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Home My WebLink About0230 . Borrower and Lender covenant and a~ree a~ follows: ' 1. Peyme~t of ~hrincipal and Intere~t. Borrowe~ ahall promptly pay when due the principal of and intereet on the indebtedneeie evidenced by the Note, prepayment and laeecharges as provided in the Note, and the principal otand interest on any fi~ture Advancee eecured by ehiu Mortga~e. 2. F~nd~ for Tue~ and insuraace. Subject to appliceble law or b a written waive~ by Lender, Borrower ahall pay to l.endec on the day monthly instaqmente of principal and interest are payable under the Note, until the Note ie paid in full, a eum (herein "Funde") equal to one twelfth of the year~jr t~ea and assessments which may attain priority over this Mortgage, and ground renta on the Pn?peirty, if any, plue one twelfth of yearly premium installmente [or hazard insurance, plus onetwelfth ofyearly premium inatallmenta [or morlgageineurance, if any, all as reasonably eatimated i~itially and trom time to time by I.ender on the ba~eis of aesessments and billa and reasonable eetimates thereot. The I~Lnds ahall be held in eu~ inditution the depoaits or aocounts of which are insured or guaranteed by a Federal or Slate agency (including [.end~ if Lender is such an inatitution). Lender shall apply the Funds to pay said taxee, aseesements, inaurance premiwns and ground rents. Le~der may not charge for eo holding and epglying the fi~nda, analyaing aeid account, or veritying end romgiling said , aasessments and billa, unleas I.ender pays Borrower interest on the ~nds and appiicuble law permits Lender to make such a charge. Borrowes and I.ender may agree in writing at the time of e:ecution of this Mortgege that interest on the ~Lnds ahall be pa.id to Borrawer. and unlees euch agrcemeat is made or applicable law requires auch intereat to be paid, I.ender shall not be required to pay Borrower any intereat or earaings on the fl~nda. Lende: ahall give to Borrower, without charge, an annual accounting oi the Funda showing credite and debita to the ~nds and the purpoae for which each debit to the Funds was made. The I?unde are pledged as additional eecurity for the auma secured by this Mortgage. If the amount of the FLnds held by Lender, together with the future monthly inslallmenta of Funde payable prior to the due datea of taxea, sesessmenfa. ineurance premiums and ground rents, ahall exa~ed the amount required to pay esid taxea, aesesamenta. insurance ptemiums and ground rente ae they fall due, such exo~e ahall be. at Bonower'e option. either pmmpdy repaid to Borrower or crPdited to Borrower on monthly instaUmeAts of fi~nda. lf the amount of the Funds held by I.ender shall not be aufficient to pay tazea. seaessmenta. insurance preminms and ground rents as they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all sume secured by thia Mortgage, Lender ehall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ie eold or the Property ie otherwiae acquired by Lender, L.ender ahall apply, no Iater than immediately prior to the sale of the Property or ifa acquiaition by I.ender, any FLnda held by I.ender at the time of application as a credit againe! the aums eecured by this Mortgage. 3. Application of Payments. Unleas applicable law providea otherwiee. all paymenta reoeived by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof then to intereat payable on the Note. then to the principal of the Note, and then to intereet and principal on any Future Advancea. Cha~~~a; I.iene. Bor-rn~vree a~~ii pay all taaes, assessmenta anu iei c.ergea, fines and impos:tions uttributable tolhe Property which may attain a priority over this Mortgage, and leasehold paymente or ground rents, i[any, in the manner pruvided under paragraph 2 hereof or, if not paid in auch manner, by E3orrower making payment, when d~e 8irecily to the payee thereof. ~orrower shall promptly furnish to l.ender all noticea of amounts due under thia paragraph, and in the event Borrower ehall make payment directly, Borrower shall promptly furnish to Lender reoeipts evidencing such paymenta_ Borrower shall 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 ahall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to L.ender, or shall in good faith conteat such lien by, or defend e~forcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forteiture of the Property or any part thereof. 