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Home My WebLink About0385 Horrower and l.ender covenant and agree as (ollowa: l. Yayment ot Principal end I~tereet. Eiorn~wer ehell promptly pay when due the principal of and interest on lhe i~debtedne~+a evidenced by the Nots, prepaymeot and late charges ae pruvided in the Note, and the principal of and intereat on any F uture Advancee aecund by thia Motrtgage. 2. h~nde [or Tsxee a~d l~BUrence. Subject to upplicuble luw u~ ta a written waiver by I.ender, Borruwrr ~shall pay to 1 xnde~ un the day monthly instultmenta of principal and intereat ure pnyable under the Nnte, until the Note ie paid in full, a aum (hrrein "Funds") equal to one twelfth of the y~arly ttuces and xsaesamenta which may attuin prionty over thia Mortguge, and gn,und rentu on the !'ruperty, if any, plua one twelfth of yearly premium inatallmentei for haznrd inaurance, piue onrtwelRh of yeurly premium inntullmentx for mortgage insurance, if any, all ue reasonably estimatecf initially und from time to tin,e by l.ender on lhe basie of usaea~menta and bi11a und ~e.~?sonuble extimatea thereof. The Flinde ahall be held in an inatitution the depoeite or accounte of which are insured or guaranteed by a Federal or State agency (including l.ender if l.ender ie such en inetitution). I.ender ahaU apply the Funda to pay said taxra, aaseeaments, inaurance premiums and ground rnnte. I.ender may not charge fo~ eo holding and applying the Funda, analyzing said account, or verfying and compiling aaid asaessmenta and billa, unleea Lender peys E3orrower intereet on the F unde and applicable taw permita Lender to make such a charqe. E3orrower and [.ende~ may agree in writing at the time otexecution of thia Mortgage that intereat on the Funda ahali be paid to E3orrower, and unlesa such agreement ia made or applicable law requires such intereet to be peid, l.ender ehall not be required to pay Eiorrower eny intereat or earnings on the Funda. I.ender ahall give to I;orrower, without charge, an a~nual accounting o[the Fu~de showing credita and debite to the Funde and the purpose [or which each debit to the F`unde wue made. The Funds are pledged as additional aecurity for the euma eecured by thie Mortgage. lf the amount of the Funda held by I.ender, together with the future monthly instulimente of Funda payuble prior to the due datea of taxes, aesesamenta, insaranre premiume and ground tenta, shall ezcYed the amount required to pay said tazea, aeseaamenta, insurance premiuma and ground rente ae they fall due, auch ezceae ahall be, at Borrower's uption, either promptly repaid to Horrowe~ or credited w Borrower on monthly inetallmenta of ~nds. If the amount of the E~'unds held by I.ender ehall not be aufficient fo pay txxea, assesamente, inaurance . premiuma and ground rente ae they fall due, Borrower ehall pay to Lender any amount neceaaary to make up the deficiency within 30days from the date notice ia mailed by Lender to Eiorrower requeating payment thereof. Upon payment in full otall enme secured by this Mortgage, I.ender ahall promptly refund to Borrower any [unda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwiae acquired hy [.ender, t.ender ehall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funda held by l.ender at the time of applicatiun as a credit aqainst the aums aecured by thia Mortgage_ 3. Application o! Paymenta. Unleas applicable law pruvidea otherw7ae, all paymenta received~ by Lende~ under the Note and " paragrapha 1 and 2 hereof ahall be applied by Ixnder firs+t in payment of amounta payable to I.ender by E3orrower under paragraph 'l hereof, then to inteceat payable on the Note, then to the principal of the Note, and then to interest and principal an any Future Advancea. 4. Chargea; Liens. I3orrower shall puy all taxes, as.vessments and bther charKes, fines and imlx>sitions attributnble to the Property w•hich may uttain ~ priority over this Mortgage, and le~L~ehoid paymenta ur Knrund rentx, if any, in the manner provided under paragraph'l hereof or, i: not pnid in such manner, by Borrower making payment, when due, dircrtly to the payee thereoC Borrower ahall promptly furnish to l.ender all notices of amountx: due under this pa~agraph, and in the event Borruwer shall make p~yment directly, I3orrvwer ehall promptly furnish tc~ i.ender receip~4 evidencing such payments. &~rrower shall promptly dischargr any lien which has priurity o~•er this Atortgage; provided, that E3orrower ahail not be requircd to discharqe any such lien so lung as Ik~rrower shull aKree in writinK to the payment of the obiiKation secured by such lien in a manner acceptable tu l.ender, or shall in Kuud Caith conteat such lien by, or defend enforcement of such lien in, legal proceedings which opernte to prevent the enforcement of the lien or forfeiture of the Yraperty or .~ny pnrt thereuf. 