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Home My WebLink About0477 Borrower and Leader covenant and agree a• follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest oa the indebtednea evidenced by the Note. prepayment and late charges as provided in theNote, and the principal of and interest on any FLture Advances secured by this Mortgage. Z. Funds for Taws and Iruuranoe. Subject to applicable law er to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and ingest are pelyable under the Note. until the Note is paid in full, a sum (herein "Funds' equal to one- twelRh ofthe yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, pleaone- twelfth ofyearly premium installments for hazard insurance, plus oao-twelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fhads'shaU bs held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or-State agency - - - ' ~IUWUWil~ LCiluq[ li Loi?uoi ?O OYW! sal ~!lOY~YMViij. i.io~i~C~ ea.aui .i~:~iy «:c : c:::::c. MY.i c.uu KaitiB, .1H'a c~a$~3Cnt$, Infittr8n~ pT~miam5 an ground rents. Lender may rat charge for so holding sad applying the Funds, analysing said account, or verifying and compiling said assessments and biW. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower sad Leader may agree in writing at the time of a:ecution of this Mortgage that interest oa the Funds shall be paid to Borrower. and unless such agreement is made or applicable law requires such inter+ebt to be paid. Lender shall not be required to pqy Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fonda and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the Inds heldby Lender, together with We future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shall ezoaed the amount required to pay said to:ea, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowds option, eiWer promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. U the amount of the Fonda held by Lender shall not be sufficient to pay fazes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to-Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Uunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, say Fonds held by Lender at the time of application as a credit against the soma secured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise. all payments received 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 interest payable on the Note, then to the principal of the Note, and then to interest and principal on any I~ture Advances. 4; Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. 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 shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest each lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL 5. Hazard Insurance. Borrower shall keep the improvements now ezisting or hereafter erected on the Property insured against loss by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may_require and in such amounts and for such perlVlla as LCUYC[ Wtly [Ct~WtO: ~IlOtauRa, uaa~ a~cuuw e.aata u~~ •oywa.. o...,.. w ~6:....... ..~...........e W,.^.°. w.^.~ ........j..........> state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if - not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. AU insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause infavor of - and inform acceptable 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 receipts of paid premiums. In the event of loss, Borrowershall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the ezcese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to bender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or We soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments refeYred to in paragraphs 1 and 2 hereof or change the amount of such installments. U under paragraph 18 hereof the Property is acquired by Lender, sU right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or aequiaition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to arch sale or aegnisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and eonetituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, We covenants and ; agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. T. Protection of Lender's Security. U Borrower fails to perform the covenants and agreemmta contained in this Mortgage, or if aqy action or proceeding is eommenoed which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendda option,npon notice to Borrower may make arch appearances, disburse such sums and take such action as is necessary to protect Lender's interest, f including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Properly to make repairs. U Leader required ~ mortgage insurance as s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Leadds 4 written agreemmt or applicable Law. Borrower shall pry the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant b this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower sad Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of dubarsemeat at the rate payable tom # time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall 3 require Lender to incur any ezpense or take any action hereunder. a EOJK 3~O P1~CE 477 ~