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Home My WebLink About1371 lrNlroA~t COVENANTS. Borrower and Lender covenant anti agree as follows: 1. Payment of Principal aad Interest. Borroas•er shall promptly pa}• when due the principal o[ and interest on tht indebtedness evidenced by the Dote, prepayment and late charges as proaided in the Note, and the principal of and inter- est on any Future Advances secured by this Mortgage. 2 Fonds for Taxa and Insurance. Subject to applicable law or to a written waia•er by Lender, Borroaa•er shall pay ; to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in ! [ull, a sum (herein "Funds') equal to one-twelfth o[ the yearly taxes and aasessments which may attain priority over this Mortgage. and ground rents on the Property, i[ any, plus one-twelfth o[ yearly premium installments for hazard insurance, plus one•twel[th of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from time to time by Lender on the basis o[ assessments and bills and reasonable estimates thereof. ~ The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, y insurance premiums and ground rents. Lender may not charge for so holding and appl}•ing the Funds, analyzing said ac- i count, or aeritying and compiling said assessments acrd bills. unless Lender pays Borrower interest on the Funds and ap• i • plicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Furrds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay 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 Furtds 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. - I[ the amount of the Funds held by Lender, together with the [uture monthly installments of Funds payable prior to the due dates of taxes, assessments, 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 co Borrower or credited to Borrower on monthl}• installments of FuncEs. if the amount o[ the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days [rom the date notice is mailed by Lender :to Borrower requesting payment thereo[. Upon payment in full of all sums secured by this 1ltortgage, Lender shall promptl}• refund to Borrower any Funds held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired b}• Lender, Lender shall apply, no later than immediately prior to the sale o[ the Property or its acquisition b}• Lender, any Funds held by Lender at the time of application as a aedit against the sums secured by this Mortgage. s 3. Application of Payments Unless applicable law provides otherwise. all payments receiaed by Lender under the \ote and paragraphs 1 and 2 hereof shall be applied b~ Lender [first in payment o[ amounts payable to Leader by Borrower under paragraph 2 hereof, then to interest pa}•able ort the Note. then to the principal of the Note, and then to interest and F i principal on any Future 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 oa•er this ~(ortgage, and leasehold payments or ground rents, i[ am, in the man- nee proaided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the pa}•ee thereof. Borrower shall promptly furnish to Lender all notices of amounts clue under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptl} furnish to Lender receipts ea•idenung such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: proyiciecl, that Borrower shall not be re- i quired to discharge any such lieu so long as Borrower shall agree in writing to the payment o[ the obligation secured by such lien in a manner acceptable to Lender, or shall in g«xl faith contest such lien b}•, or defend enforcement of such lien in, le- t gal proceedings whiclt operate to prea•ent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or herea[ter erected on the Property in- sured against loss by fire, hazards included within the term "extended coaerage", and such other hazards as Lerrcler may te- quire and in such amounts and for such periods as Lender may require; proaided, that Lender shall not require that the amount o[ such coverage exceed that amount o[ coaerage required to pay the sums secured by this Mortgage. 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 prerrrittms ort insurance policies shall be paid in the manner proaided under paragraph 2 hereof or. if not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender anti shall include a standard mort- ~ gage clause in faaor of and in [orm acceptable to Lender. Lender shall haa•e the right to hold the policies and renewals thereof, and Borrower shall promptly furnish eo Lender all renewal notices and all receipts of paid premiums. In the eaent of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma}• make proof pf loss if not made t promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, proaided 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 i[ the security of this Mortgage would be im- paired, the insurance proceeds shall be applied to the sums secured by this Jortgage, with the excess, it any, paid to Bor- l rower. If the Property is abandoned b}• Borrower, or if Borrower [ails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower chat the insurance carrier offers to settle a claim for irssurartce benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums 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 referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Iroperty is acyuired by Lender, all right. title and interest of Borrower in and to any insurance policies and in and to the proceeds theren[ resulting from damage to the Property prior to the sale or acyuisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. 6. Preservation and :Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower _ shall keep the Property in good repair and shall not commit waste or permit impaitmertt or deterioration of the Property F and shall comply with the provisions o[ am• lease if this Mortgage is on a leasehold. It 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 governing the condominium or planned unit development, the by-laws and regulations o[ the condo- minium or planned unit deaelopment, and constituent documents. a condominium or planned unit deaelopment rider is executed by Borrower and recorded together with this \[ortgage, the coa•enauts and agreements of such rider shall be in- corporated into and shall amend and supplement the coaenants and agreements o[ this Mortgage as i[ the rider were a part 1 hereof. s 7. Protection of Lender's Security. If Borrower fails to perform the coaenants and agreements contained in this 1 Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, insohenc}•, code enforcement, or arrangements ~r proceedings inyohing a bankrupt or decedent, then Lender at Lender's option: upon notice to Borrower, may make such appearances, disburse such sums and-take such action as is necessary to protect Lender's interest, including, but nit limited to. disbursement of reasonable attorney's fees and entry upon the Property to make repairs. I[ [.ender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in et• feet until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written a g;; Dr ~US ra;'= ~ ~ 70 I a z. ° ...r