5. Hazard Insurance. Borrower shall keep the improvementa now existing or hereafter erecte+d on the Property inaured againat loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may requirr and in auch amounte and for such periods as Lender may require; provided, that I.ender shaU not require such coverage amount exceeding the minimum, as may be required by xtate ar federal regulationa governinq adivitiea of I.ender, or that amount of coverage required to pay the suma secured by thia Mortgage, whichever is the greater. ' The insurance carrier providinK the inaurance shall be chusen by Rorrower subject to appro~•~I by I.ender; proKided, that such approeal shall not be unreasonably withheld. Ali premiums on insurance policier, shall be paid in the manner pmeidcrl under paraKraph 'L hereof or, if not paid in such manne~, by Bonower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof shall be in form acceptable W I.ender and ahall include a stalldard mortgage clauae in favor of and in form acceptable to Lender. I.ender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnieh to ' i.ender al) re8ewal notices and all receipta of paid premiume. In the event of losa, E3ornuwer ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of loes if not made ptomptly by Borrower. Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to reatoration or repair of the Property damaged, provided euch reatoration or repair ia economically feasible and the aecurity of this Mortgage ia not thereby impairnd. If auch restoration or repair ia not economically feseible or if the security of this Mortgage would be impaired, the insnrance proceecla ahall be applied to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, o~ if Borrower fails to ~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier offera to aettle a ctaim for inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at I.ender s option either to restoration or repair of the Property or the aume aecured by thie Mortgage. Unlesa Ixnder and Borrower otherwise agree in writing, any such application of procerda to principal ahall not extend or poatpone the due date of the monthly inatallments referred to in paragraphs.l and 2 hereof or change the amount of auch installmenta. If under paragrapb 18 ~ hereof the Property ia acquired by Lender, all right, title and irtterest of Borrower in and to any inaurance policiea and in and to the proceeda thereof reaulting from damage to Property prior to the. sale or acquiaition ahall paas to Lender to the eztent of the aums eecured by this ~ Morlgage immediately prior to auch eale or aequisition. 6. Preeervation and Maintenance otProperty; Leaseholda; Condominums; Planned Unit Developmente. Borrower shall keep the Property in qood repair and shail not commit waste er permit impairment or deterioration of the Ptoperty and aha11 rnmply with the ~ proviaions of any leaee if this Mortgage ia on a leasehold_ If this Mortgage ia on a unit in a condominium or a planned unit deve?opment, F3orrower ehall perform all of i3orrower'a obligations under the declaration or covennnts c•reatinKor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the wvenante and agreements of such rider ahall be incorporated into and shall amend and supplement thecovenanta and aRreementaof this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thie Mortgage, or if any ~ action or prceeeding is commenced which materially aNecte L.ender e intereet in the Property, including, but not limited to, eminent domain, ineolvency, oode enforoement, or arrangemente or proceedinge involving a bankrupt or decedent, then L.ender at Lender'a option,upon ~ notice to Borrower may make euch appearancee, dieburee euch eume and take euch action ea ie neceaeary to protect Lender a interest, ;3 including, but not limited to, diebureement of reaeonable attomey'e feee and endry upon the Property to make repaira. If Lender required _ mortgage insurance as a condition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain ~ sach insurance in eNect until such time as the requirement for euch insurance terminatee in accordance with Borrower'e and I.ender s ~ written agreement or appiicablt Law. Borrower ehall pay the amount of all mortgage ineurence premiume in the manner provided under paragraph 2 hereoG _ Any amounte diebureed by Lender pereuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneea of Borrower eecured by thie Mortgage. Unleas Eiorrower and Lender agree to other terma of payment, auch amounts ehall be payable upon - notice from Lender to Borrower requesting payment thereof, and shali bear intereet from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereat at auch rnte would be contrary to applicable law, in which event euch amounts ehall bear intereat at the higheet rate permieaible under applicable law. Nothing contained in thie paragraph 7, ehaU _;,y require I,ender to incur any expenae or take any action hereunder. ~ BOGK ( FAGE 385 ~ ~ ~ - - . ~ 4...__