5. Hazard Insurance. Bormwer shall keep the improvemente now existing or hereafter erected on the Property insured againat loas by fire, hazarde included within the term "eztended coverage, ' and auch other hazards as I.ender may require and in euch amounts and for auch pezioda ea Lender may require; provided, that Lender ahall not require auch ooverage amount e:ceeding the minimum, as may be required by atate or federal regulatione governing activitiee of Lender, or that amonnt of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance ahall be chosen by Borrower aubject to approval by I.ender, pmvided, that such approval shall not be unreasonably withheld. All pmmiuma on insurance policies shall be paid in the mannet provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the inaurance carrier. All izsurance policies and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form aocepLable to I.ender. I.ender ahaJl have the right to hold the policiea and renewals thereof. and Borrower shall promptly furnish to i.ender all renewal noticea and all receipta of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier - and Lender. Lender may malce proof oI loae if not made prompdy by Borrower. Unleas Lender and Borrower otherwiee agree in writing. insurance proceeda ahall be applied to reatoration or repair of the Prdperty damaged, provided auch restoration or repair ia economically feasible and the eecurity of this Mortgage is not thereby impaired. If euch reatoration ar repair ia not economically feasible or if the eecurity of this Mortgage would be impaired, the ineurance proceeda sha1) be applied Lo the awns aecured by thia Mortgage, with the eaceas, if any, paid to Basrower. If the Property ie abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 deya from the date notice ia mailed by L.ender to Borrower that the ineurance carrier off'ers to setUe a claim for ineurance benefits, I,ender is suthorized to coll2ct and apply the insurance proceeda at I.ender s option either to reatoration ot repair of the Property or the sums secnred by thia Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any auch application of pcoceeds to principal ahall not extend or poetpone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of aach inatallmente. If under paragreph 18 hereof the Property ia aoqnired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or soquisition shall pase to Lender to the e:tent of the auma eecured by thie Mortgage immediately prior to euch eale or aoquiaition. 6. Preeervation and Maintenence of Property; Leaseholds; Condominume; Planned Unit Developmenta. Borrower shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioretion of the Property a1nd shaU oomply with the ~.~~:..2LSTlR :S~ Ri;g ~c~ is uz=.~;;s;, ~ru ~...~~~u Ts.~~° 1/:2~r A$P. 1R nT1 ~ i2Li1~ III 3~'~?II~4Tl11I1113III Or $ F!$IIII~ ainit devel~gment, Borrower shall perform a11 of Borrower a obligatione under the declaration or covenante creatingoi governing the condominium or planned unit development, the by-lawe and regulationa of the condominium or plsnned unit development, and conatituent documenta. If a condominium or planned unit development rider ia ezecuted by Borrower and recorded together with thie Mortgage, the oovenante and agreements of euch rider ehall be incorporated into and shall amend and aupplement the covenants and agrePmente of this Mortgage ae if the rider were a part hereof. ~ 7. Protection of Lender'~ Security. If Borrower fails to perform the oovenante end agreen~ents oontained in thie Mortgage, or if any - action or prooeeding is commenoed which mat~rially affecta Lender's intereet in the Property, including, but aot limited to, eminent domain, insolvency, oode enforcement, or arraagements or prooeedings involving a benl~rupt or deoedent, thea I.ender at I.ender's option~upon notice to Barrower may make such appearances. diaburee such sums and take snch aMion as is neceeeary to protect Lender's interest, inclnding, but not limited to, disbureement of reasonable attorney'e fees and entry upon Lhe Property to mel~e repairs. If I.enda required mortgage insurance ae a condition of making the losn eecnred by this Mortgage, Borrower shall pay the premiuuu required to maintain snch insnrance in effec! nntil such time as the requirement for such insurance terminatee in acoordence with Borrower's and Leadds written agreement or applicabk Law. Borrower aha11 pay the amount of all mortgage inenrance premiuma in the manner provided under paragraph 2 hereof. Any amounta disbureed by L.ender persuant to thia paragraph 7, with interest thereon, shall beoome additionel indebtedneas of Borrower secured by thia Mortgage. Unleea Borrower and Lender agree to other terms ot peyment, auch amounfa ehall be payable upon notice firom Lender to Borrower requesting payment thereof, and ehall bear intereat from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleea payment of interest at euch rate would be oontrary to applicable law. in which event such amounta ahall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall require I.ender to incvr any ~penee or take any ection hereunder. sau?.2~ i~ t . . ; , , - _ ~ ~ ~ .Y ~ ~ ~ y I . ~y' a-Ap. _ . ~ _ : ~i. ~ . ''~~v„'6 . . r.~ . _