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Home My WebLink About0489 . ~ • ; ' I~\IFORN COVENAN73. BOROWtf and l.cndcr corrnant ai~d aRrec as tolloN~s: 1. Paytnent o( Principal and lnterrst. Rorro~+•er shall prompdy ~,a~ when due thc principal o[ aud intciest un the indebtedness evidcnccd by the i~'ote, prepayment and latc d?arges as pro~•idect in the ~l~utr, and the principal uf and inter- est o~ a~~y Future Advanca securect b~• this \(ortgage. 2 fl~nds tor Taxes and Insurance. Subject to applicgble law or to a written Nai~•e~ br I.ender. BorruM•r~ shall pay to Lcnder on the day monthly installments of priucipal and interest are payabk under the Note, until the \otc is paid in ~ full, a~um (hercin "Funds") equal to oi?e-tNel(th ot the.~•ea~ly taxes and asse~~mc~~ts wliich may attai~ priurity ovcr this Alortgage, and grouad rrnts on the !'roperty, it any, plus onrtwelfth o( ~•early premium in+tallments (or har.~rd insurance. plus onc~twel[th oE }~tarly pmmium iustallmrots tor mortgage insuratuc, ii a~~y, all as rrasnnably estimated iuitiall~• ancl (rom timc to time by Lender on the basis o( assewneuts and bills and rtaso~~able estimates therco(. The Funds shall be held in an i~~stitution the deposits or accounts o[ which are insured or guarant~ed by a Federal or state agency (including Lender i[ Lender is such an institution). l.encler sl~all apply [he Fu~uis to pay said tares, assessments, insuranc~ premiums and ground rents. Lender may not chargt (or so holding and appl~•ing the Funds, aual~~:inq said ac- count, or verifying and co~piling said asseuments ancC bills, unleu I.ei~der pays Borrower interest on the Funds and ap- plicable law permits Lender to make such a charRe. Borrowt~ a~~d Lender may aqree in Mritiug at the time ot execution oE thia Atortgage that interat on the Funds shalt be paid to Borrower, and unless such aRreement is made or applicable law requires suth intetest to be paid, 1.c~Kler shaU not be required to pay Borror.er any interest o~ earninqs on the Funds. Lender , shall gi~e to Botrower, without charge, an annual acrnut~ting o[ the Funds showiuR neclits and debits to the Funds and the purpose for which each debit to the Fu~iets was made. The Funds are pledged as aciditional security for tl~e sums secured by this Atortgage. lE the unount o[ the Funds held by Lender, toqether with the [uturc monthl) installmenu o[ Funds pa~•able prior to the due dates of taxes, assessments, insunnce premiums and qround renu, shall excec~ci the amount required to pay said taxes, assessments, insurance premiums and qround renu as they tall due, such excess shall be, at Borrower's option, either promptly tepaid to Bonower or credited to Borrower on monthl~• installments o( Funct~. 1f the amount of the Funds held by L.ender shall not be sufticient to pay taxes, assessments,•insurance premiums and qrounci ret~ts as they [all due, Borrower shall pay to L.ender any amount necessarv to make up the deficiency ~vithin 30 days trom the date notice is mailed by Lender to Borrower requesting payment thereoL - Upon paymrnt in full o[ all sums secund b~ this \lortgage, Lender shall promptl~~ re(und to BorroNer any Funds . held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherMise acquirecl by i.ender, I.ender shall apph•, no later than immediately prior to the sale of . the Propert}• or its acquisition by L.end~r, an~ Funds held by Lender at the time oE application as a credit ap,ainst the sums secured by this \tortgaqe. 3. Application oE Parments. Unless applicable law pro~•ides othetwise, all pa~~nenu recei~•ed by Lender under the t~ote and paragraphs 1 and 2 hereof shall be appliecl bp Lender first in pa~ment of amounts pa~•able to Lcnder by Borrower under paragraph Y hereof, then to interest payable ou the Note, then to the principal o[ the Note. and then to interest and principal on any Future Advanca. 4. Charge~ Liens. Borrower shall pay all taxes, assessmrnts and other charqes, fines and impositions attributable eo the Property which may attain a priority o~•er this \tortgage, and leasehold pa~•menu or ground rents, i[ a~i}'. in the man- ner pm~•icled under paragraph 2 hereof or, if not paid in such manner, b~ Borroher makinR payment, when due, directly to ihe ~ayec thereot. Borrower shall prompd~ (urnish to Lender al! notices ot amounts due under this paraRraPh, and in the e~~cnt ~iorroMer shall make payment direcdy, Borrower shall promptly (urnish to Lereder receipts e~~iciencin~ such payments. Borrower shall prompdy discharqe an}• lien which has priority o~•er this ~tortqaqe: pro~•ideci, that Borrower shall not be r~- yuired to dixharge any such lien so lonq as Borr„wer shall agree in writing to the pa}ment oi the obligation secured by such lien in a manner acceptable to Lender, or shall iu prx~d laith co~itest such lien by, or de[end en(orcement of such lieo in, le- Ral pr«eedinRs which operate to- pre~~ent the en(orcement ot the lien or (orfeiture o[ the Propert~ or any part thereof. 