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Home My WebLink About0985 I~NlFORM CovENAh'TS. Borrower and Lc~der corenant aud agrec as (ollows: ' l. Paymeat oE Principal and lnterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as pro~~ided in the Note. and the principal o[ and inter- est o~ any Future Advances secu~ed by this \lortgage. Y. ~nd~ tor Taxa aad Iasunnce. Subjett to applicable law or co a written rvaiver by Lender, Barrower shall pay to Lender on the day monthly installments ot principal and inte~est arc payable under the hote, until thc I~ote is paid in tull, a aum (herein "Funds') equal to one-cwel[th ot the yearly taxes and assessments Mhich may attain priority_ o~•er this ~lortgage. and ground rents on the Property, i[ any, plus onatwel[th of yearly pmmium installments [or haranl insurance, plus on~tHeltth of 7early premium installme~ts tor mortgage insurance, it any, all as rrasonably esticaated initially and Irom time to time by Lender on the basis o[ assessments and bilis and reasonable estimates thereof. The Funds shail be held in an institution the deposits or accounts of which are insured or guaranteed b~ a Fedenl or statt agency (i~cluding l.ender it I.ender is such an institution). Lender shall apply the Funds to pay said taxa, assesunents. insurance premiums and ground rents l.ender may not chuge [~r so holding and applying the Funds, analyzing uid at- count, or ~•eritying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and ap~ ; plicable !aw permiu Lender to make such a charRe. Borrower and Lender map agree in M~ritiog at the time of execution of ~ this \tortgage that interest on the Funds shall be paid to Bonower, and unless such agreement is made or applicable larv rcquires such intetest to be paid, l.ender shall not be required to pay Borrower any incerest or earnings o~ the Funds. Lender ~ shall give to Borrower, without cha~ge, a~ annuat accounting of the Funds sho~inR credits and debiu to the Funds and the ~ purpose [or which each debit to the Funds wu made. The Funds are pledged as additional secvrity tor the sums secured ! by this \fortgage. 1( the amount of the Funds held by Lender, together with the (uture monthly installmtnu o[ Funds payable prior to the due dates of taxes, assessments, insurance premiums and qround rents, shall exceed the amount required to pay said taxa, assesunenu, insunnce premiums and ground renu as they fall due, such excess shall be, at BorroNer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by I.ender shall not be su[ticient to pa~ taxes, asseuments, insurance premiums and ground rents as they fall due, Borrower i shall pa} to Lender an~ amount necessary• to make up the de(iciency within 30 days [rom the date notice is mailed by Lender to Borrower requating payment thereof. Upon payment in fuil of all sums secured by this \tottgage. Lender shall promptly retund to Borrower anr Funds held by Lender. If under paragraph 18 hereo[ the Property is sold or the Propertr is othen+ise acquired by Lender, Lender shall apply, no later than immediatel~ prior to the sale oE the Property or its acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by thu ~Iortp,age. ~ i 3. Application of Pa~nnents. Unless applicable laM provides otherwist, all pa~~nents recei~•ed by Lender under the \ote and paragtaphs 1 and 2 hereo[ shall be applied b}' Lender first in pa?Tnent oE amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest pa~•able on the I~ote, then to the principal of the :~ote, and then to interest and principal on any~ Future Advances. 4. Chuges; Liens. Borrower shall pay all caxa, assessments and other charqes, fines and impositions attributable co the Property which may atcain a prioricy ocer this \lortgage, and leasehold pa}Tnencs or ground rents, if an~-. in the man- ner pro~•ided under paragraph 2 hereof or, if noc paid in such manoer, b~ BonaNer makinq pa}~ment. Mhen due, direcd} co che pa}'ee thereof. Borrower shall promptlc (urnish to Lender all notices of amounts due under this paraRraph, and in the - e~ene BorroNer shall make payment directly. BorroNer shaU pmmptly furnish to I.ender receipts e~•idencinR such pa}~nents. Borrower shall promptly discharge an~ lien Nhich has priority o~•er this \iortga~e: procided, that Borrawer shall not be m , quired to discharge any such lien so long as BorroMer shall agree in Mriting to the pa~~ment of the obligation secured b~ such ; lien in a manner acceptable to Lender. or shall in Rood [aith contest such lien b}, or detend en(orcement of such lien in, le- _ Ral proceedings which operate to pre~•ene the enforcement of the lien or forfeiture of the Propeny or any part thereof. ~ ~ 5. Hanrd Inwrance. Borrower shall keep the improvements now existing or herea(ter erected on the ProPerty in- ° ~ sured against