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Home My WebLink About2163 i~KIFORM COYF\APiTS. Borrower and Lender covenant and agree as tolloaas: 1. Payment of Principal and Interese. Borroaa•er shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Dote. prepayment and late charges as provided in the \ote, and the principal of and inter- est on arty Future Advances secured by this Mortgage. ' 2. Funds [or Taxes and Insurance. Subject to applicable law or to a written waia•er by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth o[ the yearly taxes and assessments which may attain priority oa•er this Mortgage, and ground rents on the Property, it atty. plus onatwel[th o[ }•early premium itraiallmerrts for hazard insurance, plus one-twelfth 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 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 i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and apph•ing the Funds, analyzing said ac- count, or aerifying and compiling said assessments atref bills, unless Lender pays Borrower interest on the Funds and ap- 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 Funds 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 of earnings on the Funds. Lender ; shall give to Borrower, without charge, an annual accounting nt the Funds showing credits and debits to the Funds and the purpose for which each debit to the Furtcis was made. The Funds are pledged as acfditiurral security for the sums secured by this Mortgage. I[ the amount of the Funds held by Lender, together with the future 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 to Borrower or credited to Borrower on monthla• installments of Furrclc I( the amount of the Funds held by Lender shall not be sufficient to pay taxes, 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 in full of all sums secured by this ~liortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Leader, Lender 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 o[ application as a credit against the sums secured by this Mortgage. 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 applieef by lender first in payment of amounts pa}'able to Lender by Borrower under paragraph 2 hereof, then to interest payable orr the \ote, then to the principal of the \ote, and then to interest and 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 over this Mortgage, and leasehold payments or ground rents, it any, in the man- ner proaided under paragraph 2 hereof or, it not paid in such manner, 1»• 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 ea•cnt Borrower shall make payment directh•, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly dixharge any lien which has priority oa•er this Mortgage: proa•icfecl, that Borrower shall not be re- quired to dixharge 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 such lien by, or defend enforcement of such lien in, le- gal proceedings which operate to prea•ent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hanrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in-~ sured- against loss by fire, hazards included within the term "extended coaerage", and such other hazards as Leader may re- ~ quire and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of such coa•erage exceed that amount of coa•erage required to pay the sums secured b}• this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval b}• 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. it not paid in such manner. by Borrower making paytrrent, when due, directly to the insurance carrier. All insurance policies and renewals therm( shall be in form acceptable to Lender and shall include a standard wort- ! gage clause ip favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thermf, and Borrower shall prompth• furnish to Lender all renewal notices and all receipts of paid premiums. In the event ~ of loss, Borrower shall gia•e prompt »otice to the insurance carrier and Lender. Lender mac make proof of loss 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, proaided such restoration or repair is economically feasible and the security of this Mortgage is not s thereby impaired. If such restoration or repair is not economically feasible or if the securita• of this Mortgage would be im- paired, the insurance proceeds shall be applied to the sums secured by this 3fortgage, with the excess, i[ any, paid to Bor- rower. If the Property is abandoned by Borrower, or if Borrower [ails to respond to Lender within 30 days from the date § notice is mailed by Lender to Borrower that the insurance carrier often to settle a claim for insurance benefits, Lender is authorized to collect and apph• 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, anv such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred tr, irr paragraphs 1 and 2 hereof or change the amount of such installments. if under paragraph 18 hereof the Proper(}' is acquired by t.errder, all right, title acrd interest of Borrower in ~ and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this 3fortgage immediately prior to such sale or r acquisition. ~ 6. Preservation and 3taintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower s shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comph• with the provisions of am• lease if this 3fortgage is on a leasehold. It this 3fortgage is on a unit in a condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under the declaration or coaenants creating or governing the condominium or planned oral[ deaelopment, the by-laws and regulations of the condo- minium or planned unit development, and constituent documents. I[ a condominium or planned unit development rider is executed by Borrower and recorded together with this 3fortgage, :he covenants and agreements of such rider shall be in- corporated into and shall amend and supplement the covenants and agreements of this 3ortgage as if the rider were a part hereof. 7. Protection of Lender's Security. if Borrower fails to perform the coaenants and agreements contained in this i 3fortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insokency, code enforcement, or arrangements or proceedings inaoh•ing a bankrupt F 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 not limited tn. disbursemrnt of reasonable attorney's fees and entry upon the Propern• to make repairs. If fender required mortgage insurance as a condition of making the loan secured by this 3fortgage. Borrower shall pay the premiums required to maintain such insurance in ef- fect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written ' 3r, ~r ~~09 ~aCE ~i SQ ~ -