5. Hanrd Insunnce. Borrower shall keep the imptovements now existing or hereatter erected on the Property in- sured against laa by fire, hazards included within the term "extended co~•erage", and such other hazards as Lender may re- quire and in such amounts and tor such peri«Is as L.euder ma~• require; pro~~ided, that Lender shall uot require that the amount of such coverage exteed that amount oE co~•erage required to pay the sums secured by this \iortyaRe. The insunnce carrier pro~~iding the insurance shall be chosen by Borrower subject to appro~•al by I.ender: provided. ' that such approval shall not be unreasonabh~ Mithheld. .-~11 prrmiums on insurance policies shall be paid in the manner ! pro~•ided w~der paraRraph 2 hereoE or. iE not Paid in such manner, by Borrower makiuR pa~lnent, Mhen due, directly to ! thc insurance carrier. - E All insurance policies and renewals thereof shap be in form acceptable to Lender and shall include a standard mort- { gage dause in tacor ot and in (orm acceptable to Lender. I.ender shall ha~•e the riRht to hold the policies and renewals thereo(, and Borrower shall Promptl} [urnish to Lender all reneNal notices and all rcceipts o( paid premiums In the e~ent ~ of loss; Borrower shall gi~•e prompe notice to the insurance carrier and I.ender. Lender may make proot o[ loss if not made ~ promptly by Borrower. . € Unless Lender and Borrower otherwise aRree in Mrieing, insurance proceeds shall be applied to restoration or repair of a the Property damaged, provided such restoration or tepair is economically~ feasible and the securit~ of this \fortgage is not ~ thereby impaired. I[ such restoration or repair is noe ecouomically feasible or it [he securit}• of this ~tortgap,e would be im- ~ paired, the insurance proceeds shall be applieci to the swns secured by this ~[ortgaqe, with the excess, iE any, paid eo Bor- roh•er. If the Ptoperty is abandoned by Borrower, or iE Borrow~er fails to respond to Lender within 30 da}•s Erom the date notice is mailed by I.ender to Borrower that .the insurance tarrier offen to settle a claim for insurance bene(iu, LendeT is authorized to collect and appl~• the insurance proceeds at Lendcr's option either to restoration or repair of the Property or ~ to the sums secured by this \fortga~;e. Unles~ Lender and Borrower otherwise aqree in writing, any sueYi application of proceeds to principal shall not extend or postpone the due date of the monthl}' installments re[erred ta in paraRtaPhs 1 and 2 hereof or change the amount of such installments. It under paraqraph 18 hereof the Property is acquired by Le~~der, all riRht, title and interest oE Borrower in ~ and to an~• insurance policies and in and tq the pr~xecds thereof resultinq from damage to the Propert}• prior to the sale or ~ acyuisition shall pass to Lender to the extent of ehe sums secured by this ~fortgage immectiatel~ prior to such sale or ~ acquisition. - ~ 6. Presercation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit De~dopments. Borrower ~ shall keep the Property in good repair and shall not commit wasre or permit impairmcnt or deterioration of the Propert~• " and shall comply wich the provisions o( am• lease if this ~tortRage is on a leasehold. If this J(ortqaqe is on a unit in a ~ condominium or a planned anit de~•elopment. Borrower shall perform all of Borrower's obligations under the deelaration ~ t or corenants crnting or go~~erninq the condominium or planned un%t development, the b~-laws and regulations of the condo- minium or planned unit development, and constituent documer~ts. I[ a condominium or planned unit decelopment rider is executed by BorroMer and recorded toRether with this ~fortgaqe, t:~e covenants and apreements of such rider shall be in- corporated into and shall amend and supplement the covenant~ anc, agreements of this ~IortgaRe as if the rider Nere a part % hereof. • - ~ 7. Protection of Lender's Securiq. !f Borrower- fails to per(orm the co~~enants and agreements contained in this ~ ~fortqage, or if any action or proceeding is rnmmenced which materially a(tects Lender s interest in the Property, including, ~ but not limited to, eminent domain, insol~•ency. caie en/orcement, or arranqements or proceedinp,s im•ol~~ing a bankrupt ~ or decedent, then I.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums ~ and take such action as is-neceuary to protect I.ender's interes?, including, but not limited to, disburxment o( reasonable ~ attorne~'s fees and entry upon the Property to make repairs. It Lender required mortRage insurance as a condition oE , making the loan secured by this ~tortRaRe. Aorrower shall pa}' the premiums required to maintain wch insurance in ef- ; (ecc until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders written ~ ~ ~ ~ °seoK 303 ~ ~acE 48$ ~ = : - . ~ r ~~s : : ~ ~ t ~ ` ` _ -a~a~'~'~ _ ,-i ~ r~^<:.v~"~-,.,...~. -