loss by fire, hazards included Mithin ehe term "extendeci co~•erage", and such other hazards as Lender may re- yuire and in such amounts and [or such periods as Lender ma}~ require: pror•ided, that Lender shall not require that the amount of wch coverage exceed thac amount oE co~•erage required to pa~ ehe sums secnred by this \tortRaRe. The insurance carrier proriding ehe insurance shall be chosen by Borrower subjtct to appro~•al by Lender: pro~ided, i diat such approval shall not be unreasonabl~ r.ithheld. All premiums on insurance policies shall be paid in the manner ~ pro~~ided under parap;raph 2 hereof or. if not paid in such manner, bv Borrower makinR pa~Tnent, when due. directly to che insurance urrier. ~ All insurance policies and reneMals ehereof shall be in [orm acceptable to Lender and shall include a standard mort- qage dause in [acor ot and in torm acceptable to Lender. Lender shall ha~•e the right to hold the policies and rener~als ~ ~ thereof, and Borrower shall Promptlr• furnish to Lender all reneNal notices and all receipts of paid premiums_ In the e~•ent 3 ~ of loss. Borrosrer shall gi~~e prompt notice to the insurance carrier and L.ender. Lender ma}• make proo[ of loss if not made ~ ~ prompdy by Borrower. ~ Unless Lender and Borrower othetwise aRrte in M-riting, insurance procteds shall Fx applied to restoration or repair oE ~ the Property damaged, proeideci such restoration or repair is economically feasible and the securit~~ of ehis ~iortRaqe is not thereby impaired. If such restoration or repair is not economically feasible or if the securit)- of this ~tortgage would be im- j paired. [he insurance proceeds shall be applied to the wms secured br• this ~(ortgage. Mieh the excess, i[ an}-, paid to Bor- row~er. If the PropertY is abandoned by Borrower, or if Borro~.er fails to respond to Lender Nithin 30 da}~s (rom the date ~ notice is mailed bv Lender to BorroNer that the insurance carrier offers to setde a claim tor insurance benefits, Lender is R authorized to collect and appl~ the insurance proceeds at Lender's option either to restoration or repair ot the Property or ~ to the sums serured by this ~tortgaRe. ~ Unless Lender and Borrower otherwise ap;ree in writing, anv such application of prcxeeds to principal shall not extend or postpone the due date of the monthly installments re[erred ta in paraRraphs 1 and 2 hereot or change the amounc of such ~ installments. If under paraRraph 18 hereof the Propert) is acquired b~- Lender, all riRht, ti[te and interest of Borrower in } ~ and to am~ insurance policies and in and to the proceeds thereof resultinR from damage to the Propert~ prior to the sale or ~ ~ acyuisition shall pass to I.ender to the extent oE the sums secured b~ this ~tortRage immediately prior to suth sale or ~ acquisition. ~ ~ 6. Preaervation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit De~elopments. Borrower s1~a1! keep the Property in good repair and shall not commit waste or permit impairmcnc or deterioration of [he Property ~ and shall comply with the pro~•isions ot any lease if this ~tortqage is on a leasehold. If chis ~tortRaqe is on a unit in a - condominium or a planned unit de~•elopment, Borrower shall Perform all of BnrroMer's obliRations under the dedantion ~ or co~•enants veatinR or governing the condominium or planned nnit de~~elopment, the by-laws and regulations of the condo- ' minium or planned unit dea•elopment, and constituent documerrts. If a condominium or planned unit de~•elopment tider is 4 executed bv BorroMer and recorded together r. ith this ~fortgage, the co~•enants and agreements of such rider shall be in- corporated into and shall amend and supplement the cocenants and agreemenu ot this ~tortqay,e as i( the rider were a part +r ~ hereof. ~ = 7. Protection oE Lendet's Security. If Borrower fails to perform the corenants and agreements contained in this ~ ~ ~(ortgage, or if am~ action or proceedinR is commenced which macerially afFats Lenders interest in the Propert~•. including. but nnt limited to, eminent domain, insol~~enc}, code enforcement, or arrangements or proceedinp,s in~•ol~•inR a bankrupt ~ or decedent, then Lender ae Lender's option. upon notice to Borrower, may make such appearances, disburse such sums ~ ~ and take such action as is necessar} to protect Lender's interest, indudinR, but not limiteci to. disbursernent of reasonable ~ attorne~'s fees and entr} upon the Property to make repairs. if Lender required mortRage insurance as a condition oE : ~ making the loan secured by this \(ortqage. BorroNer shall pa~~ the premiums requirecl to maintain wch insurantt in et- ~ tece until such time as the requirement tor wch insurance terminates in accordance ~.ith Borrower's and Lender's written s ~ ~ ° ~Ofi ~ < <'84 ~ ~ s~~~_ ~ ~ ~ ~ _ ~ y~ . . _ . ~T~