest thereon. ahaU beoome additional indebted'nese of _ " Borrower secured by this Mortgage. Unleae Borrower and I.ender agree to other terme of payment, such amounte ehall be peyable upoa ~ notice from L.ender b Borrower requesting payment thereof, and ahall bes: intereet from the date of disbureement at the rate payable trom time to time on outetanding principal under the Note anlees payment of intereet at euch rate would be oontrary to applicable law, in which event such emounta ehali bear intereet at the higheat rate permiseible under appiicable lew. Nothing rnntained in this paragraph 7, ahall ; require Lender to incur any expenee or take any action hereunder. ~ ~ ~ ~ ; ~ - _ . BOOK FAGE 207 . 4 ~ _ ~ ~ _ ~ ` y ~~~'~_..-~e~,-:e.=~:t,~~r,.-~:~'~z~.~~.s.h.....a