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Home My WebLink About0102 ~ UN~FORM CoveN~NTS. Borrower and Lender covcnant ~nd agrec as fallows: l. Parment of Principal aad Interat. Borrower shall promptly pay when due the pri~cipal of and interest on the indebtedneu evidenced by the Note, prepsyment and late charges as provided in the Note, and the principal of and intercst on any Future Advances secured by this Mortgage. 2. Fnnds ior Tues aad In~unace. Stibject to applicable law or to a written waiver by Lender, Borrower shall pay to L.ender on Ihe day monthly installments of principal and interest are payablc under the Note. untii thc Note is paid in lull, a sum (herein "Funda") equal to ono-twelfth of the yearly taxes and assessmcnts which may attain priority ovcr this Mortgage, and ground rents on ttie Pmperty, if any, plus on~-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments [or mongage insurancc. it any, all as reuonably estimated initially and trom ti~ne to time by Lender on the basis of assessments and bills and reasonable estimata thereof. The Funds shall be held in an institution the deposits or accaunts of which are insurcd or guaranteod by a Federal or state agency (including l.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. ~ender may not charge (or so holding and applying the Fun~is, analyzing said account, ur verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower a~d Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law rcquires such i~terest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Barrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxa, asseuments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds held by Lender shall not be suflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shaU 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 in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by I.cnder. [f under paragraph 18 hcreof the Rroperty is sold or the Property is otherw•ise acquired by Lender, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this vlortgage. 3. Application of Payments. Unless applicable law proviJes otherw~ise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall bc applied by l.cnder first in paymcnt of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest pa)°ablc on the No~e, then to thc principal of the Note, and then to interest and principa) on any Future Advances. 4. Charges; Lkas. BorroWer shall pay all taxes, asscssments and othcr charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and feasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower mal~ing payment, when due, directly to ihe 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. $orrower shall promptly fumish to Lender receipts evidcncing such payments. Borrower shall promptly discharge any lien which has p: iority uver this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall aprce in writing to the pay~ment ot the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest ~uch lien by, or defe~d enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the I~en or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrow•er shall keep the improvements noH etisting or hereafter erected on the Property insured against loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of 'i such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing Ihe 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 i ~ insurance cazrier. ; All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ~ clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and reneKals thereof. and Borrower shail promptly furnish to Lender all renewal notices and all receipts of paid premiums. In.the event of loss, Borrower shall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if not made prompdy ~ by Borrower. ~ Unless Lender and Borrovver otherw•ise agree in writing, insurance pra:eeds shall be applied to restoration or repair of the Propeny damaged, provideJ such restoration or repair is ecunomically 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 insuraace proceeds shall be applied to the sums secured by this Mortgage, with the ezcess, if any, paid t to Borrower. If the Property is abandoned b~~ Borrower, or i( Borrower fails to respond to Lender within 30 days from the ~ date notice is mailed by l,ender to Borrower that the insurance ~arrier ofTers to settle a claim for insurance benefits, Lender is aut6orized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property ~ or to the sums secured b~ this Mortgage. ; Unless Lender and Borrow•er other.~ise agree in writing, any such application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installments rcferred to in paragraphs 1 and 2 hercof or change the amount of t such installments. If under paragraph 18 hereof the Property is acyuired by~ Lender, all right; title and interest of Borrower ~ in aod to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale i or acquisition shall pass to Lender to the extent of the sums secured by this Murtgage immediately prior to such sale or ' acquisition. # 6. Preserration aod Maintenance of Property; l.e~seholds; Condominiums; Planned Unit De~•dopments. Borrower ~ shall keep the Propeny in good repairand shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a - condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or govern~ng the condominium or p~anned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit Jevelopment rider is executed by Borrower and recorded together H~ith this Mortgage. the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of th~s Mortgage as if the rider ~ were a part hereof. '7. Protection of Lender's Security. If Borrow~er failc to perform the covenants and agreements contained in this - Mortgage, or if any action or proceeding ~s commence~l K•hich materially afiects Lender's interest in the Property. ~ including, but not limited to, eminent domain, insolvenc}•, code enforcement. or arrangements or proceedings involving a bankrupt or decedent, then I.ender at Lender's option, upon notice to Borrower, ma}' make such appearances, disburse such ~ sums and take such action as is necessary to protect Lender's ~nterest, including. but not limited to, disbursement of ~ reasonable attorney's fees and entry upon the Property to makc repairs. If Lender required mortgage insurance as a ~ condition of making the loan secured b}~ this Mortgage. Borrower shall pay the premiums required to maintain sucb insurance in effect until such time as the requirement for such ~nsurance terminates in aceordanee with Borrower`s and ; ~ ; 3CG! ~V5 : Ai;~ ~~z ~ ~ ~ ~