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Home My WebLink About0601 f;urruwer and I.ender covenant and agrre ~ fulluw9: 1. Yayment ot Principal and Intereet. I3oROwe~ ahall prompdp pay whrn due the principal uf nnd interest on the i~debta~clnene evidenced by the Note. prepayment and Iste charges as prc~vided in the Note, and the principul of und intemet on any F uture Advances aecured by thie Mortgage. 2: Funde tor Tsxes and Ineurance. Subject tu epplic~ble lavr ar lo a written waiver by Ixndrr, liuROwer ehi?11 puy to I.endrr un the day monthly inatallmenta of principal a~d intereat are payable under the Note, until the Nute ie pi?id in full, u aum Iherein "M unda") eyual to one twelRh of the yearly taxra and aeae~mr~ta which may attain priurity over thia Mortgage, und ground renta un the Property, if nny, plue une twelRh of yearly premium inatallmenta [or htuard inaurn~ce, plus onrtwelfth ofyet~rly pmmium inetaUmenta for murtgaKe innurance, if nny, all as maaonably eatimated initiaUy and from ti~ne to time by I.ender on lhe bxaia ot nase~xmenta i~nd bills and re~u3unable extimates thereol. The fl~nds nhall be held in an institution the deposita or accounte of which are i~eured or Ecuaranteed by a Federal or State agency (inrluding l.ender if l.ender ia auct~ an inetitution). I.ender ehall apply the F unde to pay suid taxee, nasessmenta, ineurance premiums and ~ound rente. Irnder may not charge for so holding and applying the ~nda, analyzing said account, or verifying and compiling said asaeaemente and bilis, unless I.ender paye E3orrower interest on the Funds and applicable law permits l.ender to makeauch a charge. E3orruwer and [.ender may agree in writing at the time of execution of this Mortgage that interest on the F~tnda shall be pxid to Borrower, and unleae euch agreeme~t ie made or applicable law requiree auch intereat to be paid, l.ender ahall not be required to pay Borrower any inlereet or earninge on the Ftinde. I.ender ahall give to Borrower, without charge, an unnual accounting o[ the Funds ahowing credits and debita to the Funde and the purpoae for which each debit to the F unda wns made. The F unda are pledged as additional aecurity for the aume secured by this Mortgage. If lhe amount of the Funda held by I.ender, together with the future monthly inatallmenta of Funda payable prior to the duedates of taxee, assesaments, insurance premiums and ground mnts, ehall exc~evi the amount required to pay said taxea, asaesamente, inaurance premiunia and ground rents aa they fall due, such excesa ahall be, at Eiorrower'a option. eilher promptly repaid to Aorrower or creditrd to I3orrower on monthly inetallmente of ~unde. If the amount of the Funda held by I.ender ehall not be sufficient to pay taxee, asseasments, insurance prnmiums and ground rents ae they fall due, Borrower ahall pay to l.ender any amount necesaary to make up the deficiency within 30 daye from the date notice is mailed by l.ender t~ Horruwer requeating pnyment thereof. ~ Upon payment in full of all eums secured by thie Mortgage, l.ender ahall promptly refund to E;orrower any funda held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, l.ender sh~ll apply, no later than immediately prior to the eale of the P[opetty or its acquisition by [.ender, aoy F~nda held by I.ender at the time of application as a credit againal the sume secured by this Mortgage. 3. Applisation ot Paymenta. Unlesa applicable law providea otherwiee, ali payments received by Lender under the Note und paragrapha i and 2 hereof shall be applied by l.ender first in payment of ~mounts payable to I.ender by E3orrov?er under paragraph 2 hereot, then to interest payabie on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. ~ 4. Charges: Liena. Borrower shall pay all tnxrs, aaseasmenls and other chargex, fines and impusitiuns attributable to the I'roperiy which may attaio a priority over thia Mortgnge, and leusehoki pay ments or gmund ren~g, i f~~ny , in the manner providecl under paragruph'l herrof or, if not p~id in such manner, b~ l3orrower making payment, when due, directly to the pnyee thereof. Bormwer shnil prumptly furnish to I xnder ail notices of amounta due under this paraRraph, and in the event E3~rrower shall make pa~•ment directly, Borrower shall promptly furnish to l,ender receipts evidencing such p~ymenta. E3orrower shall promptly dischnrgr any lien which has priority over this Mortgnge; pro~ ided, that &?rrower shali not be required to diacharge any such lien so long as f~rruwer shall agree in wriling to the payment of the ubligation secured by such lien in a manner acceptable to l.ender, or shall in Kood taith rnntesteuch lien by, ~udefend enforce~nent of such lien in, ic~al pro~reciings which operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part thermf. 