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Home My WebLink About0856 ? . ~ ~ Borrowec and Lender covenant and agree ae followa: 1. Payment ot Principal and Intereet. Borrower ehall pmmptly pay when due the principul of ~nd intereet on the indebtednexs evidenced by the Note, prnpayment ~nd latecharges aa provided in the Note, a~d 1he principal of a~d inteceat o~ any Future Advancee aecured by thia Mortgage. 2. ~tr?de for T~es and laeurance. Subject to npplicable law or to a written waiver by I.ender, Borro~ver shull pay to I.ender on the day monthly.inatallments of principal and intereet are payable under the Note, until the Note is paid in fu11, a sum therei~ "hunda") equai to onr twelfth of the yearly tuxea and asaea~mrnts which muy attain priority over thie Mortgage, und qround rents on the Pruperty, if any, plua one twelRh otyearly premium instal!ntenta for huzard insurance, plus unetwelfth ufyearly premium instullmenta for mortg:+ge insurt~nce, if any, all as masonably estimated initially and from time to tirne by [.ender on the basis of i~xsesaments t~nd bills a~nd reitsonable ralimates thereof. 'l~e Fl~nda shall be held in an inetitution the depoeits or accounta of which. are inaured or guaranteed by a Federal or State agency (including Lender if Lende~ is auch an institution). l.ender ahall apply the Funda to pay aaid taxea, aeaessmenta, inaurance premiuma and ground rents. l.eader m~yr not charge for eo holding and applying the Funds, analyzing said account, or verifying nnd compiling said aasesaments and bills, unleas l,ender paya Borrower interest on the ~nda and applicable law permits [.ender to make such a charEte. I3~rrower and l.ender mey agree in writing at the time of execution of this lllortgage that interest on the Funda ehaU be paid w Borrower, and unless auch agreement ia made or applicable law require8 such interest to be paid, l.end~r ehall not be required to pay Borrower any intereat or earninga on the ~Lnda. l.ender shal) give to Borrower, without charge, an nnnual accounting of the Funds ahowing credi~ and debite~ to the Funda and the pu~poee for which each debit to the Funds was made. The F unds are pledged as additional security for the euma secured by this Mortgage. " If fhe amount otthe ~nda held by I.ender, fogether with the future monthly instalimenta of Funda payable prior to the duedatea of taxea, asaesamenta, insurance premiuma and ground rents, ahall excrecf the amount required to pay said taxes, assesaments, insurance premiums and ground rents as they fall due, such e:ceas ahall be, at Bo~TOwer's option, either prompUy repaid to &;rrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by I.ender ahall not be sufficient to pay taxea, asseasments, i~surance ~ pre~niuma and ground rents as they fall due, Borrower ahall pay to I.ender any amount necesaary to make up the deficiency within 30 days from the date notice is mailed by Lender k? ~3orrower requesting payment thereof. Upon payment in full of all aums secured by thie Mortgage, Lender she~ll promptly rnfund to Iiorrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita acquisition by Ixnder, any Fundsheld by Lenderat the time of application as a credit against thesums secured by thia Mortgage_ ~ 3. Application ot Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by [.ender first in payment otamounta payable to I~ender by BorroMer under paragraph 2 hereof, then to intereat payable on the Note, then to fhe principal of the Note, and then W interest and principal on any Future Advances. a. Chargea; Liens. Iiorrowershall pay nll taxes, assessments and other~:narQes, fines nnd impositions attributable to the Property which may attain a priority overthis Mortgage, and leasehold payments or Kround rents, if any, in the mnnner provided under pnragr#~ph 2 hereof or, if not paid in such manner, by Ronower making payment, wheii due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under thia paragraph, and in the event E3orrower shall make payment directly, Borrowershall promptly furnish to l,ender receipts evidencing such payments. I3orrower shall promptly discharge any lien which has priority o~•er this Atortgage; pro~•ided, that E3orrower shal) not be required to discharge any such lien so long as E3~rruwer shall agree in writing to the pa~•ment of theobliK:~tion secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement ot the lien or forfeitum of the Property or any part thereot 5. Hazard Ineurance. Borrower shail keep the improvements now existing or hereafter erected on the Propertp insured against loas by fire, hazarda included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by state or federal regulations goveming acti~-ities of I.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greateT. • The insurance carrier providing the insurance Fhall be chosen b~• I3orrower subject to approval hy Ixnder; provided, that such approval shall not be unreasonably withheld. All premiums <~n insurance polic~es shall be paid in the manner pmvided under par.~Kraph 'l heret~f or, if ~ot paid in such manner, by E3orrower m:iking payment, w•hen due, direcdy to the insurance camer. ~ All inaurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgage clause in favor of ! and in form accepts?ble to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Borruwer shaU give prompt notice to the insurance carrier and Lender. T.ender may make proof of loss if not made pmmptly by Borrower. ~ Unless Lender and BorrowFr otherwise agree in writ:ng, insurunce proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair ia economicaily leasible and the security of this btortgage ia not thereby impaired. If such ~ restoration or mpair is not economically feaaible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums eecured by this Mortgage, with the ezceas, if any, paid to Borrower. If the Property is abandoned by BorroK er, or if Borrow er faila to f respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for : insurance benefits, Lender is authorized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair of the ~ Property or the aums secured by this Mortgage. ? Unleas Lender and Borrower otherwise agree in writing, any such application of pra~eeds to principal ahall uot extend or postporne the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch installments. If under paragapfi 18 ? hereof the Property ia acquired by Lender, all right, tiNe and interest of E3orrower in pnd to any insurance policies and in and to the proceeds ~ thereof reeulting from damage to Property prior to the sale or acquiaition shall pass to Lender to the extent of the eums aecured by this ~ ivlortgage immediately prior to such sale or aoquiaition. ¢ 6_ Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep - the Property in Rood repair and ahu11 not comm:t waste or permit impairment or deterioration of the Property and shall comply with the . provisions of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ;A Borrower ehali perform all of Borrowei s obligationa under the declaration or covenants creatingor goveming the condominium or planned unit development, the by-laws and regulationa of the condominium or planneci unit development, and conatituent documents. If a ' rnndominium or planned unit development rider ia executed by Bonower and recorded together with thia Mortgage, the oovenanta and ~ agreements of surh rider shall be incorporated into and ahatl amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Prote~tion of Lender's 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in this Mortgage, or if any _ action or proceeding ie rnmmenced which materially affecte Lender a intereat in the Property, including, but not limited to, eminent domain, _ ineolvency, aode enforcement, or anangemente or proceedings involving a dankrupt or decedent, then Lender at Lender's option,upon : notice to Borrower may malce euch appearancee, dieburee auch sume and take auch action as ie necesaary to protect Lender's intereet, including, but not limited to, dieburaement of reaeonable attorney'e tees and entry upon the Property to meke repaire. If Lender required :s mortgage insurance ae a condikion of making the loan secured by thia Mortgege, Borrower ahf?11 pay the premiums required to maintain such ineurance in effect until euch time as the requirement for such inaurance terminates in accordence with Borrower e and I.endei a > written agreement or applicable Law. Borrower ehall Rsy the amount of all mortgage inaurance premiume in the menner pmvided under 4 paragraPh 2 hereof. My amounte diebureed by Lender perauant to thie paragraph 7, with interest thereon, ehall become additional indebtednesa of Borrower eecured by this Mortgage. Unlese Borrower and Lender agree to other terma of payment, auch amounta ehall be payable upon notice from L.ender to Borrower requeating payment thereof, and ahall bear intereet from the date of diabureement at the rate payable from time to time on outetanding ptincipal under the Note nnlees payment ot intereet at such rate would be contrary to applic~ble law, in which i event such amounte shall bear intereet at the highest rate permisaible under applicable Iaw. Nuthing contained in thie paragraph 7, shal! ~ uire Lender to incur an e: { ~4 y pense or take any action hereunder. °y~~K ~4 rACC ~55 . 4 . . . . _ --_ss_-_. -~~~_-t . .f ......"_~a~~_~~ _ _ . . 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