5. Hezerd Ineurance. Borrower shall keep the improverrtPnts now existing or hemafter erected un the I'roperty insured against loss by fire, hazarda included within the term "extended coverage," and ~uch other hazards-se Lender may require and in such amounts and forauch periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by atate or federal mgulations governing aMivities of l.ender, or that amount of coverage required to pay the eums secured by this hlortgage, whichever is the grnater. The insurance carrier providing the inaurance shall be chosrn by E3orroW er aubject to appro~•al bp I.ender; provided, that such approval ehall not be unreasonably ovithheld. All premiums on insur~nce policies shall be paid in the manner pru~•idcd under paraKraph 'l herrof or, if not paid in such manner, by i3orrower makinR payment, when due, directly G? the insurance carrier. Alt inaurance policiea and mnewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of I and in form acceptableto I.ender. I.ender ahall have the right to hold the policies and renewala thereof, and E3orrower ahall promptly furnish to i i.ender all renewal noticee and all receipta of paid premiuma. In the event of losa. Borruwer ahall give prompt notice to the insurance carrier j and Lender. I.ender may make proof of losa if not made promptly by Borrower. i Unless l.ender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired. If such reetoration or repair is not economically feaeible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the suma secured by this Mortgage, with the e=cesa, if any, paid to Borrowe~. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daye from the date notice ia mailed by I.ender to Borrower that the inaurance carrier offers to setde a claim for ~ inaurance benefite, Lender is authorized to rnllect and apply the inaurance proceede at Lender's option either to reatoration or cepair of the Fropetty or the sume secured by this Mortgage_ Unlesa Lender and Borrower otherwise agr~ee in writing, any such application otproceeds to prinripal ahall not extend or poatpone the due date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 1$ hereof the Property ia acquired by l.ender, all right, title and interest of Borrower in and !o any ineurance policiea and in and to the proceeds thereof reaulting ftom damage to Property prior to the sale or acquiaition ahall pase to Lender to the extent of the suma secured by this Mortgage immediately prior to auch eale or acquiaition. ~ - 6. Preeervation and Maintenence of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrower 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 pmvisiona of any lease if this Mortgage ie on a leasehold. If thie Mortgage is on a unit in e condominium or u planned unit development, E3orrower ahall pertorm all of Borrower 8 obligationa under the declaration or covenanta crratinKor governing the condominium or planned unit development, the by-laws and regulatione of the condominium or planr~ed unit development, and conatituent documenta. If a condominium or planned unit development rider ia executed by Borrower and recorded togelher with this Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement the co~ enanta and agreements otthis Mortgage as if the ~ rider were a part hereof. ~ Protection of Lender's 3ecurity. If Borrovrer faile to perform the covenanta and agreemente contained in thie Mortgage, or if eny ~ action or proceeding ie commenced which materia]ly affecte Lendei e intereet in the Property, including, but not limited to, eminent domain, insolvenry, aode enforcement, or arrangemente or proceedinga involving a banlwpt or deoedent, then Lender at Lender'a option,upon notice to Borrower may make euch appearanoes, diaburse auch aume and take euch action as ie neceesary to protect Lender's interest, 3 including, but not limited to, disbureement of reasonable attorney e feee and entry upon the Property to make repaira. If I.ender required mortgage insurance ae a condition of making the loan eecured by thia Mortgage, Borrower ahaU pay the premiums required to maintain ~ auch inaurance in effect until euch time ae the requimment.for auch ineurance terminatea in accordance with Borrower'e and [,enders ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under i paragraph 2 hereof. ~ My amounta diebursed by Lender perauant to thia paragraph wilh intetest thereon, ehall become additional indebtednees of ~ Aorrower eecured by thie Mortgage. Unlees Bosower and Lender agree to other terma of payment, auch amounta ehall be payable npon ~ _ notice from Lender to Borrower requeating payment thereof, and ehall bear intereaf fmm the date of diBbursement et the rate payable from ~ time to time on outetanding principal under the Note unleea payment of interest at such rate would be contrary to applicable law, in which j event such amounte shall bear intereet at the highest rate permiesible under applicable law. Nothing contained in thia paragraph 7, shall require I.ender to incur any expenae or take any action hereunder. ~ ~ . ~ go~K 297 598 ~ ~ ~ ~ - ~ _ _ , _ . _ _ _ _ , : ~ s-,